<PAGE>
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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 California
MATURITY
MUNICIPALS Connecticut
FUNDS
Florida
TRADITIONAL
Michigan
New Jersey
[Photo of bridge omitted]
New York
Ohio
<PAGE>
EV Traditional 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 secuirites 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 preformance is no guarantee of future results.
Source: Bloomberh, 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 Traditional California Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of Cynthia J. Clemson]
Cynthia J. Clemson,
Portfolio Manager
The Economy
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o California entered 1998 with strong economic momentum. The labor force
increased 309,800 during 1997 to over 16 million, a 2.9% annual growth rate
which exceeded the national employment growth rate of 2.5%. Unemployment
declined to 6.0% in March, 1998 from 6.7% a year earlier.
o California's economic growth has been broad-based. The construction sector
grew 10.8% in 1997, aided by declining mortgage rates. Manufacturing grew
4.4%, led by textiles and apparels with 11.3% and 4.2% growth, respectively.
Services showed solid growth, with particular strength in transportation,
communications, financial services, and business services.
o California continues to lead the nation in the computer software and motion
picture industries. The state remains the nation's leading software employer,
with 20% of total industry employment. Meanwhile, it is estimated that the
motion picture industry is responsible for up to 600,000 jobs statewide.
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 $9.90 on
March 31, 1998 from $9.56 on March 31, 1997, and the reinvestment of $0.43 per
share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.90 on March 31, the Fund's distribution rate was 4.34%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.64%.(4)
Management Update
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o Management continued its program of adding yield to the Portfolio through the
selective purchases of non-rated and lower-rated securities.
o We extended our efforts to diversify the Portfolio's holdings. In addition, we
continued to upgrade call structure in order to improve the Portfolio's upside
potential.
o We maintained a barbell approach to the Portfolio by balancing lower-rated,
higher-yielding bonds with insured, "structure" bonds possessing good
liquidity and favorable trading characteristics.(5)
Your Investment at Work
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Stockton, CA Health Facilities
Revenue Bonds [Graphic Omitted]
Dameron Hospital Association
o Dameron Hospital is a nonprofit public hospital in Stockton, which is located
approximately 70 miles east of San Francisco.
o The proceeds of the bonds were loaned to Dameron to finance improvements and
equipment needs of the hospital, including new information systems and the
construction of a parking structure, as well as to refund outstanding Dameron
Hospital bonds.
o The bond is rated BBB+ by Standard & Poor's, carries a 5.7% coupon, and
provides 11 years of par call protection.
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(1) This return does not include the Fund's 2.25% maximum sales charge. (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) 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 sales charge as noted.
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 8.2%
Life of Fund (12/8/93) 4.1
SEC Average Annual Total Returns (including 2.25% sales charge)
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One year 5.8%
Life of Fund (12/8/93) 3.5
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
CALIFORNIA LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ----------------------------------------------------
12/31/93 $10,000 $ 9,776 $10,000
1/31/94 10,090 9,864 10,106
2/28/94 9,934 9,711 9,887
3/31/94 9,665 9,438 9,623
4/30/94 9,701 9,484 9,693
5/31/94 9,758 9,539 9,741
6/30/94 9,722 9,504 9,724
7/31/94 9,850 9,629 9,861
8/31/94 9,866 9,645 9,913
9/30/94 9,770 9,551 9,818
10/31/94 9,663 9,447 9,719
11/30/94 9,512 9,299 9,577
12/31/94 9,595 9,380 9,723
1/31/95 9,774 9,555 9,905
2/28/95 9,972 9,748 10,128
3/31/95 10,022 9,797 10,233
4/30/95 10,034 9,809 10,261
5/31/95 10,232 10,003 10,534
6/30/95 10,179 9,951 10,524
7/31/95 10,276 10,046 10,658
8/31/95 10,360 10,128 10,784
9/30/95 10,393 10,160 10,825
10/31/95 10,479 10,244 10,920
11/30/95 10,586 10,349 11,040
12/31/95 10,628 10,390 11,098
1/31/96 10,704 10,464 11,206
2/28/96 10,675 10,436 11,168
3/31/96 10,562 10,325 11,059
4/30/96 10,546 10,309 11,038
5/31/96 10,531 10,295 11,022
6/30/96 10,592 10,354 11,107
7/31/96 10,654 10,416 11,198
8/31/96 10,650 10,412 11,205
9/30/96 10,757 10,515 11,306
10/31/96 10,842 10,599 11,427
11/30/96 11,309 10,792 11,618
12/31/96 10,967 10,721 11,583
1/31/97 10,975 10,729 11,625
2/28/97 11,058 10,810 11,721
3/31/97 10,940 10,694 11,569
4/30/97 11,003 10,756 11,629
5/31/97 11,160 10,910 11,775
6/30/97 11,235 10,983 11,887
7/31/97 11,474 11,217 12,163
8/31/97 11,366 11,111 12,077
9/30/97 11,477 11,219 12,204
10/31/97 11,496 11,238 12,276
11/30/97 11,549 11,290 12,320
12/31/97 11,722 11,459 12,471
1/31/98 11,824 11,559 12,601
2/28/98 11,840 11,574 12,612
3/31/98 11,836 11,570 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, 99.18% 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 Traditional Connecticut Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
The Economy
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o Connecticut's economy gathered strength in 1997, a trend that has continued in
1998, according to the University of Connecticut Center for Economic Analysis.
Most economic indicators showed healthy gains, including total employment,
personal income, business starts, retail sales, and consumer confidence.
o The Connecticut housing sector was especially strong in 1997. Housing permits
rose 24.4% in February from the same period a year ago. Tolland and Hartford
counties led the state's housing rebound.
o Connecticut's economic expansion, now in its sixth year, is among the state's
longest expansions on record. Consumer confidence, a key determinant in the
expansion, remains high. According to the U.S. Bureau of Labor Statistics,
consumer confidence in New England has risen 16.0% in the past year.
The Fund
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o During the year ended March 31, 1998, the Fund had a total return of 7.6%.(1)
o This return resulted from an increase in net asset value per share to $9.83 on
March 31, 1998 from $9.53 on March 31, 1997, and the reinvestment of $0.415
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.83 on March 31, the Fund's distribution rate was 4.22%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.92%.(4)
Management Update
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o We emphasized relative value during the period, seizing trading opportunities
to add incrementally to the Portfolio's book yield.
o We made some modest adjustments to the Portfolio, supplementing our large
exposure to general obligations with selective industrial development bonds,
which offered very attractive yields. The IDB bonds improved the income
component of the Fund.
o We continued to focus on upgrading call protection. The market continues to
treat harshly those bonds with inadequate call characteristics.
Your Investment at Work
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Connecticut Health and Education
Facilities Authority [Graphic Omitted]
Greenwich Hospital
o Greenwich Hospital is a 160-bed, acute care and referral center serving
Greenwich and surrounding communities in southwestern Connecticut.
o The proceeds were used to finance construction of a new hospital building,
including a general medical unit and units dedicated to cardiopulmonary,
women's/ infant, surgical, psychiatric, orthopedic and emergency room care.
o The bonds, rated Aaa/AAA by Moody's and S&P, carry a 5.75% coupon from a very
high-quality issuer, while providing ample call protection.
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(1) This return does not include the Fund's 2.25% maximum sales charge. (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 sales charge as noted.
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(5)
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Average Annual Total Returns (at net asset value)
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One year 7.6%
Life of Fund (12/27/93) 3.7
SEC Average Annual Total Returns (including 2.25% sales charge)
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One year 5.2%
Life of Fund (12/27/93) 3.2
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
CONNECTICUT LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ----------------------------------------------------
12/31/93 $10,000 $ 9,775 $10,000
1/31/94 10,044 9,818 10,106
2/28/94 9,856 9,634 9,887
3/31/94 9,585 9,369 9,623
4/30/94 9,650 9,433 9,693
5/31/94 9,665 9,448 9,741
6/30/94 9,608 9,392 9,724
7/31/94 9,724 9,505 9,861
8/31/94 9,749 9,530 9,913
9/30/94 9,672 9,455 9,818
10/31/94 9,575 9,360 9,719
11/30/94 9,464 9,251 9,577
12/31/94 9,566 9,351 9,723
1/31/95 9,723 9,504 9,905
2/28/95 9,888 9,666 10,128
3/31/95 9,947 9,724 10,233
4/30/95 9,969 9,745 10,261
5/31/95 10,123 9,896 10,534
6/30/95 10,101 9,874 10,524
7/31/95 10,197 9,968 10,658
8/31/95 10,290 10,059 10,784
9/30/95 10,332 10,099 10,825
10/31/95 10,438 10,203 10,920
11/30/95 10,533 10,296 11,040
12/31/95 10,574 10,336 11,098
1/31/96 10,649 10,409 11,206
2/28/96 10,607 10,368 11,168
3/31/96 10,493 10,257 11,059
4/30/96 10,453 10,218 11,038
5/31/96 10,415 10,181 11,022
6/30/96 10,497 10,261 11,107
7/31/96 10,591 10,353 11,198
8/31/96 10,574 10,337 11,205
9/30/96 10,690 10,450 11,306
10/31/96 10,763 10,521 11,427
11/30/96 11,935 10,689 11,618
12/31/96 10,896 10,651 11,583
1/31/97 10,913 10,668 11,625
2/28/97 10,994 10,747 11,721
3/31/97 10,864 10,620 11,569
4/30/97 10,926 10,680 11,629
5/31/97 11,080 10,831 11,775
6/30/97 11,154 10,903 11,887
7/31/97 11,368 11,112 12,163
8/31/97 11,258 11,005 12,077
9/30/97 11,356 11,100 12,204
10/31/97 11,397 11,140 12,276
11/30/97 11,460 11,202 12,320
12/31/97 11,607 11,346 12,471
1/31/98 11,684 11,421 12,601
2/28/98 11,698 11,435 12,612
3/31/98 11,692 11,429 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, 97.91% 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 Traditional 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 booming 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 8.1%.(1)
o This return resulted from an increase in net asset value per share to $10.27
on March 31, 1998 from $9.95 on March 31, 1997, and the reinvestment of $0.47
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$10.27 on March 31, the Fund's distribution rate was 4.58%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.86%.(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
were the Portfolio's 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 the 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 an 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 2.25% maximum sales charge. (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 sales charge as
noted.
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(6)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One year 8.1%
Life of Fund (7/5/94) 5.5
SEC Average Annual Total Returns (including 2.25% sales charge)
- --------------------------------------------------------------------------------
One year 5.6%
Life of Fund (7/5/94) 4.8
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
FLORIDA LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* July 31, 1994 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ---------------------------------------------------
7/31/94 $10,000 $ 9,778 $10,000
8/31/94 10,030 9,807 10,052
9/30/94 9,949 9,728 9,956
10/31/94 9,839 9,621 9,856
11/30/94 9,708 9,492 9,712
12/31/94 9,848 9,629 9,860
1/31/95 10,020 9,797 10,045
2/28/95 10,198 9,971 10,271
3/31/95 10,269 10,041 10,378
4/30/95 10,278 10,049 10,405
5/31/95 10,472 10,239 10,682
6/30/95 10,460 10,228 10,672
7/31/95 10,563 10,329 10,808
8/31/95 10,667 10,430 10,936
9/30/95 10,697 10,459 10,978
10/31/95 10,770 10,530 11,073
11/30/95 10,852 10,611 11,195
12/31/95 10,936 10,693 11,255
1/31/96 11,010 10,765 11,364
2/28/96 10,933 10,690 11,325
3/31/96 10,815 10,575 11,214
4/30/96 10,782 10,542 11,194
5/31/96 10,760 10,521 11,177
6/30/96 10,823 10,583 11,263
7/31/96 10,899 10,656 11,356
8/31/96 10,898 10,656 11,363
9/30/96 11,006 10,761 11,465
10/31/96 11,082 10,836 11,589
11/30/96 11,267 11,016 11,782
12/31/96 11,212 10,962 11,746
1/31/97 11,189 10,941 11,788
2/28/97 11,274 11,023 11,886
3/31/97 11,129 10,882 11,732
4/30/97 11,217 10,968 11,793
5/31/97 11,374 11,121 11,941
6/30/97 11,440 11,186 12,055
7/31/97 11,644 11,385 12,334
8/31/97 11,530 11,274 12,247
9/30/97 11,620 11,361 12,377
10/31/97 11,677 11,417 12,450
11/30/97 11,733 11,472 12,493
12/31/97 11,871 11,607 12,646
1/31/98 11,998 11,732 12,779
2/28/98 12,005 11,738 12,790
3/31/98 12,029 11,761 12,791
*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, 99.54% 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 Traditional Michigan Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o Economic activity continued to expand in Michigan in 1998, as the robust
national economy created strong demand for the state's manufacturing sector.
The City of Detroit continued its comeback, with unemployment declining and
new business starts gathering momentum.
o The pivotal auto industry enjoyed another strong year in 1997, albeit in an
increasingly competitive sales environment. Sales of U.S. cars and trucks
totalled 15.2 million units for the year.
o According to the Senate Fiscal Agency, Michigan continues to receive less than
a per-capita share of federal expenditures. With no major military
installation in the state, the state receives less in direct payments and
procurements than many other states. The shortfall has averaged more than 20%
over the past decade.
The Fund
- --------------------------------------------------------------------------------
o During the year ended March 31, 1998, the Fund had a total return of 7.6%.(1)
o This return resulted from an increase in net asset value per share to $9.89 on
March 31, 1998 from $9.60 on March 31, 1997, and the reinvestment of $0.43 per
share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.89 on March 31, the Fund's distribution rate was 4.35%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.88%.(4)
Management Update
- --------------------------------------------------------------------------------
o The Portfolio continued to focus on relative value during the past year,
seeking good trading opportunities as well as pursuing attractive non-rated
bonds when possible.
o Several of the Portfolio's major investments were Detroit issues. The City's
general obligation bonds have fared well due to signs of economic
revitalization and the improved prospects for casino gambling.
o Escrowed bonds were among the Portfolio's largest weightings. Pre-refunded and
backed by U.S. Treasuries, escrowed bonds tend to perform well in a declining
interest rate environment.
Your Investment at Work
- --------------------------------------------------------------------------------
Monroe County
Pollution Control Revenue Bonds. [Graphic Omitted]
The Detroit Edison Co.
o The proceeds of the bonds were used to build pollution control facilities at
Detroit Edison's Enrico Fermi 2 and Monroe Power Plants.
o In financing the purchase of land, pollution control monitors, and solid waste
disposal equipment, the bonds provided much-needed environmental support for a
major power source in southeastern Michigan.
o In addition to providing an attractive 6.35% coupon, the bonds are insured by
AMBAC, one of the nation's largest municipal bond insurers, and are rated
Aaa/AAA by Moody's and Standard & Poor's, respectively.(5)
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's 2.25% maximum sales charge. (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) Private insurance does
not remove the interest rate risks that are associated with this investment.
(6) Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns reflect sales
charge as noted.
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(6)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One year 7.6%
Life of Fund (12/8/93) 4.1
SEC Average Annual Total Returns (including 2.25% sales charge)
- --------------------------------------------------------------------------------
One year 5.2%
Life of Fund (12/8/93) 3.5
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
MICHIGAN LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ----------------------------------------------------
12/31/93 $10,000 $ 9,776 $10,000
1/31/94 10,079 9,853 10,106
2/28/94 9,882 9,660 9,887
3/31/94 9,582 9,367 9,623
4/30/94 9,659 9,442 9,693
5/31/94 9,706 9,488 9,741
6/30/94 9,690 9,473 9,724
7/31/94 9,797 9,577 9,861
8/31/94 9,824 9,604 9,913
9/30/94 9,728 9,509 9,818
10/31/94 9,611 9,395 9,719
11/30/94 9,470 9,257 9,577
12/31/94 9,573 9,359 9,723
1/31/95 9,763 9,544 9,905
2/28/95 9,941 9,717 10,128
3/31/95 9,990 9,766 10,233
4/30/95 10,003 9,779 10,261
5/31/95 10,180 9,952 10,534
6/30/95 10,138 9,911 10,524
7/31/95 10,214 9,985 10,658
8/31/95 10,309 10,077 10,784
9/30/95 10,352 10,120 10,825
10/31/95 10,482 10,246 10,920
11/30/95 10,578 10,341 11,040
12/31/95 10,610 10,372 11,098
1/31/96 10,697 10,457 11,206
2/28/96 10,624 10,386 11,168
3/31/96 10,500 10,264 11,059
4/30/96 10,462 10,227 11,038
5/31/96 10,458 10,223 11,022
6/30/96 10,519 10,283 11,107
7/31/96 10,637 10,398 11,198
8/31/96 10,600 10,362 11,205
9/30/96 10,728 10,488 11,306
10/31/96 10,825 10,582 11,427
11/30/96 11,011 10,764 11,618
12/31/96 10,985 10,738 11,583
1/31/97 11,026 10,779 11,625
2/28/97 11,109 10,860 11,721
3/31/97 11,002 10,755 11,569
4/30/97 11,043 10,795 11,629
5/31/97 11,188 10,937 11,775
6/30/97 11,275 11,022 11,887
7/31/97 11,491 11,234 12,163
8/31/97 11,406 11,150 12,077
9/30/97 11,482 11,225 12,204
10/31/97 11,513 11,255 12,276
11/30/97 11,555 11,296 12,320
12/31/97 11,740 11,476 12,471
1/31/98 11,842 11,576 12,601
2/28/98 11,846 11,580 12,612
3/31/98 11,842 11,576 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, 99.71% 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 Traditional New Jersey Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o The New Jersey economy continued its slow but steady improvement in the past
year. Total state employment rose by more than 87,000 jobs, the strongest job
growth since 1984. Unemployment was 5.1 in March, the lowest level since 1990.
o Residential construction in New Jersey was very strong in the past year, with
building permits for residential units rising 21%. Construction activity was
boosted by the robust economy and mild winter weather, and marked the best
showing in a decade for the residential construction industry.
o The fastest job growth remained in the services-related sectors. Restaurants,
temporary personnel agencies, computer-related businesses, data processing,
engineering, and financial services all posted strong job growth in the past
year.
The Fund
- --------------------------------------------------------------------------------
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 $9.62 on March 31, 1997, and the reinvestment of $0.425
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 4.30%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.06%.(4)
Management Update
- --------------------------------------------------------------------------------
o Portfolio activity was generally characterized by an emphasis on relative
value, efforts to build book yield through trading opportunities, and
continuing adjustments to improve the Portfolio's call protection.
o With quality spreads remaining historically narrow, the continuing care and
nursing home sectors again afforded the Portfolio opportunities to find
attractive higher-yielding, non-rated issues.
o The Portfolio emphasized high quality institutions in the hospital sector,
which has become increasingly competitive in recent years. We limited our
exposure to the solid waste sector, the subject of recent adverse court
decisions.
Your Investment at Work
- --------------------------------------------------------------------------------
New Jersey Economic
Development Authority [Graphic Omitted]
District Heating and Cooling
Trigen-Trenton Project
o Trigen Energy Corp. operates cogeneration and district heating and cooling
systems in New Jersey, New York, Oklahoma, Missouri, and Ontario, Canada.
o Proceeds from the bond issue financed the installation of a new chilled water
production unit and pipe extensions for the hot and chilled water distribution
systems.
o The bonds have a 6.1% coupon and are representative of the Portfolio's efforts
to find value in non-rated and lower-rated investment grade bonds.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's 2.25% maximum sales charge. (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 sales charge as noted.
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 7.2%
Life of Fund (12/8/93) 3.9
SEC Average Annual Total Returns (including 2.25% sales charge)
- --------------------------------------------------------------------------------
One year 4.8%
Life of Fund (12/8/93) 3.4
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
NEW JERSEY LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ----------------------------------------------------
12/31/93 $10,000 $ 9,776 $10,000
1/31/94 10,088 9,862 10,106
2/28/94 9,932 9,709 9,887
3/31/94 9,652 9,436 9,623
4/30/94 9,728 9,510 9,693
5/31/94 9,775 9,556 9,741
6/30/94 9,738 9,520 9,724
7/31/94 9,855 9,634 9,861
8/31/94 9,871 9,650 9,913
9/30/94 9,795 9,575 9,818
10/31/94 9,678 9,461 9,719
11/30/94 9,547 9,333 9,577
12/31/94 9,692 9,474 9,723
1/31/95 9,860 9,638 9,905
2/28/95 10,015 9,791 10,128
3/31/95 10,086 9,860 10,233
4/30/95 10,077 9,851 10,261
5/31/95 10,264 10,034 10,534
6/30/95 10,210 9,981 10,524
7/31/95 10,307 10,076 10,658
8/31/95 10,379 10,147 10,784
9/30/95 10,433 10,199 10,825
10/31/95 10,518 10,283 10,920
11/30/95 10,646 10,408 11,040
12/31/95 10,688 10,449 11,098
1/31/96 10,742 10,502 11,206
2/28/96 10,691 10,451 11,168
3/31/96 10,567 10,330 11,059
4/30/96 10,517 10,281 11,038
5/31/96 10,491 10,256 11,022
6/30/96 10,573 10,336 11,107
7/31/96 10,690 10,451 11,198
8/31/96 10,675 10,436 11,205
9/30/96 10,780 10,539 11,306
10/31/96 10,843 10,600 11,427
11/30/96 11,017 10,770 11,618
12/31/96 10,990 10,743 11,583
1/31/97 11,042 10,794 11,625
2/28/97 11,113 10,863 11,721
3/31/97 10,983 10,737 11,569
4/30/97 11,034 10,787 11,629
5/31/97 11,167 10,917 11,775
6/30/97 11,254 11,001 11,887
7/31/97 11,480 11,223 12,163
8/31/97 11,371 11,116 12,077
9/30/97 11,470 11,213 12,204
10/31/97 11,500 11,242 12,276
11/30/97 11,541 11,282 12,320
12/31/97 11,689 11,427 12,471
1/31/98 11,791 11,527 12,601
2/28/98 11,794 11,530 12,612
3/31/98 11,778 11,513 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, 97.52% 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 Traditional 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
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
o During the year ended March 31, 1998, the Fund had a total return of 9.1%.(1)
o This return resulted from an increase in net asset value per share to $10.30
on March 31, 1998 from $10.05 on March 31, 1997, and the reinvestment of $0.47
per share in tax-free dividend income and $0.1732 in capital gains
distributions.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$10.30 on March 31, the Fund's distribution rate was 4.56%.(3)
o The Fund's SEC 30-day yield at March 31 was 3.91%.(4)
Management Update
- --------------------------------------------------------------------------------
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
- --------------------------------------------------------------------------------
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 2.25% maximum sales charge. (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 sales charge as noted.
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 9.1%
Life of Fund (7/6/94) 6.2
SEC Average Annual Total Returns (including 2.25% sales charge)
- --------------------------------------------------------------------------------
One year 6.6%
Life of Fund (7/6/94) 5.5
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
NEW YORK LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* July 31, 1994 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ---------------------------------------------------
7/31/94 $10,000 $ 9,777 $10,000
8/31/94 10,059 9,835 10,052
9/30/94 9,958 9,736 9,956
10/31/94 9,848 9,629 9,856
11/30/94 9,686 9,470 9,712
12/31/94 9,838 9,618 9,860
1/31/95 10,009 9,786 10,045
2/28/95 10,199 9,971 10,271
3/31/95 10,270 10,041 10,378
4/30/95 10,268 10,039 10,405
5/31/95 10,474 10,240 10,682
6/30/95 10,473 10,239 10,672
7/31/95 10,576 10,340 10,808
8/31/95 10,690 10,452 10,936
9/30/95 10,720 10,481 10,978
10/31/95 10,825 10,583 11,073
11/30/95 10,971 10,726 11,195
12/31/95 11,023 10,778 11,255
1/31/96 11,108 10,860 11,364
2/28/96 11,063 10,816 11,325
3/31/96 10,956 10,711 11,214
4/30/96 10,922 10,678 11,194
5/31/96 10,911 10,668 11,177
6/30/96 10,974 10,729 11,263
7/31/96 11,061 10,814 11,356
8/31/96 11,039 10,792 11,363
9/30/96 11,157 10,908 11,465
10/31/96 11,245 10,994 11,589
11/30/96 11,430 11,175 11,782
12/31/96 11,364 11,111 11,746
1/31/97 11,353 11,100 11,788
2/28/97 11,449 11,194 11,886
3/31/97 11,348 11,095 11,732
4/30/97 11,414 11,160 11,793
5/31/97 11,584 11,326 11,941
6/30/97 11,685 11,424 12,055
7/31/97 11,970 11,703 12,334
8/31/97 11,879 11,614 12,247
9/30/97 11,992 11,725 12,377
10/31/97 12,027 11,758 12,450
11/30/97 12,083 11,814 12,493
12/31/97 12,265 11,991 12,646
1/31/98 12,359 12,084 12,779
2/28/98 12,378 12,102 12,790
3/31/98 12,375 12,099 12,791
*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, 99.90% 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 Traditional Ohio Limited Maturity Municipals Fund as of March 31, 1998
INVESTMENT UPDATE
[Photo of William H. Ahern]
William H. Ahern,
Portfolio Manager
The Economy
- --------------------------------------------------------------------------------
o Ohio's labor market has remained strong in recent months. According to the
Ohio Bureau of Employment Services, the state enjoyed especially strong job
creation within the business and health services areas. Over the one-year
period, the number of employed Ohioans has increased by 156,000.
o The Asian crisis, which rocked the financial markets in late 1997, has
moderated somewhat in recent months. Nonetheless, weakness in the Asian
economies is likely to persist through 1998 and into 1999, and could modestly
dampen export demand for Ohio's manufactured goods.
o Ohio tax revenues have exceeded estimates by 2.1% in the current fiscal year.
Continued low employment and strong consumer buying power have resulted in
strong year-to-date income and sales tax receipts.
The Fund
- --------------------------------------------------------------------------------
o During the year ended March 31, 1998, the Fund had a total return of 8.0%.(1)
o This return resulted from an increase in net asset value per share to $9.92 on
March 31, 1998 from $9.59 on March 31, 1997, and the reinvestment of $0.425
per share in tax-free dividend income.(2)
o Based on the Fund's most recent dividend and a closing net asset value of
$9.92 on March 31, the Fund's distribution rate was 4.28%.(3)
o The Fund's SEC 30-day yield at March 31 was 2.71%.(4)
Management Update
- --------------------------------------------------------------------------------
o General obligations and insured general obligations were the Portfolio's
largest concentrations, providing good quality and liquidity.5 Zero-coupon GOs
provided performance in a declining rate environment.
o Investments in non-rated bonds allowed us to add incrementally to the Fund's
yield. The Portfolio found attractive non-rated situations in the industrial
development, housing, and continuing care sectors.
o We remained very selective with respect to hospital bonds. We focused on the
more competitive institutions that have favorable cost structures and have
forged alliances through mergers or alliances with other hospitals.
Your Investment at Work
- --------------------------------------------------------------------------------
Certificates of Participation
City of Cleveland
Cleveland Stadium Project
o Following the relocation of the Browns to Baltimore, the National Football
League formally awarded the city a new franchise in April 1998. The new
Cleveland Browns will commence league play in the 1999 season.
o The certificates represent a participation in the rents to be paid by the City
of Cleveland and were used to assist in financing the construction of the new
open-air, 70,000-seat Cleveland Stadium.
o The certificates have a 5.25% coupon and are rated Aaa/AAA by Moody's and
Standard & Poor's.
- --------------------------------------------------------------------------------
(1) This return does not include the Fund's 2.25% maximum sales charge. (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) 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
sales charge as noted.
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(6)
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One year 8.0%
Life of Fund (12/8/93) 4.1
SEC Average Annual Total Returns (including 2.25% sales charge)
- --------------------------------------------------------------------------------
One year 5.6%
Life of Fund (12/8/93) 3.5
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EV TRADITIONAL
OHIO LIMITED MATURITY MUNICIPALS FUND VS. THE LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* Dec. 31, 1993 - March 31, 1998
FUND,
INCLUDING
MAXIMUM
FUND SALES
DATE NAV CHARGE INDEX
- ----------------------------------------------------
12/31/93 $10,000 $ 9,776 $10,000
1/31/94 10,116 9,889 10,106
2/28/94 9,878 9,657 9,887
3/31/94 9,588 9,373 9,623
4/30/94 9,675 9,458 9,693
5/31/94 9,731 9,513 9,741
6/30/94 9,705 9,487 9,724
7/31/94 9,832 9,612 9,861
8/31/94 9,848 9,627 9,913
9/30/94 9,741 9,523 9,818
10/31/94 9,634 9,418 9,719
11/30/94 9,504 9,290 9,577
12/31/94 9,648 9,432 9,723
1/31/95 9,827 9,606 9,905
2/28/95 10,972 9,749 10,128
3/31/95 10,032 9,807 10,233
4/30/95 10,023 9,798 10,261
5/31/95 10,232 10,002 10,534
6/30/95 10,168 9,940 10,524
7/31/95 10,243 10,013 10,658
8/31/95 10,337 10,105 10,784
9/30/95 10,391 10,158 10,825
10/31/95 10,488 10,252 10,920
11/30/95 10,583 10,346 11,040
12/31/95 10,636 10,398 11,098
1/31/96 10,669 10,429 11,206
2/28/96 10,628 10,389 11,168
3/31/96 10,515 10,279 11,059
4/30/96 10,487 10,252 11,038
5/31/96 10,483 10,247 11,022
6/30/96 10,587 10,350 11,107
7/31/96 10,660 10,421 11,198
8/31/96 10,656 10,417 11,205
9/30/96 10,784 10,542 11,306
10/31/96 10,846 10,603 11,427
11/30/96 11,032 10,784 11,618
12/31/96 10,993 10,746 11,583
1/31/97 10,989 10,742 11,625
2/28/97 11,094 10,845 11,721
3/31/97 10,964 10,718 11,569
4/30/97 11,038 10,791 11,629
5/31/97 11,172 10,921 11,775
6/30/97 11,258 11,005 11,887
7/31/97 11,496 11,238 12,163
8/31/97 11,422 11,166 12,077
9/30/97 11,498 11,240 12,204
10/31/97 11,540 11,281 12,276
11/30/97 11,581 11,321 12,320
12/31/97 11,717 11,454 12,471
1/31/98 11,819 11,554 12,601
2/28/98 11,834 11,568 12,612
3/31/98 11,841 11,576 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 Traditional Limited Maturity Municipals Funds as of March 31, 1998
FINANCIAL STATEMENTS
Statements of Assets and Liabilities
As of March 31, 1998
TRADITIONAL TRADITIONAL
TRADITIONAL TRADITIONAL FLORIDA MICHIGAN
CALIFORNIA CONNECTICUT LIMITED LIMITED
LIMITED FUND LIMITED FUND FUND FUND
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Investments in Limited Maturity Municipals Portfolio --
Identified cost $3,012,621 $1,010,140 $4,429,638 $ 767,884
Unrealized
appreciation 109,134 44,459 84,307 113,532
- --------------------------------------------------------------------------------
Total investment in
Portfolio, at value
(Note 1A) $3,121,755 $1,054,599 $4,513,945 $ 881,416
- --------------------------------------------------------------------------------
Receivable from the
Administrator (Note 4) 20,910 14,332 17,088 20,202
Deferred organization
expenses (Note 1D) 1,461 1,561 675 1,439
- --------------------------------------------------------------------------------
Total assets $3,144,126 $1,070,492 $4,531,708 $ 903,057
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Dividends payable $ -- $ -- $ 567 $ --
Accrued expenses 10,513 6,676 6,792 7,634
- --------------------------------------------------------------------------------
Total liabilities $ 10,513 $ 6,676 $ 7,359 $ 7,634
- --------------------------------------------------------------------------------
Net Assets $3,133,613 $1,063,816 $4,524,349 $ 895,423
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $3,604,190 $1,129,191 $4,507,078 $1,240,198
Accumulated net realized
loss on investments
from Portfolio
(computed on the basis
of identified cost) (579,711) (109,834) (71,844) (458,307)
Accumulated
undistributed
(distributions in
excess of) net
investment income -- -- 4,808 --
Net unrealized
appreciation of
investments from
Portfolio (computed on
the basis of
identified cost) 109,134 44,459 84,307 113,532
- --------------------------------------------------------------------------------
Total $3,133,613 $1,063,816 $4,524,349 $ 895,423
- --------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- --------------------------------------------------------------------------------
316,432 108,178 440,508 90,549
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share
- --------------------------------------------------------------------------------
(Net assets / shares of
beneficial interest
outstanding) $ 9.90 $ 9.83 $ 10.27 $ 9.89
- --------------------------------------------------------------------------------
Computation of Offering Price
- --------------------------------------------------------------------------------
Offering price per share
(100 / 97.75 of net
asset value per share) $ 10.13 $ 10.06 $ 10.51 $ 10.12
- --------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price is reduced.
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Assets and Liabilities
As of March 31, 1998
TRADITIONAL TRADITIONAL
TRADITIONAL NEW YORK OHIO
NEW JERSEY LIMITED LIMITED
LIMITED FUND FUND FUND
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Investments in Limited Maturity Municipals Portfolio --
Identified cost $766,902 $504,724 $1,548,819
Unrealized appreciation 57,157 21,601 116,658
- --------------------------------------------------------------------------------
Total investment in Portfolio, at value
(Note 1A) $824,059 $526,325 $1,665,477
- --------------------------------------------------------------------------------
Receivable from the Administrator (Note 4) 21,160 19,918 12,158
Deferred organization expenses (Note 1D) 1,455 1,920 1,406
- --------------------------------------------------------------------------------
Total assets $846,674 $548,163 $1,679,041
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Dividends payable $ 15 $ -- $ --
Accrued expenses 7,409 4,411 7,701
- --------------------------------------------------------------------------------
Total liabilities $ 7,424 $ 4,111 $ 7,701
- --------------------------------------------------------------------------------
Net Assets $839,250 $543,752 $1,671,340
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Paid-in capital $905,817 $517,764 $1,809,352
Accumulated undistributed net realized
gain (loss) on investments from
Portfolio (computed on the basis of
identified cost) (123,709) 5,165 (255,664)
Accumulated undistributed
(distributions in excess of) net
investment income (15) (778) 994
Net unrealized appreciation of
investments from Portfolio (computed
on the basis of identified cost) 57,157 21,601 116,658
- --------------------------------------------------------------------------------
Total $839,250 $543,752 $1,671,340
- --------------------------------------------------------------------------------
Shares of Beneficial Interest Outstanding
- --------------------------------------------------------------------------------
84,903 52,767 168,504
- --------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share
- --------------------------------------------------------------------------------
(Net assets / shares of beneficial
interest outstanding) $ 9.88 $ 10.30 $ 9.92
- --------------------------------------------------------------------------------
Computation of Offering Price
- --------------------------------------------------------------------------------
Offering price per share (100 / 97.75
of net asset value per share) $ 10.11 $ 10.54 $ 10.15
- --------------------------------------------------------------------------------
On sales of $100,000 or more, the offering price is reduced.
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Operations
For the Year Ended March 31, 1998
TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Interest income
allocated from
Portfolio $ 142,611 $ 60,120 $214,769 $ 53,676
Expenses
allocated from
Portfolio (15,314) (5,641) (21,710) (6,341)
- --------------------------------------------------------------------------------
Net investment
income from
Portfolio $ 127,297 $ 54,479 $193,059 $ 47,335
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Service fees
(Note 5) $ 1,536 $ 1,651 $ 2,136 $ 749
Transfer and
dividend
disbursing agent
fees 2,950 1,134 2,999 1,720
Legal and
accounting
services 12,224 7,306 4,406 8,985
Printing and
postage 9,954 5,242 5,244 8,069
Custodian fee 3,270 3,270 3,270 2,871
Registration fees 30 520 25 1,270
Amortization of
organization
expenses (Note 1D) 2,146 2,296 1,920 2,128
Miscellaneous 1,474 1,386 4,080 1,374
- --------------------------------------------------------------------------------
Total expenses $ 33,584 $ 22,805 $ 24,080 $ 27,166
- --------------------------------------------------------------------------------
Deduct --
Allocation of
expenses to the
Administrator
(Note 4) $ 20,910 $ 14,332 $ 17,088 $ 20,202
- --------------------------------------------------------------------------------
Total expense
reductions $ 20,910 $ 14,332 $ 17,088 $ 20,202
- --------------------------------------------------------------------------------
Net expenses $ 12,674 $ 8,473 $ 6,992 $ 6,964
- --------------------------------------------------------------------------------
Net investment
income $ 114,623 $ 46,006 $186,067 $ 40,371
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment
transactions
(identified cost
basis) $ 58,397 $ 12,257 $ 39,566 $ 18,355
Financial
futures contracts (30,216) (12,585) (55,871) (19,927)
- --------------------------------------------------------------------------------
Net realized gain
(loss) on
investment
transactions $ 28,181 $ (328) $(16,305) $ (1,572)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ 68,293 $ 38,163 $134,667 $ 32,628
Financial
futures contracts (5,959) (338) (8,984) (162)
- --------------------------------------------------------------------------------
Net change in
unrealized
appreciation
(depreciation) of
investments $ 62,334 $ 37,825 $125,683 $ 32,466
- --------------------------------------------------------------------------------
Net realized and
unrealized gain
on investments $ 90,515 $ 37,497 $109,378 $ 30,894
- --------------------------------------------------------------------------------
Net increase in
net assets from
operations $ 205,138 $ 83,503 $295,445 $ 71,265
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Operations
For the Year Ended March 31, 1998
TRADITIONAL TRADITIONAL TRADITIONAL
NEW JERSEY NEW YORK OHIO
LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Interest income allocated from
Portfolio $ 52,811 $ 30,213 $149,996
Expenses allocated from Portfolio (5,823) (3,281) (16,969)
- --------------------------------------------------------------------------------
Net investment income from
Portfolio $ 46,988 $ 26,932 $133,027
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Service fees (Note 5) $ 1,451 $ 688 $ 3,947
Transfer and dividend disbursing
agent fees 1,380 701 2,759
Legal and accounting services 7,911 6,213 7,978
Printing and postage 8,156 4,494 8,229
Custodian fee 3,892 3,892 3,892
Registration fees -- 1,799 600
Amortization of organization
expenses (Note 1D) 2,135 2,154 2,084
Miscellaneous 1,445 1,435 1,377
- --------------------------------------------------------------------------------
Total expenses $ 26,370 $ 21,376 $ 30,866
- --------------------------------------------------------------------------------
Deduct --
Allocation of expenses to the
Administrator (Note 4) $ 21,160 $ 19,918 $ 12,158
- --------------------------------------------------------------------------------
Total expense reductions $ 21,160 $ 19,918 $ 12,158
- --------------------------------------------------------------------------------
Net expenses $ 5,210 $ 1,458 $ 18,708
- --------------------------------------------------------------------------------
Net investment income $ 41,778 $ 25,474 $114,319
- --------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 11,187 $ 10,127 $ 35,956
Financial futures contracts (15,500) (2,406) (19,000)
- --------------------------------------------------------------------------------
Net realized gain (loss) on
investment transactions $ (4,313) $ 7,721 $ 16,956
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ 31,204 $ 20,448 $ 72,289
Financial futures contracts (156) (2,237) (652)
- --------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation) of
investments $ 31,048 $ 18,211 $ 71,637
- --------------------------------------------------------------------------------
Net realized and unrealized gain
on investments $ 26,735 $ 25,932 $ 88,593
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $ 68,513 $ 51,406 $202,912
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional 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
Increase TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
(Decrease) in CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------
From operations --
Net investment
income $ 114,623 $ 46,006 $ 186,067 $ 40,371
Net realized
gain (loss) on
investment
transactions 28,181 (328) (16,305) (1,572)
Net change in
unrealized
appreciation
(depreciation)
of investments 62,334 37,825 125,683 32,466
- --------------------------------------------------------------------------------
Net increase in
net assets from
operations $ 205,138 $ 83,503 $ 295,445 $ 71,265
- --------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net
investment
income $ (114,737) $ (46,006) $ (182,715) $ (40,371)
In excess of
net investment
income (518) (988) -- (1,750)
- --------------------------------------------------------------------------------
Total
distributions
to shareholders $ (115,255) $ (46,994) $ (182,715) $ (42,121)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from
sale of shares $1,165,661 $ 313,311 $1,891,759 $ 4,821
Net asset
value of
shares
issued to
shareholders
in payment of
distributions
declared 75,428 26,724 57,583 33,722
Cost of
shares redeemed (1,028,111) (651,494) (1,327,752) (206,527)
- --------------------------------------------------------------------------------
Net increase
(decrease) in
net assets from
Fund share
transactions $ 212,978 $ (311,459) $ 621,590 $ (167,984)
- --------------------------------------------------------------------------------
Net increase
(decrease) in
net assets $ 302,861 $ (274,950) $ 734,320 $ (138,840)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of
year $2,830,752 $1,338,766 $3,790,029 $1,034,263
- --------------------------------------------------------------------------------
At end of year $3,133,613 $1,063,816 $4,524,349 $ 895,423
- --------------------------------------------------------------------------------
Accumulated undistributed (distributions
in excess of) net investment income
included in net assets
- --------------------------------------------------------------------------------
At end of year $ -- $ -- $ 4,808 $ --
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional 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
TRADITIONAL TRADITIONAL TRADITIONAL
NEW JERSEY NEW YORK OHIO
Increase (Decrease) in Net Assets LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------
From operations --
Net investment income $ 41,778 $ 25,474 $ 114,319
Net realized gain (loss) on
investment transactions (4,313) 7,721 16,956
Net change in unrealized
appreciation (depreciation) of
investments 31,048 18,211 71,637
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $ 68,513 $ 51,406 $ 202,912
- --------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (41,778) $ (25,474) $ (114,411)
In excess of net investment
income (161) (665) --
From net realized gain on
investments -- (9,779) --
- --------------------------------------------------------------------------------
Total distributions to
shareholders $ (41,939) $ (35,918) $ (114,411)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sale of shares $ 94,133 $ 89,118 $ 653
Net asset value of shares
issued to shareholders
in payment of distributions
declared 30,506 19,646 41,847
Cost of shares redeemed (361,121) (169,430) (1,199,998)
- --------------------------------------------------------------------------------
Net decrease in net assets from
Fund share transactions $ (236,482) $ (60,666) $(1,157,498)
- --------------------------------------------------------------------------------
Net decrease in net assets $ (209,908) $ (45,178) $(1,068,997)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $1,049,158 $ 588,930 $ 2,740,337
- --------------------------------------------------------------------------------
At end of year $ 839,250 $ 543,752 $ 1,671,340
- --------------------------------------------------------------------------------
Accumulated undistributed (distributions in
excess of) net investment income
included in net assets
- --------------------------------------------------------------------------------
At end of year $ (15) $ (778) $ 994
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional 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
Increase TRADITIONAL TRADITIONAL TRADITIONAL TRADITIONAL
(Decrease) in CALIFORNIA CONNECTICUT FLORIDA MICHIGAN
Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
- --------------------------------------------------------------------------------
From operations --
Net investment
income $ 152,810 $ 65,733 $ 144,286 $ 68,818
Net realized
gain (loss) on
investment
transactions (41,130) (3,645) (56,054) 50,521
Net change in
unrealized
appreciation
(depreciation)
of investments 525 (7,769) (5,999) (47,884)
- --------------------------------------------------------------------------------
Net increase in
net assets from
operations $ 112,205 $ 54,319 $ 82,233 $ 71,455
- --------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net
investment
income $ (152,964) $ (65,733) $ (141,200) $ (69,863)
In excess of
net investment
income -- (217) -- --
- --------------------------------------------------------------------------------
Total
distributions
to shareholders $ (152,964) $ (65,950) $ (141,200) $ (69,863)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from
sale of shares $ 62,614 $ 149,595 $2,027,379 $ 59,200
Net asset
value of
shares
issued to
shareholders in
payment of
distributions
declared 92,031 50,892 61,784 53,615
Cost of
shares redeemed (2,083,220) (578,017) (565,599) (1,420,338)
- --------------------------------------------------------------------------------
Net increase
(decrease) in
net assets from
Fund share
transactions $(1,928,575) $ (377,530) $1,523,564 $(1,307,523)
- --------------------------------------------------------------------------------
Net increase
(decrease) in
net assets $(1,969,334) $ (389,161) $1,464,597 $(1,305,931)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of
year $ 4,800,086 $1,727,927 $2,325,432 $ 2,340,194
- --------------------------------------------------------------------------------
At end of year $ 2,830,752 $1,338,766 $3,790,029 $ 1,034,263
- --------------------------------------------------------------------------------
Accumulated undistributed (distributions
in excess of) net investment income
included in net assets
- --------------------------------------------------------------------------------
At end of year $ 114 $ (292) $ 1,456 $ (206)
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional 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
TRADITIONAL
TRADITIONAL NEW YORK TRADITIONAL
NEW JERSEY LIMITED OHIO
Increase (Decrease) in Net Assets LIMITED FUND FUND LIMITED FUND
- --------------------------------------------------------------------------------
From operations --
Net investment income $ 70,257 $ 22,728 $ 132,008
Net realized gain on investment
transactions 1,218 5,754 23,387
Net change in unrealized
appreciation (depreciation) of
investments (5,598) (10,883) (33,065)
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $ 65,877 $ 17,599 $ 122,330
- --------------------------------------------------------------------------------
Distributions to shareholders (Note 2) --
From net investment income $ (70,257) $(22,728) $ (132,600)
In excess of net investment
income (36) (564) --
From net realized gain -- (3,179) --
- --------------------------------------------------------------------------------
Total distributions to shareholders $ (70,293) $(26,471) $ (132,600)
- --------------------------------------------------------------------------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sale of shares $ 82,125 $162,377 $ 33,472
Net asset value of shares issued
to shareholders in payment of
distributions declared 58,751 11,914 53,618
Cost of shares redeemed (994,022) (1,126) (879,609)
- --------------------------------------------------------------------------------
Net increase (decrease) in net
assets from Fund share
transactions $ (853,146) $173,165 $ (792,519)
- --------------------------------------------------------------------------------
Net increase (decrease) in net
assets $ (857,562) $164,293 $ (802,789)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $1,906,720 $424,637 $3,543,126
- --------------------------------------------------------------------------------
At end of year $1,049,158 $588,930 $2,740,337
- --------------------------------------------------------------------------------
Accumulated undistributed (distributions in
excess of) net investment income
included in net assets
- --------------------------------------------------------------------------------
At end of year $ (198) $ (1,197) $ 1,086
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
<TABLE>
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<CAPTION>
TRADITIONAL CALIFORNIA LIMITED FUND TRADITIONAL CONNECTICUT 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 $ 9.560 $ 9.650 $ 9.520 $ 9.570 $10.000 $ 9.530 $ 9.610 $ 9.460 $ 9.500 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.428 $ 0.430 $ 0.376 $ 0.348 $ 0.098 $ 0.405 $ 0.414 $ 0.350 $ 0.344 $ 0.072
Net realized and
unrealized gain (loss)
on investments 0.342 (0.090) 0.124 0.003++ (0.400) 0.310 (0.079) 0.156 0.002++ (0.475)
- -----------------------------------------------------------------------------------------------------------------------------------
Total income (loss)
from operations $ 0.770 $ 0.340 $ 0.500 $ 0.351 $(0.302) $ 0.715 $ 0.335 $ 0.506 $ 0.346 $(0.403)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $ (0.428) $ (0.430) $ (0.370) $ (0.348) $(0.098) $(0.405) $(0.414) $(0.350) $(0.344) $(0.072)
In excess of net
investment income (0.002) -- -- (0.053) (0.030) (0.010) (0.001) (0.006) (0.042) (0.025)
- -----------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.430) $ (0.430) $ (0.370) $ (0.401) $(0.128) $(0.415) $(0.415) $(0.356) $(0.386) $(0.097)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End
of year $ 9.900 $ 9.560 $ 9.650 $ 9.520 $ 9.570 $ 9.830 $ 9.530 $ 9.610 $ 9.460 $ 9.500
- -----------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 8.19% 3.58% 5.39% 3.80% (3.16)% 7.62% 3.54% 5.49% 3.78% (4.14)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
year (000 omitted) $ 3,134 $ 2,831 $ 4,800 $ 7,970 $14,479 $ 1,064 $ 1,339 $ 1,728 $ 1,583 $ 2,051
Ratio of net expenses
to average daily net
assets(2)(3) 1.09% 1.14% 1.54% 1.51% 1.48%+ 1.30% 1.27% 1.62% 1.37% 1.38%+
Ratio of net expenses
to average daily net
assets after
custodian fee
reduction(2) 1.07% 1.13% 1.50% -- -- 1.28% 1.23% 1.58% -- --
Ratio of net
investment income to
average daily net
assets 4.37% 4.49% 3.90% 3.75% 2.91%+ 4.18% 4.32% 3.62% 3.70% 2.70%+
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 1.88% 1.52% 1.81% 1.81% 1.98%+ 2.83% 2.32% 2.88% 3.01% 2.78%+
Expenses after
custodian fee
reduction(2) 1.86% 1.51% 1.77% -- -- 2.81% 2.28% 2.84% -- --
Net investment
income 3.58% 4.11% 3.63% 3.45% 2.41%+ 2.65% 3.27% 2.36% 2.06% 1.30%+
Net investment income
per share $ 0.351 $ 0.394 $ 0.350 $ 0.320 $ 0.081 $ 0.257 $ 0.313 $ 0.228 $ 0.192 $ 0.035
- -----------------------------------------------------------------------------------------------------------------------------------
+ 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.
** For the period from the start of business, December 27, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the 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 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.
See notes to financial statements
</TABLE>
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
<TABLE>
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<CAPTION>
TRADITIONAL FLORIDA LIMITED FUND TRADITIONAL MICHIGAN LIMITED FUND
--------------------------------------------------- --------------------------------------------------------------
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
--------------------------------------------------- --------------------------------------------------------------
1998 1997 1996 1995* 1998 1997 1996 1995 1994**
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value --
Beginning
of year $ 9.950 $10.120 $ 10.070 $ 10.000 $ 9.600 $ 9.580 $ 9.480 $ 9.490 $10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment
income $ 0.477 $ 0.480 $ 0.451 $ 0.321 $ 0.412 $ 0.425 $ 0.376 $ 0.352 $ 0.100
Net
realized and
unrealized
gain (loss)
on investments 0.313 (0.181) 0.070++ 0.088 0.308 0.025 0.095 0.039++ (0.484)
- -----------------------------------------------------------------------------------------------------------------------------------
Total
income (loss)
from
operations $ 0.790 $ 0.299 $ 0.521 $ 0.409 $ 0.720 $ 0.450 $ 0.471 $ 0.391 $(0.384)
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net
investment
income $ (0.470) $(0.469) $ (0.451) $ (0.321) $ (0.412) $ (0.430) $ (0.371) $ (0.352) $(0.100)
In excess
of net
investment
income -- -- (0.020) (0.018) (0.018) -- -- (0.049) (0.026)
- -----------------------------------------------------------------------------------------------------------------------------------
Total
distributions $ (0.470) $(0.469) $ (0.471) $ (0.339) $ (0.430) $ (0.430) $ (0.371) $ (0.401) $(0.126)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset
value --
End of
year $ 10.270 $ 9.950 $ 10.120 $ 10.070 $ 9.890 $ 9.600 $ 9.580 $ 9.480 $ 9.490
- -----------------------------------------------------------------------------------------------------------------------------------
Total
Return(1) 8.08% 2.90% 5.33% 4.19% 7.63% 4.78% 5.10% 4.26% (3.99)%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net
assets,
end of
year (000
omitted) $ 4,524 $ 3,790 $ 2,325 $ 241 $ 895 $ 1,034 $ 2,340 $ 6,904 $ 8,874
Ratio of
net
expenses to
average
daily net
assets(2)(3) 0.75% 0.76% 0.89% 0.74%+ 1.43% 1.42% 1.83% 1.56% 1.15%+
Ratio of
net expenses
to average
daily net
assets after
custodian fee
reduction(2) 0.73% 0.74% 0.87% -- 1.39% 1.39% 1.79% -- --
Ratio of net
investment
income to
average
daily net
assets 4.72% 4.73% 4.26% 4.52%+ 4.21% 4.45% 3.94% 3.80% 3.07%+
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income (loss) per share
would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 1.18% 1.35% 2.48% 12.20%+ 3.54% 2.36% 2.15% 1.99% 2.35%+
Expenses
after
custodian
fee
reduction(2) 1.16% 1.33% 2.46% -- 3.50% 2.33% -- -- --
Net
investment
income
(loss) 4.29% 4.14% 2.67% (6.94)%+ 2.10% 3.51% 3.62% 3.37% 1.87%+
Net
investment
income
(loss)
per share $ 0.433 $ 0.420 $ 0.283 $ (0.506) $ 0.206 $ 0.335 $ 0.345 $ 0.312 $ 0.061
- -----------------------------------------------------------------------------------------------------------------------------------
+ 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, July 5, 1994, to March 31, 1995.
** For the period from the start of business, December 8, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the 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 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.
See notes to financial statements
</TABLE>
<PAGE>
EV Traditional Limited Maturity Municipals Funds as of March 31, 1998
<TABLE>
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<CAPTION>
TRADITIONAL NEW JERSEY LIMITED FUND TRADITIONAL NEW YORK LIMITED FUND
----------------------------------------------------------------- --------------------------------------------------
YEAR ENDED MARCH 31, YEAR ENDED MARCH 31,
----------------------------------------------------------------- --------------------------------------------------
1998 1997 1996 1995 1994* 1998 1997 1996 1995**
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
Net asset
value --
Beginning
of year $ 9.620 $ 9.670 $ 9.590 $ 9.570 $ 10.000 $ 10.050 $ 10.220 $ 10.030 $ 10.000
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net
investment
income $ 0.423 $ 0.425 $ 0.368 $ 0.345 $ 0.099 $ 0.458 $ 0.459 $ 0.465 $ 0.325
Net
realized
and
unrealized
gain
(loss) on
investments 0.262 (0.050) 0.077 0.071 (0.404) 0.435 (0.099) 0.196 0.051
- -----------------------------------------------------------------------------------------------------------------------------------
Total
income
(loss)
from
operations $ 0.685 $ 0.375 $ 0.445 $ 0.416 $ (0.305) $ 0.893 $ 0.360 $ 0.661 $ 0.376
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net
investment
income $(0.423) $ (0.425) $ (0.365) $ (0.345) $ (0.099) $ (0.458) $ (0.459) $ (0.465) $ (0.325)
In excess
of net
investment
income (0.002) -- -- (0.051) (0.026) (0.012) (0.011) (0.006) (0.021)
From net
realized
gain on
investments -- -- -- -- -- (0.173) (0.060) -- --
- -----------------------------------------------------------------------------------------------------------------------------------
Total
distributions $(0.425) $ (0.425) $ (0.365) $ (0.396) $ (0.125) $ (0.643) $ (0.530) $ (0.471) $ (0.346)
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset
value --
End of
year $ 9.880 $ 9.620 $ 9.670 $ 9.590 $ 9.570 $ 10.300 $ 10.050 $ 10.220 $ 10.030
- -----------------------------------------------------------------------------------------------------------------------------------
Total
Return(1) 7.23% 3.94% 4.77% 4.49% (3.20)% 9.05% 3.58% 6.68% 3.87%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------------------
Net
assets,
end of
year (000
omitted) $ 839 $ 1,049 $ 1,907 $ 3,306 $ 3,148 $ 544 $ 589 $ 425 $ 180
Ratio of
net
expenses
to
average
daily net
assets(2)(3) 1.15% 1.13% 1.54% 1.61% 1.57%+ 0.85% 0.82% 0.61% 0.98%+
Ratio of
net
expenses to
average
daily
net assets
after
custodian fee
reduction(2) 1.14% 1.10% 1.52% -- -- 0.83% 0.80% 0.58% --
Ratio of net
investment income
to average
daily net
assets 4.32% 4.40% 3.78% 3.62% 3.08%+ 4.44% 4.50% 4.52% 5.96%+
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Funds and the Portfolios may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income (loss) per share
would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 3.34% 1.89% 2.30% 2.16% 2.88%+ 4.32% 4.29% 2.87% 28.54%+
Expenses after
custodian fee
reduction(2) 3.33% 1.86% 2.28% -- -- 4.30% 4.27% 2.84% --
Net
investment
income
(loss) 2.13% 3.64% 3.02% 3.07% 1.77%+ 0.97% 1.04% 2.26% (21.60)%+
Net
investment
income
(loss)
per share $ 0.209 $ 0.351 $ 0.291 $ 0.293 $ 0.057 $ 0.100 $ 0.107 $ 0.233 $ (1.178)
- -----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
** For the period from the start of business, July 6, 1994, to March 31, 1995.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the 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 Traditional Limited Maturity Municipals Funds as of March 31, 1998
<TABLE>
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<CAPTION>
TRADITIONAL OHIO LIMITED FUND
---------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
---------------------------------------------------------------------------------------
1998 1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $ 9.590 $ 9.610 $ 9.530 $ 9.500 $ 10.000
- ------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.427 $ 0.424 $ 0.358 $ 0.358 $ 0.095
Net realized and unrealized gain
(loss) on investments 0.328 (0.019) 0.088 0.068 (0.473)
- ------------------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $ 0.755 $ 0.405 $ 0.446 $ 0.426 $ (0.378)
- ------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.425) $ (0.425) $ (0.358) $ (0.358) $ (0.095)
In excess of net investment income -- -- (0.008) (0.038) (0.027)
- ------------------------------------------------------------------------------------------------------------------------------
Total distributions $ (0.425) $ (0.425) $ (0.366) $ (0.396) $ (0.122)
- ------------------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $ 9.920 $ 9.590 $ 9.610 $ 9.530 $ 9.500
- ------------------------------------------------------------------------------------------------------------------------------
Total Return(1) 8.00% 4.27% 4.81% 4.63% (3.91)%
- ------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000 omitted) $ 1,671 $ 2,740 $ 3,543 $ 5,090 $ 5,795
Ratio of net expenses to average
daily net assets(2)(3) 1.36% 1.49% 2.01% 1.60% 1.27%+
Ratio of net expenses to average
daily net assets after custodian fee
reduction(2) -- 1.46% 1.99% -- --
Ratio of net investment income to
average daily net assets 4.35% 4.40% 3.70% 3.81% 3.04%+
- ------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(2)(3) 1.82% 1.58% 2.10% 1.95%+
Expenses after custodian fee
reduction(2) -- 1.55% -- --
Net investment income 3.89% 4.31% 3.32% 2.36%+
Net investment income per share $ 0.382 $ 0.415 $ 0.311 $ 0.074
- -----------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, December 8, 1993, to March 31, 1994.
(1) Total return is calculated assuming a purchase at the net asset value on the first day and a sale at the net asset value on
the last day of each period reported. Dividends and distributions, if any, are assumed to be reinvested at the net asset value
on the 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 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.
See notes to financial statements
</TABLE>
<PAGE>
EV Traditional 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,
seven of which are included in these financial statements. They include EV
Traditional California Limited Maturity Municipals Fund ("Traditional
California Limited Fund"), EV Traditional Connecticut Limited Maturity
Municipals Fund ("Traditional Connecticut Limited Fund"), EV Traditional
Florida Limited Maturity Municipals Fund ("Traditional Florida Limited
Fund"), EV Traditional Michigan Limited Maturity Municipals Fund
("Traditional Michigan Limited Fund"), EV Traditional New Jersey Limited
Maturity Municipals Fund ("Traditional New Jersey Limited Fund"), EV
Traditional New York Limited Maturity Municipals Fund ("Traditional New York
Limited Fund") and EV Traditional Ohio Limited Maturity Municipals Fund
("Traditional Ohio Limited Fund"). Each Fund invests all of its investable
assets in interests in a separate corresponding open-end management
investment company (a "Portfolio"), a New York Trust, having the same
investment objective as its corresponding Fund. The Traditional California
Limited Fund invests its assets in the California Limited Maturity
Municipals Portfolio, the Traditional Connecticut Limited Fund invests its
assets in the Connecticut Limited Maturity Municipals Portfolio, the
Traditional Florida Limited Fund invests its assets in the Florida Limited
Maturity Municipals Portfolio, the Traditional Michigan Limited Fund invests
its assets in the Michigan Limited Maturity Municipals Portfolio, the
Traditional New Jersey Limited Fund invests its assets in the New Jersey
Limited Maturity Municipals Portfolio, the Traditional New York Limited Fund
invests its assets in the New York Limited Maturity Municipals Portfolio and
the Traditional Ohio Limited Fund invests its assets in the Ohio Limited
Maturity Municipals Portfolio. The value of each Fund's investments in its
corresponding Portfolio reflects the Fund's proportionate interest in the
net assets of that Portfolio (9.1%, 10.7%, 6.3%, 7.3%, 1.8%, 0.7% and 6.9%
at March 31, 1998 for the Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Florida Limited Fund, Traditional
Michigan Limited Fund, Traditional New Jersey Limited Fund, Traditional New
York Limited Fund and Traditional Ohio Limited Fund, respectively). The
performance of each Fund is directly affected by the performance of its
corresponding Portfolio.
The financial statements of each Portfolio, including the portfolio of
investments, are included elsewhere in this report and should be read in
conjunction with each Fund's financial statements.
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
California Limited Maturity Municipals Fund, EV Marathon Connecticut Limited
Maturity Municipals Fund, EV Marathon Florida Limited Maturity Municipals
Fund, EV Marathon Michigan Limited Maturity Municipals Fund, EV Marathon New
Jersey Limited Maturity Municipals Fund, EV Marathon New York Limited
Maturity Municipals Fund and EV Marathon Ohio Limited Maturity Municipals
Fund (the Successor Funds), each a separate series of the Trust, would
acquire substantially all of the assets and liabilities of the EV
Traditional California Limited Maturity Municipals Fund, EV Traditional
Connecticut Limited Maturity Municipals Fund, EV Traditional Florida Limited
Maturity Municipals Fund, EV Traditional Michigan Limited Maturity
Municipals Fund, EV Traditional New Jersey Limited Maturity Municipals Fund,
EV Traditional New York Limited Maturity Municipals Fund, and EV Traditional
Ohio 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 A
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, the EV Marathon California Limited Maturity
Municipals Fund, EV Marathon Connecticut Limited Maturity Municipals Fund,
EV Marathon Florida Limited Maturity Municipals Fund, EV Marathon Michigan
Limited Maturity Municipals Fund, EV Marathon New Jersey Limited Maturity
Municipals Fund, EV Marathon New York Limited Maturity Municipals Fund, and
EV Marathon Ohio Limited Maturity Municipals Fund changed their names to the
Eaton Vance California Limited Maturity Municipals Fund, Eaton Vance
Connecticut Limited Maturity Municipals Fund, Eaton Vance Florida Limited
Maturity Municipals Fund, Eaton Vance Michigan Limited Maturity Municipals
Fund, Eaton Vance New Jersey Limited Maturity Municipals Fund, Eaton Vance
New York Limited Maturity Municipals Fund and Eaton Vance Ohio Limited
Maturity Municipals Fund, respectively.
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
------------------------------------------------------------------------
Traditional California Limited Fund $19,387 March 31, 2005
373,740 March 31, 2004
94,637 March 31, 2003
Traditional Connecticut Limited Fund 595 March 31, 2006
2,392 March 31, 2005
49,875 March 31, 2004
37,427 March 31, 2003
6,885 March 31, 2002
Traditional Florida Limited Fund 27,383 March 31, 2006
32,164 March 31, 2005
Traditional Michigan Limited Fund 1,691 March 31, 2006
280,688 March 31, 2004
164,025 March 31, 2003
Traditional New Jersey Limited Fund 1,339 March 31, 2006
81,999 March 31, 2004
17,960 March 31, 2003
Traditional Ohio Limited Fund 134,780 March 31, 2004
115,092 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 reported 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 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:
Traditional California Limited
Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 117,957 6,491
Issued to shareholders electing to
receive payments of distributions
in Fund shares 7,697 9,563
Redemptions (105,435) (217,252)
----------------------------------------------------------------------------
Net increase (decrease) 20,219 (201,198)
----------------------------------------------------------------------------
Traditional Connecticut
Limited Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 32,038 15,533
Issued to shareholders electing to
receive payments of distributions
in Fund shares 2,745 5,314
Redemptions (67,031) (60,149)
----------------------------------------------------------------------------
Net decrease (32,248) (39,302)
----------------------------------------------------------------------------
Traditional Florida Limited
Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 185,744 201,090
Issued to shareholders electing to
receive payments of distributions
in Fund shares 5,662 6,139
Redemptions (131,650) (56,181)
----------------------------------------------------------------------------
Net increase 59,756 151,048
----------------------------------------------------------------------------
Traditional Michigan Limited
Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 487 6,136
Issued to shareholders electing to
receive payments of distributions
in Fund shares 3,443 5,594
Redemptions (21,156) (148,234)
----------------------------------------------------------------------------
Net decrease (17,226) (136,504)
----------------------------------------------------------------------------
Traditional New Jersey Limited
Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 9,541 8,460
Issued to shareholders electing to
receive payments of distributions
in Fund shares 3,109 6,091
Redemptions (36,777) (102,694)
----------------------------------------------------------------------------
Net decrease (24,127) (88,143)
----------------------------------------------------------------------------
Traditional New York Limited
Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 8,612 15,975
Issued to shareholders electing to
receive payments of distributions
in Fund shares 1,901 1,173
Redemptions (16,346) (111)
----------------------------------------------------------------------------
Net increase (decrease) (5,833) 17,037
----------------------------------------------------------------------------
Traditional Ohio Limited Fund
------------------------------
Year Ended March 31,
------------------------------
1998 1997
----------------------------------------------------------------------------
Sales 68 3,456
Issued to shareholders electing to
receive payments of distributions
in Fund shares 4,259 5,570
Redemptions (121,557) (92,004)
----------------------------------------------------------------------------
Net decrease (117,230) (82,978)
----------------------------------------------------------------------------
4 Transactions with Affiliates
- -----------------------------------------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios have engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. To enhance net
income of the Funds for the year ended March 31, 1998, $20,910, $14,332,
$17,088, $20,202, $21,160, $19,918 and $12,158 of expenses related to the
operation of the Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Florida Limited Fund, Traditional
Michigan Limited Fund, Traditional New Jersey Limited Fund, Traditional New
York Limited Fund and Traditional Ohio Limited Fund, respectively, were
allocated to EVM. Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM
and the Funds' principal underwriter, received $1,114, $46, $110, $9, $268,
$48, and $0 from the Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Florida Limited Fund, Traditional
Michigan Limited Fund, Traditional New Jersey Limited Fund, Traditional New
York Limited Fund and Traditional Ohio Limited Fund, respectively, as its
portion of the sales charge on sales of Fund shares for the year ended March
31, 1998.
Certain officers and Trustees receive remuneration for their services to
each Fund out of the investment adviser fee earned by BMR.
5 Service Plan
- --------------------------------------------------------------------------------
Each Fund has adopted a Service Plan designed to meet the service fee
requirements of the sales charge rule of the National Association of
Securities Dealers, Inc. The Service Plans provide that each Fund may make
service fee payments to the Principal Underwriter, Eaton Vance Distributors,
Inc. (EVD), Authorized Firms, and other persons in amounts not exceeding
0.25% of each Fund's average daily net assets for any fiscal year which is
attributable to shares of a Fund sold by such persons and remaining
outstanding for at least one year. Service fee payments are made for
personal services and/or the maintenance of shareholder accounts. For the
year ended March 31, 1998, Traditional California Limited Fund, Traditional
Connecticut Limited Fund, Traditional Florida Limited Fund, Traditional
Michigan Limited Fund, Traditional New Jersey Limited Fund, Traditional New
York Limited Fund and Traditional Ohio Limited Fund paid or accrued service
fees of $1,536, $1,651, $2,136, $749, $1,451, $688 and $3,947 respectively.
Certain officers and Trustees of the Funds are officers or directors of EVD.
6 Investment Transactions
- --------------------------------------------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended March 31, 1998 were as follows:
Traditional California Limited Fund
----------------------------------------------------------------------------
Increases $1,208,164
Decreases 1,129,883
Traditional Connecticut Limited Fund
----------------------------------------------------------------------------
Increases $330,012
Decreases 694,397
Traditional Florida Limited Fund
----------------------------------------------------------------------------
Increases $1,912,065
Decreases 1,483,474
Traditional Michigan Limited Fund
----------------------------------------------------------------------------
Increases $33,785
Decreases 250,671
Traditional New Jersey Limited Fund
----------------------------------------------------------------------------
Increases $115,316
Decreases 401,428
Traditional New York Limited Fund
----------------------------------------------------------------------------
Increases $113,593
Decreases 209,623
Traditional Ohio Limited Fund
----------------------------------------------------------------------------
Increases $9,758
Decreases 1,309,972
<PAGE>
EV Traditional 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
Traditional California Limited Maturity Municipals Fund, EV Traditional
Connecticut Limited Maturity Municipals Fund, EV Traditional Florida Limited
Maturity Municipals Fund, EV Traditional Michigan Limited Maturity Municipals
Fund, EV Traditional New Jersey Limited Maturity Municipals Fund, EV
Traditional New York Limited Maturity Municipals Fund, and EV Traditional Ohio
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>
California 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 -- 7.8%
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR BBB- $ 1,500 Central Valley Financing Authority,
Cogeneration, 5.20%, 7/1/99 $ 1,524,210
NR BBB- 1,000 Sacramento Cogeneration Authority,
(Procter & Gamble),
6.50%, 7/1/21 1,092,640
- ------------------------------------------------------------------------------------------------
$ 2,616,850
- ------------------------------------------------------------------------------------------------
Electric Utilities -- 3.2%
- ------------------------------------------------------------------------------------------------
A2 A+ $ 1,000 California Pollution Control Financing
Authority, (Southern California Edison
Co.),
6.85%, 12/1/08 $ 1,055,800
- ------------------------------------------------------------------------------------------------
$ 1,055,800
- ------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.6%
- ------------------------------------------------------------------------------------------------
NR NR $ 1,400 California Health Facilities, (Sisters of
Providence), Prerefunded to
10/1/00, 7.50%, 10/1/10 $ 1,541,904
NR AAA 1,500 San Bernadino, Certificates of Participation
Prerefunded to
8/1/01, 7.00%, 8/1/28 1,665,555
- ------------------------------------------------------------------------------------------------
$ 3,207,459
- ------------------------------------------------------------------------------------------------
Hospitals -- 2.4%
- ------------------------------------------------------------------------------------------------
NR NR $ 400 Eastern Plumas, Health Care, (District
Hospital), 7.50%, 8/1/07 $ 410,180
NR BBB+ 400 Stockton, Health Facilities, (Dameron
Hospital),
5.70%, 12/1/14 408,864
- ------------------------------------------------------------------------------------------------
$ 819,044
- ------------------------------------------------------------------------------------------------
Housing -- 4.8%
- ------------------------------------------------------------------------------------------------
Aaa NR $ 1,500 Corona, Single Family Mortgage,
6.05%, 5/1/27 $ 1,588,905
- ------------------------------------------------------------------------------------------------
$ 1,588,905
- ------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 8.7%
- ------------------------------------------------------------------------------------------------
A3 A- $ 2,000 California Pollution Control Financing
Authority, (Browning Ferris Industries,
5.80%, 12/1/16 $ 2,098,800
Baa3 BBB- 750 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 815,588
- ------------------------------------------------------------------------------------------------
$ 2,914,388
- ------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 6.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Sacramento Municipal Utility District,
(AMBAC), 5.60%, 8/15/16 $ 1,054,830
Aaa AAA 1,000 Southern California Public Power Authority
Project, (AMBAC),
5.00%, 7/1/17 984,140
- ------------------------------------------------------------------------------------------------
$ 2,038,970
- ------------------------------------------------------------------------------------------------
Insured - General Obligations -- 14.2%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,080 Fillmore, Unified School District,
(FGIC), 0.00%, 7/1/15 $ 449,258
Aaa AAA 1,500 Mt. Diablo, School District
(AMBAC), 5.70%, 8/1/14 1,600,485
Aaa AAA 750 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 275,348
Aaa AAA 2,000 San Mateo County,
Transportation District, (MBIA),
5.00%, 6/1/13 2,042,620
Aaa AAA 705 Ukiah, Unified School District,
(FGIC), 0.00%, 8/1/10 393,228
- ------------------------------------------------------------------------------------------------
$ 4,760,939
- ------------------------------------------------------------------------------------------------
Insured - Hospitals -- 14.0%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 ABAG Finance Authority Certificates of
Participation, (Stanford University
Hospital), (MBIA),
5.125%, 11/1/05 $ 1,051,550
Aaa AAA 1,500 ABAG Finance Authority Certificates of
Participation, (Stanford University
Hospital), (MBIA),
4.90%, 11/1/03 1,554,750
Aaa AAA 1,900 Riverside County, (Riverside
County Hospital), (MBIA),
0.00%, 6/1/21 562,723
Aaa AAA 500 Riverside County, (Riverside
County Hospital, (MBIA),
5.00%, 6/1/19 488,475
Aaa AAA 1,000 Tri City, Hospital District, (MBIA),
5.625%, 2/15/17 1,040,970
- ------------------------------------------------------------------------------------------------
$ 4,698,468
- ------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 5.8%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 California State Public Works Board,
(California Community College),
(AMBAC),
5.625%, 3/1/16 $ 527,780
Aaa AAA 1,355 California State Public Works Board -
Department of Corrections (AMBAC),
5.25%, 12/1/13 1,418,468
- ------------------------------------------------------------------------------------------------
$ 1,946,248
- ------------------------------------------------------------------------------------------------
Insured - Transportation -- 5.4%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,250 San Francisco, City and County
Airports, (MBIA), 5.60%, 5/1/13 $ 1,305,550
Aaa AAA 1,000 San Joaquin Hills, Transportation
Corridor Agency Bridge & Toll Road,
(MBIA),
0.00%, 1/15/12 506,810
- ------------------------------------------------------------------------------------------------
$ 1,812,360
- ------------------------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 3.0%
- ------------------------------------------------------------------------------------------------
NR A+ $ 1,000 California Statewide Communities
Development Authority,
(San Gabriel Valley), 5.50%, 9/1/14 $ 1,026,270
- ------------------------------------------------------------------------------------------------
$ 1,026,270
- ------------------------------------------------------------------------------------------------
Nursing Homes -- 8.7%
- ------------------------------------------------------------------------------------------------
NR BBB $ 750 ABAG Finance Authority
(American Baptist Homes),
5.75%, 10/1/17 $ 773,243
NR A+ 2,000 California Statewide Communities
Development Corporation,
(Pacific Homes), 5.90%, 4/1/09 2,128,319
- ------------------------------------------------------------------------------------------------
$ 2,901,562
- ------------------------------------------------------------------------------------------------
Water and Sewer -- 6.3%
- ------------------------------------------------------------------------------------------------
A1 A $ 2,000 Los Angeles City Wastewater System,
6.90%, 6/1/08(1) $ 2,100,220
- ------------------------------------------------------------------------------------------------
$ 2,100,220
- ------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $31,771,731) $33,487,483
- ------------------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1998, 45.5% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 2.5% to 25.9% 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>
Connecticut 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
- ------------------------------------------------------------------------------------------------
Colleges and Universities -- 15.0%
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa3 BBB- $ 140 Connecticut State Health and Educational
Facilities Authority, (Sacred Heart
University),
6.00%, 7/1/08 $ 150,702
Baa1 BBB+ 750 Connecticut Health and Educational
Facilities Authority,
(Fairfield University),
6.90%, 7/1/14 777,374
NR BBB- 500 Connecticut Health and Educational
Facilities Authority,
(Quinnipiac College),
6.00%, 7/1/13 517,144
- ------------------------------------------------------------------------------------------------
$1,445,220
- ------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.8%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 South Central Connecticut Regional Water
Authority (AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07(1) $ 273,153
- ------------------------------------------------------------------------------------------------
$ 273,153
- ------------------------------------------------------------------------------------------------
General Obligations -- 11.7%
- ------------------------------------------------------------------------------------------------
Aa1 NR $ 200 Avon, 5.00%, 1/15/12 $ 205,206
Aa3 AA- 190 Connecticut State, 0.00%, 11/15/10 105,574
Aa3 AA- 150 Connecticut State, 5.125%, 8/15/11 153,330
Aa2 AA 100 Danbury, 5.00%, 8/1/17 99,015
Baa1 A 500 Puerto Rico Aqueduct and Sewer Authority,
5.00%, 7/1/19 487,815
Baa1 A 115 Puerto Rico Commonwealth,
0.00%, 7/1/08 72,587
- ------------------------------------------------------------------------------------------------
$1,123,527
- ------------------------------------------------------------------------------------------------
Hospitals -- 6.5%
- ------------------------------------------------------------------------------------------------
NR NR $ 555 Connecticut Health and Educational
Facilities Authority,
(New Britain Hospital),
7.50%, 7/1/06 $ 620,667
- ------------------------------------------------------------------------------------------------
$ 620,667
- ------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 12.1%
- ------------------------------------------------------------------------------------------------
A1 NR $ 625 Connecticut Development Authority,
(Frito Lay), 6.375%, 7/1/04 $ 635,343
Baa3 BBB- 250 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 271,863
A3 A- 250 Sprague, Environmental Improvement Revenue,
(International Paper Co.), (AMT),
5.70%, 10/1/21 259,338
- ------------------------------------------------------------------------------------------------
$1,166,544
- ------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 2.5%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 240 University of Connecticut, (FGIC),
5.00%, 2/1/15 $ 238,097
- ------------------------------------------------------------------------------------------------
$ 238,097
- ------------------------------------------------------------------------------------------------
Insured - Education -- 4.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 400 Connecticut Health and Educational
Facilities Authority,
(Choate Rosemary Hall), (MBIA),
5.00%, 7/1/14 $ 398,208
- ------------------------------------------------------------------------------------------------
$ 398,208
- ------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 2.9%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 Connecticut Municipal Electric Authority,
(MBIA), 6.00%, 1/1/07 $ 278,388
- ------------------------------------------------------------------------------------------------
$ 278,388
- ------------------------------------------------------------------------------------------------
Insured - General Obligations -- 13.6%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 Brandford, (FGIC),
5.40%, 2/15/14(1) $ 256,983
Aaa AAA 500 Bridgeport, (AMBAC),
6.00%, 9/1/06 554,999
Aaa AAA 500 Old Saybrook, (AMBAC),
4.10%, 8/15/01 501,700
- ------------------------------------------------------------------------------------------------
$1,313,682
- ------------------------------------------------------------------------------------------------
Insured - Hospitals -- 12.7%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 150 Connecticut Authority,
(Greenwich Hospital),
(MBIA), 5.75%, 7/1/06 $ 163,655
Aaa NR 300 Connecticut State Health and Educational
Facilities Authority, (Middlesex Health
Services), (MBIA), 5.125%, 7/1/17 296,541
Aaa AAA 470 Connecticut Health and Educational Facilities
Authority, (St. Raphael Hospital), (AMBAC),
5.10%, 7/1/07 492,198
Aaa AAA 250 Connecticut Health and Educational Facilities
Authority, (Stamford Hospital), (MBIA),
6.50%, 7/1/06 271,328
- ------------------------------------------------------------------------------------------------
$1,223,722
- ------------------------------------------------------------------------------------------------
Insured - Miscellaneous -- 2.8%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 Woodstock, Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 270,470
- ------------------------------------------------------------------------------------------------
$ 270,470
- ------------------------------------------------------------------------------------------------
Insured - Transportation -- 9.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 750 Connecticut State Airport (Bradley
International Airport), (FGIC),
7.40%, 10/1/04 $ 879,427
- ------------------------------------------------------------------------------------------------
$ 879,427
- ------------------------------------------------------------------------------------------------
Solid Waste -- 2.6%
- ------------------------------------------------------------------------------------------------
NR BBB $ 250 Eastern Connecticut Resources Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.00%, 1/1/03 $ 252,400
- ------------------------------------------------------------------------------------------------
$ 252,400
- ------------------------------------------------------------------------------------------------
Water and Sewer -- 1.6%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 150 Connecticut State Clean Water Fund,
4.875%, 5/1/09 $ 153,365
- ------------------------------------------------------------------------------------------------
$ 153,365
- ------------------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $9,154,495) $9,636,870
- ------------------------------------------------------------------------------------------------
</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 securitites issued by Connecticut
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1998, 50.6% 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 11.7% to 21.9% 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>
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>
Michigan 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
- ------------------------------------------------------------------------------------------------
Economic Development Revenue -- 1.3%
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR BB- $ 150 Michigan State Strategic Fund
(Crown Paper),
6.25%, 8/1/12 $ 154,905
- ------------------------------------------------------------------------------------------------
$ 154,905
- ------------------------------------------------------------------------------------------------
Education -- 2.0%
- ------------------------------------------------------------------------------------------------
Aa2 NR $ 250 Oakland County, (Cranbrook Educational
Community Project), 5.00%, 11/1/17 $ 248,140
- ------------------------------------------------------------------------------------------------
$ 248,140
- ------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 14.5%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Grand Ledge, Public School District, (MBIA),
Prerefunded to
5/1/04, 7.875%, 5/1/11(1) $ 1,206,460
Aa1 AA+ 500 Michigan Municipal Bond Authority,
Escrowed to Maturity,
7.00%, 10/1/02 558,055
- ------------------------------------------------------------------------------------------------
$ 1,764,515
- ------------------------------------------------------------------------------------------------
General Obligations -- 10.3%
- ------------------------------------------------------------------------------------------------
Baa2 BBB+ $ 650 Detroit, MI, 6.25%, 4/1/05 $ 711,133
Baa2 BBB+ 495 Detroit, MI, 6.40%, 4/1/05 545,945
- ------------------------------------------------------------------------------------------------
$ 1,257,078
- ------------------------------------------------------------------------------------------------
Hospitals -- 12.8%
- ------------------------------------------------------------------------------------------------
Baa1 NR $ 525 Flint, Hospital Authority, (Hurley Medical
Center), 6.00%, 7/1/05 $ 561,157
NR BBB 100 Michigan Hospital Finance Authority,
(Central MI Community Hospital),
6.00%, 10/1/05 107,745
NR BBB 100 Michigan Hospital Finance Authority,
(Central MI Community Hospital),
6.10%, 10/1/06 108,914
NR BBB 225 Michigan Hospital Finance Authority,
(Central MI Community Hospital),
6.20%, 10/1/07 247,725
NR BBB 500 Michigan Hospital Finance Authority (Gratiot
Community Hospital), 6.10%, 10/1/07 539,310
- ------------------------------------------------------------------------------------------------
$ 1,564,851
- ------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 5.5%
- ------------------------------------------------------------------------------------------------
Baa3 BBB- $ 500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 $ 543,725
NR BB 120 Richmond, Economic Development Corp.,
(K-MART), 6.30%, 1/1/99 121,300
- ------------------------------------------------------------------------------------------------
$ 665,025
- ------------------------------------------------------------------------------------------------
Insured - Colleges and Universities -- 2.0%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 Michigan State University, Agriculture and
Applied Sciences, (AMBAC),
5.125%, 2/15/16 $ 249,290
- ------------------------------------------------------------------------------------------------
$ 249,290
- ------------------------------------------------------------------------------------------------
Insured - General Obligations -- 17.2%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Detroit, School District, (AMBAC),
6.50%, 5/1/10 $ 582,985
Aaa AAA 500 Hartland, School District, (FGIC),
5.125%, 5/1/17 497,330
Aaa AAA 500 Kalamazoo, (MBIA),
5.40%, 5/1/14 528,720
Aaa AAA 500 Willow Run, Community School District,
(AMBAC), 5.00%, 5/1/16 492,375
- ------------------------------------------------------------------------------------------------
$ 2,101,410
- ------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue /
Pollution Control Revenue -- 4.5%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Monroe County (The Detroit
Edison Co.), (AMBAC), (AMT),
6.35%, 12/1/04 $ 553,670
- ------------------------------------------------------------------------------------------------
$ 553,670
- ------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 1.5%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 300 Michigan Building Authority, Facilities
Program, (AMBAC),
0.00%, 10/15/08 $ 185,001
- ------------------------------------------------------------------------------------------------
$ 185,001
- ------------------------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 4.4%
- ------------------------------------------------------------------------------------------------
Aa3 AA $ 500 Michigan Building Authority,
6.10%, 10/1/01 $ 532,635
- ------------------------------------------------------------------------------------------------
$ 532,635
- ------------------------------------------------------------------------------------------------
Life Care -- 2.6%
- ------------------------------------------------------------------------------------------------
NR BBB $ 300 Kalamazoo, (Friendship Village),
6.125%, 5/15/17 $ 318,375
- ------------------------------------------------------------------------------------------------
$ 318,375
- ------------------------------------------------------------------------------------------------
Miscellaneous -- 1.3%
- ------------------------------------------------------------------------------------------------
NR NR $ 150 Pittsfield Township, EDC,
(Arbor Hospice Project),
7.875%, 8/15/27 $ 158,339
- ------------------------------------------------------------------------------------------------
$ 158,339
- ------------------------------------------------------------------------------------------------
Nursing Homes -- 3.5%
- ------------------------------------------------------------------------------------------------
NR NR $ 395 Michigan Hospital Finance
Authority, (Presbyterian Villages),
6.20%, 1/1/06 $ 424,846
- ------------------------------------------------------------------------------------------------
$ 424,846
- ------------------------------------------------------------------------------------------------
Solid Waste -- 3.1%
- ------------------------------------------------------------------------------------------------
Ba1 BBB- $ 350 Central Wayne, Sanitation Authority,
6.40%, 7/1/06 $ 371,415
- ------------------------------------------------------------------------------------------------
$ 371,415
- ------------------------------------------------------------------------------------------------
Special Tax Revenue -- 13.5%
- ------------------------------------------------------------------------------------------------
NR BBB+ $ 1,000 Battle Creek, Downtown
Development Authority,
6.65%, 5/1/02 $ 1,083,600
NR A- 2,000 Detroit, Downtown Development
Authority Tax Increment,
0.00%, 7/1/21 555,060
- ------------------------------------------------------------------------------------------------
$ 1,638,660
- ------------------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $11,228,522) $12,188,155
- ------------------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by the economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1998, 35.2% of such securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 4.1% to 16.9% 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 Jersey 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 -- 4.0%
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Baa3 BBB- $ 1,625 Port Authority of New York and
New Jersey, (Delta Airlines),
6.95%, 6/1/08 $ 1,783,990
- ------------------------------------------------------------------------------------------------
$ 1,783,990
- ------------------------------------------------------------------------------------------------
Assisted Living -- 1.6%
- ------------------------------------------------------------------------------------------------
NR NR $ 650 New Jersey EDA, (Chelsea
at East Brunswick), (AMT),
8.00%, 10/1/07 $ 720,012
- ------------------------------------------------------------------------------------------------
$ 720,012
- ------------------------------------------------------------------------------------------------
Cogeneration -- 9.5%
- ------------------------------------------------------------------------------------------------
NR BBB- $ 2,250 New Jersey EDA, Heating and Cooling,
(Trigen-Trenton), (AMT), 6.10%, 12/1/05 $ 2,424,982
NR BB+ 1,135 New Jersey EDA, (Vineland Cogeneration),
(AMT),
7.875%, 6/1/19 1,249,692
NR NR 550 Port Authority of New York and New Jersey,
(KIAC Project), (AMT), 6.50%, 10/1/01 584,892
- ------------------------------------------------------------------------------------------------
$ 4,259,566
- ------------------------------------------------------------------------------------------------
Education -- 2.2%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 New Jersey Educational Facilities
Authority, (Princeton Theological),
5.00%, 7/1/22 $ 999,920
- ------------------------------------------------------------------------------------------------
$ 999,920
- ------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.2%
- ------------------------------------------------------------------------------------------------
Aaa NR $ 2,030 New Jersey EDA (Princeton Custodial
Receipts), Escrowed to Maturity,
0.00%, 12/15/12 $ 975,638
- ------------------------------------------------------------------------------------------------
$ 975,638
- ------------------------------------------------------------------------------------------------
General Obligations -- 9.6%
- ------------------------------------------------------------------------------------------------
Aa3 AA $ 2,195 Jersey City, School District,
6.25%, 10/1/10 $ 2,526,225
Baa1 A 1,050 Puerto Rico Commonwealth,
0.00%, 7/1/08 662,750
Aa3 AA- 1,000 South Brunswick,
7.125%, 7/15/02 1,116,870
- ------------------------------------------------------------------------------------------------
$ 4,305,845
- ------------------------------------------------------------------------------------------------
Hospitals -- 9.5%
- ------------------------------------------------------------------------------------------------
Baa2 NR $ 500 Camden County Improvement Authority
(Cooper Health),
5.60%, 2/15/07 $ 522,165
A3 A- 340 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center),
6.25%, 7/1/00 355,422
A3 A- 1,000 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center),
6.45%, 7/1/02 1,081,610
A3 A- 750 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center),
6.55%, 7/1/03 823,523
Baa2 BBB 1,380 New Jersey Health Care Facilities
Financing Authority,
(St. Elizabeth's Hospital),
5.75%, 7/1/08 1,469,507
- ------------------------------------------------------------------------------------------------
$ 4,252,227
- ------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 2.5%
- ------------------------------------------------------------------------------------------------
Aa3 NR $ 520 New Jersey EDA, LOC: Bank of Paris, (AMT),
6.00%, 12/1/02 $ 541,362
NR NR 500 New Jersey EDA, (Holt Hauling and
Warehousing System, Inc.),
7.90%, 3/1/27 571,430
- ------------------------------------------------------------------------------------------------
$ 1,112,792
- ------------------------------------------------------------------------------------------------
Insured - Education -- 2.4%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 New Jersey Educational Facilities Authority,
(Seton Hall University), (FGIC),
6.10%, 7/1/01 $ 1,062,390
- ------------------------------------------------------------------------------------------------
$ 1,062,390
- ------------------------------------------------------------------------------------------------
Insured - Electric Utilities -- 2.4%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Middlesex County, Utility
Authority, (FGIC),
6.10%, 12/1/01 $ 1,069,380
- ------------------------------------------------------------------------------------------------
$ 1,069,380
- ------------------------------------------------------------------------------------------------
Insured - General Obligations -- 26.8%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Atlantic City, Board of Education,
(AMBAC),
6.00%, 12/1/02(1) $ 1,084,750
Aaa AAA 1,175 Edison, (AMBAC), 4.70%, 1/1/04 1,202,859
Aaa AAA 500 Elizabeth, Union County, (MBIA),
6.10%, 11/15/99 517,965
Aaa AAA 500 Elizabeth, Union County, (MBIA),
6.20%, 11/15/02 535,335
Aaa AAA 1,200 Kearney, (FSA), 6.50%, 2/1/04 1,317,300
Aaa AAA 725 Monroe Township, Board of Education, (FGIC),
5.20%, 8/1/11 762,403
Aaa AAA 825 Monroe Township, Board of Education, (FGIC),
5.20%, 8/1/14 856,317
Aaa AAA 850 Roselle, (MBIA),
4.65%, 10/15/03 869,984
Aaa AAA 1,000 South Brunswick Township, Board of
Education, (FGIC), 6.40%, 8/1/03 1,105,580
Aaa AAA 2,000 Washington Township, Board of Education,
(MBIA),
5.125%, 2/1/15 2,009,020
Aaa AAA 1,585 West Deptford Township, (AMBAC),
5.90%, 3/1/09 1,762,377
- ------------------------------------------------------------------------------------------------
$12,023,890
- ------------------------------------------------------------------------------------------------
Insured - Hospitals -- 8.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,910 New Jersey Health Care Facilities Financing
Authority, (Dover General Hospital and
Medical Center), (MBIA), 7.00%, 7/1/04 $ 2,187,598
Aaa AAA 1,300 New Jersey Health Care Facilities Financing
Authority, (AHS Hospital Corp.), (AMBAC),
6.00%, 7/1/12 1,456,702
- ------------------------------------------------------------------------------------------------
$ 3,644,300
- ------------------------------------------------------------------------------------------------
Insured - Solid Waste -- 0.6%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 250 Bergen County Utilities Authority, Solid
Waste System, (FGIC), 6.00%, 6/15/02 $ 268,080
- ------------------------------------------------------------------------------------------------
$ 268,080
- ------------------------------------------------------------------------------------------------
Insured - Transportation -- 11.3%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 New Jersey Transportation Trust Fund, (FSA),
5.00%, 6/15/15 $ 991,950
Aaa AAA 1,000 New Jersey Turnpike Authority, (FSA),
5.90%, 1/1/03 1,071,550
Aaa AAA 895 New Jersey Turnpike Authority, (FSA),
6.40%, 1/1/02 964,971
Aaa AAA 2,000 Port Authority of New York and
New Jersey, (AMBAC),
5.125%, 7/15/14 2,016,080
- ------------------------------------------------------------------------------------------------
$ 5,044,551
- ------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 1.4%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/16 $ 224,853
Aaa AAA 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/17 210,333
Aaa AAA 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/18 199,982
- ------------------------------------------------------------------------------------------------
$ 635,168
- ------------------------------------------------------------------------------------------------
Life Care -- 0.7%
- ------------------------------------------------------------------------------------------------
NR NR $ 310 New Jersey EDA, (Cadbury Corp.),
8.00%, 7/1/15 $ 335,355
- ------------------------------------------------------------------------------------------------
$ 335,355
- ------------------------------------------------------------------------------------------------
Solid Waste -- 1.8%
- ------------------------------------------------------------------------------------------------
A1 AA- $ 500 Gloucester County Improvement Authority,
Solid Waste System, 5.40%, 9/1/00 $ 517,470
B1 NR 300 The Atlantic County Utilities Authority,
Solid Waste System, 7.00%, 3/1/08 301,212
- ------------------------------------------------------------------------------------------------
$ 818,682
- ------------------------------------------------------------------------------------------------
Transportation -- 3.4%
- ------------------------------------------------------------------------------------------------
A1 AA- $ 1,000 Port Authority of New York and New Jersey,
5.375%, 10/15/16 $ 1,012,420
A1 AA- 500 Port Authority of New York and New Jersey,
5.50%, 7/1/06 533,750
- ------------------------------------------------------------------------------------------------
$ 1,546,170
- ------------------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $42,060,899) $44,857,956
- ------------------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1998, 53.0% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 9.7% to 16.8% of total
investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
<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>
Ohio 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
- ------------------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.0%
- ------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 350 Cuyahoga County, Health
Care, (Judson Retirement Community),
Prerefunded to
11/15/99, 8.875%, 11/15/19 $ 387,394
NR NR 285 Greene County, First Mortgage, (Fairview
Extended Care), Prerefunded to 1/1/01,
10.125%, 1/1/11 336,371
- ------------------------------------------------------------------------------------------------
$ 723,765
- ------------------------------------------------------------------------------------------------
General Obligations -- 14.0%
- ------------------------------------------------------------------------------------------------
NR NR $ 300 Kings County, Local School District, 7.60%,
12/1/10 $ 347,688
Aa3 NR 250 Oak Hills, 5.60%, 12/1/17 261,423
Aa1 AA+ 675 Ohio, 0.00%, 8/1/04 512,541
Aa1 AA+ 500 Ohio, 0.00%, 8/1/05 362,725
Aa1 AA+ 250 Ohio, 0.00%, 8/1/08 156,023
A3 NR 1,000 Wauseon, School District,
7.25%, 12/1/10 1,101,690
NR NR 595 Youngstown, County School
District, 6.40%, 7/1/00 616,973
- ------------------------------------------------------------------------------------------------
$ 3,359,063
- ------------------------------------------------------------------------------------------------
Hospitals -- 10.8%
- ------------------------------------------------------------------------------------------------
A A $ 1,000 Erie County Hospital Improvement
(Firelands Community Hospital),
6.75%, 1/1/08 $ 1,090,050
Baa1 BBB 500 Hamilton County, Health
System (Providence Hospital),
6.00%, 7/1/01 522,865
NR NR 955 Mt. Vernon, (Knox Community Hospital),
7.875%, 6/1/12 981,186
- ------------------------------------------------------------------------------------------------
$ 2,594,101
- ------------------------------------------------------------------------------------------------
Housing -- 6.9%
- ------------------------------------------------------------------------------------------------
NR NR $ 300 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 $ 300,621
NR AAA 1,000 Cuyahoga County, Multifamily Housing,
(National Terminal Apts. Project),
6.40%, 7/1/16 1,066,470
NR NR $ 300 Lucas County, Economic Development
Multifamily Housing (County Creek Project),
(AMT), 8.00%, 7/1/26 $ 297,288
- ------------------------------------------------------------------------------------------------
$ 1,664,379
- ------------------------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 11.6%
- ------------------------------------------------------------------------------------------------
NR NR $ 500 Cuyahoga County, (Rock and
Roll Hall of Fame),
5.45%, 12/1/05 $ 525,185
NR NR 250 Cuyahoga County, (Rock and
Roll Hall of Fame),
5.85%, 12/1/08 271,260
NR A- 1,020 Ohio Economic Development Commission, (ABS
Industries), (AMT), 6.00%, 6/1/04 1,110,678
NR A- 580 Ohio Economic Development Commission, (Ohio
Enterprise Bond Fund-Progress Plastics
Products), (AMT), 6.80%, 12/1/01 619,231
NR NR 250 Ohio Solid Waste Revenue, (Republic
Engineered Steels Inc.), (AMT),
9.00%, 6/1/21 269,555
- ------------------------------------------------------------------------------------------------
$ 2,795,909
- ------------------------------------------------------------------------------------------------
Insured - Education -- 4.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Ohio Public Facilities Commission, (Higher
Educational Facilities), (AMBAC),
4.30%, 12/1/08 $ 979,000
- ------------------------------------------------------------------------------------------------
$ 979,000
- ------------------------------------------------------------------------------------------------
Insured - General Obligations -- 28.3%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Cleveland, (MBIA),
6.50%, 11/15/01 $ 1,081,020
Aaa NR 265 Clinton Massie, Local School District,
(AMBAC), 0.00%, 12/1/11 137,479
Aaa NR 265 Clinton Massie, Local School District,
(MBIA), 0.00%, 12/1/09 154,826
Aaa AAA 225 Finneytown, Local School District, (FGIC),
6.15%, 12/1/11 258,469
Aaa AAA 500 Forest Hills, Local School District, (MBIA),
6.00%, 12/1/09 564,790
Aaa AAA $ 1,500 Southwest Licking, School Facilities
Improvement, (FGIC),
7.10%, 12/1/16 1,757,821
Aaa AAA 500 Strongsville, City School District, (MBIA),
5.375%, 12/1/12 532,160
Aaa AAA 1,500 West Clermont, School District, (AMBAC),
6.90%, 12/1/12(1) 1,738,650
Aaa AAA 500 West Clermont, School District, (AMBAC),
7.125%, 12/1/19 579,700
- ------------------------------------------------------------------------------------------------
$ 6,804,915
- ------------------------------------------------------------------------------------------------
Insured - Hospitals -- 2.2%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Cuyahoga County, (Metrohealth System),
(MBIA),
5.50%, 2/15/12 $ 534,075
- ------------------------------------------------------------------------------------------------
$ 534,075
- ------------------------------------------------------------------------------------------------
Insured - Industrial Development Revenue /
Pollution Control Revenue -- 2.3%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Akron, Economic Development Authority,
(MBIA),
6.00%, 12/1/12 $ 563,185
- ------------------------------------------------------------------------------------------------
$ 563,185
- ------------------------------------------------------------------------------------------------
Insured - Lease Revenue / Certificates of
Participation -- 2.1%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland, (Cleveland Stadium Project),
(AMBAC),
5.25%, 11/15/17 $ 504,300
- ------------------------------------------------------------------------------------------------
$ 504,300
- ------------------------------------------------------------------------------------------------
Insured - Water and Sewer -- 2.2%
- ------------------------------------------------------------------------------------------------
Aaa AAA $ 500 Hamilton County, Sewer System Revenue,
(FGIC),
5.50%, 12/1/11 $ 541,280
- ------------------------------------------------------------------------------------------------
$ 541,280
- ------------------------------------------------------------------------------------------------
Life Care -- 5.0%
- ------------------------------------------------------------------------------------------------
VMIG-1 NR $ 500 Hamilton County, Hospital Facilities
Revenue, (Retirement Homes), 5.00%, 7/1/15 $ 511,970
NR BBB- 680 Marion County, Health Care Facilities,
(United Church Homes), 5.25%, 11/15/98 685,746
- ------------------------------------------------------------------------------------------------
$ 1,197,716
- ------------------------------------------------------------------------------------------------
Nursing Homes -- 5.7%
- ------------------------------------------------------------------------------------------------
NR NR $ 260 Fairfield, Economic Development Revenue,
(Beverly Enterprises Project),
8.50%, 1/1/03 $ 283,491
Aa2 NR 1,000 Warren County, Hospital
Facilities, (Otterbein Homes),
7.20%, 7/1/11 1,092,590
- ------------------------------------------------------------------------------------------------
$ 1,376,081
- ------------------------------------------------------------------------------------------------
Special Tax Revenue -- 1.8%
- ------------------------------------------------------------------------------------------------
NR NR $ 403 Columbus, Special Assessment,
6.05%, 9/15/05 $ 422,140
- ------------------------------------------------------------------------------------------------
$ 422,140
- ------------------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $22,897,549) $24,059,909
- ------------------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 1998, 41.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution range from 10.6% to 16.4% 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>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
As of March 31, 1998
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Investments --
Identified cost $31,771,731 $9,154,495 $68,566,219 $11,228,522
Unrealized
appreciation 1,715,752 482,375 3,445,439 959,633
- --------------------------------------------------------------------------------
Investments, at value
(Note 1A) $33,487,483 $9,636,870 $72,011,658 $12,188,155
- --------------------------------------------------------------------------------
Cash $ 267,134 $ 59,553 $ 934 $ 111
Interest receivable 553,301 142,277 1,517,101 266,054
Deferred organization
expenses (Note 1D) 136 -- 378 --
- --------------------------------------------------------------------------------
Total assets $34,308,054 $9,838,700 $73,530,071 12,454,320
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for when-issued
securities (Note 1F) $ -- $ -- $ 350,632 $ --
Demand note payable
(Note 5) -- -- 916,000 354,000
Payable for daily
variation margin on
open financial futures
contracts (Note 1E) 6,094 2,812 16,406 2,344
Payable to affiliate for
Trustees' fees (Note 2) 950 100 3,900 100
Accrued expenses 3,591 1,296 1,953 662
- --------------------------------------------------------------------------------
Total liabilities $ 10,635 $ 4,208 $ 1,288,891 $ 357,106
- --------------------------------------------------------------------------------
Net Assets applicable to
investors' interest in
Portfolio $34,297,419 $9,834,492 $72,241,180 $12,097,214
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from
capital contributions
and withdrawals $32,581,458 $9,355,747 $68,807,579 $11,140,017
Net unrealized
appreciation of
investments (computed
on the basis of
identified cost) 1,715,961 478,745 3,433,601 957,197
- --------------------------------------------------------------------------------
Total $34,297,419 $9,834,492 $72,241,180 $12,097,214
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
Statements of Assets and Liabilities
As of March 31, 1998
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------
Investments --
Identified cost $42,060,899 $71,325,400 $22,897,549
Unrealized appreciation 2,797,057 3,457,734 1,162,360
- --------------------------------------------------------------------------------
Investments, at value (Note 1A) $44,857,956 $74,783,134 $24,059,909
- --------------------------------------------------------------------------------
Cash $ 36,018 $ 724,279 $ 298
Receivable for when-issued
securities sold (Note 1F) -- 4,035,939 --
Interest receivable 663,429 1,345,875 421,130
Deferred organization expenses
(Note 1D) 105 219 --
- --------------------------------------------------------------------------------
Total assets $45,557,508 $80,889,446 $24,481,337
- --------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------
Payable for when-issued
securities (Note 1F) $ -- $ 6,169,619 $ --
Demand note payable (Note 5) -- -- 256,000
Payable for daily variation margin
on open financial futures
contracts (Note 1E) 11,250 19,219 5,625
Payable to affiliate for Trustees'
fees (Note 2) 473 1,945 473
Accrued expenses 5,922 7,224 3,581
- --------------------------------------------------------------------------------
Total liabilities $ 17,645 $ 6,198,007 $ 265,679
- --------------------------------------------------------------------------------
Net Assets applicable to
investors' interest in
Portfolio $45,539,863 $74,691,439 $24,215,658
- --------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $42,753,263 $71,251,139 $23,056,755
Net unrealized appreciation of
investments (computed on the
basis of identified cost) 2,786,600 3,440,300 1,158,903
- --------------------------------------------------------------------------------
Total $45,539,863 $74,691,439 $24,215,658
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
Statements of Operations
For the Year Ended March 31, 1998
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Investment Income
(Note 1B)
- --------------------------------------------------------------------------------
Interest income $2,097,447 $592,217 $4,488,367 $ 749,490
- --------------------------------------------------------------------------------
Total investment
income $2,097,447 $592,217 $4,488,367 $ 749,490
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser
fee (Note 2) $ 178,448 $ 50,322 $ 381,588 $ 62,245
Compensation of Trustees
not members of the
Investment adviser's
organization (Note 2) 2,201 219 8,863 219
Custodian fee (Note 1G) 26,528 13,226 43,702 13,539
Legal and accounting
services 19,314 14,914 20,214 14,214
Amortization of
organization expenses
(Note 1D) 1,511 1,743 4,204 259
Miscellaneous 5,806 3,243 17,414 2,750
- --------------------------------------------------------------------------------
Total expenses $ 233,808 $ 83,667 $ 475,985 $ 93,226
- --------------------------------------------------------------------------------
Deduct --
Reduction of custodian
fee (Note 1G) $ 8,191 $ 2,432 $ 19,574 $ 4,925
Reduction of
investment adviser
fee (Note 2) -- 25,094 -- --
- --------------------------------------------------------------------------------
Total expense
reductions $ 8,191 $ 27,526 $ 19,574 $ 4,925
- --------------------------------------------------------------------------------
Net expenses $ 225,617 $ 56,141 $ 456,411 $ 88,301
- --------------------------------------------------------------------------------
Net investment income $1,871,830 $536,076 $4,031,956 $ 661,189
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) -
Investment
transactions
(identified cost
basis) $ 958,114 $129,667 $1,257,589 $ 149,369
Financial futures
contracts (496,566) (125,981) (1,388,455) (276,838)
- --------------------------------------------------------------------------------
Net realized gain
(loss) on
investment
transactions $ 461,548 $ 3,686 $ (130,866) $ (127,469)
- --------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) -
Investments
(identified cost
basis) $1,100,873 $373,496 $3,004,369 $ 566,409
Financial futures
contracts (96,926) (3,630) (219,982) (2,436)
- --------------------------------------------------------------------------------
Net change in
unrealized
appreciation
(depreciation) of
investments $1,003,947 $369,866 $2,784,387 $ 563,973
- --------------------------------------------------------------------------------
Net realized and
unrealized gain on
investments $1,465,495 $373,552 $2,653,521 $ 436,504
- --------------------------------------------------------------------------------
Net increase in net
assets from
operations $3,337,325 $909,628 $6,685,477 $1,097,693
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- --------------------------------------------------------------------------------
Statements of Operations
For the Year Ended March 31, 1998
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Investment Income (Note 1B)
- --------------------------------------------------------------------------------
Interest income $2,841,563 $4,702,633 $1,537,712
- --------------------------------------------------------------------------------
Total investment income $2,841,563 $4,702,633 $1,537,712
- --------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 239,715 $ 402,164 $ 127,254
Compensation of Trustees not
members of the Investment
Adviser's organization (Note 2) 5,332 7,332 1,746
Custodian fee (Note 1G) 31,841 53,547 18,182
Legal and accounting services 18,615 21,715 17,614
Amortization of organization
expenses (Note 1D) 1,788 2,570 --
Interest expense (Note 5) -- 34,599 --
Miscellaneous 20,500 4,539 7,796
- --------------------------------------------------------------------------------
Total expenses $ 317,791 $ 526,466 $ 172,592
- --------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee
(Note 1G) $ 5,970 $ 13,608 $ --
- --------------------------------------------------------------------------------
Total expense reductions $ 5,970 $ 13,608 $ --
- --------------------------------------------------------------------------------
Net expenses $ 311,821 $ 512,858 $ 172,592
- --------------------------------------------------------------------------------
Net investment income $2,529,742 $4,189,775 $1,365,120
- --------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- --------------------------------------------------------------------------------
Net realized gain (loss) -
Investment transactions
(identified cost basis) $ 604,994 $1,498,902 $ 342,719
Financial futures contracts (796,382) (372,410) (194,243)
- --------------------------------------------------------------------------------
Net realized gain (loss) on
investment transactions $ (191,388) 1,126,492 $ 148,476
- --------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) -
Investments (identified
cost basis) $1,689,855 $3,345,035 $ 777,072
Financial futures contracts (10,457) (392,093) (3,457)
- --------------------------------------------------------------------------------
Net change in unrealized
appreciation (depreciation)
of investments $1,679,398 $2,952,942 $ 773,615
- --------------------------------------------------------------------------------
Net realized and unrealized gain
on investments $1,488,010 $4,079,434 $ 922,091
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $4,017,752 $8,269,209 $2,287,211
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
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
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------
From operations -
Net investment income $ 1,871,830 $ 536,076 $ 4,031,956 $ 661,189
Net realized gain
(loss) on
investment
transactions 461,548 3,686 (130,866) (127,469)
Net change in
unrealized
appreciation
(depreciation) of
investments 1,003,947 369,866 2,784,387 563,973
- --------------------------------------------------------------------------------
Net increase in net
assets from
operations $ 3,337,325 $ 909,628 $ 6,685,477 $ 1,097,693
- --------------------------------------------------------------------------------
Capital transactions -
Contributions $ 1,661,073 $ 1,135,100 $ 7,486,705 $ 1,024,096
Withdrawals (13,895,420) (4,484,203) (34,840,194) (5,021,007)
- --------------------------------------------------------------------------------
Net decrease in net
assets from capital
transactions $(12,234,347) $(3,349,103) $(27,353,489) $(3,996,911)
- --------------------------------------------------------------------------------
Net decrease in net
assets $ (8,897,022) $(2,439,475) $(20,668,012) $(2,899,218)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $ 43,194,441 $12,273,967 $ 92,909,192 $14,996,432
- --------------------------------------------------------------------------------
At end of year $ 34,297,419 $ 9,834,492 $ 72,241,180 $12,097,214
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
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
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------
From operations -
Net investment income $ 2,529,742 $ 4,189,775 $ 1,365,120
Net realized gain (loss) on
investment transactions (191,388) 1,126,492 148,476
Net change in unrealized
appreciation (depreciation)
of investments 1,679,398 2,952,942 773,615
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $ 4,017,752 $ 8,269,209 $ 2,287,211
- --------------------------------------------------------------------------------
Capital transactions -
Contributions $ 2,886,225 $ 3,255,202 $ 1,303,141
Withdrawals (19,630,053) (36,846,720) (7,844,546)
- --------------------------------------------------------------------------------
Net decrease in net assets
from capital transactions $(16,743,828) $(33,591,518) $(6,541,405)
- --------------------------------------------------------------------------------
Net decrease in net assets $(12,726,076) $(25,322,309) $(4,254,194)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $ 58,265,939 $100,013,748 $28,469,852
- --------------------------------------------------------------------------------
At end of year $ 45,539,863 $ 74,691,439 $24,215,658
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
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
California Connecticut Florida Michigan
Limited Limited Limited Limited
Portfolio Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------
From operations -
Net investment income $ 2,546,209 $ 701,646 $ 5,368,154 $ 895,654
Net realized gain
(loss) on investment
transactions (146,427) 11,718 (345,920) 196,256
Net change in
unrealized
appreciation
(depreciation)
of investments (326,414) (114,671) (1,654,724) (180,447)
- --------------------------------------------------------------------------------
Net increase in net
assets from operations $ 2,073,368 $ 598,693 $ 3,367,510 $ 911,463
- --------------------------------------------------------------------------------
Capital transactions -
Contributions $ 890,101 $ 868,089 $ 4,859,506 $ 727,519
Withdrawals (18,985,108) (4,054,341) (43,152,835) (7,833,956)
- --------------------------------------------------------------------------------
Net decrease in
net assets from
capital transactions $(18,095,007) $(3,186,252) $(38,293,329) $(7,106,437)
- --------------------------------------------------------------------------------
Net decrease in
net assets $(16,021,639) $(2,587,559) $(34,925,819) $(6,194,974)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $ 59,216,080 $14,861,526 $127,835,011 $21,191,406
- --------------------------------------------------------------------------------
At end of year $ 43,194,441 $12,273,967 $ 92,909,192 $14,996,432
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
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
New Jersey New York Ohio
Limited Limited Limited
Portfolio Portfolio Portfolio
- --------------------------------------------------------------------------------
Increase (Decrease) in Net Assets
- --------------------------------------------------------------------------------
From operations -
Net investment income $ 3,451,147 $ 5,864,808 $ 1,601,381
Net realized gain (loss) on
investment transactions 72,466 (287,142) 226,637
Net change in unrealized
appreciation (depreciation)
of investments (370,049) (895,080) (288,513)
- --------------------------------------------------------------------------------
Net increase in net assets from
operations $ 3,153,564 $ 4,682,586 $ 1,539,505
- --------------------------------------------------------------------------------
Capital transactions -
Contributions $ 1,862,282 $ 3,989,610 $ 1,294,856
Withdrawals (26,922,483) (47,386,927) (7,893,884)
- --------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $(25,060,201) $(43,397,317) $(6,599,028)
- --------------------------------------------------------------------------------
Net decrease in net assets $(21,906,637) $(38,714,731) $(5,059,523)
- --------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------
At beginning of year $ 80,172,576 $138,728,479 $33,529,375
- --------------------------------------------------------------------------------
At end of year $ 58,265,939 $100,013,748 $28,469,852
- --------------------------------------------------------------------------------
See notes to financial statements
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Supplementary Data
<CAPTION>
California Limited Portfolio Connecticut Limited Portfolio
------------------------------------------------- -----------------------------------------------
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>
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.61% 0.63% 0.58% 0.53% 0.46%+ 0.54% 0.54% 0.39% 0.17% 0.00%+
Net expenses after custodian
fee reduction 0.59% 0.61% 0.55% -- -- 0.52% 0.50% 0.35% -- --
Net investment income 4.86% 4.98% 4.82% 4.72% 4.50%+ 4.96% 5.09% 4.91% 4.95% 4.53%+
Portfolio Turnover 40% 57% 36% 56% 6% 23% 46% 52% 73% 39%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
year (000s omitted) $34,297 $43,194 $59,216 $82,344 $95,704 $9,834 $12,274 $14,862 $17,316 $16,767
- ------------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions not been taken, the ratios would have been as follows:
Expenses(1) 0.52%+ 0.77% 0.78% 0.72% 0.67% 0.62%+
Expenses after custodian fee
reduction -- 0.75% 0.74% 0.68% -- --
Net investment income 4.44%+ 4.73% 4.85% 4.58% 4.45% 3.92%+
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
** For the period from the start of business, April 16, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Portfolio to increase its expense 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.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------
Supplementary Data
Florida Limited Portfolio
----------------------------------------------------------
Year Ended March 31,
----------------------------------------------------------
1998 1997 1996 1995 1994*
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Expenses(1) 0.58% 0.59% 0.55% 0.52% 0.49%+
Expenses after custodian fee reduction 0.55% 0.57% 0.54% -- --
Net investment income 4.90% 4.90% 4.73% 4.73% 4.53%+
Portfolio Turnover 38% 66% 20% 44% 8%
- ------------------------------------------------------------------------------------------------------
Net assets, end of year (000s omitted) $72,241 $92,909 $127,835 $164,579 $185,977
- ------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to
reflect a change in reporting requirements. The new reporting guidelines require 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.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------
Supplementary Data
<CAPTION>
Michigan Limited Portfolio New Jersey Limited Portfolio
---------------------------------------------- -----------------------------------------------
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>
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.71% 0.79% 0.68% 0.48% 0.00%+ 0.62% 0.61% 0.57% 0.54% 0.54%+
Net expenses after
custodian fee
reduction 0.67% 0.76% 0.64% -- -- 0.61% 0.58% 0.55% -- --
Net investment income 5.00% 5.09% 5.00% 4.88% 4.62%+ 4.91% 4.96% 4.78% 4.73% 4.53%+
Portfolio Turnover 21% 28% 40% 111% 30% 21% 37% 42% 44% 10%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
year (000s omitted) $12,097 $14,996 $21,191 $33,198 $35,608 $45,540 $58,266 $80,173 $97,280 $102,948
- ------------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions not been taken, the ratios would have been as follows:
Expenses(1) 0.59% 0.54%+
Net investment income 4.77% 4.08%+
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, April 16, 1993, to March 31, 1994.
** For the period from the start of business, May 3, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Portfolio to increase its expense 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.
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- ------------------------------------------------------------------------------------------------------------------------------------
FINANCIAL STATEMENTS CONT'D
- ------------------------------------------------------------------------------------------------------------------------------------
Supplementary Data
<CAPTION>
New York Limited Portfolio Ohio Limited Portfolio
---------------------------------------------- -----------------------------------------------
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>
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.61% 0.58% 0.55% 0.52% 0.47%+ 0.64% 0.68% 0.63% 0.46% 0.00%+
Expenses after
custodian fee
reduction 0.59% 0.56% 0.53% -- -- -- 0.65% 0.61% -- --
Net investment income 4.81% 4.87% 4.66% 4.79% 4.50%+ 5.05% 5.20% 5.06% 4.96% 4.68%+
Portfolio Turnover 53% 58% 32% 31% 5% 29% 34% 47% 120% 33%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
year (000s omitted) $74,691 $100,014 $138,728 $173,632 $183,768 $24,216 $28,470 $33,529 $39,435 $37,978
- -----------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of expenses to the
Investment Adviser, or both. Had such actions not been taken, the ratios would have been as follows:
Expenses(1) 0.58% 0.54%+
Net investment income 4.84% 4.14%+
- ------------------------------------------------------------------------------------------------------------------------------------
+ Annualized.
* For the period from the start of business, May 3, 1993, to March 31, 1994.
** For the period from the start of business, April 16, 1993, to March 31, 1994.
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require each Portfolio to increase its expense 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.
</TABLE>
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
- --------------------------------------------------------------------------------
1 Significant Accounting Policies
- --------------------------------------------------------------------------------
California Limited Maturity Municipals Portfolio (California Limited
Portfolio), Connecticut Limited Maturity Municipals Portfolio (Connecticut
Limited Portfolio), Florida Limited Maturity Municipals Portfolio (Florida
Limited Portfolio), Michigan Limited Maturity Municipals Portfolio (Michigan
Limited Portfolio), New Jersey Limited Maturity Municipals Portfolio (New
Jersey Limited Portfolio), New York Limited Maturity Municipals Portfolio
(New York Limited Portfolio) and Ohio Limited Maturity Municipals Portfolio
(Ohio Limited Portfolio), collectively the Portfolios, are registered under
the Investment Company Act of 1940 as non-diversified open-end management
investment companies which were organized as trusts under the laws of the
State of New York on May 1, 1992. The Declarations of Trust permit the
Trustees to issue interests in the Portfolios. The following is a summary of
significant accounting policies of the Portfolios. The policies are in
conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts listed on
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal
tax purposes. No provision is made by the Portfolios for federal or state
taxes on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit.
Interest income received by the Portfolios on investments in municipal
bonds, which is excludable from gross income under the Internal Revenue
Code, will retain its status as income exempt from federal income tax when
allocated to each Portfolio's investors. The portion of such interest, if
any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization, including registration costs, are being
amortized on the straight-line basis over five years, beginning on the date
each 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
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California Limited $178,448 0.46%
Connecticut Limited $ 50,322 0.47%
Florida Limited $381,588 0.46%
Michigan Limited $ 62,245 0.47%
New Jersey Limited $239,715 0.47%
New York Limited $402,164 0.46%
Ohio Limited $127,254 0.47%
------------------------------------------------------------------------------
To enhance the net income of the Connecticut Limited Portfolio, BMR made a
reduction of its fee in the amount of $25,094.
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:
California Limited Portfolio Connecticut Limited Portfolio
------------------------------------------------------------------------------
Purchases $15,408,966 $ 2,458,450
Sales 26,424,983 5,379,983
Florida Limited Portfolio Michigan Limited Portfolio
------------------------------------------------------------------------------
Purchases $30,414,260 $ 2,800,361
Sales 53,556,319 5,849,438
New Jersey Limited Portfolio New York Limited Portfolio
------------------------------------------------------------------------------
Purchases $10,935,753 $46,482,127
Sales 25,980,671 74,278,193
Ohio Limited Portfolio
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Purchases $ 7,878,596
Sales 13,032,705
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:
California Limited Connecticut Limited
Portfolio Portfolio
------------------------------------------------------------------------------
Aggregate Cost $31,771,731 $ 9,154,495
------------------------------------------------------------------------------
Gross unrealized appreciation $ 1,715,752 $ 484,082
Gross unrealized depreciation -- (1,707)
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Net unrealized appreciation $ 1,715,752 $ 482,375
------------------------------------------------------------------------------
Florida Limited Michigan Limited
Portfolio Portfolio
------------------------------------------------------------------------------
Aggregate Cost $68,566,219 $11,228,522
------------------------------------------------------------------------------
Gross unrealized appreciation $ 3,487,947 $ 961,949
Gross unrealized depreciation (42,508) (2,316)
------------------------------------------------------------------------------
Net unrealized appreciation $ 3,445,439 $ 959,633
------------------------------------------------------------------------------
New Jersey Limited New York Limited
Portfolio Portfolio
------------------------------------------------------------------------------
Aggregate Cost $42,060,899 $71,325,400
------------------------------------------------------------------------------
Gross unrealized appreciation $ 2,822,748 $ 3,514,690
Gross unrealized depreciation (25,691) (56,956)
------------------------------------------------------------------------------
Net unrealized appreciation $ 2,797,057 $ 3,457,734
------------------------------------------------------------------------------
Ohio Limited
Portfolio
------------------------------------------------------------------------------
Aggregate Cost $22,897,549
------------------------------------------------------------------------------
Gross unrealized appreciation $ 1,167,395
Gross unrealized depreciation (5,035)
------------------------------------------------------------------------------
Net unrealized appreciation $ 1,162,360
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5 Line of Credit
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The Portfolios participate with other portfolios and funds managed by BMR
and EVM and its affiliates in a $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, Michigan Limited Portfolio and Ohio Limited
Portfolio had balances outstanding pursuant to this line of credit of
$916,000, $354,000 and $256,000, respectively. The Portfolios did not have
any significant borrowings or allocated fees during the year ended March 31,
1998.
6 Financial Instruments
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The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at March 31,
1998, is as follows:
Net Unrealized
Limited Expiration Futures Appreciation/
Portfolio Date Contracts Position (Depreciation)
------------------ ----------- ---------------- --------- --------------
13 U.S. Treasury
California 6/98 Bonds Short $ 209
6 U.S. Treasury
Connecticut 6/98 Bonds Short $ (3,630)
35 U.S. Treasury
Florida 6/98 Bonds Short $(11,838)
5 U.S. Treasury
Michigan 6/98 Bonds Short $ (2,436)
24 U.S. Treasury
New Jersey 6/98 Bonds Short $(10,457)
41 U.S. Treasury
New York 6/98 Bonds Short $(17,434)
12 U.S. Treasury
Ohio 6/98 Bonds Short $ (3,457)
<PAGE>
Limited Maturity Municipals Portfolios as of March 31, 1998
INDEPENDENT AUDITORS' REPORT
To the Trustees and Shareholders of
California Limited Maturity Municipals Portfolio
Connecticut Limited Maturity Municipals Portfolio
Florida Limited Maturity Municipals Portfolio
Michigan Limited Maturity Municipals Portfolio
New Jersey Limited Maturity Municipals Portfolio
New York Limited Maturity Municipals Portfolio
Ohio Limited Maturity Municipals Portfolio:
- -------------------------------------------------------------------------------
We have audited the accompanying statements of assets and liabilities,
including the portfolios of investments, of California Limited Maturity
Municipals Portfolio, Connecticut Limited Maturity Municipals Portfolio,
Florida Limited Maturity Municipals Portfolio, Michigan Limited Maturity
Municipals Portfolio, New Jersey Limited Maturity Municipals Portfolio, New
York Limited Maturity Municipals Portfolio, and Ohio 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 Traditional Limited Maturity Municipals Funds as of March 31, 1998
INVESTMENT MANAGEMENT
EV Traditional 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
JAMES L. O'CONNOR Management Corporation
Treasurer
JOHN L. THORNDIKE
ALAN R. DYNNER Formerly Director, Fiduciary Company
Secretary Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
Limited Maturity Municipals Portfolios
Officers Independent Trustees
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
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
WILLIAM H. AHERN, JR. Management Corporation
Vice President and Portfolio
Manager of Connecticut, Florida,
Michigan, New Jersey, New JOHN L. THORNDIKE
York, and Ohio Limited Formerly Director, Fiduciary Company
Maturity Municipals Portfolios Incorporated
CYNTHIA J. CLEMSON JACK L. TREYNOR
Vice President and Portfolio Investment Adviser and Consultant
Manager of California 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 TRADITIONAL 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.
- ---------------------------------------------------------------------------
T-7LTFRCSRC-5/98
