<PAGE>
[EATON VANCE LOGO]
Mutual Funds [PHOTO OF STONE WALL WITH "EDUCATION" SIGN]
for People
Who Pay
Taxes
Semiannual Report September 30, 1998
[PHOTO OF NIGHT TIME TRAFFIC ON EXPRESSWAY]
EATON VANCE
NATIONAL
LIMITED MATURITY
MUNICIPALS FUND
[PHOTO OF SUSPENSION BRIDGE]
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
LETTER TO SHAREHOLDERS
[PHOTO OF Investment Environment
W. AHERN] ------------------------------------------------------------
The Economy
. In response to a weak Asian economy, the U.S. economy
lost some momentum in 1998. Gross domestic product growth
slowed to 1.8% in the second quarter before rebounding
William H. Ahern, somewhat to 3.3% in the third quarter. Unemployment,
Portfolio Manager which had fallen to a 24-year low of 4.3% in July, edged
up to 4.6% by September.
. With inflation under control and signs of a slowing economy, the Federal
Reserve elected to ease monetary policy. By late October, the Fed had
lowered its Federal Funds target rate - a key short-term interest rate
barometer - to 5.0%.
. The municipal market lagged the Treasury market throughout the year. In a
period of economic uncertainty and market chaos abroad, Treasuries
outperformed as investors sought the refuge of quality.
The Fund
- --------------------------------------------------------------------------------
. During the six months ended September 30, 1998, the Fund's Class A, Class B,
and Class C shares had total returns of 3.0%, 2.8%, and 2.8%,
respectively./1/ For Class A and Class B, this return resulted from a rise
in net asset value (NAV) per share to $10.66 on September 30, 1998 from
$10.58 on March 31, 1998, and the reinvestment of $0.232 and $0.212 per
share, respectively, in tax-free income./2/ And for Class C, from a rise in
NAV to $9.98 from $9.92, and the reinvestment of $0.209 per share in tax-
free income./2/
. Based on the Fund's most recent dividends and NAVs on September 30, 1998 of
$10.66 per share for Class A and Class B, and $9.98 for Class C, the Fund's
distribution rates were 4.74%, 3.98%, and 3.98%, respectively./3/
. The SEC 30-day yields for Class A, B and C shares at September 30 were
4.12%, 3.50%, and 3.33%, respectively./4/
Management Update
- --------------------------------------------------------------------------------
. Industrial development bonds constituted the Portolio's largest sector
weighting. These bonds support projects for a wide range of companies,
including paper manufacturers, steelmakers, power suppliers, and
transportation companies.
. Management pursued a barbell approach, balancing higher quality bonds for
liquidity and performance with non-rated bonds that provided attractive
yields.
. Nursing homes and life care facilities represented good opportunities among
non-rated bonds. In addition to providing attractive tax-free income, these
issues finance facilities that address the growing needs of our older
citizens.
Your Investment at Work
- --------------------------------------------------------------------------------
Eastern Connecticut
Resource Recovery Authority
Wheelabrator Lisbon
. These bonds were issued in 1993 to finance the design and construction of a
500-ton-per-day solid waste disposal project in Lisbon to be operated by a
subsidiary of Wheelabrator Technologies, Inc.
. The energy that is produced by the processing of waste at the facility but
not consumed by the operation is sold to Connecticut Light and Power.
. The bonds have a coupon of 5.50%. They are a good example of the Portfolio's
efforts to find value in the non-rated and lower-investment-grade segment of
the market.
- --------------------------------------------------------------------------------
/1/ These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for Class
B and C shares. /2/ A portion of the Fund's income could be subject to
federal income tax and/or alternative minimum tax and state income tax.
/3/ The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per share
(annualized) by the net asset value. /4/ The Fund's SEC yield is calculated
by dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
/5/ Returns are historical and are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. SEC
returns for Class A reflect the maximum 2.25% sales charge. SEC returns for
Class B reflect applicable CDSC based on the following schedule: 3% - 1st
year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th year. SEC 1-Year return for
Class C reflects 1% CDSC. /6/ Sector weightings and Portfolio Overview are
as of 9/30/98 only and may not be representative of the Portfolio's current
or future investments.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
- --------------------------------------------------------------------------------
Fund Information
as of September 30, 1998
<TABLE>
<CAPTION>
Performance/5/ Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 8.2% 7.4% 7.0%
Five Years N.A. 4.3 N.A.
Life of Fund/+/ 5.8 5.6 4.1
</TABLE>
<TABLE>
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
One Year 5.7% 4.4% 6.0%
Five Years N.A. 4.3 N.A.
Life of Fund/+/ 5.5 5.6 4.1
</TABLE>
/+/Inception Dates - Class A: 6/27/96; Class B: 5/22/92; Class C:12/8/93
<TABLE>
<CAPTION>
5 Largest Sectors/6/ Portfolio Overview/6/
- -------------------------------------- --------------------------------------
<S> <C> <S> <C>
By total investments
Number of Issues 77
Industrial Development Revenue 18.4%
Duration 5.8 Yrs.
Escrowed/Prerefunded 14.4%
Effective Maturity 7.9 Yrs.
General Obligations 12.0%
Average Rating BBB
Nursing Home 10.0%
Average Call 7.3 Yrs.
Hospital 6.9%
Average Dollar Price $105.25
</TABLE>
- -------------------------------------------------------------------------------
Mutual Fund shares are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are
subject to investment risks, including possible loss of principal invested.
- -------------------------------------------------------------------------------
2
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of September 30, 1998
Assets
- --------------------------------------------------------------------------------
<S> <C>
Investment in National Limited Maturity Municipals
Portfolio, at value (identified cost, $86,249,130) $92,544,630
Receivable for Fund shares sold 10,095
Other assets 22,400
Deferred organization expenses 5,288
- --------------------------------------------------------------------------------
Total assets $92,582,413
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 309,677
Dividends payable 165,535
Other accrued expenses 43,438
- --------------------------------------------------------------------------------
Total liabilities $ 518,650
- --------------------------------------------------------------------------------
Net Assets $92,063,763
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $89,998,957
Accumulated undistributed net realized loss from Portfolio
(computed on the basis of identified cost) (4,439,824)
Accumulated undistributed net investment income 209,130
Net unrealized appreciation from Portfolio (computed on the
basis of identified cost) 6,295,500
- --------------------------------------------------------------------------------
Total $92,063,763
- --------------------------------------------------------------------------------
Class A Shares
- --------------------------------------------------------------------------------
Net Assets $74,767,464
Shares Outstanding 7,010,602
Net Asset Value and Redemption Price Per Share
(net assets / shares of beneficial interest outstanding) $ 10.66
Maximum Offering Price Per Share
(100 / 97.75 of $10.66) $ 10.91
- --------------------------------------------------------------------------------
Class B Shares
- --------------------------------------------------------------------------------
Net Assets $ 6,486,278
Shares Outstanding 608,754
Net Asset Value, Offering and Redemption Price Per Share
(net assets / shares of beneficial interest outstanding) $ 10.66
- --------------------------------------------------------------------------------
Class C Shares
- --------------------------------------------------------------------------------
Net Assets $10,810,021
Shares Outstanding 1,082,901
Net Asset Value, Offering and Redemption Price Per Share
(net assets / shares of beneficial interest
outstanding) $ 9.98
- --------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price of Class A
shares is reduced.
Statement of Operations
For the Six Months Ended
September 30, 1998
Investment Income
- --------------------------------------------------------------------------------
Interest allocated from Portfolio $ 2,707,045
Expenses allocated from Portfolio (279,705)
- --------------------------------------------------------------------------------
Net investment income from Portfolio $ 2,427,340
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Trustees fees and expenses $ 940
Distribution and service fees
Class A 48,379
Class B 38,971
Class C 40,105
Transfer and dividend disbursing agent fees 43,105
Registration fees 24,859
Printing and postage 15,113
Amortization of organization expenses 7,585
Custodian fee 5,418
Legal and accounting services 1,968
Miscellaneous 6,353
- --------------------------------------------------------------------------------
Total expenses $ 232,796
- --------------------------------------------------------------------------------
Net investment income $ 2,194,544
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 231,482
Financial futures contracts (244,201)
- --------------------------------------------------------------------------------
Net realized loss $ (12,719)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ 694,952
Financial futures contracts (28,833)
- --------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 666,119
- --------------------------------------------------------------------------------
Net realized and unrealized gain $ 653,400
- --------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,847,944
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
3
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) September 30, 1998 Year Ended
in Net Assets (Unaudited) March 31, 1998
- -------------------------------------------------------------------------------
<S> <C> <C>
From operations--
Net investment income $ 2,194,544 $ 3,838,067
Net realized loss (12,719) (124,047)
Net change in unrealized
appreciation (depreciation) 666,119 3,832,336
- --------------------------------------------------------------------------------
Net increase in net assets
from operations $ 2,847,944 $ 7,546,356
- --------------------------------------------------------------------------------
Distributions to shareholders--
From net investment income
Class A $(1,764,801) $ (2,409,865)
Class B (182,220) (1,219,304)
Class C (182,299) --
In excess of net investment income
Class C (349) --
- --------------------------------------------------------------------------------
Total distributions to shareholders $(2,129,669) $ (3,629,169)
- --------------------------------------------------------------------------------
Transactions in shares of
beneficial interest--
Proceeds from sale of shares
Class A $ 3,201,299 $ --
Class B 844,434 2,211,837
Class C 6,725,461 --
Issued in reorganization of
EV Traditional and Classic
National Limited Maturity
Municipals Funds
Class A 12,949,960 --
Class C 7,722,266 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 545,644 894,751
Class B 111,469 671,538
Class C 122,906 --
Cost of shares redeemed
Class A (6,982,686) (15,646,244)
Class B (1,587,764) (6,283,507)
Class C (3,836,949) --
Net asset value of shares exchanged
Class A 4,465,867 35,328,625
Class B (4,465,867) (35,328,625)
- --------------------------------------------------------------------------------
Net increase (decrease) in net assets
from Fund share transactions $19,816,040 $(18,151,625)
- --------------------------------------------------------------------------------
Net increase (decrease)
in net assets $20,534,315 $(14,234,438)
- --------------------------------------------------------------------------------
At beginning of period $71,529,448 $ 85,763,886
- --------------------------------------------------------------------------------
At end of period $92,063,763 $ 71,529,448
- --------------------------------------------------------------------------------
Accumulated
undistributed net
investment income
included in net assets
- --------------------------------------------------------------------------------
At end of period $ 209,130 $ 144,255
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
4
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Six Months Ended Year Ended March 31,
September 30, 1998 --------------------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994
--------------------------- --------------------------------------------------------------------
Class A Class B Class C Class A Class B Class A(2) Class B Class B Class B Class B
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset value--Beginning of
period $10.580 $10.580 $ 9.920 $10.070 $10.070 $10.030 $10.170 $ 10.130 $ 10.160 $ 10.450
- ------------------------------------------------------------------------------------------------------------------------------------
Income from operations
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.263(1)$ 0.224(1)$ 0.204(1)$ 0.527 $ 0.454(1) $ 0.393 $ 0.428 $ 0.413 $ 0.400 $ 0.406
Net realized and unrealized
gain (loss) 0.070 0.068 0.065 0.488 0.488 0.033(3) (0.098) 0.040 0.033 (0.178)
- ------------------------------------------------------------------------------------------------------------------------------------
Total income from operations $ 0.333 $ 0.292 $ 0.269 $ 1.015 $ 0.942 $ 0.426 $ 0.330 $ 0.453 $ 0.433 $ 0.228
- ------------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.253) $(0.212) $(0.209) $(0.505) $(0.432) $(0.386) $(0.430) $ (0.413) $ (0.400) $ (0.406)
In excess of net investment
income -- -- --(4) -- -- -- -- -- (0.058) (0.091)
From net realized gain -- -- -- -- -- -- -- -- (0.005) (0.021)
- ------------------------------------------------------------------------------------------------------------------------------------
Total distributions $(0.253) $(0.212) $(0.209) $(0.505) $(0.432) $(0.386) $(0.430) $ (0.413) $ (0.463) $ (0.518)
- ------------------------------------------------------------------------------------------------------------------------------------
Net asset value--End of period $10.660 $10.660 $ 9.980 $10.580 $10.580 $10.070 $10.070 $ 10.170 $ 10.130 $ 10.160
- ------------------------------------------------------------------------------------------------------------------------------------
Total Return (5) 2.99% 2.80% 2.75% 10.50% 9.52% 4.06% 3.30% 4.51% 4.43% 2.10%
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $74,767 $ 6,486 $10,810 $59,992 $11,538 $37,072 $48,692 $112,027 $141,289 $151,787
Ratios (As a percentage of
average daily net assets):
Expenses (6)(7) 0.99%(8) 1.74%(8) 1.77%(8) 0.99% 1.73% 0.99%(8) 1.69% 1.64% 1.57% 1.46%
Expenses after custodian fee
reduction (6) 0.98%(8) 1.73%(8) 1.76%(8) 0.98% 1.72% 0.97%(8) 1.67% 1.63% -- --
Net investment income 4.96%(8) 4.23%(8) 4.09%(8) 5.16% 4.42% 5.14%(8) 4.37% 4.04% 3.99% 3.78%
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, June 27, 1996, to March 31, 1997.
(3) The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Distributions in excess of net investment income are less than $0.001 per
share.
(5) Total return is calculated assuming a purchase at the net asset value on the
first day and a sale at the net asset value on the last day of each period
reported. Dividends and distributions, if any, are assumed reinvested at the
net asset value on the reinvestment date. Total return is not computed on an
annualized basis.
(6) Includes the Fund's share of its Portfolio's allocated expenses.
(7) The expense ratios for the year ended March 31, 1996, and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for each of the
prior periods have not been adjusted to reflect this change.
(8) Annualized.
See notes to financial statements
5
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
- --------------------------------------------------------------------------------
Eaton Vance National Limited Maturity Municipals Fund (the Fund) is a
diversified series of Eaton Vance Investment Trust (the Trust). The Trust is
an entity of the type commonly known as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund offers three classes of
shares: Class A (formerly Class II), Class B (formerly Class I) and Class C
shares. Class A shares are sold subject to a sales charge imposed at the time
of purchase. Class B and Class C shares are sold at net asset value and are
subject to a contingent deferred sales charge (see Note 6). Class B shares
held longer than (i) four years or (ii) the time at which the contingent
deferred sales charge applicable to such shares expires will automatically
convert to Class A shares. All classes of shares have equal rights as to
assets and voting privileges. Realized and unrealized gains or losses and net
investment income, other than class specific expenses, are allocated daily to
each class of shares based on the relative net assets of each class to the
total net assets of the Fund. Each class of shares differs in its
distribution plan and certain other class specific expenses. The Fund invests
all of its investable assets in interests in the National Limited Maturity
Municipals Portfolio (the Portfolio), a New York Trust, having the same
investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (100.0% at September 30, 1998). The performance of the Fund is
directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with the
Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund 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 Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The 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 Fund, for federal income tax purposes, had a capital loss carryover of
$4,446,913 which will reduce the taxable income arising from future net
realized gain on investments, if any, to the extent permitted by the Internal
Revenue Code and thus will reduce the amount of distributions to shareholders
which would otherwise be necessary to relieve the Fund of any liability for
federal income tax. Such capital loss carryover will expire on March 31, 2002
($1,059), March 31, 2003 ($1,920,274), March 31, 2004 ($1,214,155), March 31,
2005 ($990,979), and March 31, 2006 ($320,446). Dividends paid by the Fund
from net interest on tax-exempt municipal bonds allocated from the Portfolio
are not includable by shareholders as gross income for federal income tax
purposes because the Fund and Portfolio intend to meet certain requirements
of the Internal Revenue Code applicable to regulated investment companies
which will enable the Fund to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after August
7, 1986, may be considered a tax preference item to shareholders.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
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 Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of operating expenses on the Statement of
Operations.
6
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
G Other -- Investment transactions are accounted for on a trade date basis.
H Interim Financial Statements -- The interim financial statements relating
to September 30, 1998, and for the six months then ended have not been
audited by independent certified public accountants, but in the opinion of
the Fund's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Distributions to Shareholders
- --------------------------------------------------------------------------------
The net income of the Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Dividends are declared separately for each class
of shares. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest income and capital gain distributions in additional shares of the
same class of the Fund at the net asset value as of the reinvestment date.
Distributions are paid in the form of additional shares of the same class or,
at the election of the shareholder, in cash. The Fund distinguishes 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
over distributions for financial statement purposes only are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. The tax treatment of
distributions for the calendar year will be reported to shareholders prior to
February 1, 1999, and will be based on tax accounting methods which may
differ from amounts determined for financial statement purposes.
3 Shares of Beneficial Interest
- --------------------------------------------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different classes.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class A (Unaudited) March 31, 1998
--------------------------------------------------------------------------
<S> <C> <C>
Sales 302,621 --
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 51,516 86,113
Redemptions (658,280) (1,509,686)
Exchange to Class A
shares 421,959 3,411,349
Issued to EV Traditional
National Limited
Maturity Municipals
Fund Shareholders 1,224,418 --
--------------------------------------------------------------------------
Net increase 1,342,234 1,987,776
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998 Year Ended
Class B (Unaudited) March 31, 1998
--------------------------------------------------------------------------
<S> <C> <C>
Sales 79,633 212,978
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 10,528 65,151
Redemptions (150,010) (609,705)
Exchange to Class A
shares (421,959) (3,411,349)
--------------------------------------------------------------------------
Net decrease (481,808) (3,742,925)
--------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Six Months Ended
September 30, 1998
Class C (Unaudited)
--------------------------------------------------
<S> <C>
Sales 679,092
Issued to shareholders
electing to receive
payments of distributions
in Fund shares 12,398
Redemptions (387,413)
Issued to EV Classic
National Limited
Maturity Municipals
Fund Shareholders 778,824
--------------------------------------------------
Net increase 1,082,901
--------------------------------------------------
</TABLE>
7
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4 Transactions with Affiliates
------------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are included
elsewhere in this report. Certain of the officers and Trustees of the Fund and
the Portfolio are officers and directors/trustees of the above organizations.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $5,317 from the Fund as its portion of the
sales charge on sales of Class A shares for the six months ended September 30,
1998.
Except as to Trustees of the Fund and the Portfolio who are not members of
EVM's organization, officers and Trustees receive remuneration for their
services to the Fund out of such investment adviser fee.
5 Distribution and Service Plans
------------------------------------------------------------------------------
The Fund has adopted a distribution plan ("Class B Plan" and "Class C Plan")
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan ("Class A Plan,") (collectively, "the Plans"). The Plans require the Fund
to pay the principal underwriter, EVD, amounts equal to 1/365 of 0.75% of the
Fund's daily net assets attributable to Class B and Class C shares for
providing ongoing distribution services and facilities to the Fund. The Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent
to the sum of (i) 3% of the aggregate amount received by the Fund for Class B
shares sold, plus (ii) distribution fees calculated by applying the rate of 1%
over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD of each respective class, reduced by the aggregate
amount of contingent deferred sales charges (see Note 6) and amounts
theretofore paid to or payable to EVD. The amount payable to EVD with respect
to each day is accrued on such day as a liability of the Fund and,
accordingly, reduces The Fund's net assets. For the six months ended September
30, 1998, the Fund paid or accrued $32,585 and $32,538 for Class B and Class C
shares, respectively, to EVD, representing 0.75% of the average daily net
assets for Class B and Class C shares. At September 30, 1998, the amount of
Uncovered Distribution Charges of EVD calculated under the Plan was
approximately $339,000 and $4,187,000 for Class B and Class C shares,
respectively.
In addition, the Plans also authorize each class to make payments of service
fees to EVD, Authorized Firms and other persons in amounts not exceeding 0.25%
of the Fund's average daily net assets for each fiscal year. The Trustees have
initially implemented the Plans by authorizing the Fund to make quarterly
service fee payments to EVD and Authorized Firms in amounts not expected to
exceed 0.15% per annum of the Fund's average daily net assets attributable to
Class A and Class B shares based on the value of Fund shares sold by such
persons and remaining outstanding for at least one year. The Class C Plan
requires the Fund to make monthly payments of service fees in amounts not
expected to exceed 0.25% of the Fund's average daily net assets attributable
to Class C shares for any fiscal year. Service fee payments for the six months
ended September 30, 1998, amounted to $48,379, $6,386, and $7,567 for Class A,
Class B, and Class C shares, respectively. Service fee payments are made for
personal services and/or the maintenance of shareholder accounts. Service fees
are separate and distinct from the sales commissions and distribution fees
payable by the Fund to EVD, and, as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges of
EVD.
Certain officers and Trustees of the Fund are officers or directors of EVD.
6 Contingent Deferred Sales Charge
------------------------------------------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within four years of purchase. A CDSC is imposed on
certain Class C shares redeemed within one year of purchase. Generally, the
CDSC is based upon the lower of the net asset value at date of redemption or
date of purchase. No charge is levied on Class B and Class C shares acquired
by reinvestment of dividends or capital gains distributions. The CDSC for
Class B shares is imposed at declining rates that begin at 3% in the case of
redemptions in the first year of purchase. Class C shares are subject to a 1%
CDSC if redeemed within one year of purchase. No CDSC is levied on shares
which have been sold to EVM or its affiliates or to their respective employees
or clients. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under the Fund's Distribution Plan (see Note
5). CDSC charges received when no Uncovered
8
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
Distribution Charges exist will be credited to the Fund. EVD received
approximately $11,000 and $400 of CDSC paid by shareholders for Class B shares
and Class C shares, respectively, for the six months ended September 30, 1998.
7 Investment Transactions
------------------------------------------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended September 30, 1998, aggregated $15,792,312 and $19,455,682,
respectively.
8 Transfer of Net Assets
------------------------------------------------------------------------------
On April 1, 1998, the existing Class I and Class II shares of EV Marathon
National Limited Maturity Municipals Fund were designated Class B and Class A
shares, respectively. In addition, the Fund acquired the net assets of the EV
Traditional National Limited Maturity Municipals Fund and EV Classic National
Limited Maturity Municipals Fund pursuant to an Agreement and Plan of
Reorganization dated June 23, 1997. In accordance with the agreement, EV
Marathon National Limited Maturity Municipals Fund, at the closing, issued
1,224,418 Class A shares and 778,824 Class C shares of the Fund having an
aggregate value of $12,949,960 and $7,722,266, respectively. As a result, the
Fund issued 0.965 shares of Class A and one share of Class C for each share of
EV Traditional National Limited Maturity Municipals Fund and EV Classic
National Limited Maturity Municipals Fund, respectively. The transaction was
structured for tax purposes to qualify as a tax free reorganization under the
Internal Revenue Code. The EV Traditional National Limited Maturity Municipals
Fund's and EV Classic National Limited Maturity Municipals Fund's net assets
at the date of the transaction were $12,949,960 and $7,722,266, including
$480,130 and $490,592 of unrealized appreciation, respectively. Directly after
the merger, the combined net assets of the Eaton Vance National Limited
Maturity Municipals Fund (formerly "EV Marathon National Limited Maturity
Municipals Fund") were $92,201,674 with a net asset value of $10.58, $10.58
and $9.92 for Class A, Class B and Class C, respectively.
9 Name Change
------------------------------------------------------------------------------
Effective April 1, 1998, EV Marathon National Limited Maturity Municipals Fund
changed its name to Eaton Vance National Limited Maturity Municipals
Fund.
9
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living -- 1.2%
- ------------------------------------------------------------------------------------------
NR NR $1,000 New Jersey EDA, (Chelsea at
East Brunswick), (AMT),
8.00%, 10/1/07 $ 1,121,300
- ------------------------------------------------------------------------------------------
$ 1,121,300
- ------------------------------------------------------------------------------------------
Cogeneration -- 4.2%
- ------------------------------------------------------------------------------------------
NR BBB $ 470 Eastern Connecticut
Resource Recovery
Authority, (Wheelabrator Lisbon),
(AMT), 5.50%, 1/1/20 $ 472,425
NR BBB- 1,120 New Jersey EDA,
(Trigen-Trenton), (AMT), 6.10%, 12/1/05 1,215,838
NR BB+ 1,250 New Jersey EDA, (Vineland
Cogeneration) (AMT),
7.875%, 6/1/19 1,374,575
NR NR 500 Palm Beach County, FL,
(Okeelanta Power), (AMT),
6.85%, 2/15/21/(1)/ 400,000
NR NR 500 Palm Beach County, FL, (Osceola
Power), (AMT), 6.95%, 1/1/22/(1)/ 395,000
- ------------------------------------------------------------------------------------------
$ 3,857,838
- ------------------------------------------------------------------------------------------
Economic Development Revenue -- 1.0%
- ------------------------------------------------------------------------------------------
NR BB- $ 950 Michigan State Strategic Fund,
(Crown Paper), 6.25%, 8/1/12 $ 897,019
- ------------------------------------------------------------------------------------------
$ 897,019
- ------------------------------------------------------------------------------------------
Education -- 3.0%
- ------------------------------------------------------------------------------------------
Ba1 NR $1,000 New Hampshire HEFA, (Colby-Sawyer
College), 7.20%, 6/1/12 $ 1,099,910
NR BBB 500 New Hampshire HEFA, (Rivier
College), 5.55%, 1/1/18 511,940
Aa AA- 1,700 University of Illinois, 0.00%, 4/1/15 778,379
Aa AA- 1,000 University of Illinois, 0.00%, 4/1/16 432,250
- ------------------------------------------------------------------------------------------
$ 2,822,479
- ------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 14.4%
- ------------------------------------------------------------------------------------------
Aaa AAA $1,500 Grand Ledge, MI, Public School
District, (MBIA), Prerefunded to
5/1/04, 7.875%, 5/1/11 $ 1,822,920
NR NR 3,500 Maricopa County, AZ, IDA,
Multifamily, Escrowed to
Maturity, 6.45%, 1/1/17 3,968,369
</TABLE>
<TABLE>
<CAPTION>
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed / Prerefunded (continued)
- ------------------------------------------------------------------------------------------
NR NR $ 990 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity,
7.876%, 1/1/11 $ 1,197,623
Baa3 NR 1,340 Massachusetts HEFA, (Milford-
Whitinsville Hospital), Escrowed to
Maturity, 7.125%, 7/15/02 1,421,003
Aaa NR 3,000 Massachusetts Turnpike Authority,
Escrowed to Maturity,
5.00%, 1/1/20/(2)/ 3,109,679
NR NR 1,550 Saint Tammany Public Trust Finance
Authority, LA (Christwood), Escrowed
to Maturity, 8.75%, 11/15/05 1,824,986
- ------------------------------------------------------------------------------------------
$13,344,580
- ------------------------------------------------------------------------------------------
General Obligations -- 12.0%
- ------------------------------------------------------------------------------------------
Baa2 BBB+ $4,000 Detroit, MI, 6.50%, 4/1/02/(3)/ $ 4,322,479
A3 A- 750 New York City, NY, 0.00%, 8/1/07 512,325
Aa1 AA+ 750 Ohio State, 0.00%, 8/1/08 496,875
NR NR 1,800 Pennsylvania EDA, (Resource Recovery
for Northampton), 6.75%, 1/1/07 1,982,304
Baa1 A 1,500 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/15 1,522,455
NR NR 500 San Juan, NM, Pueblo Development
Authority, 7.00%, 10/15/06 500,005
NR NR 1,755 Youngstown, OH, County School
District, 6.40%, 7/1/00 1,808,212
- ------------------------------------------------------------------------------------------
$11,144,655
- ------------------------------------------------------------------------------------------
Hospital -- 6.9%
- ------------------------------------------------------------------------------------------
NR NR $1,900 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.00%, 9/15/03 $ 1,951,528
NR NR 500 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.30%, 9/15/09 513,630
Baa BBB- 450 Illinois Health Facilities Authority,
(Proctor Community Hospital),
7.375%, 1/1/23 480,758
NR BBB 500 Michigan Hospital Finance Authority,
(Gratiot Community Hospital),
6.10%, 10/1/07 544,660
NR BB- 500 New Hampshire HEFA, (Littleton
Hospital Association),
5.45%, 5/1/08 517,330
</TABLE>
See notes to financial statements
10
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------
Hospital (continued)
- ---------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa BBB- $1,830 Richardson, TX, Hospital
Authority, (Richardson
Medical Center),
6.50%, 12/1/12 $ 1,977,974
NR NR 465 San Gorgonio, CA, Memorial
Health Care District,
5.60%, 5/1/11 472,105
- ---------------------------------------------------------------------------
$ 6,457,985
- ---------------------------------------------------------------------------
Housing -- 5.8%
- ---------------------------------------------------------------------------
A2 NR $1,005 Illinois Development
Finance Authority, Elderly
Housing, (Mattoon Tower),
(Section 8), 6.35%, 7/1/10 $ 1,056,587
Baa3 NR 945 Illinois Development
Finance Authority, Elderly
Housing, (Rome Meadows),
6.40%, 2/1/03 981,014
Baa3 NR 1,145 Illinois Development
Finance Authority, Elderly
Housing, (Rome Meadows),
6.65%, 2/1/06 1,205,857
Aa2 AA 2,000 Wisconsin Housing and
Economic Development
Authority, (Home
Ownership), (AMT), 6.45%,
9/1/27 2,169,440
- ---------------------------------------------------------------------------
$ 5,412,898
- ---------------------------------------------------------------------------
Industrial Development Revenue -- 18.4%
- ---------------------------------------------------------------------------
NR NR $ 690 Austin, TX, (Cargoport
Development LLC), (AMT),
7.50%, 10/1/07 $ 743,289
NR NR 455 Austin, TX, (Cargoport
Development LLC), (AMT),
8.30%, 10/1/21 514,332
NR BBB- 1,000 Clark County, NV, (Nevada
Power Co.), (AMT), 5.90%,
10/1/30 1,025,400
A3 A- 1,000 Columbus, NC (International
Paper Co.), 5.80%, 12/1/16 1,070,850
NR NR 1,100 Eagle County, CO, Airport
Terminal Corp. (American
Airlines), (AMT), 6.75%,
5/1/06 1,186,328
NR NR 900 Iowa Finance Authority,
(Southbridge Mall), 6.375%,
12/1/13 925,398
NR NR 3,435 Jackson, TN, (Owens-Corning
Fiberglass), (AMT),
6.25%, 3/31/04(3) 3,555,224
A3 BBB+ 500 Jones County, MS,
(International Paper Co.),
5.80%, 10/1/21 525,965
NR NR 500 Kansas City, MO, IDR,
(Kingswood Manor), 5.80%,
11/15/17(4) 495,700
NR NR 500 Kimball, NE, EDA, (Clean
Harbors, Inc.), (AMT),
10.75%, 9/1/26 554,280
NR NR 620 Los Angeles, CA, Regional
Airport Improvement
Corporate Lease,
(TransWorld Airlines),
6.125%, 5/15/00 620,186
NR NR 1,000 New Jersey EDA, (Holt
Hauling), 7.90%, 3/1/27 1,145,920
NR NR 750 Ohio Solid Waste Revenue,
(Republic Engineered
Steels, Inc.), (AMT),
9.00%, 6/1/21 815,318
NR BBB- 2,000 Pennsylvania EDA,
(Resources Recovery),
(AMT), 7.05%, 12/1/10 2,241,260
NR NR 500 Robbins, IL, Resource
Recovery, (AMT), 8.375%,
10/15/10 400,000
NR NR 1,265 Santa Fe, NM (Crow Hobbs),
8.25%, 9/1/05 1,334,512
- ---------------------------------------------------------------------------
$17,153,962
- ---------------------------------------------------------------------------
Insured-Education -- 0.2%
- ---------------------------------------------------------------------------
Aaa AAA $ 500 Southern Illinois
University, Housing and
Auxiliary Facilities,
(MBIA), 0.00%, 4/1/17 $ 204,900
- ---------------------------------------------------------------------------
$ 204,900
- ---------------------------------------------------------------------------
Insured-General Obligations -- 2.3%
- ---------------------------------------------------------------------------
Aaa AAA $1,000 Kalamazoo, MI, (MBIA),
5.40%, 5/1/14 $ 1,093,530
Aaa AAA 1,000 New York State Local
Government Assistance
Corp., (MBIA),
5.00%, 4/1/21 1,003,910
- ---------------------------------------------------------------------------
$ 2,097,440
- ---------------------------------------------------------------------------
Insured-Hospital -- 2.6%
- ---------------------------------------------------------------------------
Aaa AAA $2,000 El Paso County, TX,
Hospital District, (MBIA),
0.00%, 8/15/06 $ 1,447,280
Aaa AAA 1,000 Massachusetts HEFA,
(Caregroup), (MBIA), 5.00%,
7/1/18 998,750
- --------------------------------------------------------------------------
$ 2,446,030
- --------------------------------------------------------------------------
Insured-Housing -- 2.5%
- --------------------------------------------------------------------------
Aaa AAA $2,115 Massachusetts HFA,
(Harborpoint Development),
(AMBAC), (AMT), 6.20%,
12/1/10 $ 2,318,040
- --------------------------------------------------------------------------
$ 2,318,040
- --------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 1.1%
- --------------------------------------------------------------------------
Aaa AAA $1,000 West Valley City, UT,
(AMBAC), 4.45%, 4/15/10 $ 995,530
- --------------------------------------------------------------------------
$ 995,530
- --------------------------------------------------------------------------
</TABLE>
See notes to financial statements
11
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ----------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
Insured-Special Tax Revenue -- 0.6%
- ----------------------------------------------------------------------------------
Aaa AAA $ 500 George L. Smith, (Georgia World
Congress Center-Domed Stadium),
(MBIA), (AMT), 6.00%, 7/1/06(4) $ 533,315
- ----------------------------------------------------------------------------------
$ 533,315
- ----------------------------------------------------------------------------------
Miscellaneous -- 1.2%
- ----------------------------------------------------------------------------------
Baa3 NR $ 500 Mashantucket, CT, (Western Pequot
Tribe), 5.55%, 9/1/08 $ 536,650
NR NR 600 Tax Revenue Exempt Securities
Trust, Community Health Provider,
(Pooled Loan Program Various States
Trust Certificates), 6.00%, 12/1/36 627,924
- ----------------------------------------------------------------------------------
$ 1,164,574
- ----------------------------------------------------------------------------------
Nursing Home -- 10.0%
- ----------------------------------------------------------------------------------
NR NR $1,105 Arizona Health Facilities Authority
Assisted Living Facilities, (Mesa),
7.625%, 1/1/06 $ 1,163,112
NR A+ 3,500 California Statewide Communities
Development Corp., (Pacific Homes),
5.90%, 4/1/09 3,814,929
NR NR 650 Citrus County, FL, IDA, (Beverly
Enterprises), 5.00%, 4/1/03 661,525
NR NR 985 Clovis, NM, IDR, (Retirement
Ranches, Inc.), 7.75%, 4/1/19 1,099,999
NR NR 850 Fairfield, OH, EDA, (Beverly
Enterprises), 8.50%, 1/1/03 919,989
NR NR 1,500 Massachusetts IFA, (Age Institute
of Massachusetts), 7.60%, 11/1/05 1,622,400
- ----------------------------------------------------------------------------------
$ 9,281,954
- ----------------------------------------------------------------------------------
Pooled Loans -- 4.6%
- ----------------------------------------------------------------------------------
Aa2 NR $1,900 Arizona Educational Loan Marketing
Corp., (AMT), 6.25%, 6/1/06 $ 2,112,211
A NR 1,000 Arizona Student Loan Acquisition
Authority, (AMT), 7.625%, 5/1/10 1,108,580
A NR 1,000 Arkansas State Student Loan
Authority, (AMT), 6.25%, 6/1/10 1,056,240
- ----------------------------------------------------------------------------------
$ 4,277,031
- ----------------------------------------------------------------------------------
Senior Living / Life Care -- 4.2%
- ----------------------------------------------------------------------------------
NR NR $1,025 Florence, KY, Housing Facilities,
(Bluegrass Housing), 7.25%, 5/1/07 $ 1,097,509
NR NR 2,000 Illinois Health Facilities
Authority, (Lutheran Social
Services), 6.125%, 8/15/10 2,106,840
NR NR 250 Massachusetts IFA, (Forge Hill),
(AMT), 6.75%, 4/1/30 247,265
NR NR $ 475 Vermont IDA, (Wake Robins),
8.00%, 4/1/99 $ 476,131
- ----------------------------------------------------------------------------------
$ 3,927,745
- ----------------------------------------------------------------------------------
Transportation -- 3.8%
- ----------------------------------------------------------------------------------
Baa1 BBB $2,000 Denver, CO City and County Airport,
(AMT), 7.00%, 11/15/99 $ 2,070,220
NR NR 260 Memphis-Shelby County, TN, Airport
Authority, 6.125%, 12/1/16 270,824
NR NR 1,000 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 1,160,380
- ----------------------------------------------------------------------------------
$ 3,501,424
- ----------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $86,616,559) $92,960,699
- ----------------------------------------------------------------------------------
</TABLE>
The Portfolio invests primarily in debt securities issued by 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 of such economic developments, at September 30, 1998,
11.2% 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 institutions ranged from
3.6% to 7.6% of total investments.
At September 30, 1998, the concentration of the Portfolio's investments in the
various states, determined as a percentage of total investments is as follows:
Arizona 11%
Massachusetts 12%
Michigan 10%
Others, representing less than 10% individually 67%
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(4) When-issued security.
See notes to financial statements
12
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
<TABLE>
As of September 30, 1998
Assets
- -------------------------------------------------------------------------
<S> <C>
Investments, at value (identified cost, $86,616,559) $92,960,699
Cash 1,955,937
Interest receivable 1,677,421
Other assets 19,800
- -------------------------------------------------------------------------
Total assets $96,613,857
- -------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------
Payable for investments purchased $ 4,026,665
Payable for daily variation margin on open
financial futures contracts 37,067
Other accrued expenses 5,485
- -------------------------------------------------------------------------
Total liabilities $ 4,069,217
- -------------------------------------------------------------------------
Net Assets applicable to investors' interest in Portfolio $92,544,640
- -------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $86,249,140
Net unrealized appreciation (computed on the basis
of identified cost) 6,295,500
- -------------------------------------------------------------------------
Total $92,544,640
- -------------------------------------------------------------------------
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the Six Months Ended
September 30, 1998
Investment Income
- -------------------------------------------------------------------------
<S> <C>
Interest $ 2,707,045
- -------------------------------------------------------------------------
Total Investment income $ 2,707,045
- -------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------
Investment adviser fee $ 217,609
Trustees fees and expenses 3,264
Custodian fee 28,311
Legal and accounting services 21,874
Amortization of organization expenses 219
Miscellaneous 15,018
- -------------------------------------------------------------------------
Total expenses $ 286,295
- -------------------------------------------------------------------------
Deduct--
Reduction of custodian fee $ 6,590
- -------------------------------------------------------------------------
Total expense reductions $ 6,590
- -------------------------------------------------------------------------
Net expenses $ 279,705
- -------------------------------------------------------------------------
Net investment income $ 2,427,340
- -------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------
Net realized gain (loss)--
Investment transactions (Identified cost basis) $ 231,482
Financial futures contracts (244,201)
- -------------------------------------------------------------------------
Net realized loss $ (12,719)
- -------------------------------------------------------------------------
Change in unrealized appreciation (depreciation)--
Investments (identified cost basis) $ 694,952
Financial futures contracts (28,833)
- -------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) $ 666,119
- -------------------------------------------------------------------------
Net realized and unrealized gain $ 653,400
- -------------------------------------------------------------------------
Net increase in net assets from operations $ 3,080,740
- -------------------------------------------------------------------------
</TABLE>
See notes to financial statements
13
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
Increase (Decrease) September 30, 1998 Year Ended
in Net Assets (Unaudited) March 31, 1998
- ----------------------------------------------------------------------------
<S> <C> <C>
From operations--
Net investment income $ 2,427,340 $ 5,333,661
Net realized loss (12,719) (161,876)
Net change in unrealized
appreciation (depreciation) 666,119 4,669,424
- ----------------------------------------------------------------------------
Net increase in net assets
from operations $ 3,080,740 $ 9,841,209
- ----------------------------------------------------------------------------
Capital transactions--
Contributions $ 15,792,322 $ 44,850,231
Withdrawals (19,455,682) (64,067,696)
- ----------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (3,663,360) $ (19,217,465)
- ----------------------------------------------------------------------------
Net decrease in net assets $ (582,620) $ (9,376,256)
- ----------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------
At beginning of period $ 93,127,260 $ 102,503,516
- ----------------------------------------------------------------------------
At end of period $ 92,544,640 $ 93,127,260
- ----------------------------------------------------------------------------
</TABLE>
See notes to financial statements
14
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
Six Months Ended Year Ended March 31,
September 30, 1998 -----------------------------------------------------------
(Unaudited) 1998 1997 1996 1995 1994(1)
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Expenses (2) 0.62%(3) 0.60% 0.60% 0.57% 0.53% 0.52%(3)
Expenses after custodian fee reduction 0.61%(3) 0.59% 0.58% 0.56% -- --
Net investment income 5.31%(3) 5.53% 5.45% 5.08% 5.02% 4.74%(3)
Portfolio Turnover 11% 41% 68% 68% 56% 21%
- -----------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $92,545 $93,127 $102,504 $134,776 $169,621 $177,842
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, May 3, 1993, to March 31, 1994.
(2) The expense ratios for the year ended March 31, 1996, and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset arrangements
with its service providers. The expense ratios for each of the prior
periods have not been adjusted to reflect this change.
(3) Annualized.
See notes to financial statements
15
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
------------------------------------------------------------------------------
National Limited Maturity Municipals Portfolio (the Portfolio) seeks to
provide (1) a high level of income exempt from regular federal income tax and
(2) limited principal fluctuation. The Portfolio is registered under the
Investment Company Act of 1940 as a diversified open-end management investment
company which was organized as a trust under the laws of the State of New York
on May 1, 1992. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuation -- 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 the
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by, or at the direction of, the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investor's distributive share of the Portfolio's 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
Portfolio 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 the 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 the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, the 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 the 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 the Portfolio. The
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
F Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by the Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of the
cost of the option. When a Portfolio enters into a closing sales transaction,
the Portfolio will realize a gain or loss depending on whether the sales
proceeds from the closing sales transaction is greater or less than the cost
of the option. When the Portfolio exercises a put option, settlement is made
in cash. The risk associated with purchasing options is limited to the premium
originally paid.
G When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued and delayed delivery transactions. The Portfolio records when-
issued securities on trade date and maintains 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.
16
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolio. Pursuant to the custodian agreement, IBT receives
a fee reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
operating expenses on the Statement of Operations.
I 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.
J Other -- Investment transactions are accounted for on a trade date basis.
K Interim Financial Statements -- The interim financial statements relating to
September 30, 1998, and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Investment Adviser Fee and Other Transactions
with Affiliates
------------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is based upon a percentage of average daily net assets plus a percentage of
gross income (i.e., income other than gains from the sale of securities). For
the six months ended September 30, 1998, the fee was equivalent to 0.48% of
the Portfolio's average net assets for such period and amounted to $217,609.
Except as to Trustees of the Portfolio who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services to
the Portfolio out of such investment adviser fee. Certain of the officers and
Trustees of the Portfolio are officers and directors/trustees of the above
organizations. Trustees of the Portfolio that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred Compensation
Plan. For the six months ended September 30, 1998, no significant amounts have
been deferred.
3 Line of Credit
------------------------------------------------------------------------------
The Portfolio participates 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 Portfolio 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. The Portfolio did not have any significant borrowings
or allocated fees during the period.
4 Investments
------------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $10,149,157 and $11,059,312 respectively,
for the six months ended September 30, 1998.
5 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at September 30, 1998, as computed on a federal income tax basis, were
as follows:
<TABLE>
<CAPTION>
<S>
<C>
Aggregate cost $ 86,616,559
------------------------------------------------------------------------------
Gross unrealized appreciation $ 6,518,847
Gross unrealized depreciation (174,707)
------------------------------------------------------------------------------
Net unrealized appreciation $ 6,344,140
------------------------------------------------------------------------------
</TABLE>
17
<PAGE>
National Limited Maturity Municipals Portfolio as of September 30, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options and futures contracts and may involve, to a varying degree, elements
of risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment the Portfolio has in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered. A summary of
obligations under these financial instruments at September 30, 1998 were as
follows:
Futures
Contracts Net Unrealized
Expiration Date Contracts Position Depreciation
----------------------------------------------------------------------------
12/98 29 U.S. Treasury Bonds Short $ (48,640)
----------------------------------------------------------------------------
At September 30, 1998, the Portfolio had sufficient cash and/or securities
to cover margin requirements on open futures contracts.
18
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1998
INVESTMENT MANAGEMENT
Eaton Vance National Limited Maturity Municipals Fund
Officers Independent Trustees
Thomas J. Fetter Donald R. Dwight
President President, Dwight Partners, Inc.
James B. Hawkes Samuel L. Hayes, III
Vice President and Jacob H. Schiff Professor of Investment
Trustee Banking, Harvard University Graduate
School of Business Administration
Robert B. MacIntosh
Vice President Norton H. Reamer
Chairman and Chief Executive Officer,
James L. O'Connor United Asset Management Corporation
Treasurer
John L. Thorndike
Alan R. Dynner Formerly Director, Fiduciary Company
Secretary Incorporated
Jack L. Treynor
Investment Adviser and Consultant
National Limited Maturity Municipals Portfolio
Officers Independent Trustees
Thomas J. Fetter Donald R. Dwight
President President, Dwight Partners, Inc.
James B. Hawkes Samuel L. Hayes, III
Vice President and Jacob H. Schiff Professor of Investment
Trustee Banking, Harvard University Graduate
School of Business Administration
William H. Ahern, Jr.
Vice President and Norton H. Reamer
Portfolio Manager Chairman and Chief Executive Officer,
United Asset Management Corporation
Robert B. MacIntosh
Vice President John L. Thorndike
Formerly Director, Fiduciary Company
James L. O'Connor Incorporated
Treasurer
Jack L. Treynor
Alan R. Dynner Investment Adviser and Consultant
Secretary
19
<PAGE>
Investment Advisor of
National Limited Maturity Municipals Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Adminstrator of
Eaton Vance National Limited Maturity Municipals Fund
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
First Data Investor Services Group, Inc.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Eaton Vance National Limited Maturity Municipals Fund
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, its distribution including plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
- -----------------------------------------------------------------------------
LNASRC/11-98
