<PAGE>
Semiannual Report September 30, 1998
EATON MUTUAL FUNDS PHOTO OF STONE
VANCE FOR PEOPLE WALL WITH
LOGO WHO PAY "EDUCATION"
TAXES SIGN
California
Connecticut
Florida
Massachusetts
Michigan
New Jersey
New York
PHOTO OF NIGHT TIME Ohio
TRAFFIC IN EXPRESSWAY Pennsylvania
EATON VANCE
LIMITED
MATURITY
MUNICIPALS
FUNDS
PHOTO OF
SUSPENSION BRIDGE
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
LETTER TO SHAREHOLDERS
[PHOTO OF T. FETTER]
Thomas J. Fetter,
President
The municipal bond market has posted solid returns in 1998 in an economy
characterized by slower growth and continued low inflation. Second quarter GDP
rose at a modest 1.8% annualized rate, and was followed by a 3.3% pace in the
third quarter, a figure that likely overstates true growth. Meanwhile, the
annualized inflation rate has declined to around 1%. While there has been some
pressure on wages and benefit costs, commodity prices have continued to decline
dramatically due to a slowing world economy and slackening demand. As a
consequence, the Federal Reserve maintained an increasingly accomodative
interest rate policy (it lowered the Federal Funds rate to 5.25% in late
September; 5.00%in mid-October; and 4.75% in mid-November). Against that
backdrop, municipal bonds have turned in positive returns, with the Lehman
Brothers 7-Year Municipal Bond Index* - an unmanaged index of
intermediate-maturity municipal bonds - rising 7.9% during the year ended
September 30, 1998.
After a generation of deficit spending, the Federal budget will register a
surplus in fiscal year 1998
Bolstered by rising tax receipts, falling interest costs, and a renewed fiscal
discipline on the part of policy makers, the federal budget will register a
surplus this year for the first time in a generation. The surplus may result in
lower Treasury bond issuance in coming years, which could greatly improve the
outlook for interest rates.
With refundings producing heavy municipal supply, municipal bonds now offer
unusually good value
The past 12 months have been characterized by a continued wave of refundings, as
municipal issuers have redeemed high-coupon older bonds and replaced them with
lower-coupon bonds. The surge in supply has restrained the performance of
municipals relative to Treasury bonds.
Municipal bonds yield nearly equal Treasury yields
4.97% 7.77%
30 Year AAA rated Taxable equivalent yield
General Obligation (GO) Bonds* in 36% tax bracket
4.98%
30 Year Treasury bond
* Principal and interest payment 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, 1998.
* Past performance is no guarantee of future results.
* Source: Bloomberg L.P.
As a result, municipal yields represented nearly 100% of Treasury yields at
September 30, according to Bloomberg, L.P. That ratio is very high by historical
standards and suggests that municipals may represent uncommonly good value. That
is an important consideration, especially given the recently overvalued status
of some other asset classes.
Following an extraordinary three-year run of 20%-plus annual returns, the stock
market has entered a period of severe volatility. Moreover, the slowdown in Asia
and the economic uncertainty in emerging markets like Russia have clouded the
outlook for corporate profits, while prompting many investors to diversify their
portfolios further with bond investments. Given their attractive valuations
relative to other fixed-income vehicles, municipals are receiving increased
attention. And, of course, municipal bonds remain a good way to lower one's
income tax burden. For those reasons, we believe that municipals continue to
merit strong consideration from tax-conscious investors.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter,
President
November 9, 1998
*It is not possible to invest directly in an Index.
Mutual fund shares are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested.
2
<PAGE>
EATON VANCE CALIFORNIA LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[PHOTO OF C. CLEMSON]
Cynthia J. Clemson,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
. California's well diversified $1 trillion economy would rank seventh among the
world's nations. Moody's Investment Service recently upgraded the state's
credit rating for the first time in nine years, to Aa3 from A1.
. The state continues to outpace the U.S. in employment and personal income
growth. Unemployment, which hit an 8-year low of 5.6% in July, stood at 6.0%
in September. Strong job growth continued in the construction and business
services sectors, while high-tech manufacturing employment slowed due to weak
Asian economies.
. In August, Gov. Pete Wilson signed legislation for the largest tax cut in
state history, worth $3.6 billion. Most comes from a 25% reduction in the car
tax, worth $3.2 billion, with an additional $400 million in targeted tax
relief to stimulate economic growth.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A and Class B
shares had total returns of 4.0% and 3.8%, respectively./1/ For Class A and
Class B, these returns resulted from a rise in net asset value (NAV) per share
to $10.52 on September 30, 1998 from $10.33 on March 31, 1998, and the
reinvestment of $0.216 and $0.197 per share, respectively, in tax-free
income./2/
. Based on the Fund's most recent dividends and an NAV on September 30, 1998 of
$10.52 per share, the Fund's distribution rates were 4.47% and 3.74%,
respectively./3/
. The SEC 30-day yields for Class A and B shares at September 30 were 3.56% and
2.90%, respectively./4/
Management Update
- --------------------------------------------------------------------------------
. Management pursued a barbell approach, balancing insured bonds/*/ for
liquidity and performance with non-rated bonds that provided attractive
yields. Heavy new-issue volume enabled management to align the Portfolio's
weightings more closely with those of the California market.
. Supply was especially strong within the hospital and housing development
sectors. With the state's economy rebounding from a prolonged slump,
developers are responding to a pent-up demand for new housing.
. The Portfolio avoided industrial development bonds involving companies whose
fortunes may be tied to the weak Asian economy. Separately, the Portfolio took
advantage of heavy new supply to improve call protection by trading bonds with
shorter calls for those with 2008 calls.
Your Investment at Work
- -------------------------------------------------------------------------------
City of Irvine
Assessment District (Northwest Irvine)
Improvement Bonds - Group Two
. The Improvement Bonds were issued to help finance infrastructure improvements
made by The Irvine Company on a 749-acre parcel slated for development.
. The proceeds of the Group Two bonds were used to convert a portion of a
previous issue of adjustable-rate bonds to fixed-rate bonds.
. With its 5.4% coupon, the bond, which matures in 2010, provides the Portfolio
a highly liquid investment in a high-quality issuer.
________________________________________________________________________________
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ A portion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments. *Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 7.5% 6.7%
Five Years N.A. 4.0
Life of Fund/+/ 5.4 5.2
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 5.1% 3.7%
Five Years N.A. 4.0
Life of Fund/+/ 5.0 5.2
/+/Inception date: Class A: 6/27/96; Class B: 5/29/92
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Escrowed/Prerefunded 22.0%
Insured - General Obligations* 7.1%
Insured - Transportation* 6.9%
Electric Utilities 6.8%
Insured - Electric Utilities* 6.6%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 34
Duration 6.8 Yrs.
Effective Maturity 15.5 Yrs.
Average Rating AA
Average Call 8.02 Yrs.
Average Dollar Price $102.83
3
<PAGE>
EATON VANCE CONNECTICUT LIMITED MATURITY MUNICIPALS FUND as of September 30,
1998
INVESTMENT UPDATE
[PHOTO OF W. AHERN]
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
. Connecticut registered strong job growth over the past year. The state's
jobless rate, at 3.9% in September 1998, marked a major improvement from the
4.9% rate a year earlier. The housing sector was especially strong, with new
building permits in the first half of 1998 rising 15% above the same period in
1997.
. Drugs and biotechnology remain prime generators of growth and jobs in
Connecticut. Home to four major pharmaceutical companies, the state has
encouraged public-private sector partnerships, including a $216 million
investment by Pfizer, Inc. for new lab and office space that should create
2,000 new jobs.
. Connecticut businesses may be following the Asian economic problems closely.
Connecticut's export trade with Asian nations amounted to $1.76 billion in
1997, representing 23% of the state's total export volume.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A and Class B
shares had total returns of 3.2% and 3.1%, respectively./1/ For Class A and
Class B, these returns resulted from a rise in net asset value (NAV) per share
to $10.23 on September 30, 1998 from $10.11 on March 31, 1998, and the
reinvestment of $0.203 and $0.186 per share, respectively, in tax-free
income./2/
. Based on the Fund's most recent dividends and an NAV on September 30, 1998 of
$10.23 per share, the Fund's distribution rates were 4.32% and 3.62%,
respectively./3/
. The SEC 30-day yields for Class A and B shares at September 30 were 3.16% and
2.53%, respectively./4/
Management Update
- --------------------------------------------------------------------------------
. The Portfolio continued to pursue a relative-value approach, looking for value
in relatively cheap sectors of the market. We also continued to improve call
protection, thereby adding potential for capital appreciation without
sacrificing yield.
. In a generic market dominated by insured bonds, the portfolio focused on
higher-yielding opportunities in the non-rated segment of the market. The
hospital sector provided especially compelling values.
. Education bonds represented the largest weighting in the Portfolio at
September 30. The Portfolio focused on lower-rated investment-grade bonds of
well-regarded issuers, including Fairfield University and Quinnipiac College.
Your Investment at Work
- --------------------------------------------------------------------------------
Eastern Connecticut
Resource Recovery Authority
Wheelabrator Lisbon
. These bonds were issued in 1993 to finance the design and construction of a
500-ton-per-day solid waste disposal project in Lisbon to be operated by a
subsidiary of Wheelabrator Technologies, Inc.
. The excess energy produced by the processing of waste at the facility will be
sold to Connecticut Light and Power.
. The bonds have a coupon of 5.00%. They are a good example of the Portfolio's
efforts to find value in the non-rated and lower-investment-grade segment of
the market.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments.*Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance /5/ Class A Class B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 6.7% 5.9%
Five Years N.A. 4.0
Life of Fund/+/ 4.6 4.4
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.3% 2.9%
Five Years N.A. 4.0
Life of Fund/+/ 4.1 4.4
/+/Inception date: Class A: 1/21/97; Class B: 4/16/93
5 Largest Sectors /6/
- --------------------------------------------------------------------------------
By total investments
Escrowed /Prerefunded 17.4%
Insured - General Obligations* 13.1%
Insured - Hospital* 12.3%
General Obligations 11.4%
Industrial Development Revenue 11.4%
Portfolio Overview /6/
- --------------------------------------------------------------------------------
Number of Issues 30
Duration 4.5 Yrs.
Effective Maturity 6.3 Yrs.
Average Rating AA-
Average Call 5.8 Yrs.
Average Dollar Price $106.36
4
<PAGE>
EATON VANCE FLORIDA LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[PHOTO OF W. AHERN]
William H. Ahern,
Portfolio Manager
The Economy
- -------------------------------------------------------------------------------
. The Florida economy continued to outperform the nation and remained a
pacesetter for the Southeast region. The state had a 4.2% unemployment rate
in September, a slight improvement from a year earlier. Florida enjoyed 3%
job growth, boosted by strength in the construction sector and in business
services.
. The Florida tourism and hospitality sectors remained very strong. Cruise
lines have reported the strongest advance-booking trends in their history,
while hotel and motel tax revenues have risen sharply.
. Following a long downturn, Florida's aerospace and defense sectors have
recently enjoyed a rush of new orders. For example, Lockheed Martin's
Orlando-based unit received a large U.S. Army contract for missiles.
The Fund
- -------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A, Class B,
and Class C shares had total returns of 3.6%, 3.4%, and 3.4%,
respectively./1/ For Class A and Class B, these returns resulted from a rise
in net asset value (NAV) per share to $10.44 on September 30, 1998 from
$10.29 on March 31, 1998, and the reinvestment of $0.212 and $0.193 per
share, respectively, in tax-free income./2/ For Class C, this return
resulted from a rise in NAV to $9.87 from $9.73, and the reinvestment of
$0.189 per share in tax-free income./2/
. Based on the Fund's most recent dividends and NAVs on September 30, 1998 of
$10.44 per share for Class A and Class B, and $9.87 for Class C, the Fund's
distribution rates were 4.41%, 3.68%, and 3.68%, respectively./3/
. The SEC 30-day yields for Class A, B and C shares at September 30 were
3.47%, 2.81% and 2.82%, respectively./4/
Management Update
- --------------------------------------------------------------------------------
. Escrowed bonds constituted the largest commitment at September 30. Because
the bonds are pre-refunded to their approaching call dates, they provided
relatively stable performance in a volatile market climate, as well as an
excellent income stream. General obligations, insured hospitals, and
electric utilities represented the largest sector weightings in the
Portfolio.
. Electric utilities represented a sizable portion of the Portfolio. Power
companies in areas such as Jacksonville, Tallahassee, and Dade County
continue to benefit from strong industrial demand and above-average
population growth.
. Insured bonds represented 49.7% of the Portfolio's holdings, an important
consideration for quality-conscious Florida investors.*
Your Investment at Work
- --------------------------------------------------------------------------------
Miami-Dade County
Professional Sports Franchise Facilities
Tax Revenue Refunding Bonds
. In 1992 and 1995, Professional Sports Franchise Facilities bonds were issued
to finance several projects, including the renovation of the Orange Bowl,
improvements to the Miami Arena, and the construction of the Dade
International Speedway.
. The proceeds of these 1998 bonds were used to refund the outstanding portion
of the 1992 and 1995 issues.
. These insured bonds provide excellent quality for the Portfolio.* As zero
coupon bonds, they offer good upside potential should interest rates
decline.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares./2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments.*Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 7.3% 6.5% 6.4%
Five Years N.A. 3.7 N.A.
Life of Fund/+/ 5.2 5.0 3.6
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.9% 3.5% 5.4%
Five Years N.A. 3.7 N.A.
Life of Fund/+/ 4.9 5.0 3.6
/+/Inception Dates - Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Escrowed/ Prerefunded 15.0%
General Obligations 13.4%
Insured - Hospital* 10.4%
Insured - Transportation* 9.9%
Electric Utilities 8.9%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 49
Duration 5.9 Yrs.
Effective Maturity 7.0 Yrs.
Average Rating AA
Average Call 6.2 Yrs.
Average Dollar Price $104.69
5
<PAGE>
EATON VANCE MASSACHUSETTS LIMITED MATURITY MUNICIPALS FUND as of September 30,
1998
[Photo of W. Ahern]
William H. Ahern
Portfolio Manager
The Economy
- ------------------------------------------------------------------------------
. The gross state product of Massachusetts increased by 6.5% in the twelve
months ended September 30, 1998. More people are now working in
Massachusetts than ever before, with the September unemployment rate a low
3.3%. Job growth in high-technology industries was 4.1%, which outpaced the
2.7% state average.
. Continued economic strength and low unemployment draw more people into the
Massachusetts labor pool each year. From September 1997 to September 1998,
the services sector added almost 40,000 jobs. In addition, average weekly
wages increased 5.2% during the same time period.
. This year Massachusetts was placed on the Corporation for Enterprise
Development's "Honor Roll" for the first time, one of only 7 states to be so
designated. This distinction is awarded based on economic performance,
business vitality, and development capacity.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A, Class B,
and Class C shares had total returns of 3.6%, 3.4%, and 3.4%,
respectively./1/ For Class A and Class B, these returns resulted from a rise
in net asset value (NAV) per share to $10.49 on September 30, 1998 from
$10.33 on March 31, 1998, and the reinvestment of $0.210 and $0.190 per
share, respectively, in tax-free income./2/ For Class C, this return
resulted from a rise in NAV to $10.02 from $9.88, and the reinvestment of
$0.188 per share in tax-free income./2/
. Based on the Fund's most recent dividends and NAVs on September 30, 1998 of
$10.49 per share for Class A and Class B, and $10.02 for Class C, the Fund's
distribution rates were 4.35%, 3.60%, and 3.60%, respectively./3/
. The SEC 30-day yields for Class A, B and C shares at September 30 were
3.58%, 2.91% and 2.92%, respectively./4/
Management Update
- -------------------------------------------------------------------------------
. Hospital bonds were the Portfolio's largest sector weighting. Management
focused on institutions with strong operating fundamentals and dominant
market shares in their service areas.
. While the national economy has slowed somewhat, Massachusetts has continued
to register strong growth. Accordingly, state and local general obligations
continued to play a major role in the Portfolio's investment strategy.
. Management continued its efforts to upgrade the Portfolio's call protection.
To avoid untimely disruptions, the Portfolio traded bonds with less
attractive call characteristics for bonds with 10 years or more of call
protection.
Your Investment at Work
- -------------------------------------------------------------------------------
Woods Hole, Martha's Vineyard and Nantucket Steamship Authority
Steamship Bonds
. The proceeds of this 1992 bond were used to pay Bond Anticipation Notes that
financed the reconstruction of the Authority's Slip 3 at the Woods Hole
Terminal.
. The Slip 3 reconstruction included the rebuilding of the existing Slip, the
installation of a 300-foot steel bulkhead, and various electrical, drainage,
and landscape improvements.
. This 6.60% bond provided an opportunity to invest in an A1/AA- rated bond of
a well-regarded issuer, increasingly rare in a market dominated by insured
issues.
- -------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments. /*/ Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 7.2% 6.4% 6.3%
Five Years N.A. 4.0 N.A.
Life of Fund/+/ 5.3 5.1 4.0
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.7% 3.4% 5.3%
Five Years N.A. 4.0 N.A.
Life of Fund/+/ 4.9 5.1 4.0
/+/Inception Dates - Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Hospital 16.5%
Insured - General Obligation* 13.1%
General Obligations 11.8%
Escrowed/ Prerefunded 11.3%
Education 6.5%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 46
Duration 6.0 Yrs.
Effective Maturity 9.0 Yrs.
Average Rating AA-
Average Call 8.4 Yrs.
Average Dollar Price $105.35
6
<PAGE>
EATON VANCE MICHIGAN LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[Photo of W. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
. Michigan's economy struggled with some hurdles in the first half of 1998.
The General Motors' strike resulted in temporary layoffs at auto-related
industries, while the weakness in Asian economies threatened the state's
buoyant export market. The GM strike pushed Michigan's unemployment rate in
September to 3.6%, but still below the 4.1% rate of a year earlier.
. The auto sector remains a key engine for Michigan's economy, with 3.1
million vehicles produced in the state in 1997. However, new industries are
experiencing strong growth. A recent survey of the state's 100 fastest-
growing, privately-held businesses showed technology, service, and temporary
employment companies on the rise.
. Michigan's housing market has been especially robust, with both primary
residence and vacation home construction showing unusual strength. New
permits totaled 51,375 in 1997. Average home prices rose 7.9%, leading the
nation in that category.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A and Class
B shares had total returns of 3.3% and 3.1%, respectively./1/ For Class A
and Class B, thes returns resulted from a rise in net asset value (NAV) per
share to $10.16 on September 30, 1998 from $10.04 on March 31, 1998, and the
reinvestment of $0.205 and $0.191 per share, respectively, in tax-free
income./2/
. Based on the Fund's most recent dividends and an NAV on September 30, 1998
of $10.16 per share, the Fund's distribution rates were 4.38% and 3.74%,
respectively./3/
. The SEC 30-day yields for Class A and B shares at September 30 were 3.18%
and 2.53%, respectively./4/
Management Update
- --------------------------------------------------------------------------------
. Hospital bonds issued by acute care providers remained the Portfolio's
largest sector weighting. The Portfolio was able to find good value among
lower-rated, investment-grade bonds.
. Special tax revenue bonds represented a large commitment of the Portfolio.
These bonds provided funding for industrial development projects located in
Detroit and Battle Creek.
. The Portfolio continued to seek opportunities among non-rated bonds. Bonds
of nursing homes and life care facilities provide excellent income as well
as the potential for future upgrades.
Your Investment at Work
- -------------------------------------------------------------------------------
Kent Hospital Finance Authority
Refunding Bonds
Spectrum Health
. Based in Grand Rapids, Spectrum Health System consists of three acute care
hospitals and other facilities that provide a wide range of health services
throughout western Michigan, including skilled nursing care, assisted
living, primary care services, and home care.
. The proceeds of this 1998 bond were used to refinance previous issues of
several Spectrum Health affiliates. These prior issues financed renovations,
repairs, and additions to hospital facilities.
. This AA rated bond carries a 5.25% coupon in a high quality issuer and is a
good example of management's efforts to improve the Portfolio's call
protection.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% -
4th year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98
only and may not be representative of the Portfolio's current or future
investments. /*/ Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 6.9% 6.2%
Five Years N.A. 4.1
Life of Fund/+/ 4.6 4.4
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 4.5% 3.2%
Five Years N.A. 4.1
Life of Fund/+/ 4.2 4.4
/+/Inception date: Class A: 10/22/96; Class B: 4/16/93
5 Largest Sectors/6/
- -------------------------------------------------------------------------------
By total investments
Hospital 19.3%
Escrowed/ Prerefunded 16.1%
Special Tax Revenue 15.4%
General Obligation 11.6%
Insured - General Obligation* 11.0%
Portfolio Overview/6/
- -------------------------------------------------------------------------------
Number of Issues 24
Duration 5.9 Yrs.
Effective Maturity 8.0 Yrs.
Average Rating A+
Average Call 7.8 Yrs.
Average Dollar Price $105.80
7
<PAGE>
EATON VANCE NEW JERSEY LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[PHOTO OF W. AHERN]
William H. Ahern,
Portfolio Manager
The Economy
- ------------------------------------------------------------------------------
. New Jersey's unemployment rate saw modest improvement in the year ended
September, 1998. The jobless rate declined to 4.8% from 5.1% a year earlier.
The service sector provided the largest gain, with hiring in health care,
social services, and management and engineering especially strong.
. The New Jersey construction industry posted strong gains during the past year.
Sales of new and existing homes reached record levels, as a sound economic
outlook and low interest rates brought a rush of buyers to the housing market.
. Consumer confidence in New Jersey - as indicated by the Middle Atlantic Region
Consumer Confidence Survey - has risen sharply in the past year, mirroring
trends at the national level. Positive consumer sentiment was manifest in
strong retail sales activity.
The Fund
- -------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A and Class B
shares had total returns of 3.5% and 3.3%, respectively./1/ For Class A and
Class B, these returns resulted from a rise in net asset value (NAV) per share
to $10.49 on September 30, 1998 from $10.35 on March 31, 1998, and the
reinvestment of $0.213 and $0.193 per share, respectively, in tax-free
income./2/
. Based on the Fund's most recent dividends and an NAV on September 30, 1998 of
$10.49 per share, the Fund's distribution rates were 4.41% and 3.67%,
respectively./3/
. The SEC 30-day yields for Class A and B shares at September 30 were 3.45% and
2.78%, respectively./4/
Management Update
- ------------------------------------------------------------------------------
. Insured general obligations/*/ and uninsured general obligations were the
Portfolio's largest sector weightings. A large exposure to high-quality bonds
boosted performance as a decline in interest rates sparked a market rally late
in the fiscal year.
. Cogeneration bonds were among the Portfolio's largest holdings and provided an
excellent source of income. Cogeneration has become increasingly popular as an
environment-friendly, alternative energy source.
. Non-rated bonds provided good balance to the high percentage of insured
issues. The Portfolio found good value among non-rated assisted living
facilities, cogeneration bonds, and industrial development bonds.
Your Investment at Work
- ------------------------------------------------------------------------------
Camden County Improvement Authority
Development Authority
Cooper Health System
. The Cooper Health System owns and operates a general acute care hospital,
Cooper Hospital/University Medical center, in Camden.
. The proceeds of these bonds were loaned to the Cooper Health System to finance
renovations to its Children's Hospital, including the construction of
pediatric care facilities, trauma and intensive care units, and expanded areas
for obstetrics and antenatal testing.
. With a 5.60% coupon, this bond is a good example of the Portfolio's efforts to
find value in non-rated and lower, investment-grade bonds.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ A portion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments. /*/ Private insurance does not decrease the risk of loss of
principal 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, 1998
<TABLE>
<CAPTION>
Performance/5/ Class A Class B
- --------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 6.6% 5.8%
Five Years N.A. 3.9
Life of Fund/+/ 5.3 5.1
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.2% 2.8%
Five Years N.A. 3.9
Life of Fund/+/ 4.9 5.1
/+/Inception date: Class A: 6/27/96; Class B: 6/1/92
</TABLE>
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Insured - General Obligations* 26.3%
General Obligations 10.3%
Hospital 10.2%
Cogeneration 10.1%
Insured - Transportation* 4.7%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 41
Duration 5.5 Yrs.
Effective Maturity 7.1 Yrs.
Average Rating AA-
Average Call 6.9 Yrs.
Average Dollar Price $106.10
8
<PAGE>
EATON VANCE NEW YORK LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[PHOTO OF W. AHERN]
William H. Ahern,
Portfolio Manager
The Economy
- ------------------------------------------------------------------------------
. New York's gross state product rose by 4.4% to $593 billion in the past
fiscal year. The state's economy would rank tenth among the nation's of the
world. New York is home to 65 Fortune 500 companies, more than any other
state.
. The number of private sector jobs increased by 2.2%, or 148,000, between
August 1997 and August 1998, a record high for the state. Unemployment, at
5.5% in September, is near an 8-year low, though it lags the national
average. Most of the job growth was in the services sector, with air
transport job growth up 19.8% and business services up 6.8%.
. Housing permits, a leading economic indicator, increased by 6.5% in August
1998 from a year ago. The related construction sector posted an employment
growth rate gain of 5.6%.
The Fund
- ------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A, Class
B, and Class C shares had total returns of 4.0%, 3.8%, and 3.8%,
respectively./1/ For Class A and Class B, these returns resulted from a
rise in net asset value (NAV) per share to $10.71 on September 30, 1998
from $10.51 on March 31, 1998, and the reinvestment of $0.212 and $0.192
per share, respectively, in tax-free income.2 For Class C, this return
resulted from a rise in NAV to $10.13 from $9.95, and the reinvestment of
$0.190 per share in tax-free income./2/
. Based on the Fund's most recent dividends and NAVs on September 30, 1998 of
$10.71 per share for Class A and Class B, and $10.13 for Class C, the
Fund's distribution rates were 4.30%, 3.58%, and 3.58%, respectively./3/
. The SEC30-day yields for Class A, B and C shares at September 30 were
3.71%, 3.05% and 3.07%, respectively./4/
Management Update
- -------------------------------------------------------------------------------
. The Portfolio pursued a relative-value strategy during the period.
Management found good value among state single-family housing bonds and New
York City multi-family housing issues.
. Esc rowed bonds provided relatively stable perform-ance and attractive
income stream. Escrowed issues are those that have been prerefunded to
their call dates. Backed by Treasury bonds, they are deemed by investors to
be of the very highest quality.
. Non-rated bonds in the cogeneration and assisted living sectors provided
good income and the potential for future upgrades. Given the market
dominance of insured bonds, the non-rated segment of the market provided
some interesting, research driven opportunities.
Your Investment at Work
- -------------------------------------------------------------------------------
Dormitory Authority of the
State of New York
State University Educational Facilities
. The Dormitory Authority was created to finance the construction of public-
purpose facilities, such as the State University of New York, and to make
loans in connection with the school's student loan program.
. The proceeds of these bonds were used to finance rehabilitation and
renovation projects for University dormitory facilities and to fund ongoing
maintenance.
. The bonds have a 5.25% coupon and represent a very liquid
investment in a well-known issuer. In addition, with a call date of 2014,
the bonds provide extremely good call protection.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated 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
historical and are calculated by determining the percentage change in net
asset value with all distributions reinvested. SEC returns for Class A
reflect the maximum 2.25% sales charge. SEC returns for Class B reflect
applicable CDSC based on the following schedule: 3% - 1st year; 2.5% - 2nd
year; 2% - 3rd year; 1% - 4th year. /6/ Sector weightings and Portfolio
Overview are as of 9/30/98 only and may not be representative of the
Portfolio's current or future investments./*/ Private insurance does not
decrease the risk of loss of principal 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, 1998
<TABLE>
<CAPTION>
Performance/5/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 7.6% 6.8% 6.7%
Five Years N.A. 4.2 N.A.
Life of Fund/+/ 5.6 5.4 4.2
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 5.2% 3.8% 5.7%
Five Years N.A. 4.2 N.A.
Life of Fund/+/ 5.2 5.4 4.2
/+/ Inception Dates - Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Certificates of Participation/Lease Revenue 12.0%
Housing 10.5%
Industrial Development Revenue 10.4%
Water & Sewer 8.7%
Insured - Electric Utilities* 7.7%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 40
Duration 5.7 Yrs.
Effective Maturity 7.7 Yrs.
Average Rating AA
Average Call 7.4 Yrs.
Average Dollar Price $104.65
</TABLE>
9
<PAGE>
EATON VANCE OHIO LIMITED MATURITY MUNICIPALS FUND as of September 30, 1998
INVESTMENT UPDATE
[PHOTO OF W. AHERN]
William H. Ahern,
Portfolio Manager
The Economy
- -------------------------------------------------------------------------------
. Ohio sustained a strong economic performance in fiscal 1998, aided by the
overall strength of the national economy. State revenues, generated mainly
through person- al income and sales taxes, exceed ed budget forecasts.
Growth in the service sector continued to help balance the state's overall
economy.
. Unemployment in Ohio decreased by 0.2% over the past year to 4.3% in
September, versus the national average of 4.5%. Unemployment figures
appeared to be returning to normal levels after the end of the General
Motorsstrike; manufacturing employment increased by 0.2% in August.
. Several economic figures for fiscal 1998 indicate positive growth trends in
Ohio: average hourly earnings were up 2.3%; housing permits increased 7.1%,
and gross state productrose 4.2% from a year ago.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A and Class
B shares had total returns of 3.3% and 3.1%, respectively./1/ For Class A
and Class B, these returns resulted from a rise in net asset value (NAV) per
share to $10.25 on September 30, 1998 from $10.14 on March 31, 1998, and the
reinvestment of $0.217 and $0.199 per share, respectively, in tax-free
income./2/
. Based on the Fund's most recent dividends and an NAV on September 30, 1998
of $10.25 per share, the Fund's distribution rates were 4.60% and 3.86%,
respectively./3/
. The SEC 30-day yields for Class A and B shares at September 30 were 3.63%
and 2.98%, respectively./4/
Management Update
- -------------------------------------------------------------------------------
. Insured general obligations (GOs)/*/ and uninsured GOs were the Portfolio's
largest sector commitments at September 30. Amid a strong economy, Ohio's
cities and towns have enjoyed rising property values and strong tax
revenues, making the GO sector especially attractive.
. Industrial development bonds have represented some promising opportunities.
These bonds provided development funds for projects in a diverse range of
industries, including plastics, steel, and entertainment.
. The Portfolio found some interesting opportunities in housing bonds. These
non-rated issues carried especially attractive coupons, adding incrementally
to the Fund's tax-exempt income.
Your Investment at Work
- -------------------------------------------------------------------------------
Cleveland-Cuyahoga County
Port Authority
Rock and Roll Hall of Fame
. The bonds were used to finance the construction of the Rock and Roll Hall of
Fame and Museum, located at North Coast Harbor in downtown Cleveland.
. The Hall of Fame opened in 1995 and has quickly become a tourist mecca for
fans of the rock genre. The facility has received significantly more
visitors in its first three years of operation than originally anticipated.
. The bond is a good example of the Portfolio's efforts to find value in
non-rated segments of the Ohio municipal market.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments. /*/ Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 6.5% 5.8%
Five Years N.A. 4.1
Life of Fund+ 4.8 4.6
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.1% 2.8%
Five Years N.A. 4.1
Life of Fund+ 4.4 4.6
+Inception date: Class A: 6/27/96; Class B: 4/16/93
/5/ Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Insured General Obligations 22.7%
General Obligations 13.9%
Hospital 12.1%
Industrial Development Revenue 11.7%
Escrowed/ Prerefunded 7.8%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 40
Duration 5.2 Yrs.
Effective Maturity 6.7 Yrs.
Average Rating AA-
Average Call 6.4 Yrs.
Average Dollar Price $107.19
10
<PAGE>
EATON VANCE PENNSYLVANIA LIMITED MATURITY MUNICIPALS FUND as of September 30,
1998
INVESTMENT UPDATE
[PHOTO OF T. BROWSE]
Timothy T. Browse,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
. The Pennsylvania economy remained in high gear, as the construction,
financial services, and wholesale and retail trade sectors maintained their
strong momentum. In September, the commonwealth's unemployment rate fell to
4.5%, a significant improvement from the 5.1% rate posted a year earlier.
. Pennsylvania companies are closely monitoring the Asian economies for
continuing signs of weakness. The downturn, combined with cheap Asian
imports, has hurt the commonwealth's manufacturing sector, resulting in
weaker demand and selective layoffs following 18 consecutive months of job
gains.
. Pennsylvania continued to aggressively court new business. Smithkline
Beechham transferred its U.S. headquarters in September 1997, bringing 1,250
jobs, while European shipbuilder Kvaerner announced it will open its first
American shipyard in Philadelphia.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A, Class B,
and Class C shares had total returns of 3.1%, 2.9%, and 2.9%,
respectively./1/ For Class A and Class B, these returns resulted from a rise
in net asset value (NAV) per share to $10.65 on September 30, 1998 from
$10.55 on March 31, 1998, and the reinvestment of $0.219 and $0.199 per
share, respectively, in tax-free income./2/ For Class C, this return
resulted from a rise in NAV to $10.07 from $9.98, and the reinvestment of
$0.196 per share in tax-free income./2/
. Based on the Fund's most recent dividends and NAVs on September 30, 1998 of
$10.65 per share for Class A and Class B, and $10.07 for Class C, the Fund's
distribution rates were 4.47%, 3.73%, and 3.72%, respectively./3/
. The SEC 30-day yields for Class A, B and C shares at September 30 were
3.63%, 2.96% and 2.97%, respectively./4/
Management Update
- -------------------------------------------------------------------------------
. Hospital bonds represented the Portfolio's largest sector weighting. While
the Philadelphia hospital market remained intensely competitive, the
Portfolio focused on well-positioned institutions in outlying counties.
. Escrowed bonds also constituted a fairly large commitment. Because they are
backed by U.S. Treasury securities, escrowed bonds are viewed as the highest
quality. While providing good income, they tend to trade close to their call
price, representing a relatively stable investment.
. Management continued its efforts to improve the Portfolio's call protection
by focusing on non-callable issues and trading from shorter-call issues into
bonds with more favorable call characteristics.
Your Investment At Work
- -------------------------------------------------------------------------------
Philadelphia Airport
Revenue Bonds
. These bonds were issued to finance a wide range of capital improvements at
the Philadelphia Airport.
. The projects included the construction of a new terminal for international
flights, a commuter terminal accommodating increased ticketing, concessions,
and baggage handling facilities, a new ramp control tower, and renovations
to existing terminal facilities.
. The bonds have a 5.375% coupon and represent a very liquid investment in a
well-known issuer. In addition, with a call date of 2008, the bonds provide
nearly 10 years of call protection.
- -------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B shares. /2/ Aportion of the Fund's income could be subject to federal and
state income tax and/or alternative minimum tax. /3/ The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
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 historical and are
calculated by determining the percentage change in net asset value with all
distributions reinvested. SEC returns for Class A reflect the maximum 2.25%
sales charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th
year. /6/ Sector weightings and Portfolio Overview are as of 9/30/98 only
and may not be representative of the Portfolio's current or future
investments. /*/ Private insurance does not decrease the risk of loss of
principal 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, 1998
Performance/5/ Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year 6.9% 6.2% 5.9%
Five Years N.A. 4.1 N.A.
Life of Fund/+/ 5.6 5.4 4.2
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year 4.5% 3.2% 4.9%
Five Years N.A. 4.1 N.A.
Life of Fund/+/ 5.2 5.4 4.2
/+/Inception Dates - Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93
5 Largest Sectors/6/
- --------------------------------------------------------------------------------
By total investments
Hospital 21.6%
Insured - Hospital* 11.8%
Escrowed/ Prerefunded 10.0%
Insured - Electric Utilities* 9.4%
Insured - Transportation 7.4%
Portfolio Overview/6/
- --------------------------------------------------------------------------------
Number of Issues 51
Duration 5.5 Yrs.
Effective Maturity 7.3 Yrs.
Average Rating AA
Average Call 7.1 Yrs.
Average Dollar Price $102.04
11
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statements of Assets and Liabilities
As of September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited
Fund Fund Fund Fund Fund
- ----------------------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment in Limited Maturity
Municipals Portfolio --
Identified cost $29,959,455 $8,839,211 $62,234,860 $50,646,597 $ 9,857,532
Unrealized appreciation 2,160,323 589,540 4,030,157 3,496,290 1,088,201
- ----------------------------------------------------------------------------------------------------------------------
Total investment in
Portfolio, at value $32,119,778 $9,428,751 $66,265,017 $54,142,887 $10,945,733
- ----------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares
sold $ 10,000 $ -- $ 11,271 $ -- $ 10
Deferred organization
expenses 391 -- 1,393 383 --
- ----------------------------------------------------------------------------------------------------------------------
Total assets $32,130,169 $9,428,751 $66,277,681 $54,143,270 $10,945,743
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------------------
Payable for Fund shares
redeemed $ 100 $ -- $ 84,769 $ 4,847 $ 10
Dividends payable 57,735 16,169 111,812 90,332 19,450
Other accrued expenses 16,077 9,658 35,020 14,782 6,745
- ----------------------------------------------------------------------------------------------------------------------
Total liabilities $ 73,912 $ 25,827 $ 231,601 $ 109,961 $ 26,205
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $32,056,257 $9,402,924 $66,046,080 $54,033,309 $10,919,538
- ----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Paid-in capital $32,352,746 $9,307,501 $65,992,700 $52,669,900 $11,425,639
Accumulated net realized loss
from Portfolio (computed
on basis of identified
cost) (2,395,268) (544,651) (3,889,256) (2,112,804) (1,568,504)
Accumulated undistributed
(distributions in excess
of) net investment income (61,544) 50,534 (87,521) (20,077) (25,798)
Net unrealized appreciation
from Portfolio (computed
on basis of identified
cost) 2,160,323 589,540 4,030,157 3,496,290 1,088,201
- ----------------------------------------------------------------------------------------------------------------------
Total $32,056,257 $9,402,924 $66,046,080 $54,033,309 $10,919,538
- ----------------------------------------------------------------------------------------------------------------------
Class A Shares
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $28,824,921 $7,544,469 $53,374,734 $45,233,151 $10,145,493
Shares Outstanding 2,740,728 737,204 5,113,075 4,313,615 998,732
Net Asset Value and
Redemption Price Per Share
(net assets / shares of
beneficial interest
outstanding) $ 10.52 $ 10.23 $ 10.44 $ 10.49 $ 10.16
Maximum Offering Price Per
Share
(100 / 97.75 of net asset
value per share) $ 10.76 $ 10.47 $ 10.68 $ 10.73 $ 10.39
- ----------------------------------------------------------------------------------------------------------------------
Class B Shares
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ 3,231,336 $1,858,455 $ 6,964,339 $ 4,474,462 $ 774,045
Shares Outstanding 307,275 181,756 667,226 426,535 76,223
Net Asset Value, Offering
Price and Redemption Price
Per Share
(net assets / shares of
beneficial interest
outstanding) $ 10.52 $ 10.23 $ 10.44 $ 10.49 $ 10.16
- ----------------------------------------------------------------------------------------------------------------------
Class C Shares
- ----------------------------------------------------------------------------------------------------------------------
Net Assets $ -- $ -- $ 5,707,007 $ 4,325,696 $ --
Shares Outstanding -- -- 578,482 431,519 --
Net Asset Value, Offering
Price and Redemption Price
Per Share (net assets / shares
of beneficial interest
outstanding) $ -- $ -- $ 9.87 $ 10.02 $ --
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $100,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
12
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Assets and Liabilities
As of September 30, 1998
<TABLE>
<CAPTION>
New
Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Fund Fund Fund Fund
- -----------------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment in Limited Maturity
Municipals Portfolio --
Identified cost $ 39,089,367 $ 65,233,225 $ 21,994,688 $ 50,376,751
Unrealized appreciation 3,420,029 4,546,189 1,379,359 3,338,599
- -----------------------------------------------------------------------------------------------------------------------------
Total investment in Portfolio, at
value $ 42,509,396 $ 69,779,414 $ 23,374,047 $ 53,715,350
- -----------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 18,112 $ 12,016 $ 210 $ --
Deferred organization expenses 384 1,205 293 503
- -----------------------------------------------------------------------------------------------------------------------------
Total assets $ 42,527,892 $ 69,792,635 $ 23,374,550 $ 53,715,853
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Dividends payable $ 75,716 $ 118,396 $ 43,176 $ 91,432
Payable for Fund shares redeemed 51,391 96,202 27,510 56,655
Other accrued expenses 14,588 27,755 14,267 23,172
- -----------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 141,695 $ 242,353 $ 84,953 $ 171,259
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 42,386,197 $ 69,550,282 $ 23,289,597 $ 53,544,594
- -----------------------------------------------------------------------------------------------------------------------------
Source of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Paid-in capital $ 41,548,719 $ 66,810,804 $ 23,159,686 $ 51,739,830
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (2,536,597) (1,725,180) (1,347,180) (1,521,365)
Accumulated undistributed
(distributions in excess of) net
investment income (45,954) (81,531) 97,732 (12,470)
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 3,420,029 4,546,189 1,379,359 3,338,599
- -----------------------------------------------------------------------------------------------------------------------------
Total $ 42,386,197 $ 69,550,282 $ 23,289,597 $ 53,544,594
- -----------------------------------------------------------------------------------------------------------------------------
Class A Shares
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 38,322,337 $60,469,099 $20,056,542 $ 43,247,548
Shares Outstanding 3,652,033 5,646,643 1,957,040 4,060,542
Net Asset Value and Redemption Price
Per Share (net assets / shares of
beneficial interest outstanding) $ 10.49 $ 10.71 $ 10.25 $ 10.65
Maximum Offering Price Per Share
(100 / 97.75 of net asset value per
share) $ 10.73 $ 10.96 $ 10.49 $ 10.90
- -----------------------------------------------------------------------------------------------------------------------------
Class B Shares
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ 4,063,860 $ 6,344,745 $3,233,055 $ 4,921,920
Shares Outstanding 387,588 592,597 315,297 462,147
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets / shares of beneficial
interest outstanding) $ 10.49 $ 10.71 $ 10.25 $ 10.65
- -----------------------------------------------------------------------------------------------------------------------------
Class C Shares
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets $ -- $ 2,736,438 $ -- $ 5,375,126
Shares Outstanding -- 270,007 -- 533,802
Net Asset Value, Offering Price and
Redemption Price Per Share
(net assets / shares of beneficial
interest outstanding) $ -- $ 10.13 $ -- $ 10.07
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $100,000 or more, the price of Class A shares is reduced.
See notes to financial Statements
13
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended
September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
- ----------------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 888,012 $ 254,492 $ 1,807,224 $ 1,437,473 $ 312,433
Expenses allocated from Portfolio (109,758) (35,942) (202,194) (163,717) (53,958)
- ----------------------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $ 778,254 $ 218,550 $ 1,605,030 $ 1,273,756 $ 258,475
- ----------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 42 $ 33 $ 420 $ 946 $ 33
Distribution and service fees
Class A 21,749 8,000 38,443 28,557 7,444
Class B 16,347 8,608 35,197 28,716 5,261
Class C -- -- 28,616 19,424 --
Transfer and dividend disbursing
agent fees 14,661 4,268 32,728 27,755 5,534
Legal and accounting services -- -- -- 1,717 --
Printing and postage 2,220 2,706 2,869 4,718 2,180
Custodian fee 3,248 3,183 5,977 2,729 3,169
Registration fees 751 (79) 1,076 302 859
Amortization of organization
expenses 1,070 1,830 1,691 1,109 2,701
Miscellaneous -- -- 3,719 4,122 --
- ----------------------------------------------------------------------------------------------------------------------
Total expenses $ 60,088 $ 28,549 $ 150,736 $ 120,095 $ 27,181
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $ 718,166 $ 190,001 $ 1,454,294 $ 1,153,661 $ 231,294
- ----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 273,711 $ 30,105 $ 492,416 $ 417,313 $ 42,140
Financial futures contracts (133,366) (18,176) (127,751) (241,643) (44,816)
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ 140,345 $ 11,929 $ 364,665 $ 175,670 $ (2,676)
- ----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $ 486,104 $ 116,232 $ 637,898 $ 671,414 $ 143,300
Financial futures contracts (41,742) (900) (41,342) (25,926) (5,693)
- ----------------------------------------------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) $ 444,362 $ 115,332 $ 596,556 $ 645,488 $ 137,607
- ----------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 584,707 $ 127,261 $ 961,221 $ 821,158 $ 134,931
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $1,302,873 $ 317,262 $ 2,415,515 $ 1,974,819 $ 366,225
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
14
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
- --------------------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $1,179,055 $1,883,858 $655,657 $1,521,402
Expenses allocated from Portfolio (145,724) (219,084) (85,131) (179,480)
- --------------------------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $1,033,331 $1,664,774 $570,526 $1,341,922
- --------------------------------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 87 $ 949 $ 95 $ 950
Distribution and service fees
Class A 23,574 38,698 14,944 25,488
Class B 29,002 39,033 15,598 28,599
Class C -- 11,457 -- 23,454
Transfer and dividend disbursing agent fees 24,066 39,359 10,427 30,042
Legal and accounting services -- -- -- 2,467
Printing and postage 3,905 13,670 2,447 4,466
Custodian fee 2,187 3,560 2,271 2,807
Registration fees -- 322 1,101 7
Amortization of organization expenses 1,071 2,106 1,113 866
Miscellaneous 2,777 6,094 -- 5,434
- --------------------------------------------------------------------------------------------------------------------------
Total expenses $ 86,669 $ 155,248 $ 47,996 $ 124,580
- --------------------------------------------------------------------------------------------------------------------------
Net investment income $ 946,662 $1,509,526 $522,530 $1,217,342
- --------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost
basis) $ 51,461 $ 442,151 $103,339 $ 307,121
Financial futures contracts (119,015) (241,162) (77,807) (205,571)
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ (67,554) $ 200,989 $ 25,532 $ 101,550
- --------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ 644,049 $1,118,180 $233,914 $ 478,170
Financial futures contracts (10,620) (12,291) (5,381) (82,920)
- --------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 633,429 $1,105,889 $228,533 $ 395,250
- --------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 565,875 $1,306,878 $254,065 $ 496,800
- --------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $1,512,537 $2,816,404 $776,595 $1,714,142
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
15
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Increase (Decrease) in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund Limited Fund
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
From operations --
Net investment income $ 718,166 $ 190,001 $ 1,454,294 $ 1,153,661 $ 231,294
Net realized gain (loss) 140,345 11,929 364,665 175,670 (2,676)
Net change in unrealized
appreciation (depreciation) 444,362 115,332 596,556 645,488 137,607
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $ 1,302,873 $ 317,262 $ 2,415,515 $ 1,974,819 $ 366,225
- ----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (660,898) $ (152,335) $ (1,199,389) $ (961,753) $ (208,794)
Class B (79,722) (38,596) (155,812) (117,156) (27,543)
Class C -- -- (124,508) (80,690) --
In excess of net investment income
Class A -- (8,271) -- -- (11,905)
Class B (691) -- (500) (614) --
Class C -- -- -- (746) --
- ----------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (741,311) $ (199,202) $ (1,480,209) $ (1,160,959) $ (248,242)
- ----------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 411,741 $ 311,268 $ 562,566 $ 1,609,990 $ 157,167
Class B 566,478 187,043 275,858 294,935 94,794
Class C -- -- 485,329 392,689 --
Issued in reorganization of EV Traditional
and Classic Limited Maturity
Municipals Funds
Class A 3,133,613 1,063,816 4,524,349 -- 895,423
Class C -- -- 6,552,371 4,459,306 --
Net asset value of shares issued to shareholder
in payment of distributions declared
Class A 243,857 73,712 400,399 445,263 100,655
Class B 38,293 26,117 47,758 79,180 19,665
Class C -- -- 64,407 71,672 --
Cost of shares redeemed
Class A (3,345,807) (642,730) (6,179,200) (4,296,527) (1,286,049)
Class B (649,797) (299,267) (872,587) (1,206,711) (196,548)
Class C -- -- (1,478,397) (656,777) --
Net asset value of shares exchanged
Class A 2,097,179 610,276 3,202,043 3,215,977 986,277
Class B (2,097,179) (610,276) (3,202,043) (3,215,977) (986,277)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund
share transactions $ 398,378 $ 719,959 $ 4,382,853 $ 1,193,020 $ (214,893)
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 959,940 $ 838,019 $ 5,318,159 $ 2,006,880 $ (96,910)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
At beginning of period $31,096,317 $8,564,905 $ 60,727,921 $ 52,026,429 $ 11,016,448
- ----------------------------------------------------------------------------------------------------------------------------------
At end of period $32,056,257 $9,402,924 $ 66,046,080 $ 54,033,309 $ 10,919,538
- ----------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of)
net investment income
included in net assets
- ----------------------------------------------------------------------------------------------------------------------------------
At end of period $ (61,544) $ 50,534 $ (87,521) $ (20,077) $ (25,798)
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
16
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Limited Pennsylvania
Increase (Decrease) in Net Assets Limited Fund Limited Fund Fund Limited Fund
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $946,662 $1,509,526 $522,530 $1,217,342
Net realized gain (loss) (67,554) 200,989 25,532 101,550
Net change in unrealized appreciation
(depreciation) 633,429 1,105,889 228,533 395,250
- ----------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $1,512,537 $2,816,404 $776,595 $1,714,142
- ----------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $(832,565) $(1,310,170) $(452,658) $(980,730)
Class B (117,550) (159,959) (71,197) (124,810)
Class C -- (46,020) -- (102,636)
In excess of net investment income
Class A -- -- (11,737) --
Class B (1,210) (687) -- --
Class C -- (2,250) -- --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $(951,325) $(1,519,086) $(535,592) $(1,208,176)
- ----------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $274,004 $1,710,940 $248,688 $ 617,085
Class B 424,443 394,982 297,751 160,959
Class C -- 696,811 -- 350,231
Issued in reorganization of EV
Traditional and Classic Limited
Maturity Municipals Funds
Class A 839,250 543,752 1,671,340 --
Class C -- 2,285,786 -- 5,132,765
Net asset value of shares issued to
shareholders in payment of distributions
declared
Class A 460,006 641,572 261,876 390,950
Class B 94,486 116,421 46,446 79,665
Class C -- 33,222 -- 74,781
Cost of shares redeemed
Class A (3,665,182) (7,956,912) (1,545,381) (4,901,920)
Class B (1,101,466) (1,550,014) (294,876) (872,990)
Class C -- (326,091) -- (230,166)
Net asset value of shares exchanged
Class A 4,028,374 4,961,489 1,099,093 2,765,935
Class B (4,028,374) (4,961,489) (1,099,093) (2,765,935)
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $(2,674,459) $(3,409,531) $685,844 $ 801,360
- ----------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $(2,113,247) $(2,112,213) $926,847 $1,307,326
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of period $44,499,444 $71,662,495 $22,362,750 $52,237,268
- ----------------------------------------------------------------------------------------------------------------------
At end of period $42,386,197 $69,550,282 $23,289,597 $53,544,594
- ----------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ----------------------------------------------------------------------------------------------------------------------
At end of period $ (45,954) $ (81,531) $ 97,732 $ (12,470)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
17
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Increase (Decrease) in Net Assets Limited Limited Limited Limited Limited
Fund Fund Fund Fund fund
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
From operations --
Net investment income $1,497,285 $ 368,076 $ 3,098,121 $ 2,476,810 $ 483,118
Net realized gain (loss) 433,367 4,051 (94,660) 17,484 (124,545)
Net change in
unrealized
appreciation (depreciation) 941,613 327,894 2,451,067 1,928,758 526,149
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets
from operations $2,872,265 $ 700,021 $ 5,454,528 $ 4,423,052 $ 884,722
- -----------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (936,871) $(144,583) $ (2,004,916) $ (1,572,765) $ (232,658)
Class B (570,677) (229,255) (1,064,705) (860,024) (258,458)
In excess of net
investment income
Class A (12,257) (4,392) -- -- (15,799)
Class B (23,588) -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions to
shareholders $ (1,543,393) $(378,230) $ (3,069,621) $ (2,432,789) $ (506,915)
- -----------------------------------------------------------------------------------------------------------------------------------
Transaction in shares of beneficial interest --
Proceeds from sale of shares
Class B $ 862,074 $ 394,082 $ 1,086,806 $ 544,330 $ 283,340
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 360,909 67,528 730,455 789,937 98,883
Class B 279,878 148,460 532,282 559,559 180,331
Cost of shares redeemed
Class A (8,438,995) (1,235,782) (21,116,043) (11,235,114) (1,557,577)
Class B (3,400,466) (1,943,632) (5,629,314) (5,707,875) (2,203,538)
Net asset value of
shares exchanged
Class A 18,496,757 6,549,972 34,915,282 29,034,216 10,124,352
Class B (18,496,757) (6,549,972) (34,915,282) (29,034,216) (10,124,352)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
Fund share transactions $(10,336,600) $(2,569,344) $(24,395,814) $(15,049,163) $ (3,198,561)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (9,007,728) $(2,247,553) $(22,010,907) $(13,058,900) $ (2,820,754)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 40,104,045 $10,812,458 $ 82,738,828 $ 65,085,329 $ 13,837,202
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 31,096,317 $ 8,564,905 $ 60,727,921 $ 52,026,429 $ 11,016,448
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of)
net investment income
included in net assets
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ (38,399) $ 59,735 $ (75,311) $ (15,000) $ (8,850)
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
18
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Increase (Decrease) in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 2,146,149 $ 3,502,793 $ 1,013,916 $ 2,482,667
Net realized gain (loss) (187,074) 1,088,247 131,062 406,226
Net change in unrealized appreciation (depreciation) 1,648,350 2,844,140 698,195 2,059,464
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 3,607,425 $ 7,435,180 $ 1,843,173 $ 4,948,357
- ---------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,338,591) $ (2,200,746) $ (462,064) $ (1,659,315)
Class B (788,446) (1,281,208) (562,959) (781,095)
In excess of net investment
income
Class A -- -- (11,117) --
- ---------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (2,127,037) $ (3,481,954) $ (1,036,140) $ (2,440,410)
- ---------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class B $ 1,195,175 $ 1,170,922 $ 403,230 $ 656,038
Net asset value of shares issued to shareholders
in payment of distributions declared
Class A 739,740 1,153,120 282,566 683,229
Class B 575,875 819,416 376,372 453,998
Cost of shares redeemed
Class A (11,566,067) (19,290,897) (2,893,993) (9,812,773)
Class B (4,846,604) (12,172,312) (2,151,477) (4,129,149)
Net asset value of shares
exchanged
Class A 23,754,168 39,673,864 19,609,155 23,736,946
Class B (23,754,168) (39,673,864) (19,609,155) (23,736,946)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from Fund share transactions $(13,901,881) $(28,319,751) $ (3,983,302) $(12,148,657)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(12,421,493) $(24,366,525) $ (3,176,269) $ (9,640,710)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 56,920,937 $ 96,029,020 $ 25,539,019 $ 61,877,978
- ---------------------------------------------------------------------------------------------------------------------------------
At end of year $ 44,499,444 $ 71,662,495 $ 22,362,750 $ 52,237,268
- ---------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ---------------------------------------------------------------------------------------------------------------------------------
At end of year $ (41,276) $ (71,690) $ 109,800 $ (27,213)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
19
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
California Limited Fund
-----------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
----------------------------------------------------------
(Unaudited)/(1)/ 1998 1997 1996
--------------------- ----------------------------------------------------------
Class A Class B Class A Class B Class A/(2)/ Class B Class B
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of
period $10.330 $10.330 $ 9.980 $ 9.980 $ 9.940 $10.080 $ 9.950
- -----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.228 $ 0.195 $ 0.459 $ 0.386/(1)/ $ 0.363 $ 0.393 $ 0.385
Net realized and unrealized gain
(loss) 0.197 0.192 0.362 0.362 0.037/(3)/ (0.097) 0.134
- -----------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.425 $ 0.387 $ 0.821 $ 0.748 $ 0.400 $ 0.296 $ 0.519
- -----------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.235) $(0.195) $(0.459) $(0.386) $(0.360) $(0.389) $(0.385)
In excess of net investment income -- (0.002) (0.012) (0.012) -- (0.003) (0.004)
From net realized gain -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.235) $(0.197) $(0.471) $(0.398) $(0.360) $(0.396) $(0.389)
- -----------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $10.520 $10.520 $10.330 $10.330 $ 9.980 $ 9.980 $10.080
- -----------------------------------------------------------------------------------------------------------------------------
Total Return /(4)/ 3.99% 3.80% 8.56% 7.60% 3.84% 2.99% 5.27%
- -----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data /+/
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's $28,825 $ 3,231 $25,780 $ 5,316 $14,718 $25,386 $ 5,241
omitted)
Ratios (As a percentage of average
daily net assets):
Net expenses /(5)//(6)/ 0.96%/(7)/ 1.59%/(7)/ 0.96% 1.76% 0.90%/(7)/ 1.71% 1.63%
Net expenses after custodian
fee reduction /(5)/ 0.94%/(7)/ 1.57%/(7)/ 0.94% 1.74% 0.89%/(7)/ 1.70% 1.59%
Net investment income 4.40%/(7)/ 3.78%/(7)/ 4.51% 3.76% 4.76%/(7)/ 3.91% 3.81%
Portfolio Turnover /(8)/ -- -- -- -- -- -- --
- -----------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------
-----------------
1995 1994
-----------------
Class B Class B
- ------------------------------------------------------
<S> <C> <C>
Net asset value -- Beginning of
period $10.050 $10.340
- ------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------
Net investment income $ 0.367 $ 0.380
Net realized and unrealized gain
(loss) (0.027) (0.180)
- ------------------------------------------------------
Total income from operations $ 0.340 $ 0.200
- ------------------------------------------------------
Less distributions
- ------------------------------------------------------
From net investment income $(0.367) $(0.380)
In excess of net investment income (0.066) (0.096)
From net realized gain (0.007) (0.014)
- ------------------------------------------------------
Total distributions $(0.440) $(0.490)
- ------------------------------------------------------
Net asset value-- End of period $ 9.950 $10.050
- ------------------------------------------------------
Total Return /(4)/ 3.53% 1.86%
- ------------------------------------------------------
Ratios/Supplemental Data /+/
- ------------------------------------------------------
Net assets, end of period (000's $73,857 $82,451
omitted)
Ratios (As a percentage of average
daily net assets):
Net expenses /(5)//(6)/ 1.55% 1.40%
Net expenses after custodian
fee reduction /(5)/ -- --
Net investment income 3.72% 3.55%
Portfolio Turnover /(8)/ -- 0%
- ------------------------------------------------------
/+/ 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 /(5)/ 1.48%
Net investment income 3.47%
Net investment income per share $0.377
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996, to March 31,
1997.
/(3)/ The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
/(8)/ Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
portfolio turnover rate for the period since the Fund transferred all of
its investable assets to the Portfolio is shown in the Portfolio's
financial statements which are included elsewhere in this report.
See Notes To Financial Statements
20
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Connecticut Limited Fund
-------------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
--------------------------------------------------------------------------
(Unaudited)/(1)/ 1998 1997 1996 1995 1994
-------------------- --------------------------------------------------------------------------
Class Class Class Class Class Class Class Class Class
A B A B A/(2)/ B B B B/(3)/
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of
period $10.110 $10.110 $ 9.790 $ 9.790 $ 9.870 $ 9.850 $ 9.690 $ 9.690 $10.000
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.210 $ 0.181 $ 0.429 $ 0.357/(1)/ $ 0.087 $ 0.398 $ 0.379 $ 0.373 $ 0.343
Net realized and unrealized gain
(loss) 0.131 0.124 0.333 0.333 (0.08) (0.089) 0.150 0.026 (0.243)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.341 $ 0.305 $ 0.762 $ 0.690 $ 0.005 $ 0.309 $ 0.529 $ 0.399 $ 0.100
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.210) $(0.185) $(0.429) $(0.370) $(0.085) $(0.369) $(0.369) $(0.373) $(0.343)
In excess of net investment income (0.011) -- (0.013) -- -- -- -- (0.026) (0.056)
From net realized gain -- -- -- -- -- -- -- -- (0.011)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.221) $(0.185) $(0.442) $(0.370) $(0.085) $(0.369) $(0.369) $(0.399) $(0.410)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $10.230 $10.230 $10.110 $10.110 $ 9.790 $ 9.790 $ 9.850 $ 9.690 $ 9.690
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.24% 3.06% 7.99% 7.02% (0.13)% 3.21% 5.50% 4.27% 0.73%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data +
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 7,544 $ 1,858 $ 6,034 $ 2,531 $ 586 $10,227 $13,014 $15,613 $14,752
Ratios (As a percentage of average
daily net assets):
Net expenses/(5)/(6)/ 1.04%/(7)/ 1.62%/(7)/ 1.20% 1.92% 0.70%/(7)/ 1.72% 1.53% 1.23% 0.86%/(7)/
Net expenses after custodian
fee reduction/(5)/ 1.01%/(7)/ 1.59%/(7)/ 1.18% 1.90% 0.66%/(7)/ 1.68% 1.49% -- --
Net investment income 4.15%/(7)/ 3.57%/(7)/ 4.26% 3.62% 5.06%/(7)/ 3.93% 3.78% 3.89 3.50%/(7)/
- ------------------------------------------------------------------------------------------------------------------------------------
/+/ 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): 1.27%/(7)/ 1.85%/(7)/ 1.43% 2.15% 0.94%/(7)/ 1.96% 1.86% 1.81% 2.02%/(7)/
Expenses /(5)/(6)/
Expenses after custodian fee
reduction /(5)/ 1.24%/(7)/ 1.82%/(7)/ 1.41% 2.13% 0.90%/(7)/ 1.92% -- -- --
Net investment income 3.92%/(7)/ 3.34%/(7)/ 4.03% 3.39% 4.82%/(7)/ 3.69% 3.45% 3.31% 2.34%/(7)/
Net investment income per share $ 0.198 $ 0.169 $ 0.406 $ 0.334 $ 0.083 $ 0.374 $ 0.346 $ 0.317 $ 0.229
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, January 21, 1997, to March 31,
1997.
/(3)/ For the period from the start of business, April 16, 1993, to March 31,
1994.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
21
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION> Florida Limited Fund
---------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
-------------------------------------------------
(Unaudited)(1) 1998 1997
--------------------------------- -------------------------------------------------
Class Class Class Class Class Class Class
A B C A B A(2) B
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $10.290 $10.290 $ 9.730 $ 9.980 $ 9.980 $10.030 $10.170
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.227 $ 0.191 $ 0.179 $ 0.465 $ 0.391/(1)/ $ 0.357 $ 0.388
Net realized and unrealized gain (loss) 0.153 0.151 0.149 0.307 0.307 (0.049) (0.185)
- ------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.380 $ 0.342 $ 0.328 $ 0.772 $ 0.698 $ 0.308 $ 0.203
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.230) $(0.191) $(0.188) $(0.462) $(0.388) $(0.357) $(0.388)
In excess of net investment income -- (0.001) -- -- -- (0.001) (0.005)
From net realized gain -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.230) $(0.191) $(0.188) $(0.462) $(0.388) $(0.358) $(0.393)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $10.440 $10.440 $ 9.870 $10.290 $10.290 $ 9.980 $ 9.980
- ------------------------------------------------------------------------------------------------------------------------------
Total Return /(3)/ 3.56% 3.37% 3.42% 8.06% 7.08% 2.88% 2.05%
- ------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $53,375 $ 6,964 $ 5,707 $50,116 $10,612 $34,321 $48,418
Ratios (As a percentage of
average daily net assets):
Expenses /(4)/(5)/ 0.91%/(6)/ 1.61%/(6)/ 1.66%/(6)/ 0.90% 1.66% 0.89%/(6)/ 1.65%
Expenses after custodian 0.88%/(6)/ 1.58%/(6)/ 1.63%/(6)/ 0.88% 1.64% 0.87%/(6)/ 1.63%
fee reduction /(4)/
Net investment income 4.41%/(6)/ 3.73%/(6)/ 3.67%/(6)/ 4.61% 3.84% 4.65%/(6)/ 3.86%
Portfolio Turnover /(7)/ -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------------------------
1996 1995 1994
-------------------------------------
Class Class Class
B B B
- ----------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- Beginning of period $ 10.080 $ 10.060 $ 10.360
- ----------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------
Net investment income $ 0.383 $ 0.375 $ 0.387
Net realized and unrealized gain (loss) 0.096 0.090 (0.200)
- ----------------------------------------------------------------------------
Total income from operations $ 0.479 $ 0.465 $ 0.187
- ----------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------
From net investment income $ (0.383) $ (0.375) $ (0.387)
In excess of net investment income (0.006) (0.058) (0.092)
From net realized gain -- (0.012) (0.008)
- ----------------------------------------------------------------------------
Total distributions $ (0.389) $ (0.445) $ (0.487)
- ----------------------------------------------------------------------------
Net asset value-- End of period $ 10.170 $ 10.080 $ 10.060
- ----------------------------------------------------------------------------
Total Return /(3)/ 4.78% 4.79% 1.68%
- ----------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $116,781 $149,581 $162,999
Ratios (As a percentage of
average daily net assets):
Expenses /(4)/(5)/ 1.57% 1.50% 1.42%
Expenses after custodian 1.56% -- --
fee reduction /(4)/
Net investment income 3.74% 3.77% 3.57%
Portfolio Turnover /(7)/ -- -- 0%
- ----------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996, to March 31,
1997.
/(3)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(4)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(5)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(6)/ Annualized.
/(7)/ Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
portfolio turnover rate for the period since the Fund transferred all of
its investable assets to the Portfolio is shown in the Portfolio's
financial statements which are included elsewhere in this report.
See notes to financial statements
22
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Massachusetts Limited Fund
---------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
--------------------------------------------------------
(Unaudited)/(1)/ 1998 1997
--------------------------------- --------------------------------------------------------
Class A Class B Class C Class A Class B Class A/(2)/ Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of period $10.330 $10.330 $ 9.880 $ 9.990 $ 9.990 $ 9.940 $10.100
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.228 $ 0.188 $ 0.180 $ 0.457 $ 0.384/(1)/ $ 0.359 $ 0.378
Net realized and unrealized
gain (loss) 0.160 0.161 0.147 0.339 0.339 0.040/(3)/ (0.106)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.388 $ 0.349 $ 0.327 $ 0.796 $ 0.723 $ 0.399 $ 0.272
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.228) $(0.188) $(0.185) $(0.456) $(0.383) $(0.349) $(0.382)
In excess of net investment
income -- (0.001) (0.002) -- -- -- --
From net realized gain -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.228) $(0.189) $(0.187) $(0.456) $(0.383) $(0.349) $(0.382)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of period $10.490 $10.490 $10.020 $10.330 $10.330 $ 9.990 $ 9.990
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.63% 3.43% 3.36% 8.29% 7.33% 3.83% 2.74%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $45,233 $ 4,474 $ 4,326 $43,575 $ 8,451 $23,995 $41,090
Ratios (As a percentage of
average daily net assets):
Expenses /(5)//(6)/ 0.94%/(7)/ 1.71%/(7)/ 1.70%/(7)/ 0.96% 1.70% 0.91%/(7)/ 1.68
Expenses after custodian fee
reduction /(5)/ 0.90%/(7)/ 1.67%/(7)/ 1.66%/(7)/ 0.92% 1.66% 0.89%/(7)/ 1.66
Net investment income 4.41%/(7)/ 3.65%/(7)/ 3.64%/(7)/ 4.53% 3.85% 4.76%/(7)/ 3.90%
Portfolio Turnover /(8)/ -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
1996 1995 1994
----------------------------------
Class Class Class
B B B
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value -- Beginning of period $ 9.980 $ 9.960 $ 10.270
- --------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------
Net investment income $ 0.383 $ 0.383 $ 0.385
Net realized and unrealized
gain (loss) 0.126 0.082 (0.197)
- --------------------------------------------------------------------------------
Total income from operations $ 0.509 $ 0.465 $ 0.188
- --------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------
From net investment income $(0.383) $ (0.383) $ (0.385)
In excess of net investment
income (0.006) (0.055) (0.095)
From net realized gain -- (0.007) (0.018)
- --------------------------------------------------------------------------------
Total distributions $(0.389) $ (0.445) $ (0.498)
- --------------------------------------------------------------------------------
Net asset value -- End of period
- --------------------------------------------------------------------------------
Total Return /(4)/ $10.100 $ 9.980 $ 9.960
- --------------------------------------------------------------------------------
Ratios/Supplemental Data 5.08% 4.84% 1.75%
- --------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $91,809 $113,338 $115,121
Ratios (As a percentage of
average daily net assets):
Expenses /(5)//(6)/ 1.60% 1.57% 1.46%
Expenses after custodian fee
reduction /(5)/ 1.58% -- --
Net investment income 3.71% 3.89% 3.61%
Portfolio Turnover /(8)/ -- -- 2%
- --------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996,
to March 31, 1997.
/(3)/ The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales
of Fund shares and the amount of the per share realized and unrealized
gains and losses at such time.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
/(8)/ Portfolio Turnover represents the rate of portfolio activity for the
period while the Fund was making investments directly in securities. The
portfolio turnover rate for the period since the Fund transferred all of
its investable assets to the Portfolio is shown in the Portfolio's
financial statements which are included elsewhere in this report.
See notes to financial statements
23
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Michigan Limited Fund
------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
------------------------------------------------------------------
(Unaudited)/(1)/ 1998 1997 1996
--------------------- ------------------------------------------------------------------
Class A Class B Class A Class B Class A/(3)/ Class B Class B
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of
period $10.040 $10.040 $ 9.740 $ 9.740 $ 9.740 $ 9.730 $ 9.630
- --------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.211 $ 0.180 $ 0.430 $ 0.357/(1)/ $ 0.201 $ 0.382 $ 0.383
Net realized and unrealized gain
(loss) 0.132 0.130 0.329 0.329 0.001 0.012 0.090
- --------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.343 $ 0.310 $ 0.759 $ 0.686 $ 0.202 $ 0.394 $ 0.473
- --------------------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.211) $(0.190) $(0.430) $(0.386) $(0.201) $(0.384) $(0.373)
In excess of net investment income (0.012) -- (0.029) -- (0.001) -- --
- --------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.223) $(0.190) $(0.459) $(0.386) $(0.202) $(0.384) $(0.373)
- --------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $10.160 $10.160 $10.040 $10.040 $ 9.740 $ 9.740 $ 9.730
- --------------------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.28% 3.14% 8.23% 7.24% 1.89% 4.14% 4.95%
- --------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data/+/
- --------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $10,145 $ 774 $ 9,177 $ 1,839 $ 406 $13,431 $18,705
Ratios (As a percentage of average
daily net assets):
Net expenses/(5)(6)/ 1.41%/(7)/ 2.05%/(7)/ 1.36% 2.04% 1.18%/(7)/ 1.99% 1.78%
Net expenses after custodian
fee reduction/(5)/ 1.38%/(7)/ 2.02%/(7)/ 1.32% 2.00% 1.15%/(7)/ 1.96% 1.75%
Net investment income 4.21%/(7)/ 3.59%/(7)/ 4.32% 3.72% 4.56%/(7)/ 3.91% 3.92%
- --------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------------------------
-----------------------------------------
1995 1994/(2)/
-----------------------------------------
Class B Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Net asset value -- Beginning of
period $ 9.650 $10.000
- -------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------
Net investment income $ 0.364 $ 0.345
Net realized and unrealized gain
(loss) 0.030 (0.279)
- -------------------------------------------------------------------------------
Total income from operations $ 0.394 $ 0.066
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.364) $(0.345)
In excess of net investment income (0.050) (0.071)
- -------------------------------------------------------------------------------
Total distributions $(0.414) $(0.416)
- -------------------------------------------------------------------------------
Net asset value-- End of period $ 9.630 $ 9.650
- -------------------------------------------------------------------------------
Total Return/(4)/ 4.24% 0.37%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data/+/
- -------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $26,048 $26,788
Ratios (As a percentage of average
daily net assets):
Net expenses/(5)(6)/ 1.55% 1.91%/(7)/
Net expenses after custodian
fee reduction/(5)/ -- --
Net investment income 3.82% 3.56%/(7)/
- -------------------------------------------------------------------------------
/+/ 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 (5) 1.66% 2.63%/(7)/
Net investment income 3.71% 2.84%/(7)/
Net investment income per share $0.354 $ 0.275
- -------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, April 16, 1993, to March 31,
1994.
/(3)/ For the period from the start of business, October 22, 1996, to March 31,
1997.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
24
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
New Jersey Limited Fund
--------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
(Unaudited)/(1)/ -----------------------------------------------------------
1998 1997
----------------------- -----------------------------------------------------------
Class A Class B ClassA Class B ClassA/(2)/ Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Net asset value-- Beginning of period $10.350 $10.350 $10.070 $10.070 $ 9.960 $10.110
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.232 $ 0.191 $ 0.464 $ 0.391/(1)/ $ 0.362 $ 0.375
Net realized and unrealized gain (loss) 0.140 0.142 0.279 0.279 0.102/(3)/ (0.026)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.372 $ 0.333 $ 0.743 $ 0.670 $ 0.464 $ 0.349
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.232) $(0.191) $(0.463) $(0.390) $(0.354) $(0.389)
In excess of net investment income -- (0.002) -- -- -- --
From net realized gain -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.232) $(0.193) $(0.463) $(0.390) $(0.354) $(0.389)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $10.490 $10.490 $10.350 $10.350 $10.070 $10.070
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return /(4)/ 3.45% 3.26% 7.69% 6.73% 4.48% 3.53%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $38,322 $ 4,064 $35,879 $ 8,620 $22,230 $34,691
Ratios (As a percentage of average
daily net assets):
Expenses/(5)//(6)/ 0.95%/(7)/ 1.73%/(7)/ 0.99% 1.72% 0.88%/(7)/ 1.69%
Expenses after custodian fee 0.95%/(7)/ 1.73%/(7)/ 0.98% 1.71% 0.85%/(7)/ 1.66%
reduction (5)
Net investment income 4.46%/(7)/ 3.69%/(7)/ 4.56% 3.85% 4.75%/(7)/ 3.90%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
--------------------------------------
1996 1995 1994
--------------------------------------
Class B Class B Class B
- ------------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value-- Beginning of period $10.020 $10.030 $10.350
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.383 $ 0.370 $ 0.374
Net realized and unrealized gain (loss) 0.093 0.068 (0.216)/(3)/
- ------------------------------------------------------------------------------
Total income from operations $ 0.476 $ 0.438 $ 0.158
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.383) $(0.370) $(0.374)
In excess of net investment income (0.003) (0.060) (0.092)
From net realized gain -- (0.018) (0.012)
- ------------------------------------------------------------------------------
Total distributions $(0.386) $(0.448) $(0.478)
- ------------------------------------------------------------------------------
Net asset value-- End of period $10.110 $10.020 $10.030
- ------------------------------------------------------------------------------
Total Return /(4)/ 4.79% 4.53% 1.44%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $78,039 $93,361 $99,743
Ratios (As a percentage of average
daily net assets):
Expenses/(5)//(6)/ 1.60% 1.56% 1.51%
Expenses after custodian fee 1.58% -- --
reduction /(5)/
Net investment income 3.77% 3.73% 3.50%
- ------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996, to March 31,
1997.
/(3)/ The per share amounts are 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 the per share realized and unrealized gains
and losses at such time.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
25
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
New York Limited Fund
-------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
--------------------------------------------------
(Unaudited)/(1)/ 1998 1997
------------------------------------ --------------------------------------------------
Class A Class B Class C Class A Class B Class A/(2)/ Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value-- Beginning of period $ 10.510 $10.510 $ 9.950 $10.040 $10.040 $10.000 $10.150
- ------------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.230 $ 0.191 $ 0.178 $ 0.461 $ 0.388/(1)/ $ 0.357 $ 0.387
Net realized and unrealized gain (loss) 0.200 0.201 0.191 0.470 0.470 0.035/(3)/ (0.109)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.430 $ 0.392 $ 0.369 $ 0.931 $ 0.858 $ 0.392 $ 0.278
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.230) $(0.191) $(0.180) $(0.461) $(0.388) $(0.352) $(0.387
In excess of net investment income -- (0.001) (0.009) -- -- -- (0.001)
From net realized gain -- -- -- -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.230) $(0.192) $(0.180) $(0.461) $(0.388) $(0.352) $(0.388)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $ 10.710 $10.710 $10.130 $10.510 $10.510 $10.040 $10.040
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.98% 3.78% 3.76% 9.61% 8.65% 3.74% 2.79%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 60,469 $ 6,345 $ 2,736 $59,442 $12,220 $35,932 $60,097
Ratios (As a percentage of
average daily net assets):
Expenses/(5)//(6)/ 0.93%/(7)/ 1.70%/(7)/ 1.70%/(7)/ 0.93% 1.70% 0.88%/(7)/ 1.63%
Expenses after custodian
fee reduction/(5)/ 0.93%/(7)/ 1.70%/(7)/ 1.70%/(7)/ 0.91% 1.68% 0.86%/(7)/ 1.61%
Net by investment income 4.37%/(7)/ 3.64%/(7)/ 3.57%/(7)/ 4.50% 3.77% 4.67%/(7)/ 3.84%
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
----------------------------------
1996 1995 1994
----------------------------------
Class B Class B Class B
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
Net asset value-- Beginning of per $ 10.030 $ 10.040 $ 10.360
- ---------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------
Net investment income $ 0.374 $ 0.378 $ 0.387
Net realized and unrealized gain (loss 0.135 0.049 (0.219)
- ---------------------------------------------------------------------------
Total income from operations $ 0.509 $ 0.427 $ 0.168
- ---------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------
From net investment income $ (0.374) $ (0.378) $ (0.387)
In excess of net investment income (0.015) (0.055) (0.093)
From net realized gain -- (0.004) (0.008)
- ---------------------------------------------------------------------------
Total distributions $ (0.389) $ (0.437) $ (0.488)
- ---------------------------------------------------------------------------
Net asset value-- End of period $ 10.150 $ 10.030 $ 10.040
- ---------------------------------------------------------------------------
Total Return/(4)/ 5.12% 4.41% 1.46%
- ---------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $133,846 $166,691 $178,251
Ratios (As a percentage of
average daily net assets):
Expenses/(5)//(6)/ 1.57% 1.51% 1.40%
Expenses after custodian
fee reduction/(5)/ 1.55% -- --
Net by investment income 3.66% 3.81% 3.56%
- ---------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996, to March 31,
1997.
/(3)/ The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
26
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Ohio Limited Fund
-------------------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
--------------------------------------------------------------
(Unaudited)(1) 1998 1997 1996
-------------------------------------------------------------------------------------------
Class Class Class Class Class Class Class
A B A B A/(3)/ B B
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning of
period $10.140 $ 10.140 $ 9.820 $ 9.820 $ 9.860 $ 9.840 $ 9.730
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.230 $ 0.195 $ 0.461 $ 0.389/(1)/ $ 0.205 $ 0.408 $ 0.398
Net realized and unrealized gain
(loss) 0.116 0.113 0.331 0.331 (0.037) (0.033) 0.085
- ---------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.346 $ 0.308 $ 0.792 $ 0.720 $ 0.168 $ 0.375 $ 0.483
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.230) $ (0.198) $(0.461) $(0.400) $(0.205) $(0.395) $(0.373)
- ---------------------------------------------------------------------------------------------------------------------------------
In excess of net investment income (0.006) -- (0.011) -- (0.003) -- --
Total distributions $(0.236) $ (0.198) $(0.472) $(0.400) $(0.208) $(0.395) $(0.373)
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value-- End of period $10.250 $ 10.250 $10.140 $10.140 $ 9.820 $ 9.820 $ 9.840
- ---------------------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.27% 3.08% 8.40% 7.43% 1.51% 3.89% 5.07%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data +
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $20,057 $ 3,233 $18,114 $ 4,249 $ 952 $24,587 $29,759
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of average
daily net assets):
Net expenses/(5)/(6)/ 1.04%/(7)/ 1.75%/(7)/ 1.11% 1.80% 1.08%/(7)/ 1.84% 1.67%
Net expenses after custodian
fee reduction/(5)/ 1.02%/(7)/ 1.73%/(7)/ -- -- 1.05%/(7)/ 1.81% 1.65%
Net investment income 4.54%/(7)/ 3.83%/(7)/ 4.57% 3.92% 4.75%/(7)/ 4.06% 4.04%
- ---------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
-----------------------
1995 1994/(2)/
-----------------------
Class Class
B B
- --------------------------------------------------------------------------
<S> <C> <C>
Net asset value-- Beginning of
period $ 9.730 $10.000
- --------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------
Net investment income $ 0.382 $ 0.354
Net realized and unrealized gain
(loss) 0.032 (0.194)
- --------------------------------------------------------------------------
Total income from operations $ 0.414 $ 0.160
- --------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------
From net investment income $(0.382) $(0.354)
In excess of net investment income (0.032) (0.076)
- --------------------------------------------------------------------------
Total distributions $(0.414) $(0.430)
- --------------------------------------------------------------------------
Net asset value-- End of period $ 9.730 $ 9.730
- --------------------------------------------------------------------------
Total Return/(4)/ 4.41% 1.23%
- --------------------------------------------------------------------------
Ratios/Supplemental Data+
- --------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $34,279 $32,002
- --------------------------------------------------------------------------
Ratios (As a percentage of average
daily net assets):
Net expenses/(5)(6)/ 1.49% 1.03%/(7)/
Net expenses after custodian
fee reduction/(5)/ -- --
Net investment income 3.95% 3.53%/(7)/
- --------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction
of the investment adviser fee, an allocation of expenses to the Investment
Adviser or 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 /(5)/ 1.60% 1.63%/(7)/
Net investment income 3.84% 2.93%/(7)/
Net investment income per share $ 0.371 $ 0.293
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, April 16, 1993, to March 31,
1994.
/(3)/ For the period from the start of business, October 22, 1996, to March 31,
1997.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
27
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Pennsylvania Limited Fund
------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
--------------------------------------------------
(Unaudited)/(1)/ 1998 1997 1996
-------------------------------- --------------------------------------------------
Class A Class B Class C Class A Class B Class A/(2)/ Class B Class B
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value -- Beginning
of period $10.550 $10.550 $9.980 $10.100 $10.100 $10.030 $10.190 $10.090
- ----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.242 $ 0.203 $0.189 $ 0.481 $ 0.407/(1)/$ 0.371 $ 0.392 $ 0.388
Net realized and unrealized
gain (loss) 0.096 0.096 0.097 0.445 0.445 0.063/(3)/ (0.081) 0.110
- ----------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.338 $ 0.299 $0.286 $ 0.926 $ 0.852 $ 0.434 $ 0.311 $ 0.498
- ----------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.238) $(0.199) $(0.196) $(0.476) $(0.407) $(0.364) $(0.401) $(0.388)
In excess of net investment
income -- -- -- -- -- -- -- (0.010)
From net realized gain -- -- -- -- -- -- -- --
- ----------------------------------------------------------------------------------------------------------------------
Total distributions $(0.230) $(0.199) $(0.196) $(0.476) $(0.407) $(0.364) $(0.401) $(0.398)
- ----------------------------------------------------------------------------------------------------------------------
Net asset value -- End of
period $10.650 $10.650 $10.070 $10.550 $10.550 $10.100 $10.100 $10.190
- ----------------------------------------------------------------------------------------------------------------------
Total Return/(4)/ 3.06% 2.87% 2.91% 9.52% 8.55% 4.15% 3.12% 4.98%
- ----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of
(000's omitted) $43,248 $ 4,922 $ 5,375 $43,961 $ 8,277 $27,907 $33,971 $84,407
Ratios (As a percentage of
average daily net assets):
Expenses/(5)(6)/ 0.95%/(7)/ 1.69%/(7)/ 1.73%/(7)/ 0.97% 1.71% 0.90%/(7)/ 1.69% 1.62%
Expenses after custodian fee
reduction/(5)/ 0.94%/(7)/ 1.68%/(7)/ 1.72%/(7)/ 0.95% 1.69% 0.88%/(7)/ 1.67% 1.60%
Net investment income 4.58%/(7)/ 3.84%/(7)/ 3.78%/(7)/ 4.67% 3.95% 4.83%/(7)/ 4.05% 3.79%
- ----------------------------------------------------------------------------------------------------------------------
<CAPTION>
------------------
Year Ended March 31,
-------------------
1995 1994
-------------------
Class B Class B
- ---------------------------------------------------
<S> <C> <C>
Net asset value -- Beginning
of period 10.100 $ 10.390
- ---------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------
Net investment income 0.374 $ 0.399
Net realized and unrealized
gain (loss) 0.065 (0.195)
- ---------------------------------------------------
Total income from operations 0.439 $ 0.204
- --------------------------------------------------
Less distributions
- --------------------------------------------------
From net investment income (0.374) $ (0.399)
In excess of net investment
income (0.069) (0.083)
From net realized gain (0.006) (0.012)
- ---------------------------------------------------
Total distributions (0.449) $ (0.494)
- ---------------------------------------------------
Net asset value -- End of
period 10.090 $ 10.100
- ---------------------------------------------------
Total Return/(4)/ 4.50% 1.89%
- ---------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------
Net assets, end of
(000's omitted) 103,553 $109,515
Ratios (As a percentage of
average daily net assets):
Expenses/(5)(6)/ 1.57% 1.45%
Expenses after custodian fee
reduction/(5)/ -- --
Net investment income 3.75% 3.63%
- ---------------------------------------------------
</TABLE>
/(1)/ Net investment income per share was computed using average shares
outstanding.
/(2)/ For the period from the start of business, June 27, 1996, to March 31,
1997.
/(3)/ The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
/(4)/ 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
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
/(5)/ Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
/(6)/ The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding 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.
/(7)/ Annualized.
See notes to financial statements
28
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
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 ten Funds, nine of which
are included in these financial statements. They include Eaton Vance
California Limited Maturity Municipals Fund ("California Limited Fund"),
Eaton Vance Connecticut Limited Maturity Municipals Fund ("Connecticut
Limited Fund"), Eaton Vance Florida Limited Maturity Municipals Fund
("Florida Limited Fund"), Eaton Vance Massachusetts Limited Maturity
Municipals Fund ("Massachusetts Limited Fund"), Eaton Vance Michigan Limited
Maturity Municipals Fund ("Michigan Limited Fund"), Eaton Vance New Jersey
Limited Maturity Municipals Fund ("New Jersey Limited Fund"), Eaton Vance New
York Limited Maturity Municipals Fund ("New York Limited Fund"), Eaton Vance
Ohio Limited Maturity Municipals Fund ("Ohio Limited Fund") and Eaton Vance
Pennsylvania Limited Maturity Municipals Fund ("Pennsylvania Limited Fund").
The Funds may offer three classes of shares: Class A (formerly Class II),
Class B (formerly Class I) and Class C. Class A shares are sold subject to a
sales charge imposed at the time of purchase. Class B and Class C shares are
sold at net asset value and are subject to a contingent deferred sales charge
(see Note 6). Class B shares held longer than (i) four years or (ii) the time
at which the contingent deferred sales charge applicable to such shares
expires will automatically convert to Class A shares. All classes of shares
have equal rights to assets and voting privileges. Realized and unrealized
gains and losses and net investment income, other than class specific
expenses, are allocated daily to each class of shares based on the relative
net assets of each class to the total net assets of the Fund. Each class of
shares differs in its distribution plan and certain other class specific
expenses. 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 California Limited Fund invests its assets in the
California Limited Maturity Municipals Portfolio, the Connecticut Limited
Fund invests its assets in the Connecticut Limited Maturity Municipals
Portfolio, the Florida Limited Fund invests its assets in the Florida Limited
Maturity Municipals Portfolio, the Massachusetts Limited Fund invests its
assets in the Massachusetts Limited Maturity Municipals Portfolio, the
Michigan Limited Fund invests its assets in the Michigan Limited Maturity
Municipals Portfolio, the New Jersey Limited Fund invests its assets in the
New Jersey Limited Maturity Municipals Portfolio, the New York Limited Fund
invests its assets in the New York Limited Maturity Municipals Portfolio, the
Ohio Limited Fund invests its assets in the Ohio Limited Maturity Municipals
Portfolio and the Pennsylvania Limited Fund invests its assets in the
Pennsylvania Limited Maturity Municipals Portfolio. The value of each Fund's
investment in its corresponding Portfolio reflects the Fund's proportionate
interest in the net assets of that Portfolio (100% at September 30, 1998 for
each Fund except Connecticut Limited Fund, Michigan Limited Fund and Ohio
Limited Fund which were 98.6%, 98.8% and 99.4%, 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 each 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 September 30, 1998, the
following Funds, for federal income tax purposes, had capital loss carryovers,
which will reduce each Fund's taxable income arising from future net realized
gain on investments, if any, to the extent permitted by the Internal Revenue
Code, and thus will reduce the amount of the
29
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
distributions to shareholders which would otherwise be necessary to relieve
the Funds of any liability for federal income or excise taxes. A portion of
such capital loss carryovers were acquired through the Fund Reorganization
(see Note 8) and may be subject to certain limitations. The amounts and
expiration dates of the capital loss carryovers are as follows:
Fund Amount Expires
---------------------------------------------------------------------------
California Limited Fund $ 49,293 March 31, 2005
2,010,530 March 31, 2004
475,581 March 31, 2003
Connecticut Limited Fund 595 March 31, 2006
2,392 March 31, 2005
298,644 March 31, 2004
252,091 March 31, 2003
6,885 March 31, 2002
Florida Limited Fund 355,606 March 31, 2006
133,020 March 31, 2005
2,955,585 March 31, 2004
821,550 March 31, 2003
Massachusetts Limited Fund 197,971 March 31, 2006
30,086 March 31, 2005
1,533,591 March 31, 2004
542,710 March 31, 2003
58 March 31, 2002
Michigan Limited Fund 128,453 March 31, 2006
910,654 March 31, 2004
528,400 March 31, 2003
New Jersey Limited Fund 213,255 March 31, 2006
1,767,217 March 31, 2004
499,031 March 31, 2003
New York Limited Fund 20,866 March 31, 2005
1,811,459 March 31, 2004
111,328 March 31, 2003
Ohio Limited Fund 762,343 March 31, 2004
609,260 March 31, 2003
Pennsylvania Limited Fund 25,743 March 31, 2005
1,539,765 March 31, 2004
54,042 March 31, 2003
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 intends to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay exempt-interest dividends. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986, may be considered a tax
preference item to shareholders.
D Deferred Organization Expenses -- Costs incurred by a Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years, beginning on the date each Fund
commenced operations.
E 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.
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 Statements -- The interim financial statements relating to
September 30, 1998, and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
30
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
/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. Dividends are declared separately for each class
of shares. 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
same class of a Fund at the net asset value as of the reinvestment date.
Distributions are paid in the form of additional shares of the same class 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. Permanent differences between book and tax accounting
relating to distributions are reclassified to paid-in capital. The tax
treatment of distributions for the calendar year will be reported to
shareholders prior to February 1, 1999, 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). Such shares may be issued in a number of different classes.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
California Limited Fund
---------------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
---------------------------------------------------------------------------
<S> <C> <C>
Sales 39,939 --
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 23,612 35,206
Redemptions (324,049) (822,966)
Exchange to Class A shares 203,192 1,807,527
Issued to EV Traditional
California Limited Fund
Shareholders 303,260 --
---------------------------------------------------------------------------
Net increase 245,954 1,019,767
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
California Limited Fund
---------------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
---------------------------------------------------------------------------
<S> <C> <C>
Sales 54,864 85,408
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 3,709 27,495
Redemptions (62,969) (335,075)
Exchange to Class A shares (203,192) (1,807,527)
---------------------------------------------------------------------------
Net increase (207,588) (2,029,699)
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Connecticut Limited Fund
---------------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
---------------------------------------------------------------------------
<S> <C> <C>
Sales 30,751 --
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 7,294 6,706
Redemptions (63,580) (122,878)
Exchange to Class A shares 60,498 653,370
Issued to EV Traditional
California Limited Fund
Shareholders 105,182 --
---------------------------------------------------------------------------
Net increase 140,145 537,198
---------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
---------------------------------------------------------------------------
<S> <C> <C>
Sales 18,859 39,260
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 2,585 14,858
Redemptions (29,510) (195,469)
Exchange to Class A shares (60,498) (653,370)
---------------------------------------------------------------------------
Net decrease (68,564) (794,721)
---------------------------------------------------------------------------
</TABLE>
31
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Florida Limited Fund
----------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
----------------------------------------------------------------------
<S> <C> <C>
Sales 54,698 --
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 38,890 71,474
Redemptions (600,430) (2,067,316)
Exchange to Class A shares 311,168 3,424,984
Issued to EV Traditional
Florida Limited Fund
Shareholders 439,652 --
----------------------------------------------------------------------
Net increase 243,978 1,429,142
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
----------------------------------------------------------------------
<S> <C> <C>
Sales 27,528 105,262
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 4,642 52,346
Redemptions (84,806) (554,732)
Exchange to Class A shares (311,168) (3,424,984)
----------------------------------------------------------------------
Net decrease (363,804) (3,822,108)
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998
Class C (Unaudited)
---------------------------------------------------
<S> <C>
Sales 49,859
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 6,620
Redemptions (151,145)
Issued to EV Classic Florida
Limited Fund Shareholders 673,148
---------------------------------------------------
Net increase 578,482
---------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Massachusetts Limited Fund
----------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
----------------------------------------------------------------------
<S> <C> <C>
Sales 155,456 --
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 43,127 77,012
Redemptions (416,611) (1,097,974)
Exchange to Class A shares 311,366 2,840,002
----------------------------------------------------------------------
Net increase 93,338 1,819,040
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
----------------------------------------------------------------------
<S> <C> <C>
Sales 28,611 52,696
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 7,672 54,876
Redemptions (116,873) (561,592)
Exchange to Class A shares (311,366) (2,840,002)
----------------------------------------------------------------------
Net decrease (391,956) (3,294,022)
----------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998
Class C (Unaudited)
----------------------------------------------------
<S> <C>
Sales 39,829
Issued to shareholders
electing to
receive payment of
distribution in
Fund shares 7,262
Redemptions (66,708)
Issued to EV Classic
Massachusetts Limited Fund
Shareholders 451,136
----------------------------------------------------
Net increase 431,519
----------------------------------------------------
</TABLE>
32
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Michigan Limited Fund
-------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 15,663 --
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 10,034 9,875
Redemptions (128,385) (156,656)
Exchange to Class A shares 98,475 1,018,871
Issued to EV Traditional
Michigan Limited Fund
Shareholders 89,196 --
- --------------------------------------------------------------------
Net increase 84,983 872,090
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 9,209 28,674
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 1,962 18,182
Redemptions (19,585) (223,733)
Exchange to Class A shares (98,475) (1,018,871)
- --------------------------------------------------------------------
Net decrease (106,889) (1,195,748)
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Fund
-------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 26,464 --
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 44,412 71,798
Redemptions (354,271) (1,126,637)
Exchange to Class A shares 389,154 2,312,029
Issued to EV Traditional
New Jersey Limited Fund
Shareholders 81,047 --
- --------------------------------------------------------------------
Net increase 186,806 1,257,190
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
New Jersey Limited Fund
-------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 40,490 116,912
Issued to shareholders
electing to receive payment of
distribution in 9,129 56,169
Fund shares
Redemptions (106,136) (474,069)
Exchange to Class A shares (389,154) (2,312,029)
- --------------------------------------------------------------------
Net decrease (445,671) (2,613,017)
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
New York Limited Fund
-------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 162,558 --
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 60,970 110,830
Redemptions (756,999) (1,864,566)
Exchange to Class A shares 471,787 3,833,043
Issued to EV Traditional New
York Limited Fund Shareholders 51,712 --
- --------------------------------------------------------------------
Net increase (decrease) (9,972) 2,079,307
- --------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
- --------------------------------------------------------------------
<S> <C> <C>
Sales 37,483 112,437
Issued to shareholders
electing to receive payment of
distribution in
Fund shares 11,073 79,378
Redemptions (147,453) (1,178,702)
Exchange to Class A shares (471,787) (3,833,043)
- --------------------------------------------------------------------
Net increase (570,684) (4,819,930)
- --------------------------------------------------------------------
</TABLE>
33
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
New York Limited Fund
------------------------
Six Months Ended
September 30, 1998
Class C (Unaudited)
- ----------------------------------------------------
<S> <C>
Sales 69,959
Issued to shareholders
electing to receive payment of
distribution in Fund shares 3,332
Redemptions (32,923)
Issued to EV Classic New York
Limited Fund Shareholders 229,639
- ----------------------------------------------------
Net increase 270,007
- ----------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ohio Limited Fund
---------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
Sales 24,446 --
Issued to shareholders
electing to receive payment of
distribution in Fund shares 25,811 27,898
Redemptions (152,385) (286,153)
Exchange to Class A shares 108,389 1,947,200
Issued to EV Traditional Ohio
Limited Fund Shareholders 164,848 --
- ---------------------------------------------------------------------
Net increase 171,109 1,688,945
- ---------------------------------------------------------------------
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
Sales 29,291 40,352
Issued to shareholders
electing to receive payment of
distribution in Fund shares 4,579 37,539
Redemptions (29,007) (215,277)
Exchange to Class A shares (108,389) (1,947,200)
- ---------------------------------------------------------------------
Net decrease (103,526) (2,084,586)
- ---------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania Limited Fund
--------------------------------------
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
Sales 58,563 --
Issued to shareholders electing
to receive payment of
distribution in Fund shares 37,093 65,498
Redemptions (465,731) (947,640)
Exchange to Class A shares 262,580 2,286,266
- ---------------------------------------------------------------------
Net increase (decrease) (107,495) 1,404,124
- ---------------------------------------------------------------------
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
- ---------------------------------------------------------------------
<S> <C> <C>
Sales 15,265 62,800
Issued to shareholders
electing to receive payment of
distribution in Fund shares 7,562 43,872
Redemptions (82,954) (399,781)
Exchange to Class A shares (262,580) (2,286,266)
- ---------------------------------------------------------------------
Net decrease (322,707) (2,579,375)
- ---------------------------------------------------------------------
<CAPTION>
Six Months Ended
September 30, 1998
Class C (Unaudited)
- ------------------------------------------------------
<S> <C>
Sales 35,173
Issued to shareholders
electing to receive payment of
distribution in Fund shares 7,502
Redemptions (23,088)
Issued to EV Classic
Pennsylvania Limited Fund
Shareholders 514,215
- ------------------------------------------------------
Net increase 533,802
- ------------------------------------------------------
</TABLE>
34
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
/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. Certain of the
officers and Trustees of the Funds and Portfolios are officers and
directors/trustees of the above organizations (Note 5). Eaton Vance
Distributors, Inc. (EVD), a subsidiary of EVM and the Funds' principal
underwriter, received $67, $237, $127, $0, $0, $56, $200, $59 and $48 as it
portion of the sales charge on sales of Class A shares from California
Limited Fund, Connecticut Limited Fund, Florida Limited Fund, Massachusetts
Limited Fund, Michigan Limited Fund, New Jersey Limited Fund, New York
Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively,
for the six months ended September 30, 1998.
Except as to Trustees of the Funds and Portfolios who are not members of EVM's
or BMR's organization, officers and Trustees receive remuneration for their
services to each Fund out of the investment adviser fee earned by BMR.
/5/Distribution and Service Plans
------------------------------------------------------------------------------
Each Fund has adopted a distribution plan ("Class B Plans" and "Class C
Plans") pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan ("Class A Plans")(collectively the "Plans"). The Plans require
the Funds to pay the principal underwriter, EVD amounts equal to 1/365 of
0.75% of each Fund's Class B and Class C daily net assets, for providing
ongoing distribution services and facilities to the respective Fund. A Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent
to the sum of (i) 3% (3-1/2% for Connecticut Limited Fund, Michigan Limited
Fund and Ohio Limited Fund) of the aggregate amount received by the Fund for
Class B shares sold plus, (ii) distribution fees calculated by applying the
rate of 1% over the prevailing prime rate to the outstanding balance of
Uncovered Distribution Charges of EVD reduced by the aggregate amount of
contingent deferred sales charges (see Note 6) and amounts theretofore paid
to EVD. The amount payable to EVD with respect to each day is accrued on such
day as a liability of each Fund and, accordingly, reduces each Fund's net
assets. For the six months ended September 30, 1998, California Limited Fund,
Connecticut Limited Fund, Florida Limited Fund, Massachusetts Limited Fund,
Michigan Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio
Limited Fund and Pennsylvania Limited Fund paid or accrued $15,840, $7,933,
$31,386, $24,146, $4,717, $23,970, $33,121, $13,720 and $24,891,
respectively, for Class B shares, and Florida Limited Fund, Massachusetts
Limited Fund, New York Limited Fund and Pennsylvania Limited Fund paid or
accrued $24,026, $16,187, $9,547, and $19,545, respectively, for Class C
shares, to or payable to EVD representing 0.75% of average daily net assets
attributable to Class B and Class C shares. At September 30, 1998, the amount
of Uncovered Distribution Charges of EVD calculated under the Plans for
California Limited Fund, Connecticut Limited Fund, Florida Limited Fund,
Massachusetts Limited Fund, Michigan Limited Fund, New Jersey Limited Fund,
New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund were
approximately $258,000, $210,000, $541,000, $287,000, $346,000, $290,000,
$385,000, $447,000 and $186,000, respectively for Class B shares, and for
Florida Limited Fund, Massachusetts Limited Fund, New York Limited Fund, and
Pennsylvania Limited Fund the amount of Uncovered Distribution Charges of EVD
were approximately $3,894,000, $849,000, $1,019,000 and $1,839,000,
respectively, for Class C shares.
In addition, the Plans permit all classes of each Fund to make monthly
payments of service fees to EVD, Authorized Firms and other persons in amounts
not expected to exceed 0.25% of each Fund's average daily net assets for any
fiscal year. The Trustees have initially implemented the Plans by authorizing
the Funds to make quarterly service fee payments to EVD and Authorized Firms
in amounts not expected to exceed 0.15% per annum of each Fund's average daily
net assets attributable to Class A and Class B shares based on the value of
Fund shares sold by such persons and remaining outstanding for at least one
year. The Class C Plans require Florida Limited Fund,
35
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
Massachusetts Limited Fund, New York Limited Fund and Pennsylvania Limited
Fund to make monthly payments of service fees in amounts not expected to
exceed 0.25% of each Fund's average daily net assets attributable to Class C
shares for any fiscal year. For the six months ended September 30, 1998,
California Limited Fund, Connecticut Limited Fund, Florida Limited Fund,
Massachusetts Limited Fund, Michigan Limited Fund, New Jersey Limited Fund,
New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund paid
or accrued service fees to or payable to EVD in the amount of $21,749,
$8,000, $38,443, $28,557, $7,444, $23,574, $38,698, $14,944 and $25,488,
respectively, for Class A shares, and $507, $675, $3,811, $4,570, $544,
$5,032, $5,912, $1,878 and $3,708, respectively, for Class B shares. For the
six months ended September 30, 1998, Florida Limited Fund, Massachusetts
Limited Fund, New York Limited Fund and Pennsylvania Limited Fund paid or
accrued service fees to or payable to EVD in the amount of $4,590, $3,237,
$1,910 and $3,909, respectively, for Class C shares. Service fee payments are
made for personal services and/or maintenance of shareholder accounts.
Service fees paid to EVD and Authorized Firms are separate and distinct from
the sales commissions and distribution fees payable by the Fund to EVD, and
as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD.
Certain officers and Trustees of the Fund are officers or directors of EVD.
/6/Contingent Deferred Sales Charge
------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within four years of purchase, and on Class C shares
within one year of purchase. Generally, the CDSC is based upon the lower of
the net asset value at date of redemption or date of purchase. No charge is
levied on Class B and Class C shares acquired by reinvestment of dividends or
capital gains distributions. The CDSC for Class B shares is imposed at
declining rates that begin at 3% in the case of redemptions in the first year
of purchase. Class C shares are subject to a 1% CDSC if redeemed within one
year of purchase. No CDSC is levied on shares which have been sold to EVM or
its affiliates or to their respective employees or clients. CDSC charges are
paid to EVD to reduce the amount of Uncovered Distribution Charges calculated
under each Fund's Distribution Plan. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. For the six months
ended September 30, 1998, EVD received approximately $3,000, $800, $3,000,
$6,000, $0, $13,000, $10,000, $600 and $3,000, respectively, for Class B
shares, of CDSC paid by shareholders of California Limited Fund, Connecticut
Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, Michigan
Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited
Fund and Pennsylvania Limited Fund and $100, $100, $100 and $200,
respectively, for Class C shares, of CDSC paid by shareholders of Florida
Limited Fund, Massachusetts Limited Fund, New York Limited Fund, and
Pennsylvania Limited Fund.
/7/Investment Transactions
------------------------------------------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended September 30, 1998 were as follows:
California Limited Fund
------------------------------------------------------------------------------
Increases $ 3,097,276
Decreases (6,637,868)
Connecticut Limited Fund
------------------------------------------------------------------------------
Increases $ 1,172,053
Decreases (1,793,966)
Florida Limited Fund
------------------------------------------------------------------------------
Increases $ 4,594,657
Decreases (13,137,060)
Massachusetts Limited Fund
------------------------------------------------------------------------------
Increases $ 5,571,471
Decreases (10,106,639)
Michigan Limited Fund
------------------------------------------------------------------------------
Increases $ 1,268,924
Decreases (2,684,334)
New Jersey Limited Fund
------------------------------------------------------------------------------
Increases $ 4,820,266
Decreases (9,449,929)
New York Limited Fund
------------------------------------------------------------------------------
Increases $ 7,964,604
Decreases (15,848,271)
36
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ohio Limited Fund
------------------------------------------------------------------------
<S> <C>
Increases $ 1,693,294
Decreases (3,223,979)
Pennsylvania Limited Fund
------------------------------------------------------------------------
Increases $ 4,243,372
Decreases (10,074,350)
</TABLE>
/8/ Transfer of Net Assets
------------------------------------------------------------------------
Effective on April 1, 1998, Class I and Class II shares of EV Marathon
California Limited Fund, EV Marathon Connecticut Limited Fund, EV Marathon
Florida Limited Fund, EV Marathon Massachusetts Limited Fund, EV Marathon
Michigan Limited Fund, EV Marathon New Jersey Limited Fund, EV Marathon New
York Limited Fund, EV Marathon Ohio Limited Fund, and EV Marathon
Pennsylvania Limited Fund were designated Class B and Class A shares,
respectively. In addition, the Funds acquired the net assets of EV
Traditional California Limited Fund, EV Traditional Connecticut Limited
Fund, EV Traditional Florida Limited Fund, EV Traditional Michigan Limited
Fund, EV Traditional New Jersey Limited Fund, EV Traditional New York
Limited Fund, and EV Traditional Ohio Limited Fund as well as the net
assets of EV Classic Florida Limited Fund, EV Classic Massachusetts Limited
Fund, EV Classic New York Limited Fund, and EV Classic Pennsylvania Limited
Fund, pursuant to an Agreement and Plan of Reorganization dated June 23,
1997. In accordance with the agreement, the Funds, at the closing, issued
Class A shares and Class C shares as follows:
<TABLE>
<CAPTION>
Class A shares Aggregate value Net asset value
Fund issued of shares issued per share
---------------------------------------------------------------------------------------
<S> <C> <C> <C>
California Limited Fund 303,260 $3,133,613 $10.33
Connecticut Limited Fund 105,182 1,063,816 10.11
Florida Limited Fund 439,652 4,524,349 10.29
Michigan Limited Fund 89,196 895,423 10.04
New Jersey Limited Fund 81,047 839,250 10.35
New York Limited Fund 51,712 543,752 10.51
Ohio Limited Fund 164,848 1,671,340 10.14
</TABLE>
<TABLE>
<CAPTION>
Class C shares Aggregate value Net asset value
Fund issued of shares issued per share
----------------------------------------------------------------------------------------
<S> <C> <C> <C>
Florida Limited Fund 673,148 $6,552,371 $9.73
Massachusetts Limited Fund 451,136 4,459,306 9.88
New York Limited Fund 229,639 2,285,786 9.95
Pennsylvania Limited Fund 514,215 5,132,765 9.98
</TABLE>
The transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. The net assets acquired,
including unrealized appreciation at the date of the transaction were as
follows:
<TABLE>
<CAPTION>
Class A and Class C Class A and Class C
Fund Acquired net assets Unrealized appreciation
------------------------------------------------------------------------------
<S> <C> <C>
California Limited Fund $3,133,613 $109,134
Connecticut Limited Fund 1,063,816 44,459
Florida Limited Fund 11,076,720 243,990
Massachusetts Limited Fund 4,459,306 166,397
Michigan Limited Fund 895,423 113,532
New Jersey Limited Fund 839,250 57,157
New York Limited Fund 2,829,538 114,001
Ohio Limited Fund 1,671,340 116,658
Pennsylvania Limited Fund 5,132,765 173,931
</TABLE>
Directly after the merger, the combined net assets of the Funds and the net
asset value of Class A shares, Class B shares, and Class C shares were as
follows:
<TABLE>
<CAPTION>
Class A net Class B net Class C net
Combined asset value asset value asset value
Fund net assets per share per share per share
------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
California Limited Fund $34,229,930 $ 10.33 $10.33 $ --
Connecticut Limited Fund 9,628,721 10.11 10.11 --
Florida Limited Fund 71,804,641 10.29 10.29 9.73
Massachusetts Limited Fund 56,485,735 10.33 10.33 9.88
Michigan Limited Fund 11,911,871 10.04 10.04 --
New Jersey Limited Fund 45,338,694 10.35 10.35 --
New York Limited Fund 74,492,033 10.51 10.51 9.95
Ohio Limited Fund 24,034,090 10.14 10.14 --
Pennsylvania Limited Fund 57,370,033 10.55 10.55 9.98
</TABLE>
37
<PAGE>
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration -- 4.8%
- -------------------------------------------------------------------------------
NR BBB- $1,500 Central Valley Financing
Authority, Cogeneration,
5.20%, 7/1/99 $ 1,520,610
- -------------------------------------------------------------------------------
$ 1,520,610
- -------------------------------------------------------------------------------
Electric Utilities -- 6.8%
- -------------------------------------------------------------------------------
A2 A $1,000 California Pollution
Control Financing
Authority, (San Diego Gas &
Electric), 5.90%, 6/1/14(1) $ 1,142,140
A2 A+ 1,000 California Pollution
Control Financing
Authority, (Southern
California Edison Co.),
6.85%, 12/1/08 1,048,750
- -------------------------------------------------------------------------------
$ 2,190,890
- -------------------------------------------------------------------------------
Escrowed / Prerefunded -- 22.0%
- -------------------------------------------------------------------------------
Aaa AAA $1,500 ABAG Finance Authority
Certificates of
Participation, (Stanford
University Hospital),
(MBIA), Escrowed to
Maturity, 4.90%, 11/1/03 $ 1,592,145
Aaa AAA 1,000 ABAG Finance Authority
Certificates of
Participation, (Stanford
University Hospital),
(MBIA), Escrowed to
Maturity, 5.125%, 11/1/05 1,059,440
NR NR 1,400 California Health
Facilities, (Sisters of
Providence), Prerefunded to
10/1/00, 7.50%, 10/1/10 1,533,812
NR BBB- 1,000 Sacramento Cogeneration
Authority, (Procter &
Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 1,175,900
NR AAA 1,500 San Bernadino, Certificates
of Participation,
Prerefunded to 8/1/01,
7.00%, 8/1/28 1,672,080
- -------------------------------------------------------------------------------
$ 7,033,377
- -------------------------------------------------------------------------------
Hospital -- 4.6%
- -------------------------------------------------------------------------------
NR NR $ 380 Eastern Plumas Health Care,
(District Hospital), 7.50%,
8/1/07 $ 414,797
NR NR 300 San Benito Health Care
District, 5.375%, 10/1/12(2) 300,132
NR NR 350 San Gorgonio Memorial
Health Care District,
5.80%, 5/1/14 355,978
NR BBB+ $ 400 Stockton Health Facilities,
(Dameron Hospital), 5.70%,
12/1/14 $ 412,812
- -------------------------------------------------------------------------------
$ 1,483,719
- -------------------------------------------------------------------------------
Housing -- 4.9%
- -------------------------------------------------------------------------------
Aaa NR $1,500 Corona SFMR, 6.05%, 5/1/27 $ 1,563,720
- -------------------------------------------------------------------------------
$ 1,563,720
- -------------------------------------------------------------------------------
Industrial Development Revenue -- 2.5%
- -------------------------------------------------------------------------------
Baa1 A- $ 750 California Pollution
Control Financing
Authority, (Browning Ferris
Industries), 5.80%, 12/1/16 $ 805,050
- -------------------------------------------------------------------------------
$ 805,050
- -------------------------------------------------------------------------------
Insured-Electric Utilities -- 6.6%
- -------------------------------------------------------------------------------
Aaa AAA $1,000 Sacramento Municipal
Utility District, (AMBAC),
5.60%, 8/15/16 $ 1,094,750
Aaa AAA 1,000 Southern California Public
Power Authority Project,
(AMBAC), 5.00%, 7/1/17 1,020,860
- -------------------------------------------------------------------------------
$ 2,115,610
- -------------------------------------------------------------------------------
Insured-General Obligations -- 7.1%
- -------------------------------------------------------------------------------
Aaa AAA $1,080 Fillmore Unified School
District, (FGIC), 0.00%,
7/1/15 $ 488,290
Aaa AAA 1,250 Mt. Diablo School District
(AMBAC), 5.70%, 8/1/14 1,378,200
Aaa AAA 705 Ukiah Unified School
District, (FGIC), 0.00%,
8/1/10 419,961
- -------------------------------------------------------------------------------
$ 2,286,451
- -------------------------------------------------------------------------------
Insured-Hospital -- 5.3%
- -------------------------------------------------------------------------------
Aaa AAA $1,900 Riverside County,
(Riverside County Hospital
Project), (MBIA),
0.00%, 6/1/21 $ 615,429
Aaa AAA 1,000 Tri City Hospital District,
(MBIA), 5.625%, 2/15/17 1,079,260
- -------------------------------------------------------------------------------
$ 1,694,689
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
38
<PAGE>
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 6.3%
- --------------------------------------------------------------------
<S> <C> <C> <C> <C>
Aaa AAA $ 500 California State Public
Works Board, (California
Community College),
(AMBAC), 5.625%, 3/1/16 $ 546,470
Aaa AAA 1,355 California State Public
Works Board, (Department of
Corrections), (AMBAC), 1,480,622
5.25%, 12/1/13
- ---------------------------------------------------------------------
$ 2,027,092
- ---------------------------------------------------------------------
Insured-Special Tax Revenue -- 6.7%
- ---------------------------------------------------------------------
Aaa AAA $2,000 San Mateo County
Transportation District,
(MBIA), 5.25%, 6/1/17 $ 2,155,039
- ---------------------------------------------------------------------
$ 2,155,039
- ---------------------------------------------------------------------
Insured-Transportation -- 6.9%
- ---------------------------------------------------------------------
Aaa AAA $ 750 Puerto Rico Highway and
Transportation Authority,
(AMBAC), 0.00%, 7/1/18 $ 299,018
Aaa AAA 1,250 San Francisco, City and
County Airports, (MBIA),
5.60%, 5/1/13 1,349,338
Aaa AAA 1,000 San Joaquin Hills,
Transportation Corridor
Bridge & Toll Road,
(MBIA), 0.00%, 1/15/12 544,580
- ---------------------------------------------------------------------
$ 2,192,936
- ---------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 4.1%
- ---------------------------------------------------------------------
NR A+ $ 750 California Statewide
Communities Development
Authority, (San Gabriel
Valley), 5.50%, 9/1/14 $ 784,688
Baa/2/ NR 500 Corona PFA, Public
Improvement Revenue, 5.95%,
7/1/07 523,725
- ---------------------------------------------------------------------
$ 1,308,413
- ---------------------------------------------------------------------
Nursing Home -- 5.8%
- ---------------------------------------------------------------------
NR BBB $ 750 ABAG Finance Authority,
(American Baptist Homes),
5.75%, 10/1/17 $ 781,485
NR A+ 1,000 California Statewide
Communities Development
Corp., (Pacific Homes),
5.90%, 4/1/09 1,089,980
- ---------------------------------------------------------------------
$ 1,871,465
- ---------------------------------------------------------------------
Special Tax Revenue -- 2.3%
- ---------------------------------------------------------------------
NR NR $ 360 Irvine, Improvement Bond
Act 1915, (Assessment
District North 97-16, Group
Two), 5.40%, 9/2/10 $ 367,495
NR NR 365 Torrance Redevelopment
Agency, 5.50%, 9/1/12 372,504
- ---------------------------------------------------------------------
$ 739,999
- ---------------------------------------------------------------------
Water and Sewer -- 3.3%
- ---------------------------------------------------------------------
A1 A+ $1,000 Los Angeles City Wastewater
System, 6.90%, 6/1/08/(1)(3)/$ 1,041,980
- ---------------------------------------------------------------------
$ 1,041,980
- ---------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $29,829,184) $32,031,040
- ---------------------------------------------------------------------
</TABLE>
AMT- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative
Minimum Tax.
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, 1998, 47.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 2.8% to 26.2% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover when-issued
securities.
/(2)/ When-issued security.
/(3)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
39
<PAGE>
CONNECTICUT LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Tax-Exempt Investments-- 100.0%
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- -------------------------------------------------------------------------------
Education -- 7.3%
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR BBB- $500 Connecticut HEFA, (Quinnipiac
College), 6.00%, 7/1/13 $ 525,245
Baa3 BBB- 140 Connecticut HEFA, (Sacred
Heart University), 6.00%, 7/1/08 154,731
- -------------------------------------------------------------------------------
$ 679,976
- -------------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.4%
- -------------------------------------------------------------------------------
Baa1 BBB+ $750 Connecticut HEFA, (Fairfield
University), Prerefunded to 7/1/99,
6.90%, 7/1/14 $ 784,432
NR NR 510 Connecticut HEFA, (New Britain
Hospital), Prerefunded to 7/1/02,
7.50%, 7/1/06 564,987
Aaa AAA 250 South Central Connecticut Regional
Water Authority (AMBAC),
Prerefunded to 8/1/01,
6.50%, 8/1/07/(1)/ 273,970
- -------------------------------------------------------------------------------
$1,623,389
- -------------------------------------------------------------------------------
General Obligations -- 11.4%
- -------------------------------------------------------------------------------
Aaa NR $200 Avon, 5.00%, 1/15/12 $ 213,526
Aa3 AA- 190 Connecticut State, 0.00%, 11/15/10 113,428
Aa3 AA- 150 Connecticut State, 5.125%, 8/15/11 158,258
Aa2 AA 100 Danbury, 5.00%, 8/1/17 101,626
Baa1 A 115 Puerto Rico, 0.00%, 7/1/08 76,674
Baa1 A 400 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/19 400,428
- -------------------------------------------------------------------------------
$1,063,940
- -------------------------------------------------------------------------------
Hospital -- 1.4%
- -------------------------------------------------------------------------------
Baa2 NR $125 Connecticut HEFA, (Griffin
Hospital), 6.00%, 7/1/13 $ 131,093
- -------------------------------------------------------------------------------
$ 131,093
- -------------------------------------------------------------------------------
Housing -- 1.1%
- -------------------------------------------------------------------------------
Aa NR $100 Connecticut HFA, MRB, (AMT),
7.40%, 11/15/99 $ 101,774
- -------------------------------------------------------------------------------
$ 101,774
- -------------------------------------------------------------------------------
Industrial Development Revenue -- 11.4%
- -------------------------------------------------------------------------------
A1 NR $625 Connecticut Development Authority,
(Frito Lay), 6.375%, 7/1/04 $ 634,255
Baa3 BBB- 250 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.25%, 6/1/26 272,855
A3 BBB+ 150 Sprague, Environmental Improvement,
(International Paper Co.), (AMT),
5.70%, 10/1/21 156,992
- -------------------------------------------------------------------------------
$1,064,102
- -------------------------------------------------------------------------------
Insured-Education -- 4.8%
- -------------------------------------------------------------------------------
Aaa AAA $200 Connecticut HEFA, (Choate Rosemary
Hall), (MBIA), 5.00%, 7/1/14 $ 206,614
Aaa AAA 240 University of Connecticut, (FGIC),
5.00%, 2/1/15 247,114
- -------------------------------------------------------------------------------
$ 453,728
- -------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.0%
- -------------------------------------------------------------------------------
Aaa AAA $250 Connecticut Municipal Electric
Authority,(MBIA), 6.00%, 1/1/07 $ 286,060
- -------------------------------------------------------------------------------
$ 286,060
- -------------------------------------------------------------------------------
Insured-General Obligations -- 13.1%
- -------------------------------------------------------------------------------
Aaa AAA $250 Brandford, (FGIC), 5.40%,
2/15/14/(1)/ $ 265,150
Aaa AAA 400 Bridgeport, (AMBAC), 6.00%,9/1/06 456,012
Aaa AAA 500 Old Saybrook, (AMBAC),
4.10%, 8/15/01 507,340
- -------------------------------------------------------------------------------
$1,228,502
- -------------------------------------------------------------------------------
Insured-Hospital -- 12.3%
- -------------------------------------------------------------------------------
Aaa AAA $150 Connecticut Authority, (Greenwich
Hospital), (MBIA), 5.75%, 7/1/06 $ 168,137
Aaa NR 300 Connecticut HEFA, (Middlesex Health
Services), (MBIA), 5.125%, 7/1/17 305,943
Aaa AAA 370 Connecticut HEFA, (St. Raphael
Hospital), (AMBAC), 5.10%, 7/1/07 400,211
Aaa AAA 250 Connecticut HEFA, (Stamford
Hospital), (MBIA), 6.50%, 7/1/06 271,905
- -------------------------------------------------------------------------------
$1,146,196
- -------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
40
<PAGE>
CONNECTICUT LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- -------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Miscellaneous -- 2.9%
- --------------------------------------------------------------------------------
Aaa AAA $250 Woodstock, Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 268,355
- -------------------------------------------------------------------------------
$ 268,355
- -------------------------------------------------------------------------------
Insured-Transportation -- 9.5%
- -------------------------------------------------------------------------------
Aaa AAA $750 Connecticut State Airport, (Bradley
International Airport), (FGIC),
7.40%, 10/1/04 $ 889,154
- -------------------------------------------------------------------------------
$ 889,154
- -------------------------------------------------------------------------------
Solid Waste -- 2.7%
- -------------------------------------------------------------------------------
NR BBB+ $250 Eastern Connecticut Resources
Recovery Authority, (Wheelabrator
Lisbon), (AMT), 5.00%, 1/1/03 $ 256,133
- -------------------------------------------------------------------------------
$ 256,133
- -------------------------------------------------------------------------------
Water and Sewer -- 1.7%
- -------------------------------------------------------------------------------
Aaa AAA $150 Connecticut State Clean Water Fund,
4.875%, 5/1/09 $ 157,572
- -------------------------------------------------------------------------------
$ 157,572
- -------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $8,749,673) $9,349,974
- -------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities 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, 1998, 48.6% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 13.2% to 20.4% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
41
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration -- 1.2%
- ----------------------------------------------------------------------------------------
NR NR $ 500 Palm Beach County, (Okeelanta
Power), (AMT),
6.85%, 2/15/21/(1)/ $ 400,000
NR NR 500 Palm Beach County, (Osceola
Power), (AMT), 6.95%,
1/1/22/(1)/ 395,000
- ----------------------------------------------------------------------------------------
$ 795,000
- ----------------------------------------------------------------------------------------
Electric Utilities -- 8.9%
- ----------------------------------------------------------------------------------------
Aa2 AA $1,000 Jacksonville Electric
Authority, (St. John's
River Power Park),
5.25%, 10/1/20 $ 1,022,620
Aa2 AA 2,500 Jacksonville Electric Authority,
(St. Johns River Power Park),
5.375%, 10/1/16 2,634,175
A1 AA- 2,000 Tallahassee Electric,
5.90%, 10/1/05 2,182,360
- ----------------------------------------------------------------------------------------
$ 5,839,155
- ----------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 15.0%
- ----------------------------------------------------------------------------------------
Aaa AAA $1,500 Dade County Local School
District, (FGIC),
Prerefunded to 8/1/01,
6.00%, 8/1/06 $ 1,596,645
Aaa AAA $1,015 Dade County, Educational
Facilities Authority,
(MBIA), Prerefunded to
10/1/01, 7.00%, 10/1/08 1,130,477
Aaa AAA 1,450 Hillsborough County
Aviation Authority, (Tampa
International Airport),
(FGIC), Prerefunded to
10/01/99, 6.85%, 10/1/06 1,528,373
Aaa AAA 4,000 Jacksonville Health
Facilities Authority,
(Baptist Medical Center),
(MBIA), Prerefunded to
6/1/99, 7.25%, 6/1/05/(2)//(3)/ 4,182,799
Aaa AA- 1,250 Orlando Utility Community
Water and Electric,
Prerefunded to 10/1/01,
6.50%, 10/1/20 1,374,950
- ----------------------------------------------------------------------------------------
$ 9,813,244
- ----------------------------------------------------------------------------------------
General Obligations -- 13.4%
- ----------------------------------------------------------------------------------------
Aa2 AA+ $3,000 Florida State Board of
Education, 5.55%, 6/1/11 $ 3,280,500
Baa1 A $1,050 Puerto Rico, 0.00%, 7/1/08 $ 700,067
Baa1 A- 2,000 Puerto Rico Municipal
Finance Agency, 5.50%,
7/1/01 2,088,220
Baa1 A 1,000 Puerto Rico Public Building
Authority, 6.50%, 7/1/03 1,101,190
NR NR 1,500 Virgin Islands Public
Finance Authority,
(Matching Loan Fund Notes),
6.80%, 10/1/00 1,593,090
- ----------------------------------------------------------------------------------------
$ 8,763,067
- ----------------------------------------------------------------------------------------
Hospital -- 5.4%
- ----------------------------------------------------------------------------------------
NR BBB+ $1,250 Escambia County Health
Facilities Authority,
(Baptist Hospital, Inc. and
Baptist Manor, Inc.),
6.00%, 10/1/14 $ 1,321,950
Baa1 NR 425 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village), 6.00%, 12/1/98 426,832
Baa1 NR 450 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village), 6.25%, 12/1/99 464,292
Baa1 NR 480 Jacksonville Health
Facilities Authority,
(National Benevolent
Association-Cypress
Village), 6.50%, 12/1/00 507,413
NR BBB 355 Valley, AL, Special Care
Facilities Financing
Authority, (Lanier Memorial
Hospital), 5.00%, 11/1/03 364,681
NR BBB 455 Valley, AL, Special Care
Facilities Financing
Authority, (Lanier Memorial
Hospital), 5.00%, 11/1/04 467,831
- ----------------------------------------------------------------------------------------
$ 3,552,999
- ----------------------------------------------------------------------------------------
Housing -- 1.0%
- ----------------------------------------------------------------------------------------
NR A $ 425 Clearwater Housing
Authority, (Hamptons at
Clearwater),
5.40%, 5/1/13 $ 444,682
Baa3 BBB 200 Puerto Rico Housing Bank
and Finance Agency, 5.10%,
12/1/03 206,856
- ----------------------------------------------------------------------------------------
$ 651,538
- ----------------------------------------------------------------------------------------
Industrial Development Revenue -- 3.3%
- ----------------------------------------------------------------------------------------
Baa2 BBB $2,000 Polk County IDR, (IMC
Fertilizer), (AMT), 7.525%,
1/1/15 $ 2,153,160
- ----------------------------------------------------------------------------------------
$ 2,153,160
- ----------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
42
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Cogeneration -- 3.3%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Resource
Recovery Facilities,
(AMBAC), (AMT),
5.30%, 10/1/07 $ 2,168,980
- --------------------------------------------------------------------------------
$ 2,168,980
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 1.6%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Dade County, Water and
Sewer System, (FGIC),
5.25%, 10/1/21 $ 1,034,230
- --------------------------------------------------------------------------------
$ 1,034,230
- --------------------------------------------------------------------------------
Insured-General Obligations -- 7.3%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County Local School
District, (MBIA), 5.00%,
2/15/15 $ 2,057,820
Aaa AAA 520 Dade County, (MBIA),
0.00%, 10/1/06 371,982
Aaa AAA 330 Dade County, (MBIA),
0.00%, 10/1/08 213,942
Aaa AAA 1,000 Miami-Dade County School
District, (FSA), 5.375%, 1,093,150
8/1/15
Aaa AAA 1,000 Reedy Creek Improvement
District, (MBIA), 5.25%,
6/1/14(4) 1,057,810
- --------------------------------------------------------------------------------
$ 4,794,704
- --------------------------------------------------------------------------------
Insured-Hospital -- 10.4%
- --------------------------------------------------------------------------------
Aaa AAA $2,500 Naples, (Naples Community
Hospital Inc.), (MBIA),
5.50%, 10/1/16 $ 2,659,175
Aaa AAA 2,450 North Broward Hospital
District, (MBIA), 5.25%,
1/15/17 2,535,505
Aaa AAA 1,000 Orange County Health
Facilities Authority,
(Adventist Health
System/Sunbelt, Inc.),
(FSA), 5.50%, 11/15/02 1,062,920
Aaa AAA 500 Sarasota County Public
Hospital, (MBIA), 5.25%,
7/1/18 532,765
- --------------------------------------------------------------------------------
$ 6,790,365
- --------------------------------------------------------------------------------
Insured-Housing -- 3.9%
- --------------------------------------------------------------------------------
Aaa AAA $1,240 Florida Housing Finance
Authority, (Leigh Meadows
Apartments), (AMBAC),
5.85%, 9/1/10 $ 1,339,708
Aaa AAA 1,140 Florida Housing Finance
Authority, (Stottert Arms
Apartments), (AMBAC),
5.90%, 9/1/10 1,230,527
- --------------------------------------------------------------------------------
$ 2,570,235
- --------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 1.6%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Pinellas County Resource
Recovery, (MBIA), 5.125%,
10/1/04 $ 1,060,880
- --------------------------------------------------------------------------------
$ 1,060,880
- --------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 1.7%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Palm Beach County Criminal
Justice Facilities, (FGIC),
5.375%, 6/1/10 $ 1,105,030
- --------------------------------------------------------------------------------
$ 1,105,030
- --------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.5%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Miami-Dade County
Professional Sports
Franchise Facilities,
(MBIA), 0.00%, 10/1/13 $ 1,010,900
- --------------------------------------------------------------------------------
$ 1,010,900
- --------------------------------------------------------------------------------
Insured-Transportation -- 9.9%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Broward County Airport
System, (MBIA), 5.375%,
10/1/13 $ 1,070,000
Aaa AAA 1,500 Broward County Port
Facilities, (MBIA), 5.375%,
9/1/12 1,615,545
Aaa AAA 2,000 Dade County, Seaport
Revenue, (MBIA), 5.125%,
10/1/16 2,073,360
Aaa AAA 1,670 Hillsborough County
Aviation Authority, (Tampa
International Airport),
(FGIC), 6.85%, 10/1/06 1,756,823
- --------------------------------------------------------------------------------
$ 6,515,728
- --------------------------------------------------------------------------------
Insured-Water and Sewer -- 8.5%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Water and
Sewer System, (FGIC),
5.25%, 10/1/11 $ 2,162,440
Aaa AAA 2,000 Manatee County, Public
Utilities, (MBIA), 6.75%,
10/1/04 2,311,120
Aaa AAA 1,000 Pasco County, Water and
Sewer Revenue, (FGIC),
5.40%, 10/1/03 1,075,810
- --------------------------------------------------------------------------------
$ 5,549,370
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
43
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ------------------------------------------------------------------------------
Nursing Home -- 2.1%
- ------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 350 Citrus County IDA, (Beverly
Enterprises), 5.00%, 4/1/03 $ 356,206
NR NR 1,000 Volusia County, (Beverly
Enterprises), 5.875%, 7/1/07 1,021,390
- ------------------------------------------------------------------------------
$ 1,377,596
- ------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $61,462,844) $65,546,181
- ------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of 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, 1998, 62.6% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 3.3% to 36.4% of total investments.
/(1)/ Non-income producing security.
/(2)/ Security (or a portion thereof) 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.
/(4)/ When-issued security.
See notes to financial statements
44
<PAGE>
MASSACHUSETTS LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- ------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration -- 1.9%
- ----------------------------------------------------------------------------------------
NR BBB $ 1,000 Massachusetts IFA, (Ogden Haverhill),
(AMT), 5.50%, 12/1/13 $ 1,028,540
- ----------------------------------------------------------------------------------------
$ 1,028,540
- ----------------------------------------------------------------------------------------
Education -- 6.5%
- ----------------------------------------------------------------------------------------
NR A $ 500 Massachusetts IFA, (Belmont Hill
School), 5.15%, 9/1/13 $ 510,935
Baa3 BBB- 500 Massachusetts IFA, (Dana Hall),
5.90%, 7/1/27 529,225
A3 NR 1,030 Massachusetts IFA, (Park School),
5.50%, 9/1/16 1,106,096
Baa1 BBB+ 750 Massachusetts IFA, (St. Johns High
School, Inc.), 5.70%, 6/1/18 792,983
Baa1 NR 500 Massachusetts IFA, (Wentworth
Institute of Technology), 5.55%,
10/1/13 520,240
- ----------------------------------------------------------------------------------------
$ 3,459,479
- ----------------------------------------------------------------------------------------
Electric Utilities -- 2.0%
- -----------------------------------------------------------------------------------------
Baa2 BBB+ $ 1,000 Massachusetts Municipal Wholesale
Electric Co., 5.70%, 7/1/01 $ 1,047,150
- -----------------------------------------------------------------------------------------
$ 1,047,150
- -----------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.3%
- -----------------------------------------------------------------------------------------
Aa3 AA- $ 785 Massachusetts Bay Transportation
Authority, Prerefunded to 3/01/05,
5.75%, 3/1/18 $ 877,803
Aaa NR 935 Massachusetts HEFA, (Fairview
Extended Care), Prerefunded to 1/1/01,
10.125%, 1/1/11 1,076,073
Baa3 NR 960 Massachusetts HEFA, (Milford-
Whitinsville Hospital), Escrowed to
Maturity, 7.125%, 7/15/02 1,018,032
Aaa BBB 500 Massachusetts HEFA, (Sisters of
Providence Hospital), Escrowed to
Maturity, 6.00%, 11/15/00 524,295
Aaa AAA 400 Massachusetts Turnpike Authority,
(FGIC), Escrowed to Maturity, 5.125%,
1/1/23 421,852
Aaa NR 2,000 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20 2,073,120
- -----------------------------------------------------------------------------------------
$ 5,991,175
- -----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- ------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
General Obligations -- 11.8%
- -----------------------------------------------------------------------------------------
Aa2 NR $ 500 Burlington, 5.00%, 2/1/15 $ 523,055
Aa2 NR 500 Burlington, 5.00%, 2/1/16 521,550
Aa3 AA- 1,000 Massachusetts, 5.00%, 11/1/14 1,031,540
Aa3 AA- 1,500 Massachusetts, 5.40%, 11/1/06 1,651,980
Aa3 AA- 1,260 Massachusetts Bay Transportation
Authority, 5.50%, 3/1/08 1,391,065
Aa3 NR 2,500 Massachusetts State Federal Highway,
Grant Anticipation Notes, 0.00%,
6/15/15 1,135,450
- -----------------------------------------------------------------------------------------
$ 6,254,640
- -----------------------------------------------------------------------------------------
Hospital -- 16.5%
- -----------------------------------------------------------------------------------------
Aa2 AA+ $ 3,000 Massachusetts HEFA, (Daughters of
Charity Issue), 5.75%, 7/1/02 $ 3,202,079
NR BBB+ 770 Massachusetts HEFA, (Jordan Hospital),
5.00%, 10/1/11 784,984
Baa2 BBB- 750 Massachusetts HEFA, (Milford-
Whitinsville Regional Hospital), 4.90%,
7/15/06 768,743
Baa2 BBB- 1,000 Massachusetts HEFA, (Milford-
Whitinsville Regional Hospital), 5.75%,
7/15/13 1,064,290
Ba1 NR 860 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 900,420
NR BBB- 1,845 Massachusetts HEFA, (North Adams
Regional Hospital), 6.25%, 7/1/04 2,014,703
- -----------------------------------------------------------------------------------------
$ 8,735,219
- -----------------------------------------------------------------------------------------
Insured-Education -- 2.1%
- -----------------------------------------------------------------------------------------
Aaa AAA $ 1,015 Massachusetts IFA, (Dexter School),
(MBIA), 5.40%, 5/1/13 $ 1,095,926
- -----------------------------------------------------------------------------------------
$ 1,095,926
- -----------------------------------------------------------------------------------------
Insured-Electric Utilities -- 4.2%
- -----------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Massachusetts Municipal Wholesale
Electric Co., (AMBAC), 6.625%,
7/1/03 /(1)/ $ 2,228,960
- -----------------------------------------------------------------------------------------
$ 2,228,960
- -----------------------------------------------------------------------------------------
- -----------------------------------------------------------------------------------------
Insured-General Obligations -- 13.1%
- -----------------------------------------------------------------------------------------
Aaa AAA $ 610 Attleboro, (FGIC), 4.95%, 7/1/11 $ 643,355
Aaa AAA 1,000 Haverhill, (FGIC), 5.00%, 6/15/17 1,021,140
</TABLE>
See notes to financial statements
45
<PAGE>
MASSACHUSETTS LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations (continued)
- ----------------------------------------------------------------------------------------
Aaa AAA $2,000 Massachusetts Bay
Transportation Authority,
(AMBAC), 5.25%, 3/1/11 $ 2,121,320
Aaa AAA 1,000 Massachusetts Bay
Transportation Authority,
(FGIC), 5.00%, 3/1/19 1,014,160
Aaa AAA 1,000 Massachusetts, (AMBAC),
5.00%, 7/1/12 1,060,820
Aaa AAA 1,000 Massachusetts, (FGIC),
6.50%, 6/1/01 1,072,990
- ----------------------------------------------------------------------------------------
$ 6,933,785
- ----------------------------------------------------------------------------------------
Insured-Hospital -- 2.9%
- ----------------------------------------------------------------------------------------
Aaa AAA $1,500 Massachusetts HEFA, (Lowell
General Hospital), (FSA),
5.25%, 6/1/16 $ 1,562,745
- ----------------------------------------------------------------------------------------
$ 1,562,745
- ----------------------------------------------------------------------------------------
Insured-Housing -- 4.4%
- ----------------------------------------------------------------------------------------
Aaa AAA $2,150 Massachusetts HFA,
(Harborpoint Development),
(AMBAC), (AMT), 6.20%,
12/1/10 $ 2,356,399
- ----------------------------------------------------------------------------------------
$ 2,356,399
- ----------------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 2.8%
- ----------------------------------------------------------------------------------------
Aaa AAA $1,400 Massachusetts IFA,
(Nantucket Electric),
(AMBAC), (AMT),
5.30%, 7/1/04 $ 1,490,020
- ----------------------------------------------------------------------------------------
$ 1,490,020
- ----------------------------------------------------------------------------------------
Lease Revenue /
Certificates of Participation -- 3.4%
- ----------------------------------------------------------------------------------------
NR BBB $1,650 Puerto Rico, ITEM & ECFA,
(Guaynabo Municipal
Government),
5.375%, 7/1/06 $ 1,784,426
- ----------------------------------------------------------------------------------------
$ 1,784,426
- ----------------------------------------------------------------------------------------
Nursing Home -- 2.0%
- ----------------------------------------------------------------------------------------
NR NR $1,000 Massachusetts IFA, (Age
Institute of Massachusetts),
7.60%, 11/1/05 $ 1,081,600
- ----------------------------------------------------------------------------------------
$ 1,081,600
- ----------------------------------------------------------------------------------------
Senior Living / Life Care -- 0.9%
- ----------------------------------------------------------------------------------------
NR NR $ 500 Massachusetts IFA, (Forge
Hill), (AMT), 6.75%, 4/1/30 $ 494,530
- ----------------------------------------------------------------------------------------
$ 494,530
- ----------------------------------------------------------------------------------------
Special Tax Revenue -- 4.4%
- ----------------------------------------------------------------------------------------
Aa3 AA $ 500 Massachusetts Special
Obligations, 5.00%, 6/1/14 $ 524,700
NR NR 1,750 Virgin Islands Public
Finance Authority,
(Matching Loan Fund Notes),
6.70%, 10/1/99 1,807,873
- ----------------------------------------------------------------------------------------
$ 2,332,573
- ----------------------------------------------------------------------------------------
Transportation -- 3.6%
- ----------------------------------------------------------------------------------------
Aa3 AA- $ 215 Massachusetts Bay
Transportation Authority,
5.75%, 3/1/18 $ 233,000
Baa1 A 500 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/15 549,965
A1 AA- 1,000 Woods Hole, Martha's
Vineyard and Nantucket
Steamship Authority, 6.60%,
3/1/03 1,110,610
- ----------------------------------------------------------------------------------------
$ 1,893,575
- ----------------------------------------------------------------------------------------
Water and Sewer -- 6.2%
- ----------------------------------------------------------------------------------------
Aa1 AA $2,100 Massachusetts Water
Pollution Abatement Trust,
5.25%, 8/1/14 $ 2,249,499
Aa3 AA+ 1,000 Massachusetts Water
Pollution Abatement Trust,
5.25%, 8/1/14 1,054,360
- ----------------------------------------------------------------------------------------
$ 3,303,859
- ----------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $49,536,437) $53,074,601
- ----------------------------------------------------------------------------------------
</TABLE>
AMT- Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of issuers of debt 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, 1998, 30.3% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and financial
guaranty assurance agencies. The aggregate percentage by financial institution
range from 2.1% to 17.4% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes in financial statements
46
<PAGE>
MICHIGAN LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
<TABLE>
<CAPTION>
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Economic Development Revenue -- 1.3%
- --------------------------------------------------------------------------------
NR BB- $ 150 Michigan State Strategic
Fund, (Crown Paper), 6.25%,
8/1/12 $ 141,635
- --------------------------------------------------------------------------------
$ 141,635
- --------------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.1%
- --------------------------------------------------------------------------------
Aaa AAA $ 1,000 Grand Ledge Public School
District, (MBIA),
Prerefunded to 5/1/04,
7.875%, 5/1/11/(1)/ $1,215,279
Aa1 AA+ 500 Michigan Municipal Bond
Authority, Escrowed to
Maturity, 7.00%, 10/1/02 560,075
- --------------------------------------------------------------------------------
$1,775,354
- --------------------------------------------------------------------------------
General Obligations -- 11.6%
- --------------------------------------------------------------------------------
Baa2 BBB+ $ 650 Detroit, 6.25%, 4/1/05 $ 724,750
Baa2 BBB+ 495 Detroit, 6.40%, 4/1/05 556,108
- --------------------------------------------------------------------------------
$1,280,858
- --------------------------------------------------------------------------------
Hospital -- 19.3%
- --------------------------------------------------------------------------------
Baa1 NR $ 525 Flint Hospital Authority,
(Hurley Medical Center),
6.00%, 7/1/05 $ 573,893
Aa3 AA 500 Kent Hospital Finance
Authority, (Spectrum
Health), 5.25%, 1/15/09 534,200
NR BBB 100 Michigan Hospital Finance
Authority, (Central MI
Community Hospital), 6.00%,
10/1/05 110,186
NR BBB 100 Michigan Hospital Finance
Authority, (Central MI
Community Hospital), 6.10%,
10/1/06 111,578
NR BBB 225 Michigan Hospital Finance
Authority, (Central MI
Community Hospital), 6.20%,
10/1/07 254,304
NR BBB 500 Michigan Hospital Finance
Authority, (Gratiot
Community Hospital),
6.10%, 10/1/07 544,660
- --------------------------------------------------------------------------------
$2,128,821
- --------------------------------------------------------------------------------
Industrial Development Revenue -- 5.4%
- --------------------------------------------------------------------------------
Baa3 BBB- $ 500 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.25%, 6/1/26 $ 545,710
NR BB 55 Richmond Economic
Development Corp.,
(K-Mart), 6.30%, 1/1/99 55,235
- --------------------------------------------------------------------------------
$ 600,945
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 5.1%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Monroe County, (The Detroit
Edison Co.), (AMBAC), (AMT),
6.35%, 12/1/04 $ 561,060
- --------------------------------------------------------------------------------
$ 561,060
- --------------------------------------------------------------------------------
Insured-General Obligations -- 11.0%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Detroit School District,
(AMBAC), 6.50%, 5/1/10 $ 599,275
Aaa AAA 500 Hartland School District,
(FGIC), 5.125%, 5/1/17 512,060
Aaa AAA 100 Parchment School District,
(MBIA), 5.00%, 5/1/25 103,211
- --------------------------------------------------------------------------------
$1,214,546
- --------------------------------------------------------------------------------
Insured-Lease Revenue/
Certificates of Participation -- 1.8%
- --------------------------------------------------------------------------------
Aaa AAA $ 300 Michigan Building
Authority, Facilities
Program, (AMBAC),
0.00%, 10/15/08 $ 197,631
- --------------------------------------------------------------------------------
$ 197,631
- --------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 4.8%
- --------------------------------------------------------------------------------
Aa2 AA $ 500 Michigan Building Authority,
6.10%, 10/1/01 $ 534,115
- --------------------------------------------------------------------------------
$ 534,115
- --------------------------------------------------------------------------------
Miscellaneous -- 1.4%
- --------------------------------------------------------------------------------
NR NR $ 150 Pittsfield Township EDC,
(Arbor Hospice), 7.875%,
8/15/27 $ 161,196
- --------------------------------------------------------------------------------
$ 161,196
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
47
<PAGE>
MICHIGAN LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C>
Nursing Home -- 3.9%
- --------------------------------------------------------------------------------
NR NR $ 395 Michigan Hospital Finance
Authority, (Presbyterian
Villages),
6.20%, 1/1/06 $ 434,334
- --------------------------------------------------------------------------------
$ 434,334
- --------------------------------------------------------------------------------
Senior Living / Life Care -- 2.9%
- --------------------------------------------------------------------------------
NR BBB $ 300 Kalamazoo, (Friendship
Village), 6.125%, 5/15/17 $ 322,413
- --------------------------------------------------------------------------------
$ 322,413
- --------------------------------------------------------------------------------
Special Tax Revenue -- 15.4%
- --------------------------------------------------------------------------------
NR BBB+ $1,000 Battle Creek Downtown
Development Authority,
6.65%, 5/1/02 $ 1,087,320
NR A- 2,000 Detroit Downtown
Development Authority Tax
Increment, 0.00%, 7/1/21 612,380
- --------------------------------------------------------------------------------
$ 1,699,700
- --------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $9,947,771) $11,052,608
- --------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
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, 1998, 28.8% 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 4.6% to 12.3% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open Financial futures contracts.
See notes to financial statements
48
<PAGE>
NEW JERSEY LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living -- 1.7%
- ----------------------------------------------------------------------
NR NR $ 650 New Jersey EDA,
(Chelsea at East
Brunswick), (AMT),
8.00%, 10/1/07 $ 728,845
- ----------------------------------------------------------------------
$ 728,845
- ----------------------------------------------------------------------
Cogeneration -- 10.1%
- ----------------------------------------------------------------------
NR BB+ $1,135 New Jersey EDA,
(Vineland
Cogeneration),
(AMT),
7.875%, 6/1/19 $1,248,114
NR BBB- 2,250 New Jersey EDA,
Heating and Cooling
(Trigen-Trenton),
(AMT),
6.10%, 12/1/05 2,442,533
NR NR 550 Port Authority of
New York and New
Jersey, (KIAC
Project), (AMT),
6.50%, 10/1/01 583,110
- ----------------------------------------------------------------------
$4,273,757
- ----------------------------------------------------------------------
Escrowed / Prerefunded -- 4.6%
- ----------------------------------------------------------------------
Aaa AAA $ 500 Elizabeth, (MBIA),
6.20%, 11/15/02 $ 533,940
NR NR 310 New Jersey EDA,
(Cadbury Corp.),
Prerefunded to
7/1/01,
8.00%, 7/1/15 352,389
Aaa NR 2,030 New Jersey EDA,
(Princeton
Custodial
Receipts), Escrowed
to Maturity, 0.00%,
12/15/12 1,063,801
- ----------------------------------------------------------------------
$1,950,130
- ----------------------------------------------------------------------
General Obligations -- 10.3%
- ----------------------------------------------------------------------
Aa3 AA $2,195 Jersey City School
District,
6.25%, 10/1/10 $2,573,878
Baa1 A 1,050 Puerto Rico, 0.00%,
7/1/08 700,067
Aa3 AA 1,000 South Brunswick,
7.125%, 7/15/02 1,117,950
- ----------------------------------------------------------------------
$4,391,895
- ----------------------------------------------------------------------
Hospital -- 10.2%
- ----------------------------------------------------------------------
Baa2 NR $ 500 Camden County
Improvement
Authority, (Cooper
Health),
5.60%, 2/15/07 $ 534,935
A3 A- $ 340 New Jersey Health
Care Facilities
Financing
Authority,
(Atlantic City
Medical Care
Center),
6.25%, 7/1/00 $ 354,470
A3 A- 1,000 New Jersey Health
Care Facilities
Financing
Authority,
(Atlantic City
Medical Care
Center),
6.45%, 7/1/02 1,088,400
A3 A 750 New Jersey Health
Care Facilities
Financing
Authority,
(Atlantic City
Medical Care
Center),
6.55%, 7/1/03 829,598
Baa2 BBB 1,380 New Jersey Health
Care Facilities
Financing
Authority, (St.
Elizabeth's
Hospital), 5.75%,
7/1/08 1,509,720
- ----------------------------------------------------------------------
$4,317,123
- ----------------------------------------------------------------------
Industrial Development Revenue -- 6.8%
- ----------------------------------------------------------------------
Aa3 NR $ 520 New Jersey EDA,
(Economic Growth),
LOC: Bank of Paris,
(AMT),
6.00%, 12/1/02 $ 543,686
NR NR 500 New Jersey EDA,
(Holt Hauling),
7.90%, 3/1/27 572,960
Baa3 BBB- 1,625 Port Authority of
New York and New
Jersey, (Delta
Airlines),
6.95%, 6/1/08 1,776,206
- ----------------------------------------------------------------------
$2,892,852
- ----------------------------------------------------------------------
Insured-Education -- 2.5%
- ----------------------------------------------------------------------
Aaa AAA $1,000 New Jersey
Educational
Facilities
Authority, (Seton
Hall University)
(FGIC), 6.10%,
7/1/01 $1,062,760
- ----------------------------------------------------------------------
$1,062,760
- ----------------------------------------------------------------------
Insured-Electric Utilities -- 2.5%
- ----------------------------------------------------------------------
Aaa AAA $1,000 Middlesex County
Utilities
Authority, (FGIC),
6.10%, 12/1/01 $1,073,050
- ----------------------------------------------------------------------
$1,073,050
- ----------------------------------------------------------------------
Insured-General Obligations -- 26.3%
- ----------------------------------------------------------------------
Aaa AAA $1,000 Atlantic City Board
of Education,
(AMBAC), 6.00%,
12/1/02(1) $1,089,060
Aaa AAA 1,175 Edison, (AMBAC),
4.70%, 1/1/04 1,224,009
</TABLE>
See notes to financial statements
49
<PAGE>
NEW JERSEY LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000
Moody's & Poor's omitted) Security Value
- -----------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations (continued)
Aaa AAA $1,200 Kearney, (FSA),
6.50%, 2/1/04 $ 1,319,328
Aaa AAA 725 Monroe Township
Board of Education,
(FGIC), 5.20%,
8/1/11 787,691
Aaa AAA 825 Monroe Township
Board of Education,
(FGIC), 5.20%,
8/1/14 887,428
Aaa AAA 850 Roselle, (MBIA),
4.65%, 10/15/03 884,630
Aaa AAA 1,000 South Brunswick
Township Board of
Education, (FGIC),
6.40%, 8/1/03 1,115,170
Aaa AAA 2,000 Washington Township
Board of Education,
(MBIA),
5.125%, 2/1/15
2,070,220
Aaa AAA 1,585 West Deptford
Township, (AMBAC),
5.90%, 3/1/09 1,814,033
- -----------------------------------------------------------------------
$11,191,577
- -----------------------------------------------------------------------
Insured-Hospital -- 8.7%
- -----------------------------------------------------------------------
Aaa AAA $1,300 New Jersey Health
Care Facilities
Financing
Authority, (AHS
Hospital Corp.),
(AMBAC), 6.00%,
7/1/12 $ 1,503,320
Aaa AAA 1,910 New Jersey Health
Care Facilities
Financing
Authority, (Dover
General Hospital
and Medical
Center), (MBIA),
7.00%, 7/1/04 2,207,540
- -----------------------------------------------------------------------
$ 3,710,860
- -----------------------------------------------------------------------
Insured-Solid Waste -- 0.6%
- -----------------------------------------------------------------------
Aaa AAA $ 250 Bergen County
Utilities
Authority, Solid
Waste System,
(FGIC),
6.00%, 6/15/02 $ 269,245
- -----------------------------------------------------------------------
$ 269,245
- -----------------------------------------------------------------------
Insured-Transportation -- 9.7%
- -----------------------------------------------------------------------
Aaa AAA $1,000 New Jersey Turnpike
Authority, (FSA),
5.90%, 1/1/03 $ 1,080,190
Aaa AAA 895 New Jersey Turnpike
Authority, (FSA),
6.40%, 1/1/02 965,481
Aaa AAA 2,000 Port Authority of
New York and New
Jersey, (AMBAC),
5.125%, 7/15/14 2,082,040
- -----------------------------------------------------------------------
$ 4,127,711
- -----------------------------------------------------------------------
Insured-Water and Sewer -- 1.6%
Aaa AAA $ 565 Pennsville Sewer
Authority, (MBIA),
0.00%, 11/1/16 $ 243,436
Aaa AAA 565 Pennsville Sewer
Authority, (MBIA),
0.00%, 11/1/17 231,062
Aaa AAA 565 Pennsville Sewer
Authority, (MBIA),
0.00%, 11/1/18 219,627
- -----------------------------------------------------------------------
$ 694,125
- -----------------------------------------------------------------------
Solid Waste -- 1.9%
- -----------------------------------------------------------------------
A1 AA- $ 500 Gloucester County
Improvement
Authority, Solid
Waste System,
5.40%, 9/1/00 $ 516,420
B1 NR 300 The Atlantic County
Utilities
Authority, Solid
Waste System,
7.00%, 3/1/08 301,407
- -----------------------------------------------------------------------
$ 817,827
- -----------------------------------------------------------------------
Transportation -- 2.5%
- -----------------------------------------------------------------------
A1 AA- $1,000 Port Authority of
New York and New
Jersey, 5.375%,
10/15/16 $ 1,049,230
- -----------------------------------------------------------------------
$ 1,049,230
- -----------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
- -----------------------------------------------------------------------
(identified cost $39,109,881) $49,550,987
- -----------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
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, 1998, 53.3% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 7.9% to 18.1% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
50
<PAGE>
NEW YORK LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- ------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living -- 1.6%
- ---------------------------------------------------------------------------------------
NR NR $ 560 Glen Cove IDA, (Regency at
Glen Cove), 9.50%, 7/1/99 $ 571,228
NR NR 500 Glen Cove IDA, (Regency at
Glen Cove), 9.50%, 7/1/12 532,630
- ---------------------------------------------------------------------------------------
$ 1,103,858
- ---------------------------------------------------------------------------------------
Cogeneration -- 1.5%
- ---------------------------------------------------------------------------------------
NR NR $ 950 Port Authority of New York and New
Jersey, (KIAC Project), (AMT),
6.50%, 10/1/01 $ 1,007,190
- ---------------------------------------------------------------------------------------
$ 1,007,190
- ---------------------------------------------------------------------------------------
Education -- 0.3%
- ---------------------------------------------------------------------------------------
A3 A- $ 100 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/15 $ 106,829
A3 A- 105 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/19 111,066
- ---------------------------------------------------------------------------------------
$ 217,895
- ---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.6%
- ---------------------------------------------------------------------------------------
Aaa A- $ 215 New York City, Series A, Prerefunded
to 8/1/02, 6.375%, 8/1/06 $ 238,368
Aaa AAA 2,000 New York State Medical Care Facilities
Finance Agency, (New York State
Hospital), (AMBAC), Escrowed to
Maturity, 6.10%, 2/15/04 2,216,000
Aaa AAA 2,500 New York State Medical Care Facilities
Finance Agency, (New York State
Hospital), (AMBAC), Escrowed to
Maturity, 6.20%, 2/15/05 2,820,900
- ---------------------------------------------------------------------------------------
$ 5,275,268
- ---------------------------------------------------------------------------------------
General Obligations -- 4.6%
- ---------------------------------------------------------------------------------------
A3 A- $ 750 New York City, 0.00%, 8/1/07 $ 512,325
A3 A- 1,000 New York City, 0.00%, 8/1/08 649,240
A3 A- 1,000 New York City, 0.00%, 8/1/08 644,270
A3 A- 1,285 New York City, 6.375%, 8/1/06 1,406,510
- ---------------------------------------------------------------------------------------
$ 3,212,345
- ---------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- ------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital -- 4.7%
- ---------------------------------------------------------------------------------------
Baa1 BBB+ $ 2,000 New York State Dormitory Authority,
(Department of Health), 5.375%,
7/1/08 $ 2,168,400
Baa NR 1,000 New York State Dormitory Authority,
(Nyack Hospital), 6.00%, 7/1/06 1,103,720
- ---------------------------------------------------------------------------------------
$ 3,272,120
- ---------------------------------------------------------------------------------------
Hotel -- 0.7%
- ---------------------------------------------------------------------------------------
NR NR $ 1,210 Niagara County IDA, (Wintergarden Inn
Associates), 9.75%, 6/1/11(1) $ 484,000
- ---------------------------------------------------------------------------------------
$ 484,000
- ---------------------------------------------------------------------------------------
Housing -- 10.5%
- ---------------------------------------------------------------------------------------
Aa AA $ 4,000 New York City Housing Development
Corp., MFMR, 5.625%, 5/1/12 $ 4,244,680
Aa2 NR 1,500 New York State Mortgage Agency
Revenue, (AMT), 6.45%, 10/1/21 1,643,430
Aa2 NR 1,300 New York State Mortgage Agency,
Homeowner Mtg. Bond Ser. 65, (AMT),
5.20%, 10/1/08 1,360,164
- ---------------------------------------------------------------------------------------
$ 7,248,274
- ---------------------------------------------------------------------------------------
Industrial Development Revenue -- 10.4%
- ---------------------------------------------------------------------------------------
A3 A $ 2,000 New York City, (Terminal One
Group), 6.00%, 1/1/07(2) $ 2,186,720
Baa3 BBB- 2,875 Port Authority of New York and New
Jersey, (Delta Airlines), 6.95%,
6/1/08 3,142,519
Baa3 BBB- 1,700 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,855,414
- ---------------------------------------------------------------------------------------
$ 7,184,653
- ---------------------------------------------------------------------------------------
Insured-Education -- 5.3%
- ---------------------------------------------------------------------------------------
Aaa AAA $ 2,250 Nassau County IDA, (Hofstra
University Project), (MBIA),
5.25%, 7/1/10 $ 2,450,858
Aaa AAA 1,075 New York State Dormitory Authority,
(Mt. Sinai School of Medicine),
(MBIA), 6.75%, 7/1/09 1,177,630
- ---------------------------------------------------------------------------------------
$ 3,628,488
- ---------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
51
<PAGE>
NEW YORK LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Electric Utilities -- 7.7%
- --------------------------------------------------------------------------------
Aaa AAA $5,000 New York State
Energy Research and
Development
Authority, (Central
Hudson Gas),
(FGIC),
7.375%, 10/1/14 $ 5,315,599
- --------------------------------------------------------------------------------
$ 5,315,599
- --------------------------------------------------------------------------------
Insured-General Obligations -- 5.8%
- --------------------------------------------------------------------------------
Aaa AAA $2,750 New York State
Local Government
Assistance Corp.,
(MBIA),
0.00%, 4/1/13 $ 1,428,020
Aaa AAA 1,000 New York State
Local Government
Assistance Corp.,
(MBIA),
5.00%, 4/1/21 1,003,910
Aaa AAA 1,500 Syracuse, (FSA),
5.25%, 10/1/14 1,581,420
- --------------------------------------------------------------------------------
$ 4,013,350
- --------------------------------------------------------------------------------
Insured-Lease Revenue/
Certificates of Participation -- 0.8%
- --------------------------------------------------------------------------------
Aaa AAA $500 City University of
New York, (John Jay
College), (AMBAC),
5.00%, 8/15/08 $ 533,080
- --------------------------------------------------------------------------------
$ 533,080
- --------------------------------------------------------------------------------
Insured-Transportation -- 4.4%
- --------------------------------------------------------------------------------
Aaa AAA $2,240 Metropolitan
Transportation
Authority for the
City of New York,
(FGIC), 5.70%, 7/1/10 $ 2,487,162
Aaa AAA 500 New York State
Thruway Authority,
(MBIA), 5.375%, 4/1/16 533,005
- --------------------------------------------------------------------------------
$ 3,020,167
- --------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 12.0%
- --------------------------------------------------------------------------------
Baa1 BBB+ $2,180 New York State
Energy Research and
Development
Authority, (Western
NY Nuclear Service Center),
6.00%, 4/1/06 $ 2,437,000
Baa1 BBB+ 2,000 New York State HFA,
6.375%, 11/1/03 2,218,500
NR BBB 1,485 New York State
Thruway Authority,
0.00%, 1/1/04 1,191,282
Baa1 BBB+ 1,300 New York State
Thruway Authority,
5.25%, 4/1/13 1,337,830
Baa1 BBB+ $1,000 New York State
Urban Development
Corp., (Youth
Facilities),
5.75%, 4/1/10 $ 1,106,080
- --------------------------------------------------------------------------------
$ 8,290,692
- --------------------------------------------------------------------------------
Special Tax Revenue -- 7.0%
- --------------------------------------------------------------------------------
A3 A+ $4,500 New York State
Local Government
Assistance Corp.,
5.25%, 4/1/16 $ 4,818,149
- --------------------------------------------------------------------------------
$ 4,818,149
- --------------------------------------------------------------------------------
Transportation -- 6.4%
- --------------------------------------------------------------------------------
Baa1 BBB+ $1,000 Port Authority of
New York and New
Jersey, (AMT),
5.75%, 4/1/16 $ 1,063,570
A1 AA- 3,000 Port Authority of
New York and New
Jersey, (AMT),
6.00%, 7/1/14 3,328,380
- --------------------------------------------------------------------------------
$ 4,391,950
- --------------------------------------------------------------------------------
Water and Sewer -- 8.7%
- --------------------------------------------------------------------------------
A2 A- $4,000 New York City
Municipal Water
Finance Authority,
5.125%, 6/15/21 $ 4,033,200
A2 A- 1,825 New York City
Municipal Water
Finance Authority,
5.70%, 6/15/02 1,943,443
- --------------------------------------------------------------------------------
$ 5,976,643
- --------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
- --------------------------------------------------------------------------------
(identified cost $64,417,807) $68,993,721
- --------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
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, 1998, 31.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institution ranged from 2.3% to 11.3% of total investments.
/(1)/ Non-income producing security.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements.
52
<PAGE>
OHIO LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ------------------------------------------------------------------------------------
Escrowed/Prerefunded -- 7.8 %
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 350 Cuyahoga County, (Judson
Retirement Community),
Prerefunded to 11/15/99,
8.875%, 11/15/19 $ 380,793
Aaa NR 285 Greene County IDA,
(Fairview Extended Care),
Prerefunded to 1/1/01,
10.125%, 1/1/11 328,346
Aa2 NR 1,000 Warren County, (Otterbein
Homes), Prerefunded to
7/1/01, 7.20%, 7/1/11 1,109,560
- ------------------------------------------------------------------------------------
$ 1,818,699
- ------------------------------------------------------------------------------------
General Obligations -- 13.9%
- ------------------------------------------------------------------------------------
NR NR $ 300 Kings County Local School
District, 7.60%, 12/1/10 $ 353,205
Aa3 NR 250 Oak Hills, 5.60%, 12/1/17 268,530
Aa1 AA+ 675 Ohio, 0.00%, 8/1/04 534,782
Aa1 AA+ 500 Ohio, 0.00%, 8/1/05 379,620
Aa1 AA+ 250 Ohio, 0.00%, 8/1/08 165,625
A3 NR 1,000 Wauseon School District,
7.25%, 12/1/10 1,094,780
NR NR 410 Youngstown County School
District, 6.40%, 7/1/00 422,431
- ------------------------------------------------------------------------------------
$ 3,218,973
- ------------------------------------------------------------------------------------
Hospital -- 12.1%
- ------------------------------------------------------------------------------------
A A $1,000 Erie County, (Firelands
Community Hospital), 6.75%,
1/1/08 $ 1,095,450
Baa1 BBB 500 Hamilton County Health
System, (Providence
Hospital), 524,590
6.00%, 7/1/01
NR NR 920 Mt. Vernon, (Knox Community
Hospital), 7.875%, 6/1/12 940,847
NR A- 250 Parma, Hospital Improvement
Revenue, (Parma Community
General Hospital
Association),
5.25%, 11/1/13 257,140
- ------------------------------------------------------------------------------------
$ 2,818,027
- ------------------------------------------------------------------------------------
Housinsg -- 7.3%
- ------------------------------------------------------------------------------------
NR AAA $1,000 Cuyahoga County MFMR,
(National Terminal Apts.),
6.40%, 7/1/16 $ 1,093,130
NR NR 300 Cuyahoga County, (Rolling
Hills Apts.), (AMT), 8.00%, 305,958
1/1/28
NR NR 295 Lucas County, (Country
Creek), (AMT), 8.00%, 7/1/26 298,331
- ------------------------------------------------------------------------------------
$ 1,697,419
- ------------------------------------------------------------------------------------
Industrial Development Revenue -- 11.7%
- ------------------------------------------------------------------------------------
NR NR $ 500 Cuyahoga County, (Rock and
Roll Hall of Fame), 5.45%,
12/1/05 $ 537,675
NR NR 250 Cuyahoga County, (Rock and
Roll Hall of Fame), 5.85%,
12/1/08 278,578
NR A- 1,020 Ohio Economic Development
Commission, (ABS
Industries), (AMT), 6.00%,
6/1/04 1,079,527
NR A- 520 Ohio Economic Development
Commission, (Progress
Plastics Products), (AMT),
6.80%, 12/1/01 545,366
NR NR 250 Ohio Solid Waste Revenue,
(Republic Engineered
Steels, Inc.), (AMT), 271,773
9.00%, 6/1/21
- ------------------------------------------------------------------------------------
$ 2,712,919
- ------------------------------------------------------------------------------------
Insured-Education -- 4.4%
- ------------------------------------------------------------------------------------
Aaa AAA $1,000 Ohio Public Facilities
Commission, (Higher
Educational Facilities),
(AMBAC), 4.30%, 12/1/08 $ 1,011,960
- ------------------------------------------------------------------------------------
$ 1,011,960
- ------------------------------------------------------------------------------------
Insured-General Obligations -- 22.7%
- ------------------------------------------------------------------------------------
Aaa NR $ 265 Clinton Massie Local School
District, (AMBAC), 0.00%,
12/1/11 $ 147,478
Aaa NR 265 Clinton Massie Local School
District, (MBIA), 0.00%,
12/1/09 164,766
Aaa AAA 225 Finneytown Local School
District, (FGIC), 6.15%,
12/1/11 266,132
Aaa AAA 500 Forest Hills Local School
District, (MBIA), 6.00%, 581,735
12/1/09
Aaa AAA 1,000 Southwest Licking School
Facilities Improvement,
(FGIC), 1,196,490
7.10%, 12/1/16
Aaa AAA 500 Strongsville City School
District, (MBIA), 5.375%,
12/1/12 551,240
</TABLE>
See notes to financial statemaents
53
<PAGE>
OHIO LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations (continued)
- --------------------------------------------------------------------------------
Aaa AAA $1,500 West Clermont School
District, (AMBAC), 6.90%,
12/1/12(1) $ 1,779,390
Aaa AAA 500 West Clermont School
District, (AMBAC), 7.125%,
12/1/19 590,080
- --------------------------------------------------------------------------------
$ 5,278,111
- --------------------------------------------------------------------------------
Insured-Hospital -- 2.4%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Cuyahoga County,
(Metrohealth System),
(MBIA), 5.50%, 2/15/12 $ 551,135
- --------------------------------------------------------------------------------
$ 551,135
- --------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 2.5%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Akron EDA, (MBIA),
6.00%, 12/1/12 $ 581,635
- --------------------------------------------------------------------------------
$ 581,635
- --------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 2.3%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland, (Cleveland
Stadium), (AMBAC), 5.25%,
11/15/17 $ 524,250
- --------------------------------------------------------------------------------
$ 524,250
- --------------------------------------------------------------------------------
Insured-Water and Sewer -- 2.4%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Hamilton County Sewer
System Revenue, (FGIC),
5.50%, 12/1/11 $ 558,485
- --------------------------------------------------------------------------------
$ 558,485
- --------------------------------------------------------------------------------
Nursing Home -- 3.8%
- --------------------------------------------------------------------------------
NR NR $ 600 Cuyahoga County, Health
Care Facilities Revenue,
(Benjamin Rose Institute),
5.50%, 12/1/17 $ 605,184
NR NR 260 Fairfield EDA, (Beverly
Enterprises), 8.50%, 1/1/03 281,408
- --------------------------------------------------------------------------------
$ 886,592
- --------------------------------------------------------------------------------
Senior Living / Life Care -- 5.1%
- --------------------------------------------------------------------------------
VMIG-1 NR $ 500 Hamilton County Hospital
Facilities Revenue,
(Retirement Homes), 5.00%,
7/1/15 $ 515,540
- --------------------------------------------------------------------------------
Senior Living / Life Care (continued)
- --------------------------------------------------------------------------------
NR BBB- $ 680 Marion County Health Care
Facilities, (United Church
Homes),
5.25%, 11/15/98 $ 681,421
- --------------------------------------------------------------------------------
$ 1,196,961
- --------------------------------------------------------------------------------
Special Tax Revenue -- 1.6%
- --------------------------------------------------------------------------------
NR NR $ 353 Columbus Special
Assessment, 6.05%, 9/15/05 $ 373,623
- --------------------------------------------------------------------------------
$ 373,623
- --------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $21,831,004) $23,228,789
- --------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative
Minimum Tax.
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, 1998, 36.6% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 8.7% to 17.4% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
54
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living -- 4.2%
- --------------------------------------------------------------------------------
NR NR $ 885 Chester County IDA,
(Kimberton), 8.00%, 9/1/05 $ 975,553
NR NR 1,120 Delaware County, IDA, (Glen
Riddle), (AMT), 8.125%,
9/1/05 1,245,720
- --------------------------------------------------------------------------------
$ 2,221,273
- --------------------------------------------------------------------------------
Cogeneration -- 4.2%
- --------------------------------------------------------------------------------
NR BBB- $2,000 Pennsylvania Economic
Development Financing
Authority, (Resources
Recovery), (AMT), 7.05%,
12/1/10 $ 2,241,259
- --------------------------------------------------------------------------------
$ 2,241,259
- --------------------------------------------------------------------------------
Education -- 1.2%
- --------------------------------------------------------------------------------
NR BBB- $ 625 Pennsylvania Higher
Educational Facilities
Authority, (Gwynedd-Mercy
College), 5.60%, 11/1/22 $ 641,188
- --------------------------------------------------------------------------------
$ 641,188
- --------------------------------------------------------------------------------
Electric Utilities -- 1.9%
- --------------------------------------------------------------------------------
NR NR $ 920 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 $ 1,013,444
- --------------------------------------------------------------------------------
$ 1,013,444
- --------------------------------------------------------------------------------
Escrowed / Prerefunded -- 10.0%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Harrisburg Authority, Lease
Revenue Bonds, Escrowed to
Maturity, (CGIC), 6.25%,
6/1/01 $ 533,170
Aaa AAA 1,500 Somerset County, General
Authority, (FGIC) Escrowed
to Maturity,
6.50%, 10/15/01 1,623,030
Aaa AAA 7,000 Westmoreland County,
Municipal Authority,
(FGIC), Escrowed to
Maturity, 0.00%, 8/15/19 2,553,319
NR NR 500 Wilkins Area, IDA,
(Fairview Extended Care),
Prerefunded to 1/1/01,
10.25%, 1/1/21 584,160
- --------------------------------------------------------------------------------
$ 5,293,679
- --------------------------------------------------------------------------------
General Obligations -- 0.4%
- --------------------------------------------------------------------------------
Baa1 A $ 500 Puerto Rico, 0.00%, 7/1/16 $ 215,785
- --------------------------------------------------------------------------------
$ 215,785
- --------------------------------------------------------------------------------
Hospital -- 21.6%
- --------------------------------------------------------------------------------
NR BBB $1,000 Allentown, Area Hospital
Authority, (Sacred Heart
Hospital),
6.50%, 11/15/08 $ 1,089,890
NR BBB 2,355 Clearfield, Hospital
Authority, (Clearfield
Hospital),
6.875%, 6/1/16 2,586,990
Baa3 BBB+ 650 Hazleton Health Services
Authority, (St. Joseph's
Hospital),
5.85%, 7/1/06 701,766
A3 A 1,200 Lehigh County, General
Purpose Authority,
(Muhlenberg Hospital),
5.75%, 7/15/10 1,326,144
NR BBB- 200 McKean County, (Bradford
Hospital), 5.375%, 10/1/03 208,216
A3 BBB+ 1,000 Monroeville Hospital
Authority, (Forbes Health),
5.75%, 10/1/05 950,000
Baa2 NR 1,030 Montgomery County, HEFA,
(Montgomery Hospital),
6.25%, 7/1/06 1,122,515
Baa2 NR 1,100 Montgomery County, HEFA,
(Montgomery Hospital),
6.375%, 7/1/07 1,213,025
A NR 500 New Castle Area Hospital
Authority, (St. Francis
Hospital of New Castle),
5.90%, 11/15/00 521,010
NR BBB 315 Northhampton County
Hospital Authority, (Easton
Hospital),
6.90%, 1/1/02 331,764
NR A- 1,350 South Fork Municipal
Authority, (Lee Hospital),
5.50%, 7/1/11 1,395,590
- --------------------------------------------------------------------------------
$11,446,910
- --------------------------------------------------------------------------------
Industrial Development Revenue -- 2.4%
- --------------------------------------------------------------------------------
A3 A- $1,200 Erie IDA, (International
Paper), (AMT), 5.85%,
12/1/20 $ 1,271,100
- --------------------------------------------------------------------------------
$ 1,271,100
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statement
55
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- -------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Education -- 5.3%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Allegheny County, Higher
Education Building
Authority, (Dusquesne
University), (AMBAC),
5.00%, 3/1/16 $ 2,042,880
NR AAA 700 Montgomery County, HEFA,
(Saint Joseph's
University), (CLEE),
6.00%, 12/15/02 758,051
- --------------------------------------------------------------------------------
$ 2,800,931
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 9.4%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Cambria County IDA, (PA
Electric Co.), (MBIA),
5.35%, 11/1/10 $ 2,201,220
Aaa AAA 2,500 Indiana County, IDA, (PA
5.35%, 11/1/10 2,751,524
- --------------------------------------------------------------------------------
$ 4,952,744
- --------------------------------------------------------------------------------
Insured-General Obligations -- 6.0%
- --------------------------------------------------------------------------------
Aaa NR $1,635 Harrisburg, (AMBAC),
0.00%, 9/15/12 $ 860,713
Aaa AAA 1,355 McKeesport, (FGIC),
0.00%, 10/1/11 750,101
Aaa AAA 1,000 Pennsylvania, (AMBAC),
5.00%, 11/15/15 1,026,740
Aaa AAA 500 Pleasant Valley School
District, (FGIC), 5.00%,
9/1/10 525,595
- --------------------------------------------------------------------------------
$ 3,163,149
- --------------------------------------------------------------------------------
Insured-Hospital -- 11.8%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Allegheny County Hospital
Development Authority,
(South Hills Health),
(MBIA), 5.50%, 5/1/08 $ 1,101,350
Aaa AAA 1,000 Erie County Hospital
Authority, (Hamot Health
System), (AMBAC), 7.10%,
2/15/10 1,096,250
NR AAA 1,030 Indiana County Hospital
Authority, (Indiana
Hospital), (CLEE),
5.75%, 7/1/00 1,065,185
NR AAA 825 Indiana County Hospital
Authority, (Indiana
Hospital), (CLEE),
5.875%, 7/1/01 869,402
Aaa AAA 2,050 Sayre Health Care
Facilities Authority,
(Guthrie Medical Center),
(AMBAC), 6.50%, 3/1/00 2,128,269
- --------------------------------------------------------------------------------
$ 6,260,456
- --------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 2.0%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Northumberland County
Authority, Lease Revenue
Bonds, (MBIA), 6.50%,
10/15/01 $ 1,082,020
- --------------------------------------------------------------------------------
$ 1,082,020
- --------------------------------------------------------------------------------
Insured-Transportation -- 7.4%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Allegheny County Airport
Revenue, (MBIA), 5.75%,
1/1/10 $ 1,117,320
Aaa AAA 590 Allegheny County Airport
Revenue, (MBIA), 5.75%,
1/1/12 662,659
Aaa AAA 1,000 Philadelphia Airport
Revenue, (FGIC), 5.375%,
7/1/14 1,054,980
Aaa AAA 1,000 Southeastern Pennsylvania
Transportation Authority,
(FGIC), 5.55%, 3/1/14 1,087,580
- --------------------------------------------------------------------------------
$ 3,922,539
- --------------------------------------------------------------------------------
Nursing Home -- 1.0%
- --------------------------------------------------------------------------------
NR NR $ 250 Chartiers Valley,
Industrial and Commercial
Development Authority,
(Beverly Enterprises),
5.30%, 6/1/02 $ 254,733
NR NR 250 Chartiers Valley,
Industrial and Commercial
Development Authority,
(Beverly Enterprises),
5.35%, 6/1/03 255,673
- --------------------------------------------------------------------------------
$ 510,406
- --------------------------------------------------------------------------------
Senior Living/Life Care -- 2.7%
- --------------------------------------------------------------------------------
NR NR $ 245 Delaware County Authority,
(White Horse Village),
6.30%, 7/1/03 $ 263,010
NR NR 505 Delaware County Authority,
(White Horse Village),
6.40%, 7/1/04 549,915
Baa2 BBB+ 590 Hazleton Health Services
Authority, (Hazleton
General Hospital),
5.50%, 7/1/07 634,905
- --------------------------------------------------------------------------------
$ 1,447,830
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
56
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited) Principal
- ------------------
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Solid Waste -- 3.5%
- ---------------------------------------------------------------------------------------
Baa A- $ 500 Greater Lebanon Refuse Authority,
6.20%, 5/15/99 $ 508,395
Baa A- 500 Greater Lebanon Refuse Authority,
6.20%, 11/15/99 514,645
Baa A- 300 Greater Lebanon Refuse Authority,
6.40%, 5/15/00 312,210
Baa A- 500 Greater Lebanon Refuse Authority,
6.40%, 11/15/00 525,800
- ---------------------------------------------------------------------------------------
$ 1,861,050
- ---------------------------------------------------------------------------------------
Transportation -- 5.0%
- ---------------------------------------------------------------------------------------
Aa3 AA- $ 1,550 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial Bank
of Commerce, 6.00%, 6/1/99(1) $ 1,557,141
Aa3 AA- 1,000 Southeastern Pennsylvania
Transportation Authority,
LOC: Canadian Imperial Bank
of Commerce, 6.00%, 6/1/01 $ 1,057,760
- ---------------------------------------------------------------------------------------
$ 2,634,901
- ---------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $49,562,514) $ 52,980,664
- ---------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
- ----------------------------------------------------------------------------
The Portfolio invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic development in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1998, 50.8% of the securities in the portfolio of
investments are backed by bond issuance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 0.1% to 16.8% of total investments.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
57
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statements of Assets and Liabilities
As of September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $29,829,184 $8,749,673 $61,462,844 $49,536,437 $ 9,947,771
Unrealized appreciation 2,201,856 600,301 4,083,337 3,538,164 1,104,837
- ------------------------------------------------------------------------------------------------------------------------------------
Investments, at value $32,031,040 $9,349,974 $65,546,181 $53,074,601 11,052,608
- ------------------------------------------------------------------------------------------------------------------------------------
Cash $ 107 $ 85,643 $ 525,873 $ 374,578 $ 419
Interest receivable 496,869 132,605 1,247,689 732,983 237,225
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $32,528,016 $9,568,222 $67,319,743 $54,182,162 $11,290,252
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities $ 298,706 $ -- $ 1,034,875 $ -- $ --
Demand note payable 92,000 -- -- -- 202,000
Payable for daily variation margin on
open financial futures contracts 15,055 4,387 16,875 36,785 7,199
Other accrued expenses 2,467 736 2,965 2,480 1,117
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 408,228 $ 5,123 $ 1,054,715 $ 39,265 $ 210,316
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors'
interest in Portfolio $32,119,788 $9,563,099 $66,265,028 $54,142,897 $11,079,936
- ------------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $29,959,465 $8,967,385 $62,234,871 $50,646,607 $ 9,983,385
Net unrealized appreciation (computed on
the basis of identified cost) 2,160,323 595,714 4,030,157 3,496,290 1,096,551
- ------------------------------------------------------------------------------------------------------------------------------------
Total $32,119,788 $9,563,099 $66,265,028 $54,142,897 $11,079,936
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
58
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Assets and Liabilities
As of September 30, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
- --------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $39,109,881 $64,417,807 $ 21,831,004 $ 49,562,514
Unrealized appreciation 3,441,106 4,575,914 1,397,785 3,418,150
- --------------------------------------------------------------------------------------------------------------------------------
Investments, at value $42,550,987 $68,993,721 $ 23,228,789 $ 52,980,664
- --------------------------------------------------------------------------------------------------------------------------------
Cash $ 915 $ 609,895 $ 403 $ 2
Interest receivable 615,864 1,198,317 391,420 799,187
- --------------------------------------------------------------------------------------------------------------------------------
Total assets $43,167,766 $70,801,933 $ 23,620,612 $ 53,779,853
- --------------------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 995,980 $ -- $ --
Demand note payable 638,000 -- 102,000 26,000
Payable for daily variation margin on open
financial futures contracts 16,424 22,049 2,812 35,042
Other accrued expenses 3,936 4,480 1,683 3,451
- --------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 658,360 $ 1,022,509 $ 106,495 $ 64,493
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors' interest in
Portfolio $42,509,406 $69,779,424 $ 23,514,117 $ 53,715,360
- --------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $39,089,377 $65,233,235 $ 22,125,219 $ 50,376,761
Net unrealized appreciation (computed on the basis of
identified cost) 3,420,029 4,546,189 1,388,898 3,338,599
- --------------------------------------------------------------------------------------------------------------------------------
Total $42,509,406 $69,779,424 $ 23,514,117 $ 53,715,360
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
59
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Limited Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Investment Income
- ----------------------------------------------------------------------------------------------------------------------------------
Interest $ 888,012 $258,024 $1,807,224 $1,437,473 $ 316,088
- ----------------------------------------------------------------------------------------------------------------------------------
Total income $ 888,012 $258,024 $1,807,224 $1,437,473 $ 316,088
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 76,357 $ 22,066 $ 156,626 $ 124,147 $ 26,520
Trustees fees and expenses 473 52 1,308 3,263 51
Legal and accounting services 18,975 16,875 22,175 22,075 16,975
Custodian fee 12,355 6,623 23,470 19,502 7,928
Amortization of organization expenses 136 -- 378 354 --
Miscellaneous 4,807 3,182 6,834 4,275 4,611
- ----------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 113,103 $ 48,798 $ 210,791 $ 173,616 $ 56,085
- ----------------------------------------------------------------------------------------------------------------------------------
Deduct --
Preliminary reduction of custodian fee $ 3,345 $ 1,380 $ 8,597 $ 9,899 $ 1,492
Preliminary reduction of investment adviser
fee -- 10,851 -- -- --
- ----------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 3,345 $ 12,231 $ 8,597 $ 9,899 $ 1,492
- ----------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 109,758 $ 36,567 $ 202,194 $ 163,717 $ 54,593
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 778,254 $221,457 $1,605,030 $1,273,756 $ 261,495
- ----------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost $ 273,711 $ 30,519 $ 492,416 $ 417,313 $ 42,627
basis)
Financial futures contracts (133,366) (18,425) (127,751) (241,643) (45,344)
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ 140,345 $ 12,094 $ 364,665 $ 175,670 $ (2,717)
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 486,104 $117,926 $ 637,898 $ 671,414 $ 145,204
Financial futures contracts (41,742) (957) (41,342) (25,926) (5,850)
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation
(depreciation) $ 444,362 $116,969 $ 596,556 $ 645,488 $ 139,354
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 584,707 $129,063 $ 961,221 $ 821,158 $ 136,637
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $1,362,961 $350,520 $2,566,251 $2,094,914 $ 398,132
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
60
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income
- -------------------------------------------------------------------------------------------------------------------------------
Interest $1,179,055 $1,883,858 $659,464 $1,521,402
- -------------------------------------------------------------------------------------------------------------------------------
Total investment income $1,179,055 $1,883,858 $659,464 $1,521,402
- -------------------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 100,566 $ 163,433 $ 55,496 $ 128,261
Trustees fees and expenses 950 3,263 95 3,263
Legal and accounting services 22,074 22,074 16,776 22,078
Custodian fee 14,290 14,830 10,750 18,704
Interest -- 11,641 -- --
Amortization of organization expenses 105 219 -- 240
Miscellaneous 7,739 3,624 5,081 10,238
- ---------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 145,724 $ 219,084 $ 88,198 $ 182,784
- ---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 2,212 $ 3,304
- ---------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ -- $ -- $ 2,212 $ 3,304
- ---------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 145,724 $ 219,084 $ 85,986 $ 179,480
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $1,033,331 $1,664,774 $573,478 $1,341,922
- ---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------------------------
- -Net realized gain (loss) --
Investment transactions (identified cost basis) $ 51,461 $ 442,151 $103,927 $ 307,121
Financial futures contracts (119,015) (241,162) (78,256) (205,571)
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) $ (67,554) $ 200,989 $ 25,671 $ 101,550
- ----------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 644,049 $1,118,180 $235,425 $ 478,173
Financial futures contracts (10,620) (12,291) (5,430) (82,920)
- ----------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 633,429 $1,105,889 $229,995 $ 395,253
- ----------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain $ 565,875 $1,306,878 $255,666 $ 496,803
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $1,599,206 $2,971,652 $829,144 $1,838,725
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
61
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Increase (Decrease) in Limited Limited Limited Limited Limited
Net Assets Portfolio Portfolio Portfolio Portfolio Portfolio
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
From operations --
Net investment income $ 778,254 $ 221,457 $ 1,605,030 $ 1,273,756 $ 261,495
Net realized gain (loss) 140,345 12,094 364,665 175,670 (2,717)
Net change in unrealized
appreciation (depreciation) 444,362 116,969 596,556 645,488 139,354
- -----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $ 1,362,961 $ 350,520 $ 2,566,251 $ 2,094,914 $ 398,132
- -----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,097,276 $ 1,172,053 $ 4,594,657 $ 5,571,471 $ 1,268,924
Withdrawals (6,637,868) (1,793,966) (13,137,060) (10,106,639) (2,684,334)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (3,540,592) $ (621,913) $ (8,542,403) $ (4,535,168) $ (1,415,410)
- -----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (2,177,631) $ (271,393) $ (5,976,152) $ (2,440,254) $ (1,017,278)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 34,297,419 $ 9,834,492 $ 72,241,180 $ 56,583,151 $ 12,097,214
- -----------------------------------------------------------------------------------------------------------------------------------
At end of period $ 32,119,788 $ 9,563,099 $ 66,265,028 $ 54,142,897 $ 11,079,936
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
62
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended September 30, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 1,033,331 $ 1,664,774 $ 573,478 $ 1,341,922
Net realized gain (loss) (67,554) 200,989 25,671 101,550
Net change in unrealized appreciation
(depreciation) 633,429 1,105,889 229,995 395,253
- ----------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 1,599,206 $ 2,971,652 $ 829,144 $ 1,838,725
- ----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,820,266 $ 7,964,604 $ 1,693,294 $ 4,243,372
Withdrawals (9,449,929) (15,848,271) (3,223,979) (10,074,350)
- ----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $ (4,629,663) $ (7,883,667) $(1,530,685) $ (5,830,978)
- ----------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (3,030,457) $ (4,912,015) $ (701,541) $ (3,992,253)
- ----------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 45,539,863 $ 74,691,439 $24,215,658 $ 57,707,613
- ----------------------------------------------------------------------------------------------------------------------------------
At end of period $ 42,509,406 $ 69,779,424 $23,514,117 $ 53,715,360
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
63
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
<TABLE>
<CAPTION>
California Connecticut Florida Massachusetts Michigan
Increase (Decrease) in Limited Limited Limited Limited Limited
Net Assets Portfolio Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
From operations --
Net investment income $ 1,871,830 $ 536,076 $ 4,031,956 $ 3,067,243 $ 661,189
Net realized gain (loss) 461,548 3,686 (130,866) (1,637) (127,469)
Net change in unrealized
appreciation (depreciation) 1,003,947 369,866 2,784,387 2,081,917 563,973
- --------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from
operations $ 3,337,325 $ 909,628 $ 6,685,477 $ 5,147,523 $ 1,097,693
- --------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 1,661,073 $ 1,135,100 $ 7,486,705 $ 4,381,569 $ 1,024,096
Withdrawals (13,895,420) (4,484,203) (34,840,194) (22,915,877) (5,021,007)
- --------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $(12,234,347) $ (3,349,103) $(27,353,489) $(18,534,308) $ (3,996,911)
- --------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (8,897,022) $ (9,439,475) $(20,668,012) $(13,386,785) $ (2,899,218)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Beginning of year $ 43,194,441 $ 12,273,967 $ 93,909,192 $ 69,969,936 $ 14,996,432
- --------------------------------------------------------------------------------------------------------------------------------
At end of year $ 34,297,419 $ 9,834,492 $ 72,241,180 $ 56,583,151 $ 12,097,214
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
64
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
<TABLE>
<CAPTION>
New Jersey New York Ohio Pennsylvania
Limited Limited Limited Limited
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 2,529,742 $ 4,189,775 $ 1,365,120 $ 3,105,101
Net realized gain (loss) (191,388) 1,126,492 148,476 430,385
Net change in unrealized appreciation
(depreciation) 1,679,398 2,952,942 773,615 2,258,821
- ---------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 4,017,752 $ 8,269,209 $ 2,287,211 $ 5,794,307
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,886,225 $ 3,255,202 $ 1,303,141 $ 2,758,619
Withdrawals (19,630,053) (36,846,720) (7,844,546) (18,720,920)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital
transactions $(16,743,828) $(33,591,518) $ (6,541,405) $(15,962,301)
- ---------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(12,726,076) $(25,322,309) $ (4,254,194) $(10,167,994)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 58,265,939 $100,013,748 $ 28,469,852 $ 67,875,607
- ---------------------------------------------------------------------------------------------------------------------------------
At end of year $ 45,539,863 $ 74,691,439 $ 24,215,658 $ 57,707,613
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
65
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
California Limited Portfolio
----------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
-------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994/(1)/
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets/+/
- --------------------------------------------------------------------------------------------------------------------------------
Net Expenses /(2)/ 0.68%/(3)/ 0.61% 0.63% 0.58% 0.53% 0.46%/(3)/
Net expenses after custodian fee reduction 0.66%/(3)/ 0.59% 0.61% 0.55% -- --
Net investment income 4.67%/(3)/ 4.86% 4.98% 4.82% 4.72% 4.50%/(3)/
Portfolio Turnover 19% 40% 57% 36% 56% 6%
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $32,120 $34,297 $43,194 $59,216 $82,344 $95,704
- -------------------------------------------------------------------------------------------------------------------------------
+ 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 would have been as
follows:
Expenses/(2)/ 0.52%/(3)/
Net investment income 4.44%/(3)/
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements
66
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Connecticut Limited Portfolio
------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
----------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994(1)
- --------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets/+/
- --------------------------------------------------------------------------------------------------------------------------
Net Expenses/(2)/ 0.79%/(3)/ 0.54% 0.54% 0.39% 0.17% 0.00%/(3)/
Net expenses after custodian fee reduction 0.76%/(3)/ 0.52% 0.50% 0.35% -- --
Net investment income 4.61%/(3)/ 4.96% 5.09% 4.91% 4.95% 4.53%/(3)/
Portfolio Turnover 2% 23% 46% 52% 73% 39%
- --------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $9,563 $9,834 $12,274 $14,862 $17,316 $16,767
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
/+/ 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 would have
been as follows:
<TABLE>
<S> <C> <C> <C> <C> <C> <C>
Expenses/(2)/ 1.02%/(3)/ 0.77% 0.78% 0.72% 0.67% 0.62%/(3)/
Expenses after custodian fee reduction 0.99%/(3)/ 0.75% 0.74% 0.68% -- --
Net investment income 4.38%/(3)/ 4.73% 4.85% 4.58% 4.45% 3.92%/(3)/
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, April 16, 1993, to March 31,
1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements
67
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Florida Limited Portfolio
Six Months Ended
September 30, 1998 Year Ended March 31,
---------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.62%/(3)/ 0.58% 0.59% 0.55% 0.52% 0.49%/(3)/
Expenses after custodian fee reduction 0.59%/(3)/ 0.55% 0.57% 0.54% -- --
Net investment income 4.68%/(3)/ 4.90% 4.90% 4.73% 4.73% 4.53%/(3)/
Portfolio Turnover 9% 38% 66% 20% 44% 8%
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $66,265 $72,241 $92,909 $127,835 $164,579 $185,977
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements
68
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Massachusetts Limited Portfolio
------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994/(1)/
<S> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.64%/(3)/ 0.60% 0.60% 0.57% 0.54% 0.52%/(3)/
Expenses after custodian fee reduction 0.60%/(3)/ 0.56% 0.58% 0.55% -- --
Net investment income 4.69%/(3)/ 4.90% 4.97% 4.72% 4.90% 4.57%/(3)/
Portfolio Turnover 12% 46% 60% 27% 46% 8%
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $54,143 $56,583 $69,970 $97,135 $119,120 $119,772
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/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.
/(3)/Annualized.
See notes to financial statements
69
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Michigan Limited Portfolio
--------------------------------------------------------------------------------------
Six Months Ended
September Year Ended March 31,
-------------------------------------------------------------------
30, 1998
(Unaudited) 1998 1997 1996 1995 1994/(1)/
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets/+/
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.99%/(3)/ 0.71% 0.79% 0.68% 0.48% 0.00%/(3)/
Net expenses after custodian fee reduction 0.96%/(3)/ 0.67% 0.76% 0.64% -- --
Net investment income 4.61%/(3)/ 5.00% 5.09% 5.00% 4.88% 4.62%/(3)/
Portfolio Turnover 5% 21% 28% 40% 111% 30%
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 11,080 $ 12,097 $ 14,996 $ 21,191 $ 33,198 $ 35,608
- ----------------------------------------------------------------------------------------------------------------------------------
/+/ 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 would have
been as follows:
Expenses/(2)/ 0.59% 0.54%/(3)/
Net investment income 4.77% 4.08%/(3)/
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, April 16, 1993, to March 31,
1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements.
70
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
New Jersey Limited Portfolio
----------------------------------------------------------------------------------
Six Months Ended
September Year Ended March 31,
30, 1998 ----------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994(1)
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.67%/(3)/ 0.62% 0.61% 0.57% 0.54% 0.54%/(3)/
Expenses after custodian fee reduction 0.67%/(3)/ 0.61% 0.58% 0.55% -- --
Net investment income 4.73%/(3)/ 4.91% 4.96% 4.78% 4.73% 4.53%/(3)/
Portfolio Turnover 7% 21% 37% 42% 44% 10%
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $ 42,509 $ 45,540 $ 58,266 $ 80,173 $ 97,280 $102,948
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements
71
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
New York Limited Portfolio
----------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
-------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994/(1)/
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.61%/(3)/ 0.61% 0.58% 0.55% 0.52% 0.47%/(3)/
Expenses after custodian fee reductio n 0.61%/(3)/ 0.59% 0.56% 0.53% -- --
Net investment income 4.67%/(3)/ 4.81% 4.87% 4.66% 4.79% 4.50%/(3)/
Portfolio Turnover 14% 53% 58% 32% 31% 5%
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $69,779 $74,691 $100,014 $138,728 $173,632 $183,768
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/ 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.
/(3)/ Annualized.
See notes to financial statements
72
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Ohio Limited Portfolio
-------------------------------------------------------------------------------
Six Months
Ended
September
30, 1998 Year Ended March 31,
------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994/(1)/
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets+
- -------------------------------------------------------------------------------------------------------------------------------
Net expenses /(2)/ 0.74%/(3)/ 0.64% 0.68% 0.63% 0.46% 0.00%/(3)/
Net expenses after custodian fee reduction 0.72%/(3)/ 0.64% 0.65% 0.61% -- --
Net investment income 4.82%/(3)/ 5.05% 5.20% 5.06% 4.96% 4.68%/(3)/
Portfolio Turnover 6% 29% 34% 47% 120% 33%
- -------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $23,514 $24,216 $28,470 $33,529 $39,435 $37,978
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ The operating expenses of the Portfolio 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 would have
been as follows:
<TABLE>
<S> <C> <C>
Expenses /(2)/ 0.58% 0.54%/(3)/
Net investment income 4.84% 4.14%/(3)/
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/For the period from the start of business, April 16, 1993, to March 31,
1994.
/(2)/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.
/(3)/Annualized.
See notes to financial statements
73
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Pennsylvania Limited Portfolio
---------------------------------------------------------------------------------
Six Months Ended
September 30, 1998 Year Ended March 31,
-------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994/(1)/
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------------------------------------------
Expenses/(2)/ 0.66%/(3)/ 0.60% 0.61% 0.58% 0.53% 0.50%/(3)/
Expenses after custodian fee reduction 0.65%/(3)/ 0.58% 0.59% 0.56% -- --
Net investment income 4.85%/(3)/ 5.03% 5.11% 4.81% 4.77% 4.59%/(3)/
Portfolio Turnover 5% 36% 51% 24% 39% 12%
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $53,715 $57,708 $67,876 $92,194 $113,606 $123,620
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/For the period from the start of business, May 3, 1993, to March 31, 1994.
/(2)/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.
/(3)/Annualized.
See notes to Financial Statements
74
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
/1/Significant Accounting Policies
- -------------------------------------------------------------------------------
California Limited Maturity Municipals Portfolio (California Limited
Portfolio), Connecticut Limited Maturity Municipals Portfolio (Connecticut
Limited Portfolio), Florida Limited Maturity Municipals Portfolio (Florida
Limited Portfolio), Massachusetts Limited Maturity Municipals Portfolio
(Massachusetts 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), Ohio Limited
Maturity Municipals Portfolio (Ohio Limited Portfolio) and Pennsylvania
Limited Maturity Municipals Portfolio (Pennsylvania Limited Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940 as non-diversified open-end management investment companies which
were organized as trusts under the laws of the State of New York on May 1,
1992. The Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts listed on
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the
Internal Revenue Code) in order for their respective investors to satisfy
them. The Portfolios will allocate at least annually among their respective
investors each investor's distributive share of the Portfolios' net taxable
(if any) and tax-exempt investment income, net realized capital gains, and
any other items of income, gain, loss, deduction or credit.
Interest income received by the Portfolios on investments in municipal bonds,
which is excludable from gross income under the Internal Revenue Code, will
retain its status as income exempt from federal income tax when allocated to
each Portfolio's investors. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986, may be considered a tax
preference item for investors.
D Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years, beginning on the date
each Portfolio commenced operations.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage
in when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make 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
75
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the 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 Statements -- The interim financial statements relating
to September 30, 1998, and for the six months then ended have not been
audited by independent certified public accountants, but in the opinion of
the Funds' management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- --------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains
from the sale of securities). For the six month period ended September 30,
1998, each Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
-----------------------------------------------------
California Limited $76,357 0.46%
Connecticut Limited $22,066 0.46%
Florida Limited $156,626 0.46%
Massachusetts Limited $124,147 0.46%
Michigan Limited $26,520 0.47%
New Jersey Limited $100,566 0.46%
New York Limited $163,433 0.46%
Ohio Limited $55,496 0.47%
Pennsylvania Limited $128,261 0.46%
* As a percentage of average daily net assets (annualized).
To enhance the net income of the Connecticut Limited Portfolio, BMR made a
reduction of its fee in the amount of $10,851.
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 month
period ended September 30, 1998, no significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations.
3 Investments
- -------------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the six month period ended September 30, 1998
were as follows:
California Limited Connecticut Limited
Portfolio Portfolio
-----------------------------------------------
Purchases $ 6,119,755 $ 228,808
Sales 8,376,271 661,658
Florida Limited Massachusetts
Portfolio Limited Portfolio
-----------------------------------------------
Purchases $ 6,126,530 $ 6,650,705
Sales 13,727,452 9,621,352
Michigan Limited New Jersey Limited
Portfolio Portfolio
-----------------------------------------------
Purchases $ 617,098 $ --
Sales 1,953,337 3,028,200
New York Limited Ohio Limited
Portfolio Portfolio
----------------------------------------------
Purchases $ 10,317,762 $ 1,385,208
Sales 17,669,871 2,555,653
Pennsylvania
Limited Portfolio
-----------------------------------------------
Purchases $ 2,794,032
Sales 6,954,060
76
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4. Federal Income Tax Basis of Investments
-----------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at September 30, 1998, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
California Connecticut
Limited Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
<S> <C> <C>
Aggregate Cost $ 29,829,184 $ 8,749,673
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 2,201,856 $ 600,301
Gross unrealized depreciation -- --
-----------------------------------------------------------------------------
Net unrealized appreciation $ 2,201,856 $ 600,301
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Florida Limited Massachusetts Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
<S> <C> <C>
Aggregate Cost $ 61,462,844 $ 49,536,437
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 4,083,337 $ 3,538,164
Gross unrealized depreciation -- --
-----------------------------------------------------------------------------
Net unrealized appreciation $ 4,083,337 $ 3,538,164
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Michigan Limited New Jersey Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
<S> <C> <C>
Aggregate Cost $ 9,947,771 $ 39,109,881
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 1,113,203 $ 3,450,010
Gross unrealized depreciation (8,366) (8,904)
-----------------------------------------------------------------------------
Net unrealized appreciation $ 1,104,837 $ 3,441,106
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
New York Limited Ohio Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
<S> <C> <C>
Aggregate Cost $ 64,417,807 $ 21,831,004
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 4,575,914 $ 1,399,938
Gross unrealized depreciation -- (2,153)
-----------------------------------------------------------------------------
Net unrealized appreciation $ 4,575,914 $ 1,397,785
-----------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Pennsylvania
Limited
Portfolio
-----------------------------------------------------------------------
<S> <C>
Aggregate Cost $ 49,562,514
-----------------------------------------------------------------------
Gross unrealized appreciation $ 3,452,253
-----------------------------------------------------------------------
Gross unrealized depreciation (34,103)
-----------------------------------------------------------------------
Net unrealized appreciation $ 3,418,150
-----------------------------------------------------------------------
</TABLE>
5 Line of Credit
-----------------------------------------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $100 million unsecured line of credit agreement
with a group of banks. The Portfolios may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above either the Eurodollar rate or federal funds effective rate. In
addition, a fee computed at an annual rate of 0.10% 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, 1998, the California
Limited Portfolio, Michigan Limited Portfolio, New Jersey Limited Portfolio,
Ohio Limited Portfolio, and Pennsylvania Limited Portfolio had balances
outstanding pursuant to this line of credit of $92,000, $202,000, $638,000,
$102,000, and $26,000, respectively. The Portfolios did not have any
significant borrowings or allocated fees during the six month period ended
September 30, 1998.
6 Financial Instruments
--------------------------------------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include 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.
77
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
A summary of obligations under these financial instruments at September 30,
1998, is as follows:
<TABLE>
<CAPTION>
Limited Expiration Futures Net Unrealized
Portfolio Date Contracts Position Depreciation
------------- ---------- ---------------------- -------- --------------
<S> <C> <C> <C> <C>
California 12/98 13 U.S. Treasury Bonds Short $ (41,533)
Connecticut 12/98 4 U.S. Treasury Bonds Short $ (4,587)
Florida 12/98 12 U.S. Treasury Bonds Short $ (53,180)
Massachusetts 12/98 31 U.S. Treasury Bonds Short $ (41,874)
Michigan 12/98 6 U.S. Treasury Bonds Short $ (8,286)
New Jersey 12/98 13 U.S. Treasury Bonds Short $ (21,077)
New York 12/98 17 U.S. Treasury Bonds Short $ (29,725)
Ohio 12/98 2 U.S. Treasury Bonds Short $ (8,887)
Pennsylvania 12/98 28 U.S. Treasury Bonds Short $ (79,551)
</TABLE>
At September 30, 1998, the Portfolios had sufficient cash and/or securities
to cover margin requirements on open futures contracts.
78
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS as of September 30, 1998
INVESTMENT MANAGEMENT
Eaton Vance Limited Maturity Municipals Funds
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University Graduate
School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly, Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
Limited Maturity Municipals Portfolios
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Connecticut,
Florida, Massachusetts,
Michigan, New Jersey,
New York and Ohio Limited
Maturity Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of California Limited
Maturity Municipals Portfolio
Timothy T. Browse
Vice President and Portfolio
Manager of Pennsylvania
Limited Maturity
Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University Graduate
School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
John L. Thorndike
Formerly, Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
79
<PAGE>
Investment Adviser of the Limited Maturity Municipals Portfolios
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of Eaton Vance Limited Maturity Municipals Funds
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Investor Services Group, Inc.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Eaton Vance Investment Trust
24 Federal Street
Boston, MA 02110
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
9LTFSRC-11/98
