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Mutual Funds
for People
Who Pay
EATON VANCE
============== Taxes
Mutual Funds
[Photo of brickwall omitted]
Annual Report March 31, 1998
EATON VANCE
[Photo of highway omitted] LIMITED
MATURITY
MUNICIPALS Florida
FUNDS
Massachusetts
CLASSIC
New York
Pennsylvania
[Photo of bridge omitted]
<PAGE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
Letter to Shareholders
[Photo of Thomas J. Fetter]
Thomas J. Fetter,
President
The past year has been very favorable for the municipal bond market. Low
inflation and a declining interest rate environment produced relatively good
returns for the intermediate municipal sector. According to Lipper Analytical
Services, Inc., - a nationally recognized monitor of mutual fund performance -
the 140 funds in the Intermediate Municipal Debt Category had an average return
of 8.2% for the year ended March 31, 1998.*
Amid volatile global markets, more investors were drawn to municipal bonds...
Against a backdrop of moderate economic growth and low inflation, investors
again focused on the unique advantages of municipals, which remain among the
best tax-advantaged vehicles. In addition, the municipal market attracted an
increasing number of crossover investors from other markets. Many investors
bought municipals in a flight to quality, as the domestic equity market reached
overvalued levels and emerging markets were caught up in the turmoil of the
Asian currency crisis.
A sound economy has resulted in improving municipal credits...
The upbeat economic climate of recent years has provided strong support for the
municipal market. Steady job growth has generated increased tax revenues for
states and local issuers. As a result, many areas hard-hit in the recessions of
the 1970s and 1980s have since made a significant economic comeback, a fact
reflected in the value of their bonds. We expect to see many more such stories
emerge in the coming year.
Municipal bonds yield 88% of Treasury yields
30-Year AAA-rated General Obligation (GO) Bonds* 5.24%
Taxable equivalent yield in 36% tax bracket 8.19%
30-Year Treasury bond 5.93%
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general obligations
and are not necessarily representative of the Fund's yield. Statistics as of
March 31, 1998.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
In 1998, opportunities should continue for municipal bond investors...
At present, there is little sign of inflation on the horizon, and, with the
Asian turmoil of recent months, it's possible that the economy may slow somewhat
in the next year. Meanwhile, the federal budget situation has improved
dramatically in the past several years.
Naturally, those conditions are subject to change over time. The market could be
vulnerable if the economy strengthens or the budget situation unexpectedly
worsens. We will, of course, continue to closely monitor economic progress.
As for the tax-exempt market, municipal bonds currently represent unusual value
relative to their taxable counterparts. We believe that municipals will continue
to serve their traditional function of financing vital public works, while
offering good opportunities for tax-conscious investors.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 11, 1998
*It is not possible to invest directly in an Index or Average.
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Effective November 24, 1997, William H. Ahern
became Portfolio Manager of the New York Limited Maturity
Municipals Portfolio. Mr. Ahern is Vice President of Eaton Vance Management
and Boston Management and Research,
and manages other Eaton Vance municipal portfolios.
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Mutual fund shares are not insured by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution.
Shares are subject to investment risks, including possible loss of
principal invested.
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<PAGE>
EV Classic Florida Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
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o Florida's economy continues to enjoy great strength, driven by a diverse base
that includes a boom- ing service sector. The service sector accounts for over
35% of total non-farm employment and is dominated by tourism. Florida topped
California and Hawaii to rank as the country's leading destination for summer
vacations.
o Trade continues to provide strong job growth. Industrial machinery, computers,
electrical equipment, transportation equipment, fertilizer and scientific
instruments were among Florida's leading export industries in the past year.
o Other important sectors in the Florida economy include construction - which
slowed somewhat in the past year from the rapid growth of the mid-1990's - and
manufacturing, which accounts for almost 8% of total employment. Within
manufacturing, the aerospace, telecommunications equipment, and defense
industries should continue to show strength.
The Fund
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o During the year ended March 31, 1998, the Fund had a total return of 7.0%.(1)
o This return resulted from an increase in net asset value per share to $9.73 on
March 31, 1998 from $9.44 on March 31, 1997, and the reinvestment of $0.357
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.73 on March 31, the Fund's distribution rate was 3.68%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.15%.(4)
Management Update
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o The Portfolio continued its long-standing barbell strategy, which balances
discount bonds for capital appreciation with higher-coupon issues for income.
Escrowed bonds, general obligations, insured hospitals, and electric utilities
represented the largest weightings.
o Amid a low-inflation economic outlook, the climate for bonds remained
generally constructive. Therefore, we continued our efforts to improve the
Fund's call protection, which further enhanced Fund's capital appreciation
potential.
o With quality a major consideration for Florida investors, insured bonds again
represented a high percentage of the Portfolio's investments.(5)
Your Investment at Work
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Palm Beach County
Solid Waste Industrial Development Bonds [Graphic Omitted]
Osceola Power Project
o The proceeds of this bond were used to finance the construction and operation
of a facility to dispose of by-products from Osceola's sugar mill in Pahokee.
The Project's electric generating capacity has been sold to Florida Power &
Light Company.
o This co-generation project is additionally attractive because it provides
environmental solutions while generating economic benefits.
o The bonds have attractive 6.95% coupon and are an example of the Portfolio's
efforts to find opportunities in selective non-rated issues.
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(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal income and/or alternative minimum tax. (3) The Fund's distribution
rate represents actual distributions paid to shareholders and is calculated
daily by dividing the last distribution per share (annualized) by the net
asset value. (4) The Fund's SEC yields are calculated by dividing the net
investment income per share for the 30-day period by the net asset value at
the end of the period and annualizing the result. (5) Private insurance does
not remove the interest rate risks that are associated with these
investments. (6) Returns are calculated by determining the percentage change
in net asset value (NAV) with all distributions reinvested. SEC returns
reflect 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
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Fund Information
as of March 31, 1998
Performance(6)
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Average Annual Total Returns (at net asset value)
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One year 7.0%
Life of Fund (12/8/93) 3.3
SEC Average Annual Total Returns (including applicable CDSC)
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One year 6.0%
Life of Fund (12/8/93) 3.3
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC
FLORIDA LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
DATE FUND LBMBI
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12/31/93 $10,000 $10,000
1/31/94 10,110 10,106
2/28/94 9,904 9,887
3/31/94 9,583 9,623
4/30/94 9,660 9,693
5/31/94 9,727 9,741
6/30/94 9,691 9,724
7/31/94 9,819 9,861
8/31/94 9,826 9,913
9/30/94 9,749 9,818
10/31/94 9,643 9,719
11/30/94 9,512 9,577
12/31/94 9,647 9,723
1/31/95 9,816 9,905
2/28/95 9,994 10,128
3/31/95 10,044 10,233
4/30/95 10,057 10,261
5/31/95 10,245 10,534
6/30/95 10,234 10,524
7/31/95 10,342 10,658
8/31/95 10,426 10,784
9/30/95 10,448 10,825
10/31/95 10,534 10,920
11/30/95 10,609 11,040
12/31/95 10,663 11,098
1/31/96 10,729 11,206
2/28/96 10,653 11,168
3/31/96 10,531 11,059
4/30/96 10,498 11,038
5/31/96 10,464 11,022
6/30/96 10,522 11,107
7/31/96 10,575 11,198
8/31/96 10,575 11,205
9/30/96 10,665 11,306
10/31/96 10,719 11,427
11/30/96 10,899 11,618
12/31/96 10,821 11,583
1/31/97 10,797 11,625
2/28/97 11,868 11,721
3/31/97 10,729 11,569
4/30/97 10,795 11,629
5/31/97 10,931 11,775
6/30/97 11,001 11,887
7/31/97 11,183 12,163
8/31/97 11,069 12,077
9/30/97 11,150 12,204
10/31/97 11,184 12,276
11/30/97 11,234 12,320
12/31/97 11,359 12,471
1/31/98 11,476 12,601
2/28/98 11,477 12,612
3/31/98 11,474 12,613
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's total
return with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest in an Index.
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Federal income tax information on distributions. For Federal income tax
purposes, 99.53% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1998 is designated as an exempt-interest
dividend.
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<PAGE>
EV Classic Massachusetts Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
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o Massachusetts' economy benefits from diverse sources of strength - most
notably the high-technology and financial services industries - which have
produced solid growth, high personal incomes, and very low unemployment. The
Commonwealth's March unemployment rate was 3.7%.
o Massachusetts' manufacturing base has enjoyed a sharp turnaround in the past
year, with manufacturing employment rising by 12,000 jobs in the past year,
according to the Department of Economic Development. That marked the largest
annual increase for the manufacturing sector since 1984.
o Despite the booming economy, however, Massachusetts has one of the highest
per-capita debt levels in the nation. Major projects, such as a new convention
center and the Central Artery/Third Harbor Tunnel Project, could create
financial pressures in the years to come.
The Fund
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o During the year ended March 31, 1998, the Fund had a total return of 7.2%.(1)
o This return resulted from an increase in net asset value per share to $9.88 on
March 31, 1998 from $9.57 on March 31, 1997, and the reinvestment of $0.366
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.88 on March 31, the Fund's distribution rate was 3.71%.(3)
o The Fund's SEC 30-day yield at March 31 was 2.77%.(4)
Management Update
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o The Portfolio underwent some modest adjustments during the past year. While
still fiercely competitive, the hospital sector offered value among the better
institutions and represented the Portfolio's largest weighting at March 31.
o Consistent with our favorable market outlook, we have continued to upgrade
call protection. Typically, as bonds age, their call protection is eroded,
reducing their responsiveness to lower interest rates.
o Municipal issuance has been increasingly dominated by investment-grade and
insured bonds. To preserve the Fund's yield, we have selectively pursued bonds
in the non-rated segment of the market, where Eaton Vance's research strengths
can add significant value to the Portfolio.
Your Investment at Work
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Massachusetts Health & Educational Finance Authority [Graphic Omitted]
Fairview Extended Care Facilities, Inc.
o Fairview Extended Care Services, Inc. is a non-profit company that operates a
series of nursing homes and continuing care facilities within the
Commonwealth.
o These 1990 First Mortgage Series A bonds were issued in 1990 with a 10.125%
coupon.
o The non-rated bonds were prerefunded in July 1997. While the bonds' handsome
coupon provided excellent income for the Fund, the prerefunding provided an
additional boost to performance.
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value. (4) The Fund's SEC yields are calculated by dividing
the net investment income per share for the 30-day period by the net asset
value at the end of the period and annualizing the result. (5) Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. SEC returns reflect 1% CDSC.
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 March 31, 1998
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Performance(5)
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Average Annual Total Returns (at net asset value)
One year 7.2%
Life of Fund (12/9/93) 3.7
SEC Average Annual Total Returns (including applicable CDSC)
One year 6.2%
Life of Fund (12/9/93) 3.7
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC
MASSACHUSETTS LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
DATE FUND LBMBI
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12/31/93 $10,000 $10,000
1/31/94 10,068 10,106
2/28/94 9,892 9,887
3/31/94 9,623 9,623
4/30/94 9,691 9,693
5/31/94 9,749 9,741
6/30/94 9,724 9,724
7/31/94 9,863 9,861
8/31/94 9,890 9,913
9/30/94 9,794 9,818
10/31/94 9,689 9,719
11/30/94 9,559 9,577
12/31/94 9,695 9,723
1/31/95 9,854 9,905
2/28/95 10,033 10,128
3/31/95 10,094 10,233
4/30/95 10,097 10,261
5/31/95 10,286 10,534
6/30/95 10,244 10,524
7/31/95 10,343 10,658
8/31/95 10,438 10,784
9/30/95 10,472 10,825
10/31/95 10,559 10,920
11/30/95 10,657 11,040
12/31/95 10,711 11,098
1/31/96 10,767 11,206
2/28/96 10,724 11,168
3/31/96 10,614 11,059
4/30/96 10,560 11,038
5/31/96 10,549 11,022
6/30/96 10,608 11,107
7/31/96 10,672 11,198
8/31/96 10,673 11,205
9/30/96 10,765 11,306
10/31/96 10,853 11,427
11/30/96 10,012 11,618
12/31/96 10,934 11,583
1/31/97 10,934 11,625
2/28/97 11,028 11,721
3/31/97 10,901 11,569
4/30/97 10,980 11,629
5/31/97 10,106 11,775
6/30/97 11,189 11,887
7/31/97 11,372 12,163
8/31/97 11,292 12,077
9/30/97 11,363 12,204
10/31/97 11,387 12,276
11/30/97 11,449 12,320
12/31/97 11,598 12,471
1/31/98 11,682 12,601
2/28/98 11,696 12,612
3/31/98 11,682 12,613
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's total
return with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest in an Index.
Federal income tax information on distributions. For Federal income tax
purposes, 99.74% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1998 is designated as an exempt-interest
dividend.
<PAGE>
EV Classic New York Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
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o The strength of the national expansion is finally starting to have an impact
on the New York State economy. The state added 96,000 jobs in 1997, an
increase of 1.2%. However, the state continued to lag national trends, where
employment rose 2.3%. The gap is expected to narrow slightly in 1998, led by
strength in the service and finance sectors.
o Wall Street activity was again a major boost to New York's economy, as the
sharp rise in corporate underwriting and merger-and-acquisition activity
contributed to robust profit growth. Bonuses earned in the state's financial
sectors added $4.2 billion to state personal income growth in 1997.
o With downsizing among large New York companies exacting a heavy toll, small
business growth has become central to the state's job creation. It's estimated
that small business has added more than 500,000 jobs since 1992, while large
companies have reduced their workforce by nearly 250,000.
The Fund
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o During the year ended March 31, 1998, the Fund had a total return of 8.3%.(1)
o This return resulted from an increase in net asset value per share to $9.95 on
March 31, 1998 from $9.53 on March 31, 1997, and the reinvestment of $0.357
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.95 on March 31, the Fund's distribution rate was 3.60%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.08%.(4)
Management Update
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o With New York enjoying a strong economic uptrend, the Portfolio has maintained
a large exposure to state appropriated debt, which was upgraded during the
period by Standard & Poor's rating agency.
o We maintained a lower exposure to insured bonds than in past cycles. With
insured bonds plentiful in the New York market, we searched for value in other
areas, including hospitals and New York City housing bonds.
o Escrowed bonds remained among the Portfolio's largest sector weightings.
Because they are backed by Treasury bonds, escrowed bonds are viewed as the
highest quality and tend to perform well in a constructive market environment.
Your Investment at Work
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Dormitory Authority
State of New York [Graphic Omitted]
Nyack Hospital
o Nyack Hospital is a private, non-profit institution that operates a 402-bed
acute care facility located in Rockland County, 20 miles north of New York
City.
o The bonds were issued to advance-refund earlier bonds that had financed the
construction of medical facilities at Nyack Hospital.
o The bonds have a 6.00% coupon and are not subject to redemption prior to their
July 2006 maturity date, further improving the Fund's call protection.
(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value. (4) The Fund's SEC yields are calculated by dividing
the net investment income per share for the 30-day period by the net asset
value at the end of the period and annualizing the result. (5) Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. SEC returns reflect 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
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Fund Information
as of March 31, 1998
Performance5
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Average Annual Total Returns (at net asset value)
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One year 8.3%
Life of Fund (12/8/93) 3.8
SEC Average Annual Total Returns (including applicable CDSC)
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One year 7.3%
Life of Fund (12/8/93) 3.8
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC
NEW YORK LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
DATE FUND LBMBI
- -------------------------------------
12/31/93 $10,000 $10,000
1/31/94 10,100 10,106
2/28/94 9,903 9,887
3/31/94 9,612 9,623
4/30/94 9,679 9,693
5/31/94 9,746 9,741
6/30/94 9,710 9,724
7/31/94 9,828 9,861
8/31/94 9,845 9,913
9/30/94 9,737 9,818
10/31/94 9,631 9,719
11/30/94 9,458 9,577
12/31/94 9,604 9,723
1/31/95 9,773 9,905
2/28/95 9,972 10,128
3/31/95 10,022 10,233
4/30/95 10,035 10,261
5/31/95 10,223 10,534
6/30/95 10,191 10,524
7/31/95 10,299 10,658
8/31/95 10,383 10,784
9/30/95 10,416 10,825
10/31/95 10,503 10,920
11/30/95 10,610 11,040
12/31/95 10,664 11,098
1/31/96 10,729 11,206
2/28/96 10,664 11,168
3/31/96 10,542 11,059
4/30/96 10,510 11,038
5/31/96 10,487 11,022
6/30/96 10,545 11,107
7/31/96 10,608 11,198
8/31/96 10,586 11,205
9/30/96 10,699 11,306
10/31/96 10,775 11,427
11/30/96 10,955 11,618
12/31/96 10,888 11,583
1/31/97 10,865 11,625
2/28/97 11,947 11,721
3/31/97 10,842 11,569
4/30/97 10,897 11,629
5/31/97 10,044 11,775
6/30/97 11,149 11,887
7/31/97 11,411 12,163
8/31/97 11,320 12,077
9/30/97 11,413 12,204
10/31/97 11,435 12,276
11/30/97 11,485 12,320
12/31/97 11,645 12,471
1/31/98 11,727 12,601
2/28/98 11,752 12,612
3/31/98 11,737 12,613
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's total
return with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest in an Index.
Federal income tax information on distributions. For Federal income tax
purposes, 99.89% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1998 is designated as an exempt-interest
dividend.
<PAGE>
EV Classic Pennsylvania Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of Timothy T. Browse]
Timothy T. Browse,
Portfolio Manager
The Economy
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o Manufacturing, which has long been a sore spot for the Pennsylvania economy,
showed signs of a comeback in 1997 and early 1998, adding more than 4,000
jobs. Producers of both durable and non-durable goods participated in the
revival. Industrial machinery and chemicals were two areas that were
especially strong.
o The Commonwealth's jobless rate - at 4.8% in March - showed steady improvement
from the 5.3% rate of a year ago. Construction employment increased sharply in
1997, rising by more than 15,000 jobs, a 7% increase over 1996.
o Pennsylvania continues to diversify beyond its traditional industrial economic
base. In 1997, the Commonwealth spent more than $100 million on advanced
manufacturing research (AMR), which uses state-of-the-art technologies to
produce high value-added products. Pennsylvania universities awarded more than
1,100 AMR-related degrees.
The Fund
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o During the year ended March 31, 1998, the Fund had a total return of 8.2%.(1)
o This return resulted from an increase in net asset value per share to $9.98 on
March 31, 1998 from $9.57 on March 31, 1997, and the reinvestment of $0.366
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.98 on March 31, the Fund's distribution rate was 3.68%.(3)
o The Fund's SEC 30-day yield at March 31 was 2.61%.(4)
Management Update
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o In a constructive market environment, the Portfolio reduced its exposure to
par bonds while selectively adding discount bonds and zero coupons. These
issues are typically more sensitive to changes in interest rates.
o The Portfolio remained extremely selective in the Pennsylvania hospital
sector, especially in the overbedded Philadelphia market. We found good value
in stand-alone, BBB rated institutions located in rural locations.
o In an increasingly generic market, we sought opportunities among non-rated and
lower-rated bonds. Lower-rated solid waste and cogeneration issues provided
some attractive situations.
Your Investment at Work
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Monroeville Hospital Authority
Hospital Revenue Refunding Bonds
Forbes Health System
o Forbes Health System is a healthcare corporation providing comprehensive
health care services in southwestern Pennsylvania, including Forbes Regional
Hospital, a 350-bed acute care facility in Monroeville.
o The proceeds of the bonds were used to advance-refund an outstanding issue
that financed construction and equipment installation at the Monroeville
facility.
o The bonds have a 5.75% coupon and are rated A3 by Moody's and BBB+ by
Standard & Poor's. They are an example of the Portfolio's efforts to add
value through lower-rated, investment-grade bonds that may have further
upgrade potential.
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(1) This return does not include the Fund's applicable contingent deferred sales
charge (CDSC). (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value. (4) The Fund's SEC yields are calculated by dividing
the net investment income per share for the 30-day period by the net asset
value at the end of the period and annualizing the result. (5) Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. SEC returns reflect 1% CDSC.
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 March 31, 1998
Performance(5)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One year 8.2%
Life of Fund (12/8/93) 3.9
SEC Average Annual Total Returns (including applicable CDSC)
- --------------------------------------------------------------------------------
One year 7.2%
Life of Fund (12/8/93) 3.9
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV CLASSIC
PENNSYLVANIA LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
DATE FUND LBMBI
- -------------------------------------
12/31/93 $10,000 $10,000
1/31/94 10,111 10,106
2/28/94 9,925 9,887
3/31/94 9,625 9,623
4/30/94 9,703 9,693
5/31/94 9,761 9,741
6/30/94 9,736 9,724
7/31/94 9,854 9,861
8/31/94 9,872 9,913
9/30/94 9,776 9,818
10/31/94 9,681 9,719
11/30/94 9,540 9,577
12/31/94 9,686 9,723
1/31/95 9,846 9,905
2/28/95 10,035 10,128
3/31/95 10,086 10,233
4/30/95 10,100 10,261
5/31/95 10,288 10,534
6/30/95 10,247 10,524
7/31/95 10,335 10,658
8/31/95 10,420 10,784
9/30/95 10,453 10,825
10/31/95 10,541 10,920
11/30/95 10,638 11,040
12/31/95 10,693 11,098
1/31/96 10,759 11,206
2/28/96 10,695 11,168
3/31/96 10,595 11,059
4/30/96 10,530 11,038
5/31/96 10,508 11,022
6/30/96 10,567 11,107
7/31/96 10,632 11,198
8/31/96 10,643 11,205
9/30/96 10,746 11,306
10/31/96 10,812 11,427
11/30/96 10,971 11,618
12/31/96 10,927 11,583
1/31/97 10,950 11,625
2/28/97 11,033 11,721
3/31/97 10,905 11,569
4/30/97 10,962 11,629
5/31/97 11,088 11,775
6/30/97 11,193 11,887
7/31/97 11,468 12,163
8/31/97 11,366 12,077
9/30/97 11,472 12,204
10/31/97 11,495 12,276
11/30/97 11,534 12,320
12/31/97 11,695 12,471
1/31/98 11,790 12,601
2/28/98 11,793 12,612
3/31/98 11,802 12,613
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's total
return with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest in an Index.
Federal income tax information on distributions. For Federal income tax
purposes, 99.73% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1998 is designated as an exempt-interest
dividend.
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities
As of March 31, 1998
<CAPTION>
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment in Limited Maturity Municipals Portfolio --
Identified cost $6,426,364 $4,283,707 $2,179,944 $5,105,557
Unrealized appreciation 159,683 166,397 92,400 173,931
- ------------------------------------------------------------------------------------------------------------------------------------
Total investment in Portfolio, at value (Note 1A) $6,586,047 $4,450,104 $2,272,344 $5,279,488
- ------------------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ -- $ -- $ -- $ 250
Receivable from the Administrator (Note 4) 20,021 18,813 22,256 16,196
Deferred organization expenses (Note 1D) 2,409 1,492 1,391 1,370
- ------------------------------------------------------------------------------------------------------------------------------------
Total assets $6,608,477 $4,470,409 $2,295,991 $5,297,304
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Dividends payable $ 5,330 $ 3,636 $ 1,809 $ 4,238
Payable for Fund shares redeemed 40,010 -- 979 150,005
Payable to affiliate for Trustees' fees (Note 4) 100 4 -- 47
Accrued expenses 10,666 7,463 7,417 10,249
- ------------------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 56,106 $ 11,103 $ 10,205 $ 164,539
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets $6,552,371 $4,459,306 $2,285,786 $5,132,765
- ------------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Paid-in capital $7,531,036 $4,524,452 $2,453,569 $5,476,419
Accumulated net realized loss on investments from Portfolio (computed on the
basis of identified cost) (1,147,245) (233,764) (260,680) (523,162)
Accumulated undistributed net investment income 8,897 2,221 497 5,577
Net unrealized appreciation of investments from Portfolio (computed on the
basis of identified cost) 159,683 166,397 92,400 173,931
- ------------------------------------------------------------------------------------------------------------------------------------
Total $6,552,371 $4,459,306 $2,285,786 $5,132,765
- ------------------------------------------------------------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- ------------------------------------------------------------------------------------------------------------------------------------
673,148 451,136 229,639 514,215
- ------------------------------------------------------------------------------------------------------------------------------------
Net Asset Value, Offering and Redemption Price
Per Share (Note 6)
- ------------------------------------------------------------------------------------------------------------------------------------
(Net assets / shares of beneficial interest outstanding) $ 9.73 $ 9.88 $ 9.95 $ 9.98
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Operations
For the Year Ended March 31, 1998
<CAPTION>
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Limited Fund Limited Fund Limited Fund Limited Fund
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income allocated from Portfolio $331,956 $236,191 $147,683 $296,525
Expenses allocated from Portfolio (33,611) (24,202) (16,192) (30,512)
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income from Portfolio $298,345 $211,989 $131,491 $266,013
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Compensation of Trustees not members of the
Administrator's organization (Note 4) $ 226 $ 4 $ -- $ 173
Distribution and service fees (Note 5) 54,822 39,040 24,636 47,626
Custodian fee (Note 1F) 3,270 4,225 3,895 3,891
Transfer and dividend disbursing agent fees 5,516 3,629 2,973 4,724
Printing and postage 8,607 7,692 8,828 10,356
Legal and accounting services 12,752 8,996 9,583 13,878
Registration fees 70 1,000 800 --
Amortization of organization expenses (Note 1D) 1,453 2,212 2,048 2,018
Miscellaneous 1,605 1,498 1,471 1,787
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 88,321 $ 68,296 $ 54,234 $ 84,453
- ------------------------------------------------------------------------------------------------------------------------------------
Deduct --
Allocation of expenses to the Administrator (Note 4) $ 20,021 $ 18,813 $ 22,256 $ 16,196
Reduction of custodian fee (Note 1F) -- 500 -- --
- ------------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 20,021 $ 19,313 $ 22,256 $ 16,196
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 68,300 $ 48,983 $ 31,978 $ 68,257
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $230,045 $163,006 $ 99,513 $197,756
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 73,821 $ 46,459 $ 42,594 $ 72,836
Financial futures contracts (93,722) (65,580) (12,065) (48,676)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions $(19,901) $(19,121) $ 30,529 $ 24,160
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $221,521 $166,168 $102,667 $199,046
Financial futures contracts (13,884) (13,009) (12,076) 314
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments $207,637 $153,159 $ 90,591 $199,360
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $187,736 $134,038 $121,120 $223,520
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $417,781 $297,044 $220,633 $421,276
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Increase (Decrease) in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 230,045 $ 163,006 $ 99,513 $ 197,756
Net realized gain (loss) on investment transactions (19,901) (19,121) 30,529 24,160
Net change in unrealized appreciation (depreciation) of investments 207,637 153,159 90,591 199,360
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 417,781 $ 297,044 $ 220,633 $ 421,276
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (226,160) $ (162,712) $ (99,861) $ (197,570)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (226,160) $ (162,712) $ (99,861) $ (197,570)
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sale of shares $4,321,722 $1,089,608 $ 611,747 $ 365,146
Net asset value of shares issued to shareholders in payment of
distributions declared 143,394 144,450 61,453 150,073
Cost of shares redeemed (3,891,079) (1,523,922) (1,495,505) (1,289,675)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets from Fund share transactions $ 574,037 $ (289,864) $ (822,305) $ (774,456)
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 765,658 $ (155,532) $ (701,533) $ (550,750)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $5,786,713 $4,614,838 $2,987,319 $5,683,515
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $6,552,371 $4,459,306 $2,285,786 $5,132,765
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 8,897 $ 2,221 $ 497 $ 5,577
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Year Ended March 31, 1997
<CAPTION>
Classic Classic Classic Classic
Florida Massachusetts New York Pennsylvania
Increase (Decrease) in Net Assets Limited Fund Limited Fund Limited Fund Limited Fund
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 260,641 $ 186,040 $ 143,360 $ 253,423
Net realized loss on investment transactions (144,972) (56,901) (59,746) (86,282)
Net change in unrealized appreciation (depreciation) of investments 19,994 56 27,646 17,127
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 135,663 $ 129,195 $ 111,260 $ 184,268
- ------------------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (256,923) $ (181,633) $ (142,062) $ (247,481)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions to shareholders $ (256,923) $ (181,633) $ (142,062) $ (247,481)
- ------------------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sale of shares $ 344,966 $ 389,285 $ 1,372,700 $ 806,219
Net asset value of shares issued to shareholders in payment of
distributions declared 169,201 160,523 109,805 188,466
Cost of shares redeemed (2,904,733) (935,519) (2,528,853) (2,728,664)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from Fund share transactions $(2,390,566) $ (385,711) $(1,046,348) $(1,733,979)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(2,511,826) $ (438,149) $(1,077,150) $(1,797,192)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 8,298,539 $ 5,052,987 $ 4,064,469 $ 7,480,707
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 5,786,713 $ 4,614,838 $ 2,987,319 $ 5,683,515
- ------------------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 5,012 $ 1,927 $ 845 $ 5,391
- ------------------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
<CAPTION>
Classic Florida Limited Fund Classic Massachusetts Limited Fund
----------------------------------------------- -----------------------------------------------
Year Ended March 31, Year Ended March 31,
----------------------------------------------- -----------------------------------------------
1998 1997 1996 1995 1994* 1998 1997 1996 1995 1994**
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
Beginning of year $ 9.440 $ 9.620 $ 9.520 $ 9.480 $10.000 $ 9.570 $ 9.680 $ 9.560 $ 9.520 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.363 $ 0.364 $ 0.359 $ 0.353 $ 0.103 $ 0.368 $ 0.376 $ 0.370 $ 0.359 $ 0.107
Net realized and unrealized gain
(loss) on investments 0.285 (0.187) 0.100 0.088 (0.495) 0.309 (0.119) 0.118 0.092 (0.451)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss)
from operations $ 0.648 $ 0.177 $ 0.459 $ 0.441 $(0.392) $ 0.677 $ 0.257 $ 0.488 $ 0.451 $(0.344)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.358) $(0.357) $(0.359) $(0.353) $(0.103) $(0.367) $(0.367) $(0.368) $(0.359) $(0.107)
In excess of net
investment income -- -- -- (0.048) (0.025) -- -- -- (0.052) (0.029)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.358) $(0.357) $(0.359) $(0.401) $(0.128) $(0.367) $(0.367) $(0.368) $(0.411) $(0.136)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $ 9.730 $ 9.440 $ 9.620 $ 9.520 $ 9.480 $ 9.880 $ 9.570 $ 9.680 $ 9.560 $ 9.520
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 6.95% 1.88% 4.84% 4.81% (4.07)% 7.16% 2.70% 5.16% 4.90% (3.67)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000 omitted) $ 6,552 $ 5,787 $ 8,299 $13,771 $22,535 $ 4,459 $ 4,615 $ 5,053 $ 5,378 $ 4,967
Ratio of net expenses to average
daily net assets(2)(3) 1.70% 1.70% 1.58% 1.50% 1.39%+ 1.74% 1.67% 1.47% 1.63% 1.49%+
Ratio of net expenses to average
daily net assets after
custodian fee reduction(2) 1.67% 1.68% 1.56% -- -- 1.69% 1.65% 1.46% -- --
Ratio of net investment income to
average daily net assets 3.78% 3.80% 3.75% 3.81% 3.25%+ 3.76% 3.90% 3.80% 3.82% 3.12%+
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would have
been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(2)(3) 2.03% 1.80% 1.78% 1.71% 1.65%+ 2.17% 1.96% 1.92% 2.00% 2.38%+
Expenses after custodian
fee reduction(2) 2.00% 1.78% 1.76% -- -- 2.12% 1.94% 1.91% -- --
Net investment income 3.45% 3.70% 3.55% 3.60% 2.99%+ 3.32% 3.61% 3.35% 3.45% 2.23%+
Net investment income per share $ 0.331 $ 0.354 $ 0.340 $ 0.334 $ 0.095 $ 0.325 $ 0.348 $ 0.326 $ 0.324 $ 0.077
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
** For the period from the start of business, December 9, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the reinvestment date. Total return is not computed on an annualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each 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.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Financial Highlights
<CAPTION>
Classic New York Limited Fund Classic Pennsylvania Limited Fund
----------------------------------------------- -----------------------------------------------
Year Ended March 31, Year Ended March 31,
----------------------------------------------- -----------------------------------------------
1998 1997 1996 1995 1994* 1998 1997 1996 1995 1994*
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value --
Beginning of year $ 9.530 $ 9.620 $ 9.490 $ 9.500 $10.000 $ 9.570 $ 9.660 $ 9.550 $ 9.520 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.357 $ 0.362 $ 0.359 $ 0.354 $ 0.100 $ 0.369 $ 0.377 $ 0.373 $ 0.359 $ 0.103
Net realized and unrealized gain
(loss) on investments 0.421 (0.094) 0.130 0.037++ (0.473) 0.408 (0.100) 0.105++ 0.082 (0.453)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss)
from operations $ 0.778 $ 0.268 $ 0.489 $ 0.391 $(0.373) $ 0.777 $ 0.277 $ 0.478 $ 0.441 $(0.350)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.358) $(0.358) $(0.359) $(0.354) $(0.100) $(0.367) $(0.367) $(0.368) $(0.359) $(0.103)
In excess of net
investment income -- -- -- (0.047) (0.027) -- -- -- (0.052) (0.027)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.358) $(0.358) $(0.359) $(0.401) $(0.127) $(0.367) $(0.367) $(0.368) $(0.411) $(0.130)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $ 9.950 $ 9.530 $ 9.620 $ 9.490 $ 9.500 $ 9.980 $ 9.570 $ 9.660 $ 9.550 $ 9.520
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 8.26% 2.84% 5.19% 4.26% (3.88)% 8.23% 2.93% 5.05% 4.79% (3.65)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000 omitted) $ 2,286 $ 2,987 $ 4,064 $ 6,043 $ 6,325 $ 5,133 $ 5,684 $ 7,481 $ 9,753 $14,022
Ratio of net expenses to average
daily net assets(2)(3) 1.78% 1.68% 1.48% 1.52% 1.61%+ 1.89% 1.81% 1.53% 1.47% 1.38%+
Ratio of net expenses to average
daily net assets after
custodian fee reduction(2) 1.76% 1.66% 1.46% -- -- 1.87% 1.79% 1.51% -- --
Ratio of net investment income to
average daily net assets 3.64% 3.77% 3.75% 3.76% 3.17%+ 3.73% 3.92% 3.87% 3.83% 3.29%+
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(2)(3) 2.59% 2.04% 1.90% 1.90% 2.17%+ 2.19% 1.93% 1.85% 1.84% 1.82%+
Expenses after custodian fee
reduction(2) 2.57% 2.02% 1.88% -- -- 2.17% 1.91% 1.83% -- --
Net investment income 2.83% 3.41% 3.33% 3.38% 2.61%+ 3.43% 3.80% 3.55% 3.46% 2.85%+
Net investment income per share $ 0.278 $ 0.327 $ 0.319 $ 0.318 $ 0.082 $ 0.339 $ 0.365 $ 0.342 $ 0.324 $ 0.089
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
++ The per share amount is not in accord with the net realized and unrealized gains and losses for the period because of the
timing of sales of Fund shares and the amount of the per share realized and unrealized gains and losses at such time.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on the
last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value on
the reinvestment date. Total return is not computed on an annualized basis.
(2) Includes each Fund's share of its corresponding Portfolio's allocated expenses.
(3) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each 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.
See notes to financial statements
</TABLE>
<PAGE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 Significant Accounting Policies
- --------------------------------------------------------------------------------
Eaton Vance Investment Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end investment
management company. The Trust presently consists of twenty-three Funds, four
of which are included in these financial statements. They include EV Classic
Florida Limited Maturity Municipals Fund ("Classic Florida Limited Fund"),
EV Classic Massachusetts Limited Maturity Municipals Fund ("Classic
Massachusetts Limited Fund"), EV Classic New York Limited Maturity
Municipals Fund ("Classic New York Limited Fund") and EV Classic
Pennsylvania Limited Maturity Municipals Fund ("Classic Pennsylvania Limited
Fund"). Each Fund invests all of its investable assets in interests in a
separate corresponding open-end management investment company (a
"Portfolio"), a New York Trust, having the same investment objective as its
corresponding Fund. The Classic Florida Limited Fund invests its assets in
the Florida Limited Maturity Municipals Portfolio, the Classic Massachusetts
Limited Fund invests its assets in the Massachusetts Limited Maturity
Municipals Portfolio, the Classic New York Limited Fund invests its assets
in the New York Limited Maturity Municipals Portfolio and the Classic
Pennsylvania Limited Fund invests its assets in the Pennsylvania Limited
Maturity Municipals Portfolio. The value of each Fund's investment in its
corresponding Portfolio reflects the Fund's proportionate interest in the
net assets of that Portfolio (9.1%, 7.9%, 3.0%, and 9.1% at March 31, 1998
for the Classic Florida Limited Fund, Classic Massachusetts Limited Fund,
Classic New York Limited Fund and Classic Pennsylvania Limited Fund,
respectively). The performance of each Fund is directly affected by the
performance of its corresponding Portfolio. The financial statements of each
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with each Fund's financial
statements.
On June 23, 1997, the Board of Trustees approved a Plan of Reorganization
(the "Plan") for the Trust. Under the terms of the Plan, EV Marathon Florida
Limited Maturity Municipals Fund, EV Marathon Massachusetts Limited Maturity
Municipals Fund, EV Marathon New York Limited Maturity Municipals Fund and
EV Marathon Pennsylvania Limited Maturity Municipals Fund (the Successor
Funds), each a separate series of the Trust, would acquire substantially all
of the assets and liabilities of EV Classic Florida Limited Maturity
Municipals Fund, EV Classic Massachusetts Limited Maturity Municipals Fund,
EV Classic New York Limited Maturity Municipals Fund and EV Classic
Pennsylvania Limited Maturity Municipals Fund, respectively (the Acquired
Funds). The transactions will be structured for tax purposes to qualify as a
tax-free reorganization under the Internal Revenue Code. The Trust will
issue and deliver to the Acquired Funds a number of full and fractional
shares of beneficial interest of a separate class of the Successor Funds
(Class C shares), which will be equal in value to the net asset value per
share of the Acquired Funds multiplied by the number of full and fractional
shares of the Acquired Funds then outstanding. Such transactions will occur
after the close of business on March 31, 1998.
Effective April 1, 1998, EV Marathon Florida Limited Maturity Municipals
Fund, EV Marathon Massachusetts Limited Maturity Municipals Fund, EV
Marathon New York Limited Maturity Municipals Fund and EV Marathon
Pennsylvania Limited Maturity Municipals Fund changed their names to Eaton
Vance Florida Limited Maturity Municipals Fund, Eaton Vance Massachusetts
Limited Maturity Municipals Fund, Eaton Vance New York Limited Maturity
Municipals Fund and Eaton Vance Pennsylvania Limited Maturity Municipals
Fund.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro
rata share of the net investment income of its corresponding Portfolio, less
all actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of
the Internal Revenue Code applicable to regulated investment companies and
to distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At March 31, 1998,
the Funds, for federal income tax purposes had capital loss carryovers which
will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Funds of any liability for
federal income or excise tax. The amounts and expiration dates of the
capital loss carryovers are as follows:
Fund Amount Expires
----------------------------------------------------------------------
Classic Florida Limited Fund $23,548 March 31, 2006
47,151 March 31, 2005
560,185 March 31, 2004
175,896 March 31, 2003
Classic Massachusetts Limited Fund $26,586 March 31, 2006
30,086 March 31, 2005
98,981 March 31, 2004
35,341 March 31, 2003
58 March 31, 2002
Classic New York Limited Fund $20,866 March 31, 2005
151,250 March 31, 2004
23,430 March 31, 2003
Classic Pennsylvania Limited Fund $25,743 March 31, 2005
270,831 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 intend to meet certain requirements of the Internal
Revenue Code applicable to regulated investment companies which will enable
the Funds to pay tax-exempt interest dividends. The portion of such
interest, if any, earned on private activity bonds issued after August 7,
1986 may be considered a tax preference item to shareholders.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years, beginning on the date each Fund
commenced operations.
E Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian to the Funds and the Portfolios. Pursuant to the respective
custodian agreements, IBT receives a fee reduced by credits which are
determined based on the average daily cash balances the Funds or the
Portfolios maintain with IBT. All significant credit balances used to reduce
each Fund's custodian fees are reflected as a reduction of operating
expenses on the Statement of Operations.
G Other -- Investment transactions are accounted for on a trade date basis.
2 Distributions to Shareholders
- -----------------------------------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest income and capital gain distributions in
additional shares of the Fund at the net asset value as of the reinvestment
date. Distributions are paid in the form of additional shares or, at the
election of the shareholder, in cash. The Funds distinguish between
distributions on a tax basis and a financial reporting basis. Generally
accepted accounting principles require that only distributions in excess of
tax basis earnings and profits be reported in the financial statements as a
return of capital. Differences in the recognition or classification of
income between the financial statements and tax earnings and profits which
result in temporary over distributions for financial statement purposes only
are classified as distributions in excess of net investment income or
accumulated net realized gains. Permanent differences between book and tax
accounting relating to distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
- --------------------------------------------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Transactions in Fund shares were as follows:
Classic Florida Limited
Fund
--------------------------
Year Ended March 31,
--------------------------
1998 1997
-------------------------------------------------------------
Sales 445,281 35,995
Issued to shareholders electing
to receive payments of
distributions in Fund shares 14,867 17,701
Redemptions (400,183) (303,371)
-------------------------------------------------------------
Net increase (decrease) 59,965 (249,675)
-------------------------------------------------------------
Classic Massachusetts
Limited Fund
--------------------------
Year Ended March 31,
--------------------------
1998 1997
-------------------------------------------------------------
Sales 111,191 40,444
Issued to shareholders electing
to receive payments of
distributions in Fund shares 14,741 16,648
Redemptions (156,787) (97,183)
-------------------------------------------------------------
Net decrease (30,855) (40,091)
-------------------------------------------------------------
Classic New York Limited
Fund
--------------------------
Year Ended March 31,
--------------------------
1998 1997
-------------------------------------------------------------
Sales 62,208 142,963
Issued to shareholders electing
to receive payment of
distribution in Fund shares 6,262 11,452
Redemptions (152,433) (263,184)
-------------------------------------------------------------
Net decrease (83,963) (108,769)
-------------------------------------------------------------
Classic Pennsylvania
Limited Fund
--------------------------
Year Ended March 31,
--------------------------
1998 1997
-------------------------------------------------------------
Sales 36,821 84,241
Issued to shareholders electing
to receive payments of
distributions in Fund shares 15,242 19,601
Redemptions (131,936) (284,505)
-------------------------------------------------------------
Net decrease (79,873) (180,663)
-------------------------------------------------------------
4 Transactions with Affiliates
- --------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of each Fund, but
receives no compensation. The Portfolios have engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolios' Notes to Financial Statements which are
included elsewhere in this report. To enhance the net income of the Funds,
$20,021, $18,813, $22,256 and $16,196 of expenses related to the operation
of the Classic Florida Limited Fund, Classic Massachusetts Limited Fund,
Classic New York Limited Fund and Classic Pennsylvania Limited Fund,
respectively, were allocated to EVM. Except as to Trustees of the Funds and
Portfolios who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their services to each Fund out of the
investment adviser fee earned by BMR. Certain of the officers and Trustees
of the Funds and Portfolios are officers and directors/trustees of the above
organizations (Note 5).
5 Distribution Plan
- --------------------------------------------------------------------------------
Each Fund has adopted a distribution plan (the Plans) pursuant to Rule 12b-1
under the Investment Company Act of 1940. The Plans require the Funds to pay
the principal underwriter, Eaton Vance Distributors, Inc. (EVD), amounts
equal to 1/365 of 0.75% of each Fund's daily net assets, for providing
ongoing distribution services and facilities to the respective Fund. A Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are
equivalent to the sum of (i) 6.25% of the aggregate amount received by the
Fund for shares sold plus (ii) distribution fees calculated by applying the
rate of 1% over the prevailing prime rate to the outstanding balance of
Uncovered Distribution Charges of EVD reduced by the aggregate amount of
contingent deferred sales charges (Note 6) and amounts theretofore paid to
EVD. The amount payable to EVD with respect to each day is accrued on such
day as a liability of each Fund and, accordingly, reduces the Fund's net
assets. For the year ended March 31, 1998, Classic Florida Limited Fund,
Classic Massachusetts Limited Fund, Classic New York Limited Fund and
Classic Pennsylvania Limited Fund, paid or accrued $45,685, $32,533, $20,530
and $39,688, respectively, to or payable to EVD, representing 0.75% of
average daily net assets. At March 31, 1998, the amount of Uncovered
Distribution Charges of EVD calculated under the Plans for Classic Florida
Limited Fund, Classic Massachusetts Limited Fund, Classic New York Limited
Fund and Classic Pennsylvania Limited Fund were approximately $3,719,831,
$803,051, $945,493 and $1,750,942, respectively.
In addition, the Plans authorize the Funds to make payments of service fees
to the Principal Underwriter, Authorized Firms and other persons in amounts
not exceeding 0.25% of each Fund's average daily net assets for any fiscal
year. The Trustees have initially implemented the Plans by authorizing the
Funds to make quarterly service fee payments to the Principal Underwriter
and Authorized Firms in amounts not expected to exceed 0.15% per annum of
each Fund's average daily net assets based on the value of Fund shares sold
by such persons and remaining outstanding for at least one year. For the
year ended March 31, 1998, Classic Florida Limited Fund, Classic
Massachusetts Limited Fund, Classic New York Limited Fund and Classic
Pennsylvania Limited Fund paid or accrued service fees to or payable to EVD
in the amount of $9,137, $6,507, $4,106 and $7,938, respectively. Service
fee payments are made for personal services and/or maintenance of
shareholder accounts. Service fees paid to EVD and Authorized Firms are
separate and distinct from the sales commissions and distribution fees
payable by each Fund to EVD, and as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD. Certain officers and Trustees of the Fund are officers or directors
of EVD.
6 Contingent Deferred Sales Charge
- --------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) of 1% is imposed on any redemption
of Fund shares made within one year of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of
dividends or capital gains distributions. No CDSC is levied on shares which
have been sold to EVD or its affiliates or to their respective employees or
clients. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under each Fund's Distribution Plans. CDSC
charges received when no Uncovered Distribution Charges exist will be
credited to the Funds. For the year ended March 31, 1998, EVD received
$3,715, $509, $281 and $1,367, respectively, of CDSC paid by shareholders of
Classic Florida Limited Fund, Classic Massachusetts Limited Fund, Classic
New York Limited Fund and Classic Pennsylvania Limited Fund.
7 Investment Transactions
- --------------------------------------------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended March 31, 1998, were as follows:
Florida Limited Portfolio Massachusetts Limited Portfolio
--------------------------------------------------------------
Increases $4,377,446 $1,166,477
Decreases 4,059,311 1,664,542
New York Limited Portfolio Pennsylvania Limited Portfolio
---------------------------------------------------------------
Increases $ 640,447 $ 393,833
Decreases 1,605,619 1,326,838
<PAGE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Eaton Vance Investment Trust:
- --------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities of EV
Classic Florida Limited Maturity Municipals Fund, EV Classic Massachusetts
Limited Maturity Municipals Fund, EV Classic New York Limited Maturity
Municipals Fund, and EV Classic Pennsylvania Limited Maturity Municipals Fund
(the Funds) (series of Eaton Vance Investment Trust) as of March 31, 1998, the
related statements of operations for the year then ended, the statements of
changes in net assets for the years ended March 31, 1998 and 1997 and the
financial highlights for each of the years in the five-year period ended March
31, 1998. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on these financial statements and financial highlights based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of each of the
aforementioned Funds of Eaton Vance Investment Trust at March 31, 1998, the
results of their operations, the changes in their net assets and their
financial highlights for the respective stated periods in conformity with
generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 1, 1998
<PAGE>
<TABLE>
Florida Limited Maturity Municipals Portfolio as of March 31, 1998
- ----------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
- ----------------------------------------------------------------------------------------------------
Tax-Exempt Investments -- 100.0%
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ----------------------------------------------------------------------------------------------------
Cogeneration -- 1.1%
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 500 Palm Beach County, Okeelanta
Power Project, (AMT), 6.85%, 2/15/21 $ 400,000
NR NR 500 Palm Beach County, Osceola
Power Project, (AMT), 6.95%, 1/1/22 395,000
- ----------------------------------------------------------------------------------------------------
$ 795,000
- ----------------------------------------------------------------------------------------------------
Electric Utilities -- 12.1%
- ----------------------------------------------------------------------------------------------------
Aa AA $3,000 Gainesville, Utility System Revenue,
5.00%, 10/1/15 $ 2,965,529
Aa1 AA 1,000 Jacksonville Electric Authority,
(St. Johns River Power Park),
5.25%, 10/1/20 993,470
Aa1 AA 2,500 Jacksonville, Electric Authority,
(St. Johns River Power Park),
5.375%, 10/1/16 2,556,375
Aa AA- 2,000 Tallahassee, Electric Refunding Bonds,
5.90%, 10/1/05 2,160,980
- ----------------------------------------------------------------------------------------------------
$ 8,676,354
- ----------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.7%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,015 Dade County, Educational Facilities
Authority, (MBIA) Prerefunded to
10/1/01, 7.00%, 10/1/08 $ 1,128,558
Aaa AAA 1,500 Dade County Local School District,
(FGIC), Prerefunded to 8/1/01, 6.00%, 8/1/06 1,590,015
Aaa AAA 1,500 Florida Department of Natural Resources,
Preservation 2000, (MBIA), Prerefunded to
7/1/98, 7.25%, 7/1/08 1,543,185
Aaa AAA 1,450 Hillsborough County, Aviation Authority,
(Tampa International Airport), (FGIC),
Prerefunded to 10/01/99, 6.85%, 10/1/06 1,544,323
Aaa AAA 4,000 Jacksonville Health Facilities Authority,
(Baptist Medical Center), (MBIA), 7.25%,
6/1/05(1)(2) 4,239,679
Aa2 AA- 1,250 Orlando Utility Community Water and Electric,
Prerefunded to 10/1/01, 6.50%, 10/1/20 1,370,513
Baa1 AAA 1,250 Puerto Rico Aqueduct and Sewer Authority,
Prerefunded to 7/1/98, 7.875%, 7/1/17 1,287,850
- ----------------------------------------------------------------------------------------------------
$12,704,123
- ----------------------------------------------------------------------------------------------------
General Obligations -- 18.5%
- ----------------------------------------------------------------------------------------------------
Aa2 AA $1,000 Florida Department of Transportation,
5.00%, 7/1/18 $ 986,140
Aa2 AA+ 2,750 Florida State Board of Education,
5.00%, 6/1/14 2,749,808
Aa2 AA+ 1,000 Florida State Board of Education,
5.00%, 6/1/15 989,710
Aa2 AA+ 3,000 Florida State Board of Education,
5.55%, 6/1/11 3,185,189
Baa1 A 1,050 Puerto Rico Commonwealth, 0.00%, 7/1/08 662,750
Baa1 A- 2,000 Puerto Rico Municipal Finance Agency,
5.50%, 7/1/01 2,085,180
Baa1 A 1,000 Puerto Rico Public Building Authority,
6.50%, 7/1/03 1,097,260
NR NR 1,500 Virgin Islands Public Finance Authority,
(Matching Loan Fund Notes), 6.80%, 10/1/00 1,589,970
- ----------------------------------------------------------------------------------------------------
$13,346,007
- ----------------------------------------------------------------------------------------------------
Hospitals -- 4.9%
- ----------------------------------------------------------------------------------------------------
NR BBB+ $1,250 Escambia County, Health Facilities Authority,
(Baptist Hospital, Inc. and Baptist Manor,
Inc.), 6.00%, 10/1/14 $ 1,318,588
Baa1 NR 425 Jacksonville Health Facilities Authority,
(National Benevolent Association - Cypress
Village), 6.00%, 12/1/98 430,899
Baa1 NR 450 Jacksonville Health Facilities Authority,
(National Benevolent Association - Cypress
Village), 6.25%, 12/1/99 466,029
Baa1 NR 480 Jacksonville Health Facilities Authority,
(National Benevolent Association - Cypress
Village), 6.50%, 12/1/00 507,048
NR BBB 355 Valley, AL Special Care Facilities Financing
Authority, (Lanier Memorial Hospital),
5.00%, 11/1/03 357,648
NR BBB 455 Valley, AL Special Care Facilities Financing
Authority, (Lanier Memorial Hospital),
5.00%, 11/1/04 457,389
- ----------------------------------------------------------------------------------------------------
$ 3,537,601
- ----------------------------------------------------------------------------------------------------
Housing -- 0.9%
- ----------------------------------------------------------------------------------------------------
NR A $ 425 Clearwater, Housing Authority, (Hamptons at
Clearwater), 5.40%, 5/1/13 $ 434,686
Baa BBB 200 Puerto Rico Housing Bank and Finance Agency,
5.10%, 12/1/03 204,956
- ----------------------------------------------------------------------------------------------------
$ 639,642
- ----------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 3.0%
- ----------------------------------------------------------------------------------------------------
Baa2 BBB $2,000 Polk County, Industrial Development
Authority, (IMC Fertilizer), (AMT),
7.525%, 1/1/15 $ 2,164,180
- ----------------------------------------------------------------------------------------------------
$ 2,164,180
- ----------------------------------------------------------------------------------------------------
Insured - Cogeneration -- 2.9%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Resource Recovery Facilities,
(AMBAC) (AMT), 5.30%, 10/1/07 $ 2,117,820
- ----------------------------------------------------------------------------------------------------
$ 2,117,820
- ----------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 2.4%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,750 Dade County, Water and Sewer System, (FGIC),
5.25%, 10/1/21 $ 1,756,003
- ----------------------------------------------------------------------------------------------------
$ 1,756,003
- ----------------------------------------------------------------------------------------------------
Insured - General Obligations -- 3.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County Local School District, (MBIA),
5.00%, 2/15/15 $ 1,981,900
Aaa AAA 520 Dade County, FL, (MBIA), 0.00%, 10/1/06 352,399
Aaa AAA 330 Dade County, FL, (MBIA), 0.00%, 10/1/08 201,785
- ----------------------------------------------------------------------------------------------------
$ 2,536,084
- ----------------------------------------------------------------------------------------------------
Insured - Hospitals -- 8.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,500 Naples, FL, (Naples Community Hospital Inc.),
(MBIA), 5.50%, 10/1/16 $ 2,580,525
Aaa AAA 2,450 North Broward, Hospital District, (MBIA),
5.25%, 1/15/17 2,463,843
Aaa AAA $1,000 Orange County Health Facilities Authority,
(Adventist Health System/Sunbelt Inc,),
(FSA), 5.50%, 11/15/02 $ 1,056,200
- ----------------------------------------------------------------------------------------------------
$ 6,100,568
- ----------------------------------------------------------------------------------------------------
Insured - Housing -- 3.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,240 Florida Housing Finance Agency, (Leigh
Meadows Apartments), (AMBAC), 5.85%, 9/1/10 $ 1,318,492
Aaa AAA 1,140 Florida Housing Finance Agency, (Stottert
Arms Apartments), (AMBAC), 5.90%, 9/1/10 1,211,045
- ----------------------------------------------------------------------------------------------------
$ 2,529,537
- ----------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue -- 2.2%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,500 Pinellas County Resource Recovery, (MBIA),
5.125%, 10/1/04 $ 1,563,915
- ----------------------------------------------------------------------------------------------------
$ 1,563,915
- ----------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 1.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Palm Beach County, Criminal Justice Facilities,
(FGIC), 5.375%, 6/1/10 $ 1,070,080
- ----------------------------------------------------------------------------------------------------
$ 1,070,080
- ----------------------------------------------------------------------------------------------------
Insured - Special Tax Revenue -- 2.1%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,500 Orange County, Tourist Development Tax,
(MBIA), 5.00%, 10/1/14 $ 1,500,000
- ----------------------------------------------------------------------------------------------------
$ 1,500,000
- ----------------------------------------------------------------------------------------------------
Insured - Transportation -- 5.2%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Seaport Revenue, (MBIA),
5.125%, 10/1/16 $ 2,002,420
Aaa AAA 1,670 Hillsborough County, Aviation Authority,
(Tampa International Airport), (FGIC),
6.85%, 10/1/06 1,774,909
- ----------------------------------------------------------------------------------------------------
$ 3,777,329
- ----------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 7.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Water and Sewer Revenue, (FGIC),
5.25%, 10/1/11 $ 2,082,420
Aaa AAA 2,000 Manatee County, Public Utilities, (MBIA),
6.75%, 10/1/04 2,287,480
Aaa AAA 1,000 Pasco County, Water and Sewer Revenue, (FGIC),
5.40%, 10/1/03 1,061,410
- ----------------------------------------------------------------------------------------------------
$ 5,431,310
- ----------------------------------------------------------------------------------------------------
Nursing Homes -- 1.9%
- ----------------------------------------------------------------------------------------------------
NR NR $ 350 Citrus County, Industrial Development
Authority, (Beverly Enterprises),
5.00%, 4/1/03(3) $ 350,308
NR NR 1,000 Volusia County, (Beverly Enterprises),
5.875%, 7/1/07 1,010,040
- ----------------------------------------------------------------------------------------------------
$ 1,360,348
- ----------------------------------------------------------------------------------------------------
Solid Waste -- 0.6%
- ----------------------------------------------------------------------------------------------------
NR A- $ 405 Union County, Utilities Authority, (AMT),
7.20%, 6/15/14 $ 405,757
- ----------------------------------------------------------------------------------------------------
$ 405,757
- ----------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $68,566,219) $72,011,658
- ----------------------------------------------------------------------------------------------------
</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 March 31, 1998, 53.4% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution range from 1.5% to 30.3% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security has been segregated to cover when-issued securities.
(3) When-issued security.
See notes to financial statements
<PAGE>
<TABLE>
Massachusetts Limited Maturity Municipals Portfolio as of March 31, 1998
- ----------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
- ----------------------------------------------------------------------------------------------------
Tax-Exempt Investments -- 100.0%
<CAPTION>
Ratings (Unaudited)
- ------------------ Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ----------------------------------------------------------------------------------------------------
Education -- 5.1%
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
A1 NR $1,200 Massachusetts Health and Educational
Facilities Authority, (Tufts University),
7.40%, 8/1/18 $ 1,238,580
Baa3 BBB- 500 Massachusetts Industrial Finance Agency,
(Dana Hall), 5.90%, 7/1/27 525,435
A3 NR 1,030 Massachusetts Industrial Finance Agency,
(Park School), 5.50%, 9/1/16 1,069,676
- ----------------------------------------------------------------------------------------------------
$ 2,833,691
- ----------------------------------------------------------------------------------------------------
Electric Utilities -- 1.9%
- ----------------------------------------------------------------------------------------------------
Baa2 BBB+ $1,000 Massachusetts Municipal Wholesale Electric Co.,
5.70%, 7/1/01 $ 1,045,520
- ----------------------------------------------------------------------------------------------------
$ 1,045,520
- ----------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.0%
- ----------------------------------------------------------------------------------------------------
NR NR $ 935 Massachusetts Health and Educational
Facilities Authority, (Fairview Extended Care),
Prerefunded to 1/1/01, 10.125%, 1/1/11 $ 1,103,796
Baa2 BB+ 960 Massachusetts Health and Educational
Facilities Authority, (Milford-Whitinsville
Regional Hospital), Escrowed to Maturity,
7.125%, 7/15/02 1,022,563
Baa2 BBB 500 Massachusetts Health and Educational
Facilities Authority, (Sisters of Providence
Hospital), Escrowed to Maturity, 6.00%, 11/15/00 524,225
Aaa AAA 400 Massachusetts Turnpike Authority, (FGIC),
Escrowed to Maturity, 5.125%, 1/1/23 408,916
Aaa NR 2,000 Massachusetts Turnpike Authority, Escrowed
to Maturity, 5.00%, 1/1/20 1,993,840
- ----------------------------------------------------------------------------------------------------
$ 5,053,340
- ----------------------------------------------------------------------------------------------------
General Obligations -- 12.6%
- ----------------------------------------------------------------------------------------------------
Aa2 NR $ 500 Burlington, 5.00%, 2/1/15 $ 506,800
Aa2 NR 500 Burlington, 5.00%, 2/1/16 505,275
A1 AA- 1,260 Massachusetts Bay Transportation Authority,
5.50%, 3/1/08 1,354,626
A1 AA- 1,000 Massachusetts Bay Transportation Authority,
5.75%, 3/1/18 1,097,350
A1 AA- 1,500 Massachusetts Commonwealth, 5.40%, 11/1/06 1,601,790
A1 AA- 1,000 Massachusetts Commonwealth, 5.00%, 11/1/14 992,170
Baa1 A 1,000 Puerto Rico Aqueduct and Sewer Authority,
5.00%, 7/1/19 975,630
- ----------------------------------------------------------------------------------------------------
$ 7,033,641
- ----------------------------------------------------------------------------------------------------
Hospitals -- 14.0%
- ----------------------------------------------------------------------------------------------------
Ba1 NR $ 860 Massachusetts Health and Educational
Facilities Authority, (New England Health
Systems), 6.125%, 8/1/13 $ 900,979
Aa2 AA+ 3,000 Massachusetts Health and Educational
Facilities Authority, (Daughters of Charity
Issue), 5.75%, 7/1/02 3,176,070
Baa2 BBB- 750 Massachusetts Health And Educational
Facilities Authority, (Milford-Whitinsville
Regional Hospital), 4.90%, 7/15/06 748,680
Baa2 BBB- 1,000 Massachusetts Health And Educational
Facilities Authority, (Milford-Whitinsville
Regional Hospital), 5.75%, 7/15/13 1,048,930
NR BBB- 1,845 Massachusetts Health and Educational
Facilities Authority, (North Adams Regional
Hospital), 6.25%, 7/1/04 1,981,641
- ----------------------------------------------------------------------------------------------------
$ 7,856,300
- ----------------------------------------------------------------------------------------------------
Insured - Education -- 1.9%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,015 Massachusetts Industrial Finance Agency
Revenue, (Dexter School), (MBIA),
5.40%, 5/1/13 $ 1,051,804
- ----------------------------------------------------------------------------------------------------
$ 1,051,804
- ----------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 4.0%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Massachusetts Municipal Wholesale Electric
Co., (AMBAC), 6.625%, 7/1/03(1) $ 2,216,200
- ----------------------------------------------------------------------------------------------------
$ 2,216,200
- ----------------------------------------------------------------------------------------------------
Insured - General Obligations -- 10.9%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Haverhill, (FGIC), 5.00%, 6/15/17 $ 984,160
Aaa AAA 1,000 Massachusetts Bay Transportation Authority,
(FGIC), 5.00%, 3/1/19 978,380
Aaa AAA 2,000 Massachusetts Bay Transportation Authority,
Series B, (AMBAC), 5.25%, 3/1/11 2,066,040
Aaa AAA 1,000 Massachusetts Commonwealth, (AMBAC),
5.00%, 7/1/12 1,024,560
Aaa AAA 1,000 Massachusetts Commonwealth, (FGIC),
6.50%, 6/1/01 1,072,890
- ----------------------------------------------------------------------------------------------------
$ 6,126,030
- ----------------------------------------------------------------------------------------------------
Insured - Hospitals -- 2.7%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,500 Massachusetts Health and Educational
Facilities Authority, (Lowell General
Hospital), Series B, (FSA), 5.25%, 6/1/16 $ 1,507,440
- ----------------------------------------------------------------------------------------------------
$ 1,507,440
- ----------------------------------------------------------------------------------------------------
Insured - Housing -- 8.3%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $4,300 Massachusetts Housing Finance Agency,
(Harborpoint Development), (AMBAC), (AMT),
6.20%, 12/1/10 $ 4,657,071
- ----------------------------------------------------------------------------------------------------
$ 4,657,071
- ----------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue /
Pollution Control Revenue -- 2.6%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,400 Massachusetts Industrial Finance Agency,
(Nantucket Electric), (AMBAC), (AMT),
5.30%, 7/1/04 $ 1,466,934
- ----------------------------------------------------------------------------------------------------
$ 1,466,934
- ----------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 7.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Lynn, Water And Sewer Commission, (FSA),
5.00%, 12/1/13 $ 991,360
Aaa AAA 2,230 Massachusetts Water Resources Authority,
(MBIA), 5.00%, 12/1/16 2,203,195
Aaa AAA 1,000 Massachusetts Water Resources Authority,
(MBIA), 5.00%, 8/1/15 990,780
- ----------------------------------------------------------------------------------------------------
$ 4,185,335
- ----------------------------------------------------------------------------------------------------
Lease Revenue /
Certificates of Participation -- 3.1%
- ----------------------------------------------------------------------------------------------------
NR BBB $1,650 Puerto Rico, ITEM & ECFA, (Guaynabo
Municipal Government), 5.375%, 7/1/06 $ 1,748,456
- ----------------------------------------------------------------------------------------------------
$ 1,748,456
- ----------------------------------------------------------------------------------------------------
Nursing Homes -- 1.9%
- ----------------------------------------------------------------------------------------------------
NR NR $1,000 Massachusetts Industrial Finance Agency,
(Age Institute of Massachusetts),
7.60%, 11/1/05 $ 1,070,200
- ----------------------------------------------------------------------------------------------------
$ 1,070,200
- ----------------------------------------------------------------------------------------------------
Special Tax Revenue -- 6.8%
- ----------------------------------------------------------------------------------------------------
Aa3 AA $1,000 Massachusetts Special Obligations,
5.00%, 6/1/17 $ 981,790
Aa3 AA 500 Massachusetts Special Obligations,
5.00%, 6/1/14 507,745
Baa1 A 500 Puerto Rico Highway and Transportation Authority,
5.50%, 7/1/15 528,625
NR NR 1,750 Virgin Islands Public Finance Authority,
(Matching Loan Fund Notes), 6.70%, 10/1/99 1,818,005
- ----------------------------------------------------------------------------------------------------
$ 3,836,165
- ----------------------------------------------------------------------------------------------------
Transportation -- 2.0%
- ----------------------------------------------------------------------------------------------------
A1 AA- $1,000 Woods Hole, (Martha's Vineyard and Nantucket
Steamship Authority), 6.60%, 3/1/03 $ 1,101,840
- ----------------------------------------------------------------------------------------------------
$ 1,101,840
- ----------------------------------------------------------------------------------------------------
Water and Sewer -- 5.7%
- --------------------------------------------------------------------------------
Aa2 A+ $2,100 Massachusetts Water Pollution Abatement Trust,
5.25%, 8/1/14 $ 2,153,256
Aa3 AA+ 1,000 Massachusetts Water Pollution Abatement Trust,
5.25%, 8/1/14 1,019,100
- ----------------------------------------------------------------------------------------------------
$ 3,172,356
- ----------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $53,095,573) $55,962,323
- ----------------------------------------------------------------------------------------------------
</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
March 31, 1998, 38.6% 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 4.5% 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
<PAGE>
<TABLE>
New York Limited Maturity Municipals Portfolio as of March 31, 1998
- ----------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
- ----------------------------------------------------------------------------------------------------
Tax-Exempt Investments -- 100.0%
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ----------------------------------------------------------------------------------------------------
Airlines -- 4.2%
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa3 BBB- $2,875 Port Authority of New York and
New Jersey, (Delta Airlines), 6.95%, 6/1/08 $ 3,156,290
- ----------------------------------------------------------------------------------------------------
$ 3,156,290
- ----------------------------------------------------------------------------------------------------
Assisted Living -- 1.4%
- ----------------------------------------------------------------------------------------------------
NR NR $ 560 Glen Cove, IDA, (Regency at Glen Cove),
9.50%, 7/1/99 $ 560,000
NR NR 500 Glen Cove, IDA, (Regency at Glen Cove),
9.50%, 7/1/12 500,000
- ----------------------------------------------------------------------------------------------------
$ 1,060,000
- ----------------------------------------------------------------------------------------------------
Cogeneration -- 1.3%
- ----------------------------------------------------------------------------------------------------
NR NR $ 950 Port Authority of New York and New Jersey,
(KIAC Project), (AMT), 6.50%, 10/1/01 $ 1,010,268
- ----------------------------------------------------------------------------------------------------
$ 1,010,268
- ----------------------------------------------------------------------------------------------------
General Obligations -- 6.9%
- ----------------------------------------------------------------------------------------------------
A3 BBB+ $1,000 New York City, Series F, 0.00%, 8/1/08 $ 608,290
A3 BBB+ 1,000 New York City, Series G, 0.00%, 8/1/08 608,290
A3 BBB+ 2,000 New York City, 5.25%, 8/1/17 1,990,240
A3 BBB+ 1,500 New York City, 6.375%, 8/1/06 1,623,120
Baa1 A 500 Puerto Rico Commonwealth, 0.00%, 7/1/08 315,595
- ----------------------------------------------------------------------------------------------------
$ 5,145,535
- ----------------------------------------------------------------------------------------------------
Health Services -- 1.4%
- ----------------------------------------------------------------------------------------------------
NR AAA $ 985 New York State Dormitory Authority, (Wesley
Health Nursing Home), (FHA), 5.85%, 8/1/26 $ 1,039,234
- ----------------------------------------------------------------------------------------------------
$ 1,039,234
- ----------------------------------------------------------------------------------------------------
Hospitals -- 4.2%
- ----------------------------------------------------------------------------------------------------
Baa1 BBB+ $2,000 New York State Dormitory Authority,
(Department of Health), 5.375%, 7/1/08 $ 2,090,440
Baa NR 1,000 New York State Dormitory Authority, (Nyack
Hospital), 6.00%, 7/1/06 1,079,810
- ----------------------------------------------------------------------------------------------------
$ 3,170,250
- ----------------------------------------------------------------------------------------------------
Hotels -- 0.6%
- ----------------------------------------------------------------------------------------------------
NR NR $1,210 Niagara County, Industrial Development Authority,
(Wintergarden Inn Associates), 0.00%, 6/1/11 $ 484,000
- ----------------------------------------------------------------------------------------------------
$ 484,000
- ----------------------------------------------------------------------------------------------------
Housing -- 9.5%
- ----------------------------------------------------------------------------------------------------
Aa AA $4,000 New York City Housing Development Corp.,
(Multi-Family), 5.625%, 5/1/12 $ 4,147,800
Aa2 NR 1,500 New York State Mortgage Agency Revenue,
(AMT), 6.45%, 10/1/21 1,623,810
Aa2 NR 1,300 New York State Mortgage Agency, Homeowner
Mtg. Bond Ser. 65, (AMT), 5.20%, 10/1/08 1,337,206
- ----------------------------------------------------------------------------------------------------
$ 7,108,816
- ----------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 5.4%
- ----------------------------------------------------------------------------------------------------
A3 A $2,000 New York, IDA, (Terminal One Group), (AMT),
6.00%, 1/1/07(1) $ 2,160,120
Baa3 BBB- 1,700 Puerto Rico Port Authority, (American Airlines),
(AMT), 6.25%, 6/1/26 1,848,665
- ----------------------------------------------------------------------------------------------------
$ 4,008,785
- ----------------------------------------------------------------------------------------------------
Insured - Education -- 1.6%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,075 New York State Dormitory Authority, (Mt. Sinai
School of Medicine), (MBIA), 6.75%, 7/1/09 $ 1,178,232
- ----------------------------------------------------------------------------------------------------
$ 1,178,232
- ----------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 7.2%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $5,000 New York State Energy Research and Development
Authority, (Central Hudson Gas), (FGIC),
7.375%, 10/1/14 $ 5,368,999
- ----------------------------------------------------------------------------------------------------
$ 5,368,999
- ----------------------------------------------------------------------------------------------------
Insured - Hospitals -- 10.2%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $4,450 New York State Medical Care Facilities Finance
Agency, (New York State Hospital), (AMBAC),
6.10%, 2/15/04 $ 4,862,738
Aaa AAA 2,500 New York State Medical Care Facilities Finance
Agency, (New York State Hospital), (AMBAC),
6.20%, 2/15/05 2,769,700
- ----------------------------------------------------------------------------------------------------
$ 7,632,438
- ----------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 0.7%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $ 500 City University of New York, (John Jay College),
(AMBAC), 5.00%, 8/15/08 $ 517,995
- ----------------------------------------------------------------------------------------------------
$ 517,995
- ----------------------------------------------------------------------------------------------------
Insured - Transportation -- 6.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,240 Metropolitan Transportation Authority for
the City of New York, (FGIC), 5.70%, 7/1/10 $ 2,418,864
Aaa AAA 2,290 Triborough Bridge and Tunnel Authority,
(FGIC), 5.80%, 1/1/02 2,426,324
- ----------------------------------------------------------------------------------------------------
$ 4,845,188
- ----------------------------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 15.0%
- ----------------------------------------------------------------------------------------------------
Baa1 BBB+ $2,180 New York State Energy Research Development
Authority, (Western NY Nuclear Service Center),
6.00%, 4/1/06 $ 2,365,649
Baa1 BBB+ 4,000 New York State Housing Finance Agency,
6.375%, 11/1/03(2) 4,352,080
NR BBB 1,485 New York State Thruway Authority,
0.00%, 1/1/04 1,138,163
Baa1 BBB+ 1,300 New York State Thruway Authority,
5.25%, 4/1/13 1,300,754
Baa1 BBB+ 1,000 New York State Urban Development Corp.,
(Youth Facilities), 5.00%, 4/1/13 973,260
Baa1 BBB+ 1,000 New York State Urban Development Corp.,
(Youth Facilities), 5.75%, 4/1/10 1,061,130
- ----------------------------------------------------------------------------------------------------
$11,191,036
- ----------------------------------------------------------------------------------------------------
Special Tax Revenue -- 9.1%
- ----------------------------------------------------------------------------------------------------
Aa2 AA $2,000 New York City Municipals Assistance Corp.,
5.50%, 7/1/07(3) $ 2,154,520
A3 A+ 4,500 New York State Local Government Assistance
Corp., 5.25%, 4/1/16 4,632,525
- ----------------------------------------------------------------------------------------------------
$ 6,787,045
- ----------------------------------------------------------------------------------------------------
Transportation -- 5.7%
- ----------------------------------------------------------------------------------------------------
Baa1 BBB+ $1,000 Port Authority of New York and New Jersey,
5.75%, 4/1/16 $ 1,046,440
A1 AA- 3,000 Port Authority of New York and New Jersey,
(AMT), 6.00%, 7/1/14 3,207,870
- ----------------------------------------------------------------------------------------------------
$ 4,254,310
- ----------------------------------------------------------------------------------------------------
Water and Sewer -- 9.1%
- ----------------------------------------------------------------------------------------------------
A2 A- $5,000 New York City Municipal Water Finance Authority,
5.125%, 6/15/21 $ 4,896,600
A2 A- 1,825 New York City Municipal Water Finance Authority,
5.70%, 6/15/02 1,928,113
- ----------------------------------------------------------------------------------------------------
$ 6,824,713
- ----------------------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $71,325,400) $74,783,134
- ----------------------------------------------------------------------------------------------------
</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 March 31, 1998, 26.2% 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 1.6% to 13.7% of total
investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security has been segregated to cover when-issued securities.
(3) When-issued security.
See notes to financial statements
<PAGE>
<TABLE>
Pennsylvania Limited Maturity Municipals Portfolio as of March 31, 1998
- ----------------------------------------------------------------------------------------------------
PORTFOLIO OF INVESTMENTS
- ----------------------------------------------------------------------------------------------------
Tax-Exempt Investments -- 100.0%
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Standard Amount
Moody's & Poor's (000 omitted) Security Value
- ----------------------------------------------------------------------------------------------------
Assisted Living -- 3.9%
- ----------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 885 Chester County, Industrial Development Authority,
8.00%, 9/1/05 $ 966,686
NR NR 1,120 Delaware County, Industrial Development
Authority, (Glen Riddle), (AMT), 8.125%, 9/1/05 1,235,013
- ----------------------------------------------------------------------------------------------------
$ 2,201,699
- ----------------------------------------------------------------------------------------------------
Cogeneration -- 6.3%
- ----------------------------------------------------------------------------------------------------
NR NR $1,200 Pennsylvania Economic Development Financing
Authority, (Resource Recovery for
Northampton),(AMT), 6.75%, 1/1/07 $ 1,311,216
NR BBB- 2,000 Pennsylvania Economic Development Financing
Authority, (Resources Recovery - Colver
Project), (AMT), 7.05%, 12/1/10 2,227,220
- ----------------------------------------------------------------------------------------------------
$ 3,538,436
- ----------------------------------------------------------------------------------------------------
Colleges and Universities -- 1.1%
- ----------------------------------------------------------------------------------------------------
NR BBB- $ 625 Pennsylvania HEFA, (Gwynedd-Mercy College),
5.60%, 11/1/22 $ 624,138
- ----------------------------------------------------------------------------------------------------
$ 624,138
- ----------------------------------------------------------------------------------------------------
Electric Utilities -- 1.9%
- ----------------------------------------------------------------------------------------------------
NR NR $ 960 Virgin Islands Water and Power Authority,
7.40%, 7/1/11 $ 1,049,424
- ----------------------------------------------------------------------------------------------------
$ 1,049,424
- ----------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.0%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Harrisburg Authority, Lease Revenue Bonds,
Escrowed to Maturity, (CGIC), 6.25%, 6/1/01 $ 532,215
Aaa AAA 1,500 Somerset County, General Authority, (FGIC),
Escrowed to Maturity, 6.50%, 10/15/01 1,618,725
Aaa AAA 7,000 Westmoreland County, Municipal Authority,
(FGIC), Escrowed to Maturity, 0.00%, 8/15/19 2,290,960
NR NR 500 Wilkins Area, IDA, (Fairview Extended Care),
Prerefunded to 1/1/01, 10.25%, 1/1/21 591,685
- ----------------------------------------------------------------------------------------------------
$ 5,033,585
- ----------------------------------------------------------------------------------------------------
General Obligations -- 0.4%
- ----------------------------------------------------------------------------------------------------
Baa1 A $ 500 Puerto Rico Commonwealth,
0.00%, 7/1/16 $ 200,155
- ----------------------------------------------------------------------------------------------------
$ 200,155
- ----------------------------------------------------------------------------------------------------
Hospitals -- 22.3%
- ----------------------------------------------------------------------------------------------------
NR BBB $1,000 Allentown, Area Hospital Authority, (Sacred
Heart Hospital), 6.50%, 11/15/08 $ 1,086,270
NR BBB 2,355 Clearfield, Hospital Authority, (Clearfield
Hospital), 6.875%, 6/1/16 2,575,475
Aa AA 1,000 Geisinger, Authority Health System,
7.375%, 7/1/02 1,056,410
Baa3 BBB+ 650 Hazleton, Health Services Authority,
(St. Joseph's Hospital), 5.85%, 7/1/06 692,796
A3 A 1,200 Lehigh County, General Purpose Authority,
(Muhlenberg Hospital), 5.75%, 7/15/10 1,323,840
NR BBB- 200 Mckean County, (Bradford Hospital),
5.375%, 10/1/03 207,752
A3 BBB+ 1,000 Monroeville, Hospital Authority, (Forbes
Health), 5.75%, 10/1/05 1,071,270
Baa2 NR 1,030 Montgomery County, Higher Education and
Health Authority, (Montgomery Hospital),
6.25%, 7/1/06 1,108,857
Baa2 NR 1,100 Montgomery County, Higher Education and
Health Authority, (Montgomery Hospital),
6.375%, 7/1/07 1,202,300
A NR 500 New Castle Area Hospital Authority, (St.
Francis Hospital of New Castle),
5.90%, 11/15/00 520,805
NR BBB 315 Northhampton County Hospital Authority,
(Easton Hospital), 6.90%, 1/1/02 332,889
NR A- 1,350 South Fork, Municipal Authority,
(Lee Hospital), 5.50%, 7/1/11 1,369,197
- ----------------------------------------------------------------------------------------------------
$12,547,861
- ----------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 2.2%
- ----------------------------------------------------------------------------------------------------
A3 A- $1,200 Erie, Industrial Development Authority,
(International Paper), (AMT), 5.85%, 12/1/20 $ 1,262,124
- ----------------------------------------------------------------------------------------------------
$ 1,262,124
- ----------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 4.8%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Allegheny County, Higher Education Building
Authority, (Dusquesne University), (AMBAC),
5.00%, 3/1/16 $ 1,969,680
NR AAA 700 Montgomery County, Higher Education and
Health Authority, (Saint Joseph's University),
(CLEE), 6.00%, 12/15/02 752,934
- ----------------------------------------------------------------------------------------------------
$ 2,722,614
- ----------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 8.5%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $2,000 Cambria County Authority, (PA Electric Co.),
Industrial Development, (MBIA), 5.35%, 11/1/10 $ 2,133,140
Aaa AAA 2,500 Indiana County, Industrial Development
Authority, (PA Electric Co.), (MBIA),
5.35%, 11/1/10 2,666,424
- ----------------------------------------------------------------------------------------------------
$ 4,799,564
- ----------------------------------------------------------------------------------------------------
Insured - General Obligations -- 8.9%
- ----------------------------------------------------------------------------------------------------
Aaa NR $1,635 Harrisburg, (AMBAC), 0.00%, 9/15/12 $ 797,340
Aaa AAA 1,355 McKeesport, (FGIC), 0.00%, 10/1/11 702,107
Aaa AAA 2,000 Pennsylvania, (AMBAC), 5.00%, 11/15/15 1,983,700
Aaa AAA 1,500 Pleasant Valley, School District, (FGIC),
5.00%, 9/1/10 1,527,120
- ----------------------------------------------------------------------------------------------------
$ 5,010,267
- ----------------------------------------------------------------------------------------------------
Insured - Hospitals -- 11.1%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Allegheny County, Hospital Development
Authority, (South Hills Health), (MBIA),
5.50%, 5/1/08 $ 1,073,590
Aaa AAA 1,000 Erie County, Hospital Authority, (Hamot
Health System), (AMBAC), 7.10%, 2/15/10 1,087,700
NR AAA 1,030 Indiana County, Hospital Authority, (Indiana
Hospital), (CLEE), 5.75%, 7/1/00 1,069,016
NR AAA 825 Indiana County, Hospital Authority, (Indiana
Hospital), (CLEE), 5.875%, 7/1/01 868,304
Aaa AAA 2,050 Sayre Health Care Facilities Authority,
(Guthrie Medical Center), (AMBAC),
6.50%, 3/1/00 2,145,653
- ----------------------------------------------------------------------------------------------------
$ 6,244,263
- ----------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 1.9%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $1,000 Northumberland County Authority, Lease
Revenue Bonds, (MBIA), 6.50%, 10/15/01 $ 1,079,150
- ----------------------------------------------------------------------------------------------------
$ 1,079,150
- ----------------------------------------------------------------------------------------------------
Insured - Transportation -- 4.9%
- ----------------------------------------------------------------------------------------------------
Aaa AAA $ 590 Alleghemy County, Airport Revenue, (MBIA),
5.75%, 1/1/12 $ 636,622
Aaa AAA 1,000 Allegheny County, Airport Revenue, (MBIA),
5.75%, 1/1/10 1,079,340
Aaa AAA 1,000 Southeastern Pennsylvania Transportation
Authority, (FGIC), 5.55%, 3/1/14 1,049,740
- ----------------------------------------------------------------------------------------------------
$ 2,765,702
- ----------------------------------------------------------------------------------------------------
Life Care -- 2.5%
- ----------------------------------------------------------------------------------------------------
NR NR $ 245 Delaware County, Authority, (White Horse
Village), 6.30%, 7/1/03 $ 259,756
NR NR 505 Delaware County, Authority, (White Horse
Village), 6.40%, 7/1/04 540,547
Baa2 BBB+ 590 Hazleton, Health Services Authority,
(Hazleton General Hospital), 5.50%, 7/1/07 617,819
- ----------------------------------------------------------------------------------------------------
$ 1,418,122
- ----------------------------------------------------------------------------------------------------
Solid Waste -- 3.3%
- ----------------------------------------------------------------------------------------------------
Baa A- $ 500 Greater Lebanon Refuse Authority, 6.20%, 5/15/99 $ 512,825
Baa A- 500 Greater Lebanon Refuse Authority, 6.20%, 11/15/99 517,785
Baa A- 300 Greater Lebanon Refuse Authority, 6.40%, 5/15/00 313,683
Baa A- 500 Greater Lebanon Refuse Authority, 6.40%, 11/15/00 527,780
- ----------------------------------------------------------------------------------------------------
$ 1,872,073
- ----------------------------------------------------------------------------------------------------
Special Tax Revenue -- 0.5%
- ----------------------------------------------------------------------------------------------------
NR NR $ 250 Virgin Islands Public Finance Authority,
(Matching Loan Fund Notes), 6.70%, 10/1/99 $ 259,715
- ----------------------------------------------------------------------------------------------------
$ 259,715
- ----------------------------------------------------------------------------------------------------
Transportation -- 6.5%
- ----------------------------------------------------------------------------------------------------
Aa3 AA- $2,550 Southeastern Pennsylvania Transportation
Authority, LOC: Canadian Imperial Bank of
Commerce, 6.00%, 6/1/99(1) $ 2,614,923
Aa3 AA- 1,000 Southeastern Pennsylvania Transportation
Authority, LOC: Canadian Imperial Bank of
Commerce, 6.00%, 6/1/01 1,056,220
- ----------------------------------------------------------------------------------------------------
$ 3,671,143
- ----------------------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $53,360,058) $56,300,035
- ----------------------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Fedreral 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 March 31, 1998, 48.0% 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 0.9% to 15.4% 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
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------------------------------------------------------
Statements of Assets and Liabilities
As of March 31, 1998
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investments --
Identified cost $68,566,219 $53,095,573 $71,325,400 $53,360,058
Unrealized appreciation 3,445,439 2,866,750 3,457,734 2,939,977
- ---------------------------------------------------------------------------------------------------------------------------
Investments, at value (Note 1A) $72,011,658 $55,962,323 $74,783,134 $56,300,035
- ---------------------------------------------------------------------------------------------------------------------------
Cash $ 934 $ 61 $ 724,279 $ 569,540
Receivable for when-issued securities sold (Note 1F) -- -- 4,035,939 --
Interest receivable 1,517,101 833,304 1,345,875 856,099
Deferred organization expenses (Note 1D) 378 354 219 240
- ---------------------------------------------------------------------------------------------------------------------------
Total assets $73,530,071 $56,796,042 $80,889,446 $57,725,914
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities (Note 1F) $ 350,632 $ -- $ 6,169,619 $ --
Demand note payable (Note 5) 916,000 198,000 -- --
Payable for daily variation margin on open financial
futures contracts (Note 1E) 16,406 12,656 19,219 9,844
Payable to affiliate for Trustees' fees (Note 2) 3,900 1,945 1,945 1,945
Accrued expenses 1,953 290 7,224 6,512
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 1,288,891 $ 212,891 $ 6,198,007 $ 18,301
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $72,241,180 $56,583,151 $74,691,439 $57,707,613
- ---------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $68,807,579 $53,732,349 $71,251,139 $54,764,267
Net unrealized appreciation of investments (computed
on the basis of identified cost) 3,433,601 2,850,802 3,440,300 2,943,346
- ---------------------------------------------------------------------------------------------------------------------------
Total $72,241,180 $56,583,151 $74,691,439 $57,707,613
- ---------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- ---------------------------------------------------------------------------------------------------------------------------
Statements of Operations
For the Year Ended March 31, 1998
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income (Note 1B)
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Interest income $ 4,488,367 $ 3,418,767 $ 4,702,633 $ 3,461,184
- ---------------------------------------------------------------------------------------------------------------------------
Total investment income $ 4,488,367 $ 3,418,767 $ 4,702,633 $ 3,461,184
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 381,588 $ 290,512 $ 402,164 $ 289,154
Compensation of Trustees not members of the Investment
adviser's organization (Note 2) 8,863 6,495 7,332 6,804
Custodian fee (Note 1G) 43,702 37,474 53,547 35,199
Legal and accounting services 20,214 19,213 21,715 19,213
Amortization of organization expenses (Note 1D) 4,204 4,088 2,570 2,672
Interest expense (Note 5) -- -- 34,599 --
Miscellaneous 17,414 16,691 4,539 14,706
- ---------------------------------------------------------------------------------------------------------------------------
Total expenses $ 475,985 $ 374,473 $ 526,466 $ 367,748
- ---------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1G) $ 19,574 $ 22,949 $ 13,608 $ 11,665
- ---------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 19,574 $ 22,949 $ 13,608 $ 11,665
- ---------------------------------------------------------------------------------------------------------------------------
Net expenses $ 456,411 $ 351,524 $ 512,858 $ 356,083
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income $ 4,031,956 $ 3,067,243 $ 4,189,775 $ 3,105,101
- ---------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) -
Investment transactions (identified cost basis) $ 1,257,589 $ 994,185 $ 1,498,902 $ 1,006,723
Financial futures contracts (1,388,455) (995,822) (372,410) (576,338)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions $ (130,866) $ (1,637) $ 1,126,492 $ 430,385
- ---------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments (identified cost basis) $ 3,004,369 $ 2,278,256 $ 3,345,035 $ 2,255,452
Financial futures contracts (219,982) (196,339) (392,093) 3,369
- ---------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments $ 2,784,387 $ 2,081,917 $ 2,952,942 $ 2,258,821
- ---------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 2,653,521 $ 2,080,280 $ 4,079,434 $ 2,689,206
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 6,685,477 $ 5,147,523 $ 8,269,209 $ 5,794,307
- ---------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ---------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Year Ended March 31, 1998
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations -
Net investment income $ 4,031,956 $ 3,067,243 $ 4,189,775 $ 3,105,101
Net realized gain (loss) on investment transactions (130,866) (1,637) 1,126,492 430,385
Net change in unrealized appreciation (depreciation)
of investments 2,784,387 2,081,917 2,952,942 2,258,821
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 6,685,477 $ 5,147,523 $ 8,269,209 $ 5,794,307
- ---------------------------------------------------------------------------------------------------------------------------
Capital transactions -
Contributions $ 7,486,705 $ 4,381,569 $ 3,255,202 $ 2,758,619
Withdrawals (34,840,194) (22,915,877) (36,846,720) (18,720,920)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $(27,353,489) $(18,534,308) $(33,591,518) $(15,962,301)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(20,668,012) $(13,386,785) $(25,322,309) $(10,167,994)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
At beginning of year $92,909,192 $69,969,936 $100,013,748 $67,875,607
- ---------------------------------------------------------------------------------------------------------------------------
At end of year $72,241,180 $56,583,151 $74,691,439 $57,707,613
- ---------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ---------------------------------------------------------------------------------------------------------------------------
Statements of Changes in Net Assets
For the Year Ended March 31, 1997
<CAPTION>
Florida Massachusetts New York Pennsylvania
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations -
Net investment income $ 5,368,154 $ 4,105,048 $ 5,864,808 $ 4,070,122
Net realized gain (loss) on investment transactions (345,920) (122,731) (287,142) 407,499
Net change in unrealized appreciation (depreciation)
of investments (1,654,724) (861,173) (895,080) (1,218,041)
- ---------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 3,367,510 $ 3,121,144 $ 4,682,586 $ 3,259,580
- ---------------------------------------------------------------------------------------------------------------------------
Capital transactions -
Contributions $ 4,859,506 $ 1,754,803 $ 3,989,610 $ 2,538,420
Withdrawals (43,152,835) (32,041,287) (47,386,927) (30,116,393)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital transactions $(38,293,329) $(30,286,484) $(43,397,317) $(27,577,973)
- ---------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $(34,925,819) $(27,165,340) $(38,714,731) $(24,318,393)
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
At beginning of year $127,835,011 $ 97,135,276 $138,728,479 $ 92,194,000
- ---------------------------------------------------------------------------------------------------------------------------
At end of year $ 92,909,192 $ 69,969,936 $100,013,748 $ 67,875,607
- ---------------------------------------------------------------------------------------------------------------------------
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ---------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ---------------------------------------------------------------------------------------------------------------------------
Supplementary Data
<CAPTION>
Florida Limited Portfolio Massachusetts Limited Portfolio
-------------------------------------------------- ------------------------------------------------------
Year Ended March 31, Year Ended March 31,
-------------------------------------------------- ------------------------------------------------------
1998 1997 1996 1995 1994* 1998 1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.58% 0.59% 0.55% 0.52% 0.49%+ 0.60% 0.60% 0.57% 0.54% 0.52%+
Expenses after
custodian fee
reduction 0.55% 0.57% 0.54% -- -- 0.56% 0.58% 0.55% -- --
Net investment income 4.90% 4.90% 4.73% 4.73% 4.53%+ 4.90% 4.97% 4.72% 4.90% 4.57%+
Portfolio Turnover 38% 66% 20% 44% 8% 46% 60% 27% 46% 8%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000s omitted) $72,241 $92,909 $127,835 $164,579 $185,977 $56,583 $69,970 $97,135 $119,120 $119,772
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Portfolio to increase its expense ratios by the effect of any expense
offset arrangements with its service providers. The expense ratios for each of the prior periods have not been adjusted to
reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Supplementary Data
<CAPTION>
New York Limited Portfolio Pennsylvania Limited Portfolio
------------------------------------------------------ ---------------------------------------------------
Year Ended March 31, Year Ended March 31,
------------------------------------------------------ ---------------------------------------------------
1998 1997 1996 1995 1994* 1998 1997 1996 1995 1994**
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Expenses(1) 0.61% 0.58% 0.55% 0.52% 0.47%+ 0.60% 0.61% 0.58% 0.53% 0.50%+
Expenses after
custodian fee
reduction 0.59% 0.56% 0.53% -- -- 0.58% 0.59% 0.56% -- --
Net investment income 4.81% 4.87% 4.66% 4.79% 4.50%+ 5.03% 5.11% 4.81% 4.77% 4.59%+
Portfolio Turnover 53% 58% 32% 31% 5% 36% 51% 24% 39% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
year (000s omitted) $74,691 $100,014 $138,728 $173,632 $183,768 $57,708 $67,876 $92,194 $113,606 $123,620
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Portfolio to increase its expense ratios by the effect of
any expense offset arrangements with its service providers. The expense ratios for each of the prior periods have not been
adjusted to reflect this change.
See notes to financial statements
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 Significant Accounting Policies
- -------------------------------------------------------------------------------
Florida Limited Maturity Municipals Portfolio (Florida Limited Portfolio),
Massachusetts Limited Maturity Municipals Portfolio (Massachusetts Limited
Portfolio), New York Limited Maturity Municipals Portfolio (New York Limited
Portfolio), and Pennsylvania Limited Maturity Municipals Portfolio
(Pennsylvania Limited Portfolio), collectively the Portfolios, are
registered under the Investment Company Act of 1940 as non-diversified open-
end management investment companies which were organized as trusts under the
laws of the State of New York on May 1, 1992. The Declarations of Trust
permit the Trustees to issue interests in the Portfolios. The following is a
summary of significant accounting policies of the Portfolios. The policies
are in conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts listed on
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal
tax purposes. No provision is made by the Portfolios for federal or state
taxes on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit.
Interest income received by the Portfolios on investments in municipal
bonds, which is excludable from gross income under the Internal Revenue
Code, will retain its status as income exempt from federal income tax when
allocated to each Portfolio's investors. The portion of such interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years, beginning on the date
each 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 receives a fee reduced by the credits which are determined
based on the average daily cash balances each Portfolio maintains with IBT.
All significant credit balances used to reduce the Portfolios' custodian
fees are reflected as a reduction of operating expense on the Statement of
Operations.
H Use of Estimates -- The preparation of the financial statements in
conformity with generally accepted accounting principles requires management
to make estimates and assumptions that affect the reported amounts of assets
and liabilities at the date of the financial statements and the reported
amounts of revenue and expense during the reporting period. Actual results
could differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
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 year ended March 31, 1998, each Portfolio
paid advisory fees as follows:
Portfolio Amount Effective Rate
-----------------------------------------------------------------------------
Florida Limited $381,588 0.46%
Massachusetts Limited $290,512 0.46%
New York Limited $402,164 0.46%
Pennsylvania Limited $289,154 0.47%
-----------------------------------------------------------------------------
Except as to Trustees of the Portfolios who are not members of EVM's or
BMR's organization, officers and Trustees receive remuneration for their
services to the Portfolios out of such investment adviser fee. 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 year
ended March 31, 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 year ended March 31, 1998 were as
follows:
Florida Limited Portfolio Massachusetts Limited Portfolio
-----------------------------------------------------------------------------
Purchases $ 30,414,260 $ 28,056,188
Sales 53,556,319 42,929,294
New York Limited Portfolio Pennsylvania Limited Portfolio
-----------------------------------------------------------------------------
Purchases $ 46,482,147 $ 22,489,085
Sales 74,278,193 35,365,179
-----------------------------------------------------------------------------
4 Federal Income Tax Basis of Investments
- --------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 1998, as computed on a
federal income tax basis, are as follows:
Florida Limited Massachusetts Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
Aggregate Cost $68,566,219 $53,095,573
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 3,487,947 $ 2,871,538
Gross unrealized depreciation (42,508) (4,788)
-----------------------------------------------------------------------------
Net unrealized appreciation $ 3,445,439 $ 2,866,750
-----------------------------------------------------------------------------
New York Limited Pennsylvania Limited
Portfolio Portfolio
-----------------------------------------------------------------------------
Aggregate Cost $71,325,400 $53,360,058
-----------------------------------------------------------------------------
Gross unrealized appreciation $ 3,514,690 $ 2,946,242
Gross unrealized depreciation (56,956) (6,265)
-----------------------------------------------------------------------------
Net unrealized appreciation $ 3,457,734 $ 2,939,977
-----------------------------------------------------------------------------
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
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 March 31, 1998, the
Florida Limited Portfolio and Massachusetts Limited Portfolio had balances
outstanding pursuant to this line of credit of $916,000, and $198,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended March 31, 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.
A summary of obligations under these financial instruments at March 31,
1998, is as follows:
Net Unrealized
Limited Expiration Futures Appreciation/
Portfolio Date Contracts Position (Depreciation)
------------------ ----------- ---------------- --------- --------------
35 U.S. Treasury
Florida 6/98 Bonds Short $(11,838)
27 U.S. Treasury
Massachusetts 6/98 Bonds Short $(15,948)
41 U.S. Treasury
New York 6/98 Bonds Short $(17,434)
21 U.S. Treasury
Pennsylvania 6/98 Bonds Short $ 3,369
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
INDEPENDENT AUDITORS' REPORT
- --------------------------------------------------------------------------------
To the Trustees and Shareholders of
Florida Limited Maturity Municipals Portfolio
Massachusetts Limited Maturity Municipals Portfolio
New York Limited Maturity Municipals Portfolio
Pennsylvania Limited Maturity Municipals Portfolio:
- -------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of Florida Limited Maturity
Municipals Portfolio, Massachusetts Limited Maturity Municipals Portfolio, New
York Limited Maturity Municipals Portfolio, and Pennsylvania Limited Maturity
Municipals Portfolio, (the Portfolios) as of March 31, 1998, the related
statements of operations for the year then ended, the statements of changes in
net assets for the years ended March 31, 1998, and 1997 and the supplementary
data for each of the years in the five-year period ended March 31, 1998. These
financial statements and supplementary data are the responsibility of the
Trust's management. Our responsibility is to express an opinion on these
financial statements and supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance
about whether the financial statements and supplementary data are free of
material misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements. Our
procedures included confirmation of securities owned at March 31,1998 by
correspondence with the custodian and brokers; where replies were not received
from brokers, we performed other audit procedures. An audit also includes
assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and supplementary data present
fairly, in all material respects, the financial position of the aforementioned
Portfolios, as of March 31, 1998, the results of their operations, the changes
in their net assets and their supplementary data for the respective stated
periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
May 1, 1998
<PAGE>
EV Classic Limited Maturity Municipals Funds as of March 31, 1998
- --------------------------------------------------------------------------------
INVESTMENT MANAGEMENT
- --------------------------------------------------------------------------------
EV Classic Limited Maturity Municipals Funds
Officers Independent Trustees
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
JAMES B. HAWKES SAMUEL L. HAYES, III
Vice President and Trustee Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate
School of Business Administration
ROBERT B. MACINTOSH
Vice President NORTON H. REAMER
President and Director, United Asset
Management Corporation
JAMES L. O'CONNOR
Treasurer JOHN L. THORNDIKE
Formerly Director, Fiduciary Company
ALAN R. DYNNER Incorporated
Secretary
JACK L. TREYNOR
Investment Adviser and Consultant
Limited Maturity Municipals Portfolios
Officers Independent Trustees
THOMAS J. FETTER
President DONALD R. DWIGHT
President, Dwight Partners, Inc.
JAMES B. HAWKES
Vice President and Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
Banking, Harvard University Graduate
ROBERT B. MACINTOSH School of Business Administration
Vice President
NORTON H. REAMER
President and Director, United Asset
WILLIAM H. AHERN, JR. Management Corporation
Vice President and Portfolio
Manager of Florida, Massachusetts JOHN L. THORNDIKE
and New York Limited Formerly Director, Fiduciary Company
Maturity Municipals Portfolio Incorporated
JACK L. TREYNOR
TIMOTHY T. BROWSE Investment Adviser and Consultant
Vice President and Portfolio Manager
of Pennsylvania Limited Maturity
Municipals Portfolio
JAMES L. O'CONNOR
Treasurer
ALAN R. DYNNER
Secretary
<PAGE>
INVESTMENT ADVISER OF THE LIMITED MATURITY MUNICIPALS PORTFOLIOS
Boston Management and Research
24 Federal Street
Boston, MA 02110
ADMINISTRATOR OF EV CLASSIC 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
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
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.
- ---------------------------------------------------------------------------
C-L4COMSRC-5/98
