<PAGE>
[LOGO]
MUTUAL FUNDS FOR PEOPLE WHO PAY TAXES
ANNUAL REPORT MARCH 31, 1999
[GRAPHIC - HIGHWAY]
EATON VANCE LIMITED
MATURITY
MUNICIPALS FUNDS
[GRAPHIC - BRIDGE]
[GRAPHIC - EDUCATION-WALL]
CALIFORNIA
CONNECTICUT
FLORIDA
MASSACHUSETTS
MICHIGAN
NEW JERSEY
NEW YORK
OHIO
PENNSYLVANIA
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
LETTER TO SHAREHOLDERS
[PHOTO]
Thomas J. Fetter
President
Through much of 1998, the Treasury bond market advanced strongly, amid
continued low inflation and fears that an Asian financial crisis could
provoke an economic slowdown. However, in the fourth quarter of 1998, the
economy proved far more resilient than expected. Gross Domestic Product (GDP)
grew 6.1%, the fastest quarterly pace in nearly 15 years. In the first
quarter of 1999, GDP surged 4.5%. Meanwhile, as energy prices -- a key
ingredient of inflation -- edged higher, the bond market gave up some of its
earlier gains.
Municipal bonds trailed the Treasury market through much of 1998, but gained
ground in the first quarter of 1999. A heavy new issue calendar produced
supply pressures for the tax-exempt market, with more than $300 billion in
new municipal issues coming to market in 1998. However, in the first three
months of 1999, supply eased somewhat. For the year ended March 31, 1999, the
Lehman Brothers 7-Year Municipal Bond Index -- a widely recognized, unmanaged
index of intermediate-term municipal bonds -- posted a return of 5.9%.(1)
MUNICIPAL BONDS REMAIN AMONG THE MOST UNDERVALUED ASSET CLASSES...
At the end of 1998, municipal bonds represented one of the most undervalued
asset classes in the financial markets. Historically, intermediate-maturity
municipal bond yields have averaged around 75% of Treasury bond yields.
However, in the flight to Treasuries that characterized the bond market in
late 1998, that ratio rose significantly. By March 31, 1999, those ratios had
narrowed as the intermediate-term market outperformed in the first quarter of
1999. They continue to represent an excellent bargain, especially considering
their tax-exempt status.
(1)It is not possible to invest directly in an Index.
Intermediate-term municipal bonds yield 82% of Treasury yields
5-Year AAA-rated General Obligation (GO) Bonds* 3.90%
Taxable equivalent yield in 36% tax bracket 6.09%
5-Year Treasury bond 4.75%
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general
obligations and are not necessarily representative of a Fund's yield.
Statistics as of March 31, 1999.
Past performance is no guarantee of future results.
Source: Bloomberg L.P.
TAXES REMAIN HIGH, WHILE TAX REFORM IS AGAIN STALLED IN CONGRESS...
The election year promises of tax cuts appear to have reached a roadblock in
Washington. Meanwhile, it is estimated that the average American worked until
May 10 to pay his or her taxes in 1998, according to the Tax Foundation. That
poses an enormous financial burden -- and an increasing challenge for those
who may be simultaneously paying for college tuition, caring for elderly
parents, or trying to plan for their own retirement.
Amid low inflation and growing federal budget surpluses, we believe that the
outlook for bonds remains favorable. At their recent levels, municipal bonds
are especially attractive. Moreover, municipal bonds remain an excellent
fixed-income alternative -- to diversify one's investment portfolio and to
help lower one's tax burden.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 10, 1999
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
2
<PAGE>
EATON VANCE CALIFORNIA LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The California economy enjoyed 3% job growth in 1998, with southern
California experiencing especially strong momentum. Orange and Los Angeles
Counties led the way, with strong growth in non-durable manufacturing. The
state's unemployment rate was 5.8% in March, down from 6.0% a year earlier.
- - The construction sector remained a primary source of new jobs. Reversing
the out-migration seen earlier in the decade, California registered a 1.5%
rise in population in 1998. The increased demand for housing resulted in an
average of 11,500 monthly residential construction permits, a 25% rise from
a year ago.
- - The Los Angeles area has witnessed a surge in the financial services
sector. Job gains in brokerage, finance, and real estate management have
more than offset job losses in commercial banking.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A and Class B shares
had total returns of 4.6% and 4.0%, respectively.(1) For Class A and Class B,
these returns resulted from a rise in net asset value (NAV) per share to
$10.35 on March 31, 1999 from $10.33 on March 31, 1998, and the reinvestment
of $0.443 and $0.387 per share, respectively, in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of $10.35
per share for Class A and Class B, the distribution rates were 4.40% and
3.67%, respectively.(3)
- - The SEC 30-day yields for Class A and B shares at March 31 were 3.24% and
2.56%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - While continuing its "barbell" strategy, management restructured the
Portfolio somewhat during the year. A portion of the Portfolio was
dedicated to higher-coupon issues while another portion focused on
higher-quality issues.
- - The Portfolio's component of non-rated bonds proved a major advantage
during the past year. Non-rated issues such as Capistrano United School
District and Brentwood Infrastructure Authority provided excellent income
in a relatively flat interest rate environment.
- - Management continued its efforts to upgrade the Portfolio's call protection.
The Portfolio sold bonds callable before 2005 in favor of high quality,
non-callable bonds and bonds with more attractive call characteristics.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Brentwood, CA
Infrastructure Financing Authority
- - These special tax revenue bonds were issued in 1999, with debt service to be
paid by assessments on property within five Brentwood Assessment Districts.
- - The proceeds of the bonds were used to finance District infrastructure
improvements, including water distribution, wastewater systems, flood
control facilities, drainage systems and roadways.
- - The bonds are an example of the Portfolio's efforts to find attractive
opportunities among non-rated issues.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing
the result. (5) Returns are historical and are calculated by determining
the percentage change in net asset value with all distributions
reinvested. SEC returns for Class A reflect the maximum 2.25% sales
charge. SEC returns for Class B reflect applicable CDSC based on the
following schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year; 1%-4th year.
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, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.6% 4.0%
Five Years N.A. 4.7
Life of Fund+ 6.1 4.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 2.2% 1.0%
Five Years N.A. 4.7
Life of Fund+ 5.2 4.8
</TABLE>
+Inception date: Class A: 6/27/96; Class B: 5/29/92
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
CALIFORNIA LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS
7-YEAR MUNICIPAL BOND INDEX* MAY 31, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
5/31/92 $10,000 $10,000
6/30/92 $10,050 $10,159
7/31/92 $10,401 $10,462
8/31/92 $10,228 $10,354
9/30/92 $10,280 $10,438
10/31/92 $10,142 $10,368
11/30/92 $10,363 $10,522
12/31/92 $10,448 $10,608
1/31/92 $10,566 $10,763
2/28/93 $10,914 $11,093
3/31/93 $10,767 $10,947
4/30/93 $10,864 $11,015
5/31/93 $10,911 $11,048
6/30/93 $11,037 $11,250
7/31/93 $11,059 $11,252
8/31/93 $11,232 $11,451
9/30/93 $11,327 $11,577
10/31/93 $11,337 $11,607
11/30/93 $11,252 $11,505
12/31/93 $11,419 $11,716
1/31/94 $11,530 $11,840
2/28/94 $11,299 $11,583
3/31/94 $10,967 $11,274
4/30/94 $11,012 $11,356
5/31/94 $11,075 $11,413
6/30/94 $11,028 $11,392
7/31/94 $11,169 $11,553
8/31/94 $11,179 $11,613
9/30/94 $11,066 $11,502
10/31/94 $10,943 $11,387
11/30/94 $10,771 $11,221
12/31/94 $10,860 $11,391
1/31/95 $11,057 $11,604
2/28/95 $11,286 $11,866
3/31/95 $11,354 $11,989
4/30/95 $11,360 $12,021
5/31/95 $11,589 $12,341
6/30/95 $11,523 $12,330
7/31/95 $11,643 $12,487
8/31/95 $11,725 $12,634
9/30/95 $11,774 $12,683
10/31/95 $11,871 $12,793
11/30/95 $11,978 $12,934
12/31/95 $12,039 $13,003
1/31/96 $12,125 $13,129
2/28/96 $12,081 $13,084
3/31/96 $11,952 $12,956
4/30/96 $11,932 $12,932
5/31/96 $11,910 $12,913
6/30/96 $11,965 $13,012
7/31/96 $12,037 $13,120
8/31/96 $12,029 $13,127
9/30/96 $12,143 $13,246
10/31/96 $12,218 $13,388
11/30/96 $12,441 $13,612
12/31/96 $12,348 $13,570
1/31/97 $12,352 $13,619
2/28/97 $12,446 $13,732
3/31/97 $12,310 $13,554
4/30/97 $12,374 $13,624
5/31/97 $12,538 $13,795
6/30/97 $12,618 $13,927
7/31/97 $12,895 $14,249
8/31/97 $12,762 $14,149
9/30/97 $12,880 $14,298
10/31/97 $12,883 $14,383
11/30/97 $12,941 $14,434
12/31/97 $13,132 $14,610
1/31/98 $13,238 $14,763
2/28/98 $13,245 $14,777
3/31/98 $13,245 $14,777
4/30/98 $13,145 $14,691
5/31/98 $13,328 $14,907
6/30/98 $13,345 $14,949
7/31/98 $13,361 $14,999
8/31/98 $13,551 $15,227
9/30/98 $13,748 $15,423
10/31/98 $13,686 $15,445
11/30/98 $13,729 $15,487
12/31/98 $13,729 $15,520
1/31/99 $13,878 $15,747
2/28/99 $13,789 $15,657
3/31/99 $13,774 $15,652
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,728 on March
31, 1999; $11,464, including maximum 2.25% sales charge.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.10% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an
exempt-interest dividend.
3
<PAGE>
EATON VANCE CONNECTICUT LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31,1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Connecticut has experienced strong economic growth in the past year,
registering a gain of 29,000 new jobs. For the seventh consecutive year, the
service sector dominated job creation, led by business services. The state's
unemployment rate fell to 3.1% in March from 3.8% a year earlier.
- - Connecticut's construction sector again produced strong employment gains.
With a boost from continued low interest rates, the state's strong economy
generated a record number of new housing permits, up 27.5% over 1997 levels.
- - Merchandise exports from Connecticut businesses expanded 4.2% in 1998,
reaching a new high of $8.1 billion for the year. The state's increase in
exports outpaced that of the nation and marked the continuation of a
decade-long uptrend in Connecticut exports.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A and Class B shares
had total returns of 4.5% and 3.9%, respectively.(1) For Class A and Class B,
these returns resulted from a rise in net asset value (NAV) per share to
$10.13 on March 31, 1999 from $10.11 on March 31, 1998, and the reinvestment
of $0.423 and $0.370 per share, respectively, in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of $10.13
per share for Class A and Class B, the distribution rates were 4.36% and
3.65%, respectively.(3)
- - The SEC 30-day yields for Class A and B shares at March 31 were 2.10% and
1.42%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Escrowed bonds were the Portfolio's largest sector weighting at March 31.
Escrowed bonds are those that have been pre-refunded in advance of their call
date. Because they are backed by Treasury bonds, they are considered to be of
very high quality.
- - General obligations and insured(5) general obligations played a significant
role in the Portfolio. Amid a strong economy and impressive personal income
growth, the state and local coffers enjoyed a surge in tax revenues.
- - Industrial development bonds (IDB) provided excellent sources of income for
the Portfolio. Industries represented in the Portfolio's IDB holdings included
consumer products, transportation and paper.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Connecticut Health and Education
Finance Authority
New Britain Hospital
- - New Britain Hospital is a 175-bed, chronic-care facility, providing a range
of services that includes pediatric, psychiatric and pulmonary treatments.
- - These bonds financed the construction of the Hospital's East Wing, with new
facilities dedicated to pediatric and respiratory treatment as well as new
storage and pharmacy areas.
- - This escrowed bond provided a high-quality, relatively stable investment
and a 7.50% coupon.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Private insurance does not remove the interest rate risks
associated with these investments. (6) Returns are historical and are
calculated by determining the percentage change in net asset value with
all distributions reinvested. SEC returns for Class A reflect the maximum
2.25% sales charge. SEC returns for Class B reflect applicable CDSC based
on the following schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year;
1%-4th year.
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, 1999
<TABLE>
<CAPTION>
Performance(6) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.5% 3.9%
Five Years N.A. 4.8
Life of Fund+ 5.7 4.1
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 2.1% 0.9%
Five Years N.A. 4.8
Life of Fund+ 4.6 4.1
</TABLE>
+Inception date: Class A: 1/21/97; Class B: 4/16/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
CONNECTICUT LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS
7-YEAR MUNICIPAL BOND INDEX* APRIL 30, 1993-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
4/30/93 $10,000 $10,000
5/31/93 $9,970 $10,030
6/30/93 $10,103 $10,213
7/31/93 $10,108 $10,215
8/31/93 $10,287 $10,396
9/30/93 $10,384 $10,510
10/31/93 $10,388 $10,537
11/30/93 $10,302 $10,444
12/31/93 $10,483 $10,636
1/31/94 $10,595 $10,749
2/28/94 $10,381 $10,516
3/31/94 $10,083 $10,235
4/30/94 $10,154 $10,310
5/31/94 $10,189 $10,361
6/30/94 $10,142 $10,343
7/31/94 $10,273 $10,488
8/31/94 $10,301 $10,543
9/30/94 $10,212 $10,442
10/31/94 $10,102 $10,337
11/30/94 $9,978 $10,187
12/31/94 $10,095 $10,341
1/31/95 $10,257 $10,535
2/28/95 $10,440 $10,772
3/31/95 $10,513 $10,884
4/30/95 $10,537 $10,913
5/31/95 $10,719 $11,204
6/30/95 $10,687 $11,194
7/31/95 $10,800 $11,336
8/31/95 $10,898 $11,470
9/30/95 $10,944 $11,514
10/31/95 $11,045 $11,614
11/30/95 $11,156 $11,742
12/31/95 $11,201 $11,804
1/31/96 $11,270 $11,919
2/28/96 $11,215 $11,878
3/31/96 $11,091 $11,762
4/30/96 $11,048 $11,740
5/31/96 $11,003 $11,723
6/30/96 $11,086 $11,813
7/31/96 $11,187 $11,911
8/31/96 $11,154 $11,917
9/30/96 $11,271 $12,025
10/31/96 $11,339 $12,154
11/30/96 $11,525 $12,357
12/31/96 $11,480 $12,319
1/31/97 $11,493 $12,364
2/28/97 $11,579 $12,467
3/31/97 $11,447 $12,305
4/30/97 $11,505 $12,368
5/31/97 $11,658 $12,524
6/30/97 $11,731 $12,643
7/31/97 $11,967 $12,936
8/31/97 $11,838 $12,845
9/30/97 $11,935 $12,981
10/31/97 $11,972 $13,057
11/30/97 $12,024 $13,103
12/31/97 $12,190 $13,264
1/31/98 $12,251 $13,403
2/28/98 $12,255 $13,415
3/31/98 $12,264 $13,416
4/30/98 $12,191 $13,338
5/31/98 $12,338 $13,534
6/30/98 $12,352 $13,572
7/31/98 $12,377 $13,617
8/31/98 $12,541 $13,824
9/30/98 $12,639 $14,002
10/31/98 $12,627 $14,022
11/30/98 $12,643 $14,060
12/31/98 $12,679 $14,090
1/31/99 $12,806 $14,295
2/28/99 $12,784 $14,214
3/31/99 $12,743 $14,209
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class
A shares on 1/31/97 at net asset value would have been worth $11,253 on
March 31, 1999; $10,997, including maximum 2.25% sales charge.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 97.35% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
4
<PAGE>
EATON VANCE FLORIDA LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31,1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Florida registered strong job growth in 1998. During the past three years,
the state has added more than 300,000 jobs to service sector payrolls, with
especially strong growth in hotel, motel, and recreational services. The
health care sector also benefited from continuing strong demand.
- - Theme park and convention center expansions are expected to build new momentum
in 1999. The Orlando area will receive a boost from its $3 billion airport
expansion.
- - Florida's trade sector has suffered from weakness in Asia and Latin America.
Japan's recession has resulted in significantly lower exports of citrus fruit
and chemicals, while Brazil's perilous financial condition continues to pose a
risk to Latin America-bound exports.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A, Class B, and
Class C shares had total returns of 4.1%, 3.5%, and 3.6%, respectively.(1)
For Class A and Class B, these returns resulted from a decline in net asset
value (NAV) per share to $10.27 on March 31, 1999 from $10.29 on March 31,
1998, and the reinvestment of $0.436 and $0.380 per share, respectively, in
tax-free income.(2) For Class C, this return resulted from a decline in NAV
to $9.71 from $9.73, and the reinvestment of $0.363 per share in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.27 per share for Class A and Class B, and $9.71 for Class C, the Fund's
distribution rates were 4.38%, 3.65% and 3.60%, respectively.(3)
- - The SEC 30-day yields for Class A, B and C shares at March 31 were 3.39%,
2.72% and 2.72%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - The Portfolio found good income opportunities among special tax revenue
bonds. These assessment district bonds, which provide infrastructure
financing for new communities, benefit from the rapid population growth of
Florida's booming retirement communities.
- - The Portfolio took advantage of the large issuance of insured(5) bonds by
several large, high quality issuers. The heavy supply enabled the Portfolio to
find good value among issues such as Tampa Solid Waste System bonds.
- - The Portfolio reduced its exposure to current coupon issues with calls before
2005 in favor of non-callable bonds and bonds with longer-dated call
provisions.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Tampa FL Solid Waste System
McKay Bay Refuse-to-Energy
- - These insured(5) revenue bonds were issued in 1999 to finance construction
costs of cogeneration facilities at Tampa's McKay Bay site.
- - Protection of water and wildlife has historically been a major issue among
Floridians. Facilities that recycle by-products into a reusable energy
source have proven beneficial to the environment.
- - Due to supply pressures, these bonds came to market at favorable levels,
providing a yield advantage over similar current coupons, as well as 10
years of call protection.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B and C shares. (2) A portion of the Fund's income could be subject
to federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Private insurance does not remove the interest rate risks
associated with these investments. (6) Returns are historical and are
calculated by determining the percentage change in net asset value with
all distributions reinvested. SEC returns for Class A reflect the maximum
2.25% sales charge. SEC returns for Class B reflect applicable CDSC based
on the following schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year;
1%-4th year. The one-year SEC return for Class C reflects 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of March 31, 1999
<TABLE>
<CAPTION>
Performance(6) Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.1% 3.5% 3.6%
Five Years N.A. 4.4 4.4.
Life of Fund+ 5.4 4.6 3.3
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.7% 0.5% 2.6%
Five Years N.A. 4.4 4.4
Life of Fund+ 4.5 4.6 3.3
</TABLE>
+Inception Dates -- Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE FLORIDA
LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* MAY 31, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
5/31/92 $10,000 $10,000
6/30/92 $10,020 $10,159
7/31/92 $10,334 $10,462
8/31/92 $10,202 $10,354
9/30/92 $10,265 $10,438
10/31/92 $10,147 $10,368
11/30/92 $10,369 $10,522
12/31/92 $10,454 $10,608
1/31/92 $10,572 $10,763
2/28/93 $10,951 $11,093
3/31/93 $10,794 $10,947
4/30/93 $10,881 $11,015
5/31/93 $10,928 $11,048
6/30/93 $11,054 $11,250
7/31/93 $11,065 $11,252
8/31/93 $11,226 $11,451
9/30/93 $11,332 $11,577
10/31/93 $11,352 $11,607
11/30/93 $11,256 $11,505
12/31/93 $11,492 $11,716
1/31/94 $11,592 $11,840
2/28/94 $11,351 $11,583
3/31/94 $10,975 $11,274
4/30/94 $11,075 $11,356
5/31/94 $11,148 $11,413
6/30/94 $11,101 $11,392
7/31/94 $11,253 $11,553
8/31/94 $11,264 $11,613
9/30/94 $11,162 $11,502
10/31/94 $11,039 $11,387
11/30/94 $10,890 $11,221
12/31/94 $11,029 $11,391
1/31/95 $11,226 $11,604
2/28/95 $11,433 $11,866
3/31/95 $11,501 $11,989
4/30/95 $11,506 $12,021
5/31/95 $11,723 $12,341
6/30/95 $11,715 $12,330
7/31/95 $11,835 $12,487
8/31/95 $11,940 $12,634
9/30/95 $11,967 $12,683
10/31/95 $12,051 $12,793
11/30/95 $12,136 $12,934
12/31/95 $12,208 $13,003
1/31/96 $12,282 $13,129
2/28/96 $12,203 $13,084
3/31/96 $12,050 $12,956
4/30/96 $12,018 $12,932
5/31/96 $11,984 $12,913
6/30/96 $12,039 $13,012
7/31/96 $12,111 $13,120
8/31/96 $12,115 $13,127
9/30/96 $12,218 $13,246
10/31/96 $12,280 $13,388
11/30/96 $12,479 $13,612
12/31/96 $12,398 $13,570
1/31/97 $12,365 $13,619
2/28/97 $12,459 $13,732
3/31/97 $12,297 $13,554
4/30/97 $12,385 $13,624
5/31/97 $12,535 $13,795
6/30/97 $12,614 $13,927
7/31/97 $12,827 $14,249
8/31/97 $12,694 $14,149
9/30/97 $12,785 $14,298
10/31/97 $12,838 $14,383
11/30/97 $12,895 $14,434
12/31/97 $13,034 $14,610
1/31/98 $13,164 $14,763
2/28/98 $13,170 $14,777
3/31/98 $13,168 $14,777
4/30/98 $13,106 $14,691
5/31/98 $13,263 $14,907
6/30/98 $13,279 $14,949
7/31/98 $13,307 $14,999
8/31/98 $13,481 $15,227
9/30/98 $13,612 $15,423
10/31/98 $13,562 $15,445
11/30/98 $13,592 $15,487
12/31/98 $13,631 $15,520
1/31/99 $13,752 $15,747
2/28/99 $13,663 $15,657
3/31/99 $13,634 $15,652
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,539 on March
31, 1999; $11,281, including maximum 2.25% sales charge. An investment in
the Fund's Class C shares on 12/31/93 at net asset value would have been
worth $11,884 on March 31, 1999.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.62% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
5
<PAGE>
EATON VANCE MASSACHUSETTS LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Massachusetts economic activity continued to grow in late 1998 and early
1999. Strong job data figures, thriving high-tech and financial sectors,
and ongoing consumer demand are some of the factors that contributed to the
expansion. The commonwealth's March unemployment rate was 2.8%.
- - As in other states, manufacturing has had mixed performance. The
automotive, furniture, office supplies, and health care areas continued to
perform well. Sales of electronics and industrial machinery, on the other
hand, are reported down.
- - Massachusetts is among corporate America's favorite places to do business.
According to INC. magazine, Massachusetts is ranked third behind Texas and
California in the number of fast-growing techonology companies headquartered
there.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A, Class B, and
Class C shares had total returns of 4.2%, 3.6%, and 3.6%, respectively.(1)
For Class A and Class B, these returns resulted from a decline in net asset
value (NAV) per share to $10.32 on March 31, 1999 from $10.33 on March 31,
1998, and the reinvestment of $0.436 and $0.378 per share, respectively, in
tax-free income.(2) For Class C, this return resulted from a decline in NAV
to $9.86 from $9.88, and the reinvestment of $0.367 per share in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.32 per share for Class A and Class B, and $9.86 for Class C, the Fund's
distribution rates were 4.42%, 3.66% and 3.83%, respectively.(3)
- - The SEC 30-day yields for Class A, B and C shares at March 31 were 3.32%,
2.65% and 2.65%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Hospital bonds represented the Portfolio's largest sector weighting at
March 31. In a very competitive Massachusetts hospital market, the
Portfolio focused on those institutions with sound financial structures,
good management and a favorable demographic base.
- - Escrowed bonds were a significant portion of the Portfolio. These bonds,
which are pre-refunded to their call date and backed by U.S. Treasury
bonds, are considered very high quality issues.
- - Quality spreads remained relatively narrow. The Portfolio maintained some
exposure to life care and nursing home bonds, which offered attractive
yields in non-rated issues.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Massachusetts Development
Finance Agency/YMCA of Greater Boston
- - The YMCA of Greater Boston is a long-standing institution whose goal is to
provide the area with wholesome recreational opportunities for young people in
the Boston area.
- - These bonds were issued by the State Development Finance Agency to finance
infrastructural improvements to local branches of the Greater Boston YMCA.
- - This bond features excellent call protection and an attractive 5.25% coupon in
a lower-rated, investment-grade bond, while providing funding for projects
that will benefit Boston-area communities.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B and C shares. (2) A portion of the Fund's income could be subject
to federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested.
SEC returns for Class A reflect the maximum 2.25% sales charge. SEC
returns for Class B reflect applicable CDSC based on the following
schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year; 1%-4th year. The
one-year SEC return for Class C reflects 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of March 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.2% 3.6% 3.6%
Five Years N.A. 4.7 4.7
Life of Fund+ 5.8 4.7 3.7
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.8% 0.6% 2.6%
Five Years N.A. 4.7 4.7.
Life of Fund+ 5.0 4.7 3.7
</TABLE>
+Inception Dates -- Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
MASSACHUSETTS LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS
7-YEAR MUNICIPAL BOND INDEX* JUNE 30, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
6/30/92 $10,000 $10,000
7/31/92 $10,278 $10,298
8/31/92 $10,136 $10,192
9/30/92 $10,178 $10,275
10/31/92 $10,070 $10,205
11/30/92 $10,270 $10,358
12/31/92 $10,355 $10,442
1/31/92 $10,462 $10,595
2/28/93 $10,798 $10,919
3/31/93 $10,652 $10,776
4/30/93 $10,739 $10,843
5/31/93 $10,786 $10,875
6/30/93 $10,900 $11,074
7/31/93 $10,911 $11,076
8/31/93 $11,094 $11,272
9/30/93 $11,180 $11,396
10/31/93 $11,201 $11,425
11/30/93 $11,117 $11,325
12/31/93 $11,300 $11,533
1/31/94 $11,399 $11,655
2/28/94 $11,180 $11,402
3/31/94 $10,838 $11,098
4/30/94 $10,917 $11,179
5/31/94 $10,979 $11,234
6/30/94 $10,933 $11,214
7/31/94 $11,085 $11,372
8/31/94 $11,107 $11,432
9/30/94 $10,995 $11,322
10/31/94 $10,884 $11,209
11/30/94 $10,746 $11,045
12/31/94 $10,903 $11,213
1/31/95 $11,077 $11,423
2/28/95 $11,295 $11,680
3/31/95 $11,363 $11,802
4/30/95 $11,369 $11,833
5/31/95 $11,575 $12,148
6/30/95 $11,533 $12,137
7/31/95 $11,641 $12,292
8/31/95 $11,747 $12,437
9/30/95 $11,795 $12,484
10/31/95 $11,878 $12,593
11/30/95 $11,996 $12,732
12/31/95 $12,043 $12,799
1/31/96 $12,116 $12,923
2/28/96 $12,058 $12,879
3/31/96 $11,940 $12,753
4/30/96 $11,883 $12,730
5/31/96 $11,860 $12,711
6/30/96 $11,925 $12,809
7/31/96 $11,996 $12,915
8/31/96 $11,999 $12,922
9/30/96 $12,111 $13,039
10/31/96 $12,208 $13,179
11/30/96 $12,380 $13,399
12/31/96 $12,298 $13,358
1/31/97 $12,300 $13,406
2/28/97 $12,405 $13,517
3/31/97 $12,268 $13,342
4/30/97 $12,354 $13,411
5/31/97 $12,504 $13,579
6/30/97 $12,595 $13,709
7/31/97 $12,794 $14,027
8/31/97 $12,722 $13,927
9/30/97 $12,800 $14,075
10/31/97 $12,815 $14,158
11/30/97 $12,883 $14,208
12/31/97 $13,059 $14,382
1/31/98 $13,150 $14,533
2/28/98 $13,169 $14,546
3/31/98 $13,166 $14,546
4/30/98 $13,079 $14,462
5/31/98 $13,259 $14,674
6/30/98 $13,262 $14,716
7/31/98 $13,276 $14,765
8/31/98 $13,462 $14,989
9/30/98 $13,618 $15,182
10/31/98 $13,567 $15,204
11/30/98 $13,572 $15,245
12/31/98 $13,637 $15,277
1/31/99 $13,771 $15,500
2/28/99 $13,670 $15,413
3/31/99 $13,641 $15,407
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,656 on March
31, 1999; $11,393, including maximum 2.25% sales charge. An investment in
the Fund's Class C shares on 12/31/93 at net asset value would have been
worth $12,098 on March 31, 1999.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.83% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
6
<PAGE>
EATON VANCE MICHIGAN LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Michigan economy struggled somewhat in 1998, as a strike at General
Motors and continuing weak demand from Asia took a heavy toll. However,
while manufacturing jobs increased just 0.5% during the year, construction,
trade and service sector employment rose significantly. The state's jobless
rate in March was 3.9%, unchanged from March 1998.
- - Despite the GM strike, the auto industry posted fairly good results in
1998, with 15.6 million cars and light trucks sold, a 2.9% increase over
1997 levels. Detroit's auto makers managed to maintain their domestic
market share versus foreign-made vehicles.
- - One of the nation's leading exporters, Michigan's economy remains sensitive
to global economic trends. While a lingering Japanese recession continued
to hamper manufacturing, a strengthening European Economic Community could
help stimulate demand.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A and Class B shares
had total returns of 3.5% and 3.1%, respectively.(1) For Class A and Class
B, these returns resulted from a decline in net asset value (NAV) per share
to $9.97 on March 31, 1999 from $10.04 on March 31, 1998, and the
reinvestment of $0.419 and $0.373 per share, respectively, in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$9.97 per share for Class A and Class B, the distribution rates were 4.31%
and 3.66%, respectively.(3)
- - The SEC 30-day yields for Class A and B shares at March 31 were 2.29% and
1.59%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Insured(5) general obligations constituted the Portfolio's largest
weighting at March 31. In an uncertain economic climate that included the
GM strike and softer foreign demand, these bonds provided the Portfolio
with a very high quality investment.
- - The Portfolio reduced its exposure to City of Detroit general obligations.
Despite having made significant strides in recent years, the city has been
bogged down lately in a financial battle with the state over control of the
Detroit public school system.
- - Escrowed bonds were the Portfolio's second largest sector weighting. In
addition to providing above-average income, the bonds, which are backed by
Treasury bonds, improved the overall quality of the Portfolio.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Grand Ledge MI
Public School District
- - These bonds were issued to finance improvements to public school facilities
in this small community west of Lansing.
- - The insured(5) bond has an exceptional 7.875% coupon, providing excellent
income for the Portfolio in a AAA rated investment.
- - As an escrowed bond, the Grand Ledge issue has been pre-refunded and backed
by Treasuries. Therefore, it tends to trade very near its call price, thus
representing a relatively stable investment.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Private insurance does not remove the interest rate risks
that are associated with these investments. (6) Returns are historical
and are calculated by determining the percentage change in net asset
value with all distributions reinvested. SEC returns for Class A reflect
the maximum 2.25% sales charge. SEC returns for Class B reflect
applicable CDSC based on the following schedule: 3%-1st year; 2.5%-2nd
year; 2%-3rd year; 1%-4th year.
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, 1999
<TABLE>
<CAPTION>
Performance(6) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 3.5% 3.1%
Five Years N.A. 4.7
Life of Fund+ 5.5 4.0
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.2% 0.1%
Five Years N.A. 4.7
Life of Fund+ 4.6 4.0
</TABLE>
+Inception date: Class A: 10/22/96; Class B: 4/16/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE MICHIGAN
LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* APRIL 30, 1993-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
4/30/93 $10,000 $10,000
5/31/93 $9,980 $10,030
6/30/93 $10,124 $10,213
7/31/93 $10,130 $10,215
8/31/93 $10,282 $10,396
9/30/93 $10,380 $10,510
10/31/93 $10,387 $10,537
11/30/93 $10,324 $10,444
12/31/93 $10,495 $10,636
1/31/94 $10,609 $10,749
2/28/94 $10,375 $10,516
3/31/94 $10,057 $10,235
4/30/94 $10,140 $10,310
5/31/94 $10,177 $10,361
6/30/94 $10,151 $10,343
7/31/94 $10,274 $10,488
8/31/94 $10,292 $10,543
9/30/94 $10,193 $10,442
10/31/94 $10,074 $10,337
11/30/94 $9,930 $10,187
12/31/94 $10,038 $10,341
1/31/95 $10,245 $10,535
2/28/95 $10,430 $10,772
3/31/95 $10,483 $10,884
4/30/95 $10,486 $10,913
5/31/95 $10,681 $11,204
6/30/95 $10,639 $11,194
7/31/95 $10,718 $11,336
8/31/95 $10,818 $11,470
9/30/95 $10,863 $11,514
10/31/95 $10,998 $11,614
11/30/95 $11,099 $11,742
12/31/95 $11,133 $11,804
1/31/96 $11,225 $11,919
2/28/96 $11,136 $11,878
3/31/96 $11,001 $11,762
4/30/96 $10,959 $11,740
5/31/96 $10,948 $11,723
6/30/96 $11,022 $11,813
7/31/96 $11,136 $11,911
8/31/96 $11,082 $11,917
9/30/96 $11,212 $12,025
10/31/96 $11,305 $12,154
11/30/96 $11,494 $12,357
12/31/96 $11,463 $12,319
1/31/97 $11,500 $12,364
2/28/97 $11,588 $12,467
3/31/97 $11,457 $12,305
4/30/97 $11,505 $12,368
5/31/97 $11,649 $12,524
6/30/97 $11,736 $12,643
7/31/97 $11,963 $12,936
8/31/97 $11,859 $12,845
9/30/97 $11,922 $12,981
10/31/97 $11,948 $13,057
11/30/97 $11,990 $13,103
12/31/97 $12,171 $13,264
1/31/98 $12,283 $13,403
2/28/98 $12,277 $13,415
3/31/98 $12,275 $13,416
4/30/98 $12,166 $13,338
5/31/98 $12,352 $13,534
6/30/98 $12,367 $13,572
7/31/98 $12,381 $13,617
8/31/98 $12,560 $13,824
9/30/98 $12,660 $14,002
10/31/98 $12,611 $14,022
11/30/98 $12,601 $14,060
12/31/98 $12,612 $14,090
1/31/99 $12,740 $14,295
2/28/99 $12,679 $14,214
3/31/99 $12,650 $14,209
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 10/31/96 at net asset value would have been worth $11,371 on March
31, 1999; $11,120, including maximum 2.25% sales charge.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.99% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
7
<PAGE>
EATON VANCE NEW JERSEY LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The New Jersey economy advanced strongly in 1998, with state domestic
product rising a robust 4.6%. Employment gains, rising wages, and large
investment income boosted personal incomes of New Jerseyans. The state's
jobless rate fell below the national rate for the first time in a decade.
- - New Jersey added 76,500 new jobs in 1998, a gain of 2.1%. Job gains were
dominated by the state's core growth sectors -- technology, finance, health
care, and entertainment. The manufacturing sector, beset by weak demand
from Asia, again posted job losses.
- - Infrastructure improvements have become increasingly important to New
Jersey's burgeoning entertainment industry. Expansions at Newark
International Airport have contributed to a sharp increase in tourist
traffic at that facility, while public transportation improvements have
encouraged hotel and casino expansions in Atlantic City.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A and Class B shares
had total returns of 4.0% and 3.5%, respectively.(1) For Class A and Class
B, these returns resulted from a decline in net asset value (NAV) per share
to $10.32 on March 31, 1999 from $10.35 on March 31, 1998, and the
reinvestment of $0.443 and $0.385 per share, respectively, in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.32 per share for Class A and Class B, the distribution rates were 4.49%
and 3.73%, respectively.(3)
- - The SEC 30-day yields for Class A and B shares at March 31 were 3.30% and
2.63%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - There were relatively few changes made to the Portfolio during the period.
The portfolio's largest weightings included insured general obligations,(5)
cogeneration and insured(5) hospital bonds.
- - With the New Jersey market again featuring large insured(5) issuance, the
Portfolio maintained higher-coupon bonds, including assisted living
projects, industrial development bonds and cogeneration facilities.
- - The Portfolio increased its investments in the transportation sector. Bonds
of the Port Authority of New York and New Jersey provided a very liquid
investment in a well-regarded, AA- rated issuer.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
New Jersey Economic
Development Authority
The Chelsea at East Brunswick
- - These bonds were issued to finance the construction costs of an assisted
living facility in East Brunswick run by the Chelsea Management Group.
- - The facility provides senior citizens with an attractive living
alternative, featuring a wide array of services, including meals,
housekeeping, transportation, exercise and leisure activities.
- - This issue was representative of the Portfolio's efforts to find good
income opportunities in non-rated bonds.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value.(4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Private insurance does not remove the interest rate risks
associated with these investments. (6) Returns are historical and are
calculated by determining the percentage change in net asset value with
all distributions reinvested. SEC returns for Class A reflect the maximum
2.25% sales charge. SEC returns for Class B reflect applicable CDSC based
on the following schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year;
1%-4th year.
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, 1999
<TABLE>
<CAPTION>
Performance(6) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.0% 3.5%
Five Years N.A. 4.6
Life of Fund+ 5.8 4.7
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.7% 0.5%
Five Years N.A. 4.6
Life of Fund+ 4.9 4.7
</TABLE>
+Inception date: Class A: 6/27/96; Class B: 6/1/92
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE NEW
JERSEY LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* JUNE 30, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
6/30/92 $10,000 $10,000
7/31/92 $10,358 $10,298
8/31/92 $10,215 $10,192
9/30/92 $10,257 $10,275
10/31/92 $10,118 $10,205
11/30/92 $10,328 $10,358
12/31/92 $10,422 $10,442
1/31/92 $10,540 $10,595
2/28/93 $10,896 $10,919
3/31/93 $10,739 $10,776
4/30/93 $10,825 $10,843
5/31/93 $10,871 $10,875
6/30/93 $11,006 $11,074
7/31/93 $11,016 $11,076
8/31/93 $11,167 $11,272
9/30/93 $11,250 $11,396
10/31/93 $11,249 $11,425
11/30/93 $11,174 $11,325
12/31/93 $11,345 $11,533
1/31/94 $11,455 $11,655
2/28/94 $11,225 $11,402
3/31/94 $10,894 $11,098
4/30/94 $10,971 $11,179
5/31/94 $11,033 $11,234
6/30/94 $10,985 $11,214
7/31/94 $11,115 $11,372
8/31/94 $11,136 $11,432
9/30/94 $11,045 $11,322
10/31/94 $10,922 $11,209
11/30/94 $10,773 $11,045
12/31/94 $10,941 $11,213
1/31/95 $11,125 $11,423
2/28/95 $11,308 $11,680
3/31/95 $11,387 $11,802
4/30/95 $11,381 $11,833
5/31/95 $11,597 $12,148
6/30/95 $11,531 $12,137
7/31/95 $11,639 $12,292
8/31/95 $11,720 $12,437
9/30/95 $11,781 $12,484
10/31/95 $11,888 $12,593
11/30/95 $12,030 $12,732
12/31/95 $12,079 $12,799
1/31/96 $12,152 $12,923
2/28/96 $12,073 $12,879
3/31/96 $11,932 $12,753
4/30/96 $11,865 $12,730
5/31/96 $11,831 $12,711
6/30/96 $11,920 $12,809
7/31/96 $12,051 $12,915
8/31/96 $12,019 $12,922
9/30/96 $12,143 $13,039
10/31/96 $12,205 $13,179
11/30/96 $12,390 $13,399
12/31/96 $12,357 $13,358
1/31/97 $12,409 $13,406
2/28/97 $12,501 $13,517
3/31/97 $12,353 $13,342
4/30/97 $12,391 $13,411
5/31/97 $12,541 $13,579
6/30/97 $12,645 $13,709
7/31/97 $12,894 $14,027
8/31/97 $12,749 $13,927
9/30/97 $12,865 $14,075
10/31/97 $12,893 $14,158
11/30/97 $12,937 $14,208
12/31/97 $13,088 $14,382
1/31/98 $13,205 $14,533
2/28/98 $13,199 $14,546
3/31/98 $13,185 $14,546
4/30/98 $13,098 $14,462
5/31/98 $13,292 $14,674
6/30/98 $13,308 $14,716
7/31/98 $13,323 $14,765
8/31/98 $13,497 $14,989
9/30/98 $13,615 $15,182
10/31/98 $13,591 $15,204
11/30/98 $13,582 $15,245
12/31/98 $13,596 $15,277
1/31/99 $13,731 $15,500
2/28/99 $13,657 $15,413
3/31/99 $13,642 $15,407
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,661 on March
31, 1999; $11,398, including maximum 2.25% sales charge.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 98.22% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
8
<PAGE>
EATON VANCE NEW YORK LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - While the New York economy posted gains in the past year, the state
suffered from tumult in the financial markets and declining exports to Asia
and emerging markets. The state's job growth continued to lag the nation,
rising 2.0% versus 2.6% for the nation as a whole. The state's unemployment
rate declined to 5.0% in March from 5.8% a year earlier.
- - The Mid-Hudson region was New York's pacesetter for job creation.
Computer-related areas, metals, and temporary services were among the
area's fastest-growing industry groups.
- - New York City's financial markets were deeply affected by last year's
global financial crisis. Securities underwriting volumes declined sharply
and several large brokerage firms announced layoffs amid market volatility
and fears of declining profits.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A, Class B, and
Class C shares had total returns of 4.8%, 4.2%, and 4.3%, respectively.(1)
For Class A and Class B, these returns resulted from a rise in net asset
value (NAV) per share to $10.56 on March 31, 1999 from $10.51 on March 31,
1998, and the reinvestment of $0.445 and $0.386 per share, respectively, in
tax-free income.(2) For Class C, this return resulted from a rise in NAV to
$10.00 from $9.95, and the reinvestment of $0.370 per share in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.56 per share for Class A and Class B, and $10.00 for Class C, the
Fund's distribution rates were 4.45%, 3.69% and 3.83%, respectively.(3)
- - The SEC 30-day yields for Class A, B and C shares at March 31 were 3.67%,
3.03% and 3.03%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Lease revenue/certificates of participation were the Portfolio's largest
sector weighting at March 31. The issues financed a wide variety of public
facilities within the state, including transportation, energy, housing and
youth services.
- - The Portfolio's industrial development bonds provided very attractive
yields while financing state economic projects. Companies benefiting from
these bonds included Delta Airlines, American Airlines, and Terminal One
Group.
- - Housing issues for the New York State Mortgage Agency and the New York City
Housing Development Corp. played a significant role, financing single-family
and multi-family projects alike.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Suffolk County
Industrial Development Authority
Nissequogue Cogeneration Facility
- - These bonds were issued to finance construction costs of a 41-megawatt,
gas-fired cogeneration facility on the Stonybrook campus of SUNY in
Brookhaven.
- - The Nissequogue facility provides electricity, and steam heating and
cooling for the Stonybrook campus, as well as electricity for Long Island
Power Authority.
- - The Nissequogue issue is an example of the Portfolio's research-intensive
investments in non-rated bonds.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B and C shares. (2) A portion of the Fund's income could be subject
to federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Returns are historical and are calculated by determining the
percentage change in net asset value with all distributions reinvested.
SEC returns for Class A reflect the maximum 2.25% sales charge. SEC
returns for Class B reflect applicable CDSC based on the following
schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year; 1%-4th year. The
one-year SEC return for Class C reflects 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of March 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.8% 4.2% 4.3%
Five Years N.A. 5.0 5.0.
Life of Fund+ 6.5 5.0 3.9
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 2.4% 1.2% 3.3%
Five Years N.A. 5.0 5.0
Life of Fund+ 5.6 5.0 3.9
</TABLE>
+Inception Dates -- Class A: 6/27/96; Class B: 5/29/92; Class C:12/8/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE NEW YORK
LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* MAY 31, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
5/31/92 $10,000 $10,000
6/30/92 $10,010 $10,159
7/31/92 $10,312 $10,462
8/31/92 $10,220 $10,354
9/30/92 $10,274 $10,438
10/31/92 $10,135 $10,368
11/30/92 $10,368 $10,522
12/31/92 $10,464 $10,608
1/31/92 $10,603 $10,763
2/28/93 $10,962 $11,093
3/31/93 $10,795 $10,947
4/30/93 $10,871 $11,015
5/31/93 $10,908 $11,048
6/30/93 $11,055 $11,250
7/31/93 $11,076 $11,252
8/31/93 $11,258 $11,451
9/30/93 $11,342 $11,577
10/31/93 $11,351 $11,607
11/30/93 $11,265 $11,505
12/31/93 $11,437 $11,716
1/31/94 $11,548 $11,840
2/28/94 $11,305 $11,583
3/31/94 $10,952 $11,274
4/30/94 $11,030 $11,356
5/31/94 $11,103 $11,413
6/30/94 $11,078 $11,392
7/31/94 $11,208 $11,553
8/31/94 $11,218 $11,613
9/30/94 $11,106 $11,502
10/31/94 $10,983 $11,387
11/30/94 $10,788 $11,221
12/31/94 $10,952 $11,391
1/31/95 $11,149 $11,604
2/28/95 $11,366 $11,866
3/31/95 $11,434 $11,989
4/30/95 $11,440 $12,021
5/31/95 $11,657 $12,341
6/30/95 $11,626 $12,330
7/31/95 $11,734 $12,487
8/31/95 $11,839 $12,634
9/30/95 $11,866 $12,683
10/31/95 $11,974 $12,793
11/30/95 $12,093 $12,934
12/31/95 $12,154 $13,003
1/31/96 $12,228 $13,129
2/28/96 $12,148 $13,084
3/31/96 $12,019 $12,956
4/30/96 $11,975 $12,932
5/31/96 $11,942 $12,913
6/30/96 $12,020 $13,012
7/31/96 $12,091 $13,120
8/31/96 $12,070 $13,127
9/30/96 $12,195 $13,246
10/31/96 $12,281 $13,388
11/30/96 $12,478 $13,612
12/31/96 $12,409 $13,570
1/31/97 $12,387 $13,619
2/28/97 $12,480 $13,732
3/31/97 $12,355 $13,554
4/30/97 $12,443 $13,624
5/31/97 $12,606 $13,795
6/30/97 $12,722 $13,927
7/31/97 $13,034 $14,249
8/31/97 $12,925 $14,149
9/30/97 $13,042 $14,298
10/31/97 $13,069 $14,383
11/30/97 $13,126 $14,434
12/31/97 $13,315 $14,610
1/31/98 $13,407 $14,763
2/28/98 $13,426 $14,777
3/31/98 $13,424 $14,777
4/30/98 $13,324 $14,691
5/31/98 $13,518 $14,907
6/30/98 $13,547 $14,949
7/31/98 $13,562 $14,999
8/31/98 $13,762 $15,227
9/30/98 $13,932 $15,423
10/31/98 $13,881 $15,445
11/30/98 $13,900 $15,487
12/31/98 $13,941 $15,520
1/31/99 $14,063 $15,747
2/28/99 $14,016 $15,657
3/31/99 $13,988 $15,652
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,856 on March
31, 1999; $11,591, including maximum 2.25% sales charge. An investment in
the Fund's Class C shares on 12/31/93 at net asset value would have been
worth $12,240 on March 31, 1999.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 98.84% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
9
<PAGE>
EATON VANCE OHIO LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Ohio economy made further progress in 1998 and early 1999, with the
service and trade sectors responsible for most employment gains. In contrast,
the economic woes of Asia and the strong U.S. dollar hurt the manufacturing
sector, an important element of the Ohio economy. The state's March
unemployment rate was 3.9%.
- - Despite a difficult climate for manufacturers, Ohio's steelmakers fared well
in 1998, reflecting a strong industry trend. According to the Cleveland-based
Steel Service Center Institute, nationwide shipments totalled 28.9 million
tons, a 3% increase over 1997.
- - The Ohio labor market suffered from the General Motors auto strike and some
temporary, weather-related layoffs elsewhere. Nonetheless, according to the
Ohio Bureau of Employment Services, the state saw 156,000 more Ohians employed
during the year.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A and Class B shares
had total returns of 4.2% and 3.6%, respectively.(1) For Class A and B,
these returns resulted from a decline in net asset value (NAV) per share to
$10.11 on March 31, 1999 from $10.14 on March 31, 1998, and the
reinvestment of $0.448 and $0.393 per share, respectively, in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.11 per share for Class A and Class B, the Fund's distribution rates
were 4.60% and 3.86%, respectively.(3)
- - The SEC 30-day yields for Class A and Class B shares at March 31 were 3.10%
and 2.45%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - The Portfolio continued its relative-value approach, seeking opportunities
in undervalued sectors of the Ohio market. Insured(5) general obligations
were the Portfolio's largest sector weighting at March 31.
- - Industrial development bonds provided some good opportunities in
higher-coupon bonds. Industries represented in the Portfolio's IDB holdings
included plastics, steel, air freight and entertainment.
- - With quality spreads remaining narrow, the Portfolio maintained an exposure
to non-rated bonds. The Portfolio found especially good value among
non-rated issues in the housing, life care, and nursing home sectors.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Ohio Solid Waste Revenue Bonds
Republic Engineered Steel, Inc.
- - Republic Engineered Steel, Inc., headquartered in Massillon, is a
manufacturer of hot-rolled, specialty steel bars. Product applications
include axles and wheel hubs used in auto manufacture and bars used to
produce aircraft landing gear.
- - These bonds were issued to finance the construction of solid waste
treatment facilities at Republic's Canton Township plant.
- - The non-rated bonds carry an exceptional 9.00% coupon and provide the
Portfolio eight years of premium call protection.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income could be subject to
federal and state income tax and/or alternative minimum tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (5) Private insurance does not remove the interest rate risks
associated with these investments. (6) Returns are historical and are
calculated by determining the percentage change in net asset value with
all distributions reinvested. SEC returns for Class A reflect the maximum
2.25% sales charge. SEC returns for Class B reflect applicable CDSC based
on the following schedule: 3%-1st year; 2.5%-2nd year; 2%-3rd year;
1%-4th year.
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, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.2% 3.6%
Five Years N.A. 4.9
Life of Fund+ 5.8 4.3
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.9% 0.6%
Five Years N.A. 4.9
Life of Fund+ 4.8 4.3
</TABLE>
+Inception date: Class A: 10/22/96; Class B: 4/16/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE OHIO
LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS 7-YEAR
MUNICIPAL BOND INDEX* APRIL 30, 1993-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
4/30/93 $10,000 $10,000
5/31/93 $9,990 $10,030
6/30/93 $10,149 $10,213
7/31/93 $10,176 $10,215
8/31/93 $10,348 $10,396
9/30/93 $10,446 $10,510
10/31/93 $10,452 $10,537
11/30/93 $10,389 $10,444
12/31/93 $10,561 $10,636
1/31/94 $10,674 $10,749
2/28/94 $10,430 $10,516
3/31/94 $10,113 $10,235
4/30/94 $10,206 $10,310
5/31/94 $10,253 $10,361
6/30/94 $10,217 $10,343
7/31/94 $10,350 $10,488
8/31/94 $10,369 $10,543
9/30/94 $10,260 $10,442
10/31/94 $10,140 $10,337
11/30/94 $9,996 $10,187
12/31/94 $10,136 $10,341
1/31/95 $10,322 $10,535
2/28/95 $10,484 $10,772
3/31/95 $10,558 $10,884
4/30/95 $10,551 $10,913
5/31/95 $10,767 $11,204
6/30/95 $10,715 $11,194
7/31/95 $10,784 $11,336
8/31/95 $10,894 $11,470
9/30/95 $10,952 $11,514
10/31/95 $11,065 $11,614
11/30/95 $11,166 $11,742
12/31/95 $11,224 $11,804
1/31/96 $11,271 $11,919
2/28/96 $11,217 $11,878
3/31/96 $11,094 $11,762
4/30/96 $11,062 $11,740
5/31/96 $11,041 $11,723
6/30/96 $11,161 $11,813
7/31/96 $11,218 $11,911
8/31/96 $11,211 $11,917
9/30/96 $11,343 $12,025
10/31/96 $11,414 $12,154
11/30/96 $11,603 $12,357
12/31/96 $11,562 $12,319
1/31/97 $11,542 $12,364
2/28/97 $11,666 $12,467
3/31/97 $11,525 $12,305
4/30/97 $11,598 $12,368
5/31/97 $11,743 $12,524
6/30/97 $11,831 $12,643
7/31/97 $12,083 $12,936
8/31/97 $11,992 $12,845
9/30/97 $12,068 $12,981
10/31/97 $12,096 $13,057
11/30/97 $12,140 $13,103
12/31/97 $12,273 $13,264
1/31/98 $12,386 $13,403
2/28/98 $12,394 $13,415
3/31/98 $12,381 $13,416
4/30/98 $12,335 $13,338
5/31/98 $12,486 $13,534
6/30/98 $12,502 $13,572
7/31/98 $12,518 $13,617
8/31/98 $12,673 $13,824
9/30/98 $12,762 $14,002
10/31/98 $12,741 $14,022
11/30/98 $12,758 $14,060
12/31/98 $12,797 $14,090
1/31/99 $12,927 $14,295
2/28/99 $12,856 $14,214
3/31/99 $12,830 $14,209
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 10/31/96 at net asset value would have been worth $11,430 on March
31, 1999; $11,170, including maximum 2.25% sales charge.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.66% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
10
<PAGE>
EATON VANCE PENNSYLVANIA LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Timothy T. Browse
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Pennsylvania enjoyed strong, albeit uneven, economic growth over the past
year. Despite the negative impact of weak Asian economies, more than 53,000
new jobs were added in the past year, a testament to an increasingly
diverse economic mix. Pennsylvania's March jobless rate was 4.4%, down from
4.8% a year ago.
- - The strong U.S. dollar resulted in a fiercely competitive climate for
Pennsylvania's durable goods manufacturers. Amid an influx of low-cost
imports, the sector lost more than 8,000 jobs, primarily in metals and
transportation equipment.
- - The service sector again was Pennsylvania's primary generator of job
growth. Higher education, local government, and business services,
including data processing and computer-related activities, were the major
sources of new jobs.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended March 31, 1999, the Fund's Class A, Class B, and
Class C shares had total returns of 3.9%, 3.3%, and 3.4%, respectively.(1)
For Class A and Class B, these returns resulted from a decline in net asset
value (NAV) per share to $10.50 on March 31, 1999 from $10.55 on March 31,
1998, and the reinvestment of $0.455 and $0.397 per share, respectively, in
tax-free income.(2) For Class C, this return resulted from a decline in NAV
to $9.93 from $9.98, and the reinvestment of $0.380 per share in tax-free
income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 1999 of
$10.50 per share for Class A and Class B, and $9.93 for Class C, the Fund's
distribution rates were 4.53%, 3.78%, and 3.73%, respectively.(3)
- - The SEC 30-day yields for Class A, B and C shares at March 31 were 3.46%,
2.79% and 2.79%, respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - The Pennsylvania market characteristically featured a large issuance of
hospital bonds. Hospitals and insured(5) hospital bonds constituted large
Portfolio holdings, with some lower investment-grade issues providing
excellent income opportunities.
- - The Portfolio maintained a large commitment to escrowed bonds. The bonds
are backed by Treasury bonds, which gives them an implicit AAA credit
rating. Meanwhile, they continue to provide an excellent stream of income
to the Portfolio.
- - Management continued its efforts to upgrade the Portfolio's call
protection. As low interest rates prompted a series of refundings, call
protection became increasingly important for municipal investors.
YOUR INVESTMENT AT WORK [GRAPHIC]
- -------------------------------------------------------------------------------
Chester County
Industrial Development Authority
Senior Life Choice of Kimberton
- - The Chester County Industrial Development Authority provides financing for
economic development and public projects within the County.
- - These bonds were issued to help finance an assisted living facility in
Kimberton. These facilities have become increasingly popular as a health care
alternative for an aging population.
- - The non-rated bond has an attractive 8.00% coupon. The Portfolios purchased
the issue in its entirety and Eaton Vance was able to negotiate some of its
terms.
- -------------------------------------------------------------------------------
(1) These returns do not include the 2.25% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B and C shares. (2) A portion of the Fund's income could be
subject to federal and state income tax and/or alternative minimum tax.
(3) The Fund's distribution rate represents actual distributions paid
to shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value. (4) The Fund's SEC yield is
calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and
annualizing the result. (5) Private insurance does not remove the
interest rate risks associated with these investments. (6) Returns are
historical and are calculated by determining the percentage change in net
asset value with all distributions reinvested. SEC returns for Class A
reflect the maximum 2.25% sales charge. SEC returns for Class B reflect
applicable CDSC based on the following schedule: 3%-1st year; 2.5%-2nd
year; 2%-3rd year; 1%-4th year. The one-year SEC return for Class C
reflects 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be
worth more or less than their original cost.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of March 31, 1999
<TABLE>
<CAPTION>
Performance(6) Class A Class B Class C
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 3.9% 3.3% 3.4%
Five Years N.A. 4.9 4.9
Life of Fund+ 6.3 5.0 3.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 1.6% 0.3% 2.4%
Five Years N.A. 4.9 4.9
Life of Fund+ 5.4 5.0 3.8
</TABLE>
+Inception Dates -- Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
PENNSYLVANIA LIMITED MATURITY MUNICIPALS FUND, CLASS B VS. LEHMAN BROTHERS
7-YEAR MUNICIPAL BOND INDEX* JUNE 30, 1992-MARCH 31, 1999.
<TABLE>
<CAPTION>
DATE FUND/NAV LB7YMBI
<S> <C> <C>
6/30/92 $10,000 $10,000
7/31/92 $10,357 $10,298
8/31/92 $10,206 $10,192
9/30/92 $10,268 $10,275
10/31/92 $10,121 $10,205
11/30/92 $10,351 $10,358
12/31/92 $10,435 $10,442
1/31/92 $10,563 $10,595
2/28/93 $10,898 $10,919
3/31/93 $10,722 $10,776
4/30/93 $10,819 $10,843
5/31/93 $10,866 $10,875
6/30/93 $10,991 $11,074
7/31/93 $11,003 $11,076
8/31/93 $11,186 $11,272
9/30/93 $11,271 $11,396
10/31/93 $11,282 $11,425
11/30/93 $11,198 $11,325
12/31/93 $11,403 $11,533
1/31/94 $11,502 $11,655
2/28/94 $11,274 $11,402
3/31/94 $10,924 $11,098
4/30/94 $11,013 $11,179
5/31/94 $11,065 $11,234
6/30/94 $11,030 $11,214
7/31/94 $11,182 $11,372
8/31/94 $11,193 $11,432
9/30/94 $11,082 $11,322
10/31/94 $10,961 $11,209
11/30/94 $10,803 $11,045
12/31/94 $10,969 $11,213
1/31/95 $11,142 $11,423
2/28/95 $11,359 $11,680
3/31/95 $11,416 $11,802
4/30/95 $11,434 $11,833
5/31/95 $11,650 $12,148
6/30/95 $11,609 $12,137
7/31/95 $11,705 $12,292
8/31/95 $11,799 $12,437
9/30/95 $11,838 $12,484
10/31/95 $11,934 $12,593
11/30/95 $12,053 $12,732
12/31/95 $12,103 $12,799
1/31/96 $12,166 $12,923
2/28/96 $12,100 $12,879
3/31/96 $11,984 $12,753
4/30/96 $11,918 $12,730
5/31/96 $11,897 $12,711
6/30/96 $11,964 $12,809
7/31/96 $12,036 $12,915
8/31/96 $12,053 $12,922
9/30/96 $12,167 $13,039
10/31/96 $12,241 $13,179
11/30/96 $12,427 $13,399
12/31/96 $12,383 $13,358
1/31/97 $12,399 $13,406
2/28/97 $12,493 $13,517
3/31/97 $12,358 $13,342
4/30/97 $12,422 $13,411
5/31/97 $12,573 $13,579
6/30/97 $12,690 $13,709
7/31/97 $13,002 $14,027
8/31/97 $12,883 $13,927
9/30/97 $13,000 $14,075
10/31/97 $13,029 $14,158
11/30/97 $13,087 $14,208
12/31/97 $13,264 $14,382
1/31/98 $13,395 $14,533
2/28/98 $13,390 $14,546
3/31/98 $13,415 $14,546
4/30/98 $13,330 $14,462
5/31/98 $13,499 $14,674
6/30/98 $13,529 $14,716
7/31/98 $13,507 $14,765
8/31/98 $13,695 $14,989
9/30/98 $13,801 $15,182
10/31/98 $13,765 $15,204
11/30/98 $13,771 $15,245
12/31/98 $13,799 $15,277
1/31/99 $13,935 $15,500
2/28/99 $13,876 $15,413
3/31/99 $13,862 $15,407
</TABLE>
*Source: Tower Data Systems, Bethesda, MD. The chart compares the Fund's
total return with that of the Lehman Brothers 7-Year 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 7-Year
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 directly in an Index. An investment in the Fund's Class A
shares on 6/30/96 at net asset value would have been worth $11,805 on March
31, 1999; $11,542, including maximum 2.25% sales charge. An investment in
the Fund's Class C shares on 12/31/93 at net asset value would have been
worth $12,199 on March 31, 1999.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.95% of the total dividends paid by the Fund from net investment
income during the year ended March 31, 1999 is designated as an exempt-interest
dividend.
11
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------
Investment in Limited Maturity
Municipals Portfolio --
Identified cost $ 27,226,098 $8,470,317 $ 57,218,771 $49,150,294 $ 9,709,181
Unrealized appreciation 1,451,997 491,207 2,729,429 2,393,141 771,620
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 28,678,095 $8,961,524 $ 59,948,200 $51,543,435 $ 10,480,801
- ------------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 10,000 $ -- $ 100 $ 25,876 $ --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 28,688,095 $8,961,524 $ 59,948,300 $51,569,311 $ 10,480,801
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Dividends payable $ 54,392 $ 16,569 $ 109,073 $ 93,624 $ 19,576
Payable for Fund shares redeemed 34,223 -- 153,062 32,663 2,435
Other accrued expenses 30,608 20,668 54,822 41,802 18,872
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 119,223 $ 37,237 $ 316,957 $ 168,089 $ 40,883
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 28,568,872 $8,924,287 $ 59,631,343 $51,401,222 $ 10,439,918
- ------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------
Paid-in capital $ 29,328,809 $8,919,084 $ 60,603,225 $50,896,996 $ 11,138,436
Accumulated net realized loss from
Portfolio (computed on basis of
identified cost) (2,157,541) (536,940) (3,613,482) (1,839,841) (1,450,562)
Accumulated undistributed (distributions
in excess of) net investment income (54,393) 50,936 (87,829) (49,074) (19,576)
Net unrealized appreciation from
Portfolio (computed on basis of
identified cost) 1,451,997 491,207 2,729,429 2,393,141 771,620
- ------------------------------------------------------------------------------------------------------------------------
TOTAL $ 28,568,872 $8,924,287 $ 59,631,343 $51,401,222 $ 10,439,918
- ------------------------------------------------------------------------------------------------------------------------
Class A Shares
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 26,169,641 $7,514,256 $ 49,355,074 $43,436,483 $ 9,786,263
SHARES OUTSTANDING 2,527,768 741,473 4,805,301 4,209,754 981,749
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.35 $ 10.13 $ 10.27 $ 10.32 $ 9.97
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 97.75 of net asset
value per share) $ 10.59 $ 10.36 $ 10.51 $ 10.56 $ 10.20
- ------------------------------------------------------------------------------------------------------------------------
Class B Shares
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 2,399,231 $1,410,031 $ 6,326,004 $ 2,747,372 $ 653,655
SHARES OUTSTANDING 231,746 139,239 616,060 266,143 65,579
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.35 $ 10.13 $ 10.27 $ 10.32 $ 9.97
- ------------------------------------------------------------------------------------------------------------------------
Class C Shares
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ -- $ 3,950,265 $ 5,217,367 $ --
SHARES OUTSTANDING -- -- 406,921 528,918 --
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ -- $ 9.71 $ 9.86 $ --
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $100,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------
Investment in Limited Maturity
Municipals Portfolio --
Identified cost $ 37,297,232 $ 62,445,972 $ 21,589,820 $ 48,601,912
Unrealized appreciation 2,483,449 3,426,771 1,069,434 2,168,770
- -------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $ 39,780,681 $ 65,872,743 $ 22,659,254 $ 50,770,682
- -------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 50,000 $ 2,994 $ -- $ 2,210
- -------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 39,830,681 $ 65,875,737 $ 22,659,254 $ 50,772,892
- -------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------
Dividends payable $ 77,028 $ 123,756 $ 44,727 $ 93,122
Payable for Fund shares redeemed 78,516 24,703 3,043 --
Other accrued expenses 28,229 48,982 31,972 42,416
- -------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 183,773 $ 197,441 $ 79,742 $ 135,538
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ 39,646,908 $ 65,678,296 $ 22,579,512 $ 50,637,354
- -------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------
Paid-in capital $ 39,505,344 $ 63,870,666 $ 22,770,269 $ 49,559,519
Accumulated net realized loss from
Portfolio (computed on basis of
identified cost) (2,301,745) (1,558,804) (1,346,917) (1,067,227)
Accumulated undistributed (distributions
in excess of) net investment income (40,140) (60,337) 86,726 (23,708)
Net unrealized appreciation from
Portfolio (computed on basis of
identified cost) 2,483,449 3,426,771 1,069,434 2,168,770
- -------------------------------------------------------------------------------------------------------
TOTAL $ 39,646,908 $ 65,678,296 $ 22,579,512 $ 50,637,354
- -------------------------------------------------------------------------------------------------------
Class A Shares
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ 36,591,255 $ 57,863,562 $ 20,374,551 $ 41,047,859
SHARES OUTSTANDING 3,546,521 5,478,188 2,016,094 3,907,818
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.32 $ 10.56 $ 10.11 $ 10.50
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 97.75 of net asset
value per share) $ 10.56 $ 10.80 $ 10.34 $ 10.74
- -------------------------------------------------------------------------------------------------------
Class B Shares
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,055,653 $ 5,077,647 $ 2,204,961 $ 3,786,940
SHARES OUTSTANDING 296,148 480,840 218,184 360,523
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.32 $ 10.56 $ 10.11 $ 10.50
- -------------------------------------------------------------------------------------------------------
Class C Shares
- -------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ 2,737,087 $ -- $ 5,802,555
SHARES OUTSTANDING -- 273,715 -- 584,149
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ 10.00 $ -- $ 9.93
- -------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $100,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $1,679,122 $500,304 $3,463,508 $2,808,095 $ 602,186
Expenses allocated from Portfolio (194,363) (53,567) (375,118) (305,062) (86,178)
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $1,484,759 $446,737 $3,088,390 $2,503,033 $ 516,008
- ------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 42 $ 1,374 $ 555 $ 2,287 $ 168
Distribution and service fees
Class A 42,295 13,631 77,273 62,138 14,918
Class B 28,450 15,857 65,125 45,458 8,291
Class C -- -- 49,710 38,412 --
Transfer and dividend disbursing agent
fees 28,790 9,565 56,579 48,087 11,450
Legal and accounting services 8,246 9,098 14,125 23,979 9,345
Printing and postage 4,762 3,659 8,104 10,288 3,600
Custodian fee 6,009 5,820 10,713 6,812 5,103
Registration fees 1,251 424 7,653 5,802 3,361
Amortization of organization expenses -- 269 -- -- 1,262
Miscellaneous 5,358 3,711 10,811 8,760 3,847
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 125,203 $ 63,408 $ 300,648 $ 252,023 $ 61,345
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,359,556 $383,329 $2,787,742 $2,251,010 $ 454,663
- ------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 508,612 $ 48,664 $ 848,816 $ 732,983 $ 167,850
Financial futures contracts (130,540) (29,254) (208,377) (284,350) (53,228)
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 378,072 $ 19,410 $ 640,439 $ 448,633 $ 114,622
- ------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $ (263,755) $ 13,373 $ (716,010) $ (473,609) $(181,375)
Financial futures contracts (209) 3,626 11,838 15,948 2,401
- ------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (263,964) $ 16,999 $ (704,172) $ (457,661) $(178,974)
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 114,108 $ 36,409 $ (63,733) $ (9,028) $ (64,352)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,473,664 $419,738 $2,724,009 $2,241,982 $ 390,311
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $2,292,343 $3,689,798 $1,283,378 $2,910,538
Expenses allocated from Portfolio (263,741) (406,728) (149,810) (320,260)
- -------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $2,028,602 $3,283,070 $1,133,568 $2,590,278
- -------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,428 $ 1,084 $ 229 $ 2,291
Distribution and service fees
Class A 51,727 83,275 30,216 56,940
Class B 44,859 63,533 27,246 47,584
Class C -- 23,496 -- 48,876
Transfer and dividend disbursing agent
fees 39,932 67,671 19,645 53,573
Legal and accounting services 12,496 15,733 12,019 19,040
Printing and postage 9,235 21,277 4,396 10,511
Custodian fee 5,536 8,553 4,611 6,535
Registration fees 1,500 2,822 3,596 1,007
Miscellaneous 7,966 11,261 3,577 8,286
- -------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 174,679 $ 298,705 $ 105,535 $ 254,643
- -------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,853,923 $2,984,365 $1,028,033 $2,335,635
- -------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- -------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 302,337 $ 654,504 $ 125,539 $ 722,466
Financial futures contracts (135,039) (287,095) (100,053) (166,778)
- -------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 167,298 $ 367,409 $ 25,486 $ 555,688
- -------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $ (313,608) $ (30,963) $ (84,845) $ (771,210)
Financial futures contracts 10,457 17,434 3,453 (3,369)
- -------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (303,151) $ (13,529) $ (81,392) $ (774,579)
- -------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ (135,853) $ 353,880 $ (55,906) $ (218,891)
- -------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,718,070 $3,338,245 $ 972,127 $2,116,744
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
Increase (Decrease)in Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,359,556 $ 383,329 $ 2,787,742 $ 2,251,010 $ 454,663
Net realized gain 378,072 19,410 640,439 448,633 114,622
Net change in unrealized appreciation
(depreciation) (263,964) 16,999 (704,172) (457,661) (178,974)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,473,664 $ 419,738 $ 2,724,009 $ 2,241,982 $ 390,311
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,261,736) $ (315,775) $ (2,327,941) $(1,944,036) $ (420,416)
Class B (127,848) (68,388) (275,336) (182,561) (39,337)
Class C -- -- (209,162) (154,877) --
In excess of net investment income
Class A (135) (7,965) -- -- (14,144)
Class B (1,820) -- (1,526) (2,636) (499)
Class C -- -- -- (3,195) --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,391,539) $ (392,128) $ (2,813,965) $(2,287,305) $ (474,396)
- ------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 363,844 $ 464,104 $ 700,316 $ 2,487,913 $ 442,579
Class B 756,317 260,113 814,557 1,504,280 199,415
Class C -- -- 1,429,966 1,586,272 --
Issued in reorganization of EV
Traditional and Classic Limited
Maturity Municipals Funds
Class A 3,133,613 1,063,816 4,524,349 -- 895,423
Class C -- -- 6,552,371 4,459,306 --
Net asset value of shares issued to
shareholders
in payment of distributions
declared
Class A 487,926 156,613 816,049 953,546 214,151
Class B 61,904 46,445 79,403 123,499 28,483
Class C -- -- 100,040 128,935 --
Cost of shares redeemed
Class A (6,698,846) (1,375,758) (11,155,505) (8,510,101) (2,131,033)
Class B (714,328) (283,561) (735,278) (2,367,643) (141,463)
Class C -- -- (4,132,890) (945,891) --
Net asset value of shares exchanged
Class A 3,033,129 1,151,393 4,440,205 4,963,466 1,261,515
Class B (3,033,129) (1,151,393) (4,440,205) (4,963,466) (1,261,515)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ (2,609,570) $ 331,772 $ (1,006,622) $ (579,884) $ (492,445)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (2,527,445) $ 359,382 $ (1,096,578) $ (625,207) $ (576,530)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 31,096,317 $ 8,564,905 $ 60,727,921 $52,026,429 $ 11,016,448
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 28,568,872 $ 8,924,287 $ 59,631,343 $51,401,222 $ 10,439,918
- ------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (54,393) $ 50,936 $ (87,829) $ (49,074) $ (19,576)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
Increase (Decrease)in Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,853,923 $ 2,984,365 $ 1,028,033 $ 2,335,635
Net realized gain 167,298 367,409 25,486 555,688
Net change in unrealized appreciation
(depreciation) (303,151) (13,529) (81,392) (774,579)
- -------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,718,070 $ 3,338,245 $ 972,127 $ 2,116,744
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,668,828) $ (2,615,897) $ (909,646) $ (1,926,225)
Class B (183,025) (260,257) (121,712) (204,064)
Class C -- (95,851) -- (207,418)
In excess of net investment income
Class A -- -- (20,743) --
Class B (919) -- -- --
Class C -- (726) -- --
- -------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,852,772) $ (2,972,731) $ (1,052,101) $ (2,337,707)
- -------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 381,983 $ 1,246,351 $ 402,554 $ 597,926
Class B 599,064 1,074,287 605,499 464,936
Class C -- 1,408,720 -- 1,237,308
Issued in reorganization of EV
Traditional and Classic Limited
Maturity Municipals Funds
Class A 839,250 543,752 1,671,340 --
Class C -- 2,285,786 -- 5,132,765
Net asset value of shares issued to
shareholders
in payment of distributions
declared
Class A 980,571 1,367,952 544,757 813,506
Class B 143,996 188,523 80,845 134,020
Class C -- 64,571 -- 151,274
Cost of shares redeemed
Class A (6,663,082) (12,152,775) (2,703,497) (8,402,426)
Class B (999,616) (1,343,662) (304,762) (819,038)
Class C -- (1,033,218) -- (689,222)
Net asset value of shares exchanged
Class A 5,301,665 7,108,382 2,422,090 4,252,261
Class B (5,301,665) (7,108,382) (2,422,090) (4,252,261)
- -------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $ (4,717,834) $ (6,349,713) $ 296,736 $ (1,378,951)
- -------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (4,852,536) $ (5,984,199) $ 216,762 $ (1,599,914)
- -------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------
At beginning of year $ 44,499,444 $ 71,662,495 $ 22,362,750 $ 52,237,268
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 39,646,908 $ 65,678,296 $ 22,579,512 $ 50,637,354
- -------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (40,140) $ (60,337) $ 86,726 $ (23,708)
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
Increase (Decrease)in Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,497,285 $ 368,076 $ 3,098,121 $ 2,476,810 $ 483,118
Net realized gain (loss) 433,367 4,051 (94,660) 17,484 (124,545)
Net change in unrealized appreciation
(depreciation) 941,613 327,894 2,451,067 1,928,758 526,149
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 2,872,265 $ 700,021 $ 5,454,528 $ 4,423,052 $ 884,722
- ------------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (936,871) $ (144,583) $ (2,004,916) $ (1,572,765) $ (232,658)
Class B (570,677) (229,255) (1,064,705) (860,024) (258,458)
In excess of net investment income
Class A (12,257) (4,392) -- -- (15,799)
Class B (23,588) -- -- -- --
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,543,393) $ (378,230) $ (3,069,621) $ (2,432,789) $ (506,915)
- ------------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class B $ 862,074 $ 394,082 $ 1,086,806 $ 544,330 $ 283,340
Net asset value of shares issued to
shareholders
in payment of distributions
declared
Class A 360,909 67,528 730,455 789,937 98,883
Class B 279,878 148,460 532,282 559,559 180,331
Cost of shares redeemed
Class A (8,438,995) (1,235,782) (21,116,043) (11,235,114) (1,557,577)
Class B (3,400,466) (1,943,632) (5,629,314) (5,707,875) (2,203,538)
Net asset value of shares exchanged
Class A 18,496,757 6,549,972 34,915,282 29,034,216 10,124,352
Class B (18,496,757) (6,549,972) (34,915,282) (29,034,216) (10,124,352)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (10,336,600) $ (2,569,344) $ (24,395,814) $ (15,049,163) $ (3,198,561)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,007,728) $ (2,247,553) $ (22,010,907) $ (13,058,900) $ (2,820,754)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 40,104,045 $ 10,812,458 $ 82,738,828 $ 65,085,329 $ 13,837,202
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 31,096,317 $ 8,564,905 $ 60,727,921 $ 52,026,429 $ 11,016,448
- ------------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (38,399) $ 59,735 $ (75,311) $ (15,000) $ (8,850)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
Increase (Decrease)in Net Assets LIMITED FUND LIMITED FUND LIMITED FUND LIMITED FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,146,149 $ 3,502,793 $ 1,013,916 $ 2,482,667
Net realized gain (loss) (187,074) 1,088,247 131,062 406,226
Net change in unrealized appreciation
(depreciation) 1,648,350 2,844,140 698,195 2,059,464
- -------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,607,425 $ 7,435,180 $ 1,843,173 $ 4,948,357
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (1,338,591) $ (2,200,746) $ (462,064) $ (1,659,315)
Class B (788,446) (1,281,208) (562,959) (781,095)
In excess of net investment income
Class A -- -- (11,117) --
- -------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (2,127,037) $ (3,481,954) $ (1,036,140) $ (2,440,410)
- -------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class B $ 1,195,175 $ 1,170,922 $ 403,230 $ 656,038
Net asset value of shares issued to
shareholders
in payment of distributions
declared
Class A 739,740 1,153,120 282,566 683,229
Class B 575,875 819,416 376,372 453,998
Cost of shares redeemed
Class A (11,566,067) (19,290,897) (2,893,993) (9,812,773)
Class B (4,846,604) (12,172,312) (2,151,477) (4,129,149)
Net asset value of shares exchanged
Class A 23,754,168 39,673,864 19,609,155 23,736,946
Class B (23,754,168) (39,673,864) (19,609,155) (23,736,946)
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (13,901,881) $ (28,319,751) $ (3,983,302) $ (12,148,657)
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (12,421,493) $ (24,366,525) $ (3,176,269) $ (9,640,710)
- -------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------
At beginning of year $ 56,920,937 $ 96,029,020 $ 25,539,019 $ 61,877,978
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 44,499,444 $ 71,662,495 $ 22,362,750 $ 52,237,268
- -------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (41,276) $ (71,690) $ 109,800 $ (27,213)
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA LIMITED FUND
-----------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.330 $10.330 $ 9.980 $ 9.980 $ 9.940 $10.080 $ 9.950 $10.050
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.453 $ 0.382 $ 0.459 $ 0.386(1) $ 0.363 $ 0.393 $ 0.385 $ 0.367
Net realized and
unrealized gain
(loss) 0.030 0.025 0.362 0.362 0.037(3) (0.097) 0.134 (0.027)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.483 $ 0.407 $ 0.821 $ 0.748 $ 0.400 $ 0.296 $ 0.519 $ 0.340
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.463) $(0.382) $(0.459) $(0.386) $(0.360) $(0.393) $(0.385) $(0.367)
In excess of net
investment income --(4) (0.005) (0.012) (0.012) -- (0.003) (0.004) (0.066)
From net realized gain -- -- -- -- -- -- -- (0.007)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.463) $(0.387) $(0.471) $(0.398) $(0.360) $(0.396) $(0.389) $(0.440)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.350 $10.350 $10.330 $10.330 $ 9.980 $ 9.980 $10.080 $ 9.950
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(5) 4.56% 3.99% 8.56% 7.60% 3.84% 2.99% 5.27% 3.53%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $26,170 $ 2,399 $25,780 $ 5,316 $14,718 $25,386 $54,241 $73,857
Ratios (As a percentage
of average daily net
assets):
Expenses(6)(7) 0.95% 1.62% 0.96% 1.76% 0.90%(8) 1.71% 1.63% 1.55%
Expenses after
custodian fee
reduction(6) 0.94% 1.61% 0.94% 1.74% 0.89%(8) 1.70% 1.59% --
Net investment
income 4.37% 3.71% 4.51% 3.76% 4.76%(8) 3.91% 3.81% 3.72%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Distributions in excess of net investment income are less than $0.001 per
share.
(5) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(6) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(7) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(8) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CONNECTICUT LIMITED FUND
-----------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.110 $10.110 $ 9.790 $ 9.790 $ 9.870 $ 9.850 $ 9.690 $ 9.690
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.431 $ 0.365 $ 0.429 $ 0.357(1) $ 0.087 $ 0.398 $ 0.379 $ 0.373
Net realized and
unrealized gain
(loss) 0.031 0.025 0.333 0.333 (0.082) (0.089) 0.150 0.026
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.462 $ 0.390 $ 0.762 $ 0.690 $ 0.005 $ 0.309 $ 0.529 $ 0.399
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.431) $(0.370) $(0.429) $(0.370) $(0.085) $(0.369) $(0.369) $(0.373)
In excess of net
investment income (0.011) -- (0.013) -- -- -- -- (0.026)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.442) $(0.370) $(0.442) $(0.370) $(0.085) $(0.369) $(0.369) $(0.399)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.130 $10.130 $10.110 $10.110 $ 9.790 $ 9.790 $ 9.850 $ 9.690
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.45% 3.90% 7.99% 7.02% (0.13)% 3.21% 5.50% 4.27%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $ 7,514 $ 1,410 $ 6,034 $ 2,531 $ 586 $10,227 $13,014 $15,613
Ratios (As a percentage
of average daily net
assets):
Net expenses(4)(5) 1.16% 1.81% 1.20% 1.92% 0.70%(6) 1.72% 1.53% 1.23%
Net expenses after
custodian fee
reduction(4) 1.13% 1.78% 1.18% 1.90% 0.66%(6) 1.68% 1.49% --
Net investment
income 4.25% 3.60% 4.26% 3.62% 5.06%(6) 3.93% 3.78% 3.89%
- -----------------------------------------------------------------------------------------------------------------------
+ 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(4)(5) 1.39% 2.04% 1.43% 2.15% 0.94%(6) 1.96% 1.86% 1.81%
Expenses after
custodian fee
reduction(4) 1.36% 2.01% 1.41% 2.13% 0.90%(6) 1.92% -- --
Net investment
income 4.02% 3.37% 4.03% 3.39% 4.82%(6) 3.69% 3.45% 3.31%
Net investment income
per share $ 0.408 $ 0.342 $ 0.406 $ 0.334 $ 0.083 $ 0.374 $ 0.346 $ 0.317
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, January
21, 1997, to March 31, 1997.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratios for the
year ended March 31, 1995 have not been adjusted to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA LIMITED FUND
-----------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.290 $10.290 $ 9.730 $ 9.980 $ 9.980 $10.030 $10.170 $10.080 $10.060
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.453 $ 0.378 $ 0.356 $ 0.465 $ 0.391(1) $ 0.357 $ 0.388 $ 0.383 $ 0.375
Net realized and
unrealized gain
(loss) (0.018) (0.018) (0.012) 0.307 0.307 (0.049) (0.185) 0.096 0.090
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.435 $ 0.360 $ 0.344 $ 0.772 $ 0.698 $ 0.308 $ 0.203 $ 0.479 $ 0.465
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.455) $(0.378) $(0.364) $(0.462) $(0.388) $(0.357) $(0.388) $(0.383) $(0.375)
In excess of net
investment income -- (0.002) -- -- -- (0.001) (0.005) (0.006) (0.058)
From net realized gain -- -- -- -- -- -- -- -- (0.012)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.455) $(0.380) $(0.364) $(0.462) $(0.388) $(0.358) $(0.393) $(0.389) $(0.445)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.270 $10.270 $ 9.710 $10.290 $10.290 $ 9.980 $ 9.980 $10.170 $10.080
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.10% 3.54% 3.57% 8.06% 7.08% 2.88% 2.05% 4.78% 4.79%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $49,355 $ 6,326 $ 3,950 $50,116 $10,612 $34,321 $48,418 $116,781 $149,581
Ratios (As a percentage
of average daily net
assets):
Expenses(4)(5) 0.90% 1.63% 1.66% 0.90% 1.66% 0.89%(6) 1.65% 1.57% 1.50%
Expenses after
custodian fee
reduction(4) 0.88% 1.61% 1.64% 0.88% 1.64% 0.87%(6) 1.63% 1.56% --
Net investment
income 4.38% 3.67% 3.65% 4.61% 3.84% 4.65%(6) 3.86% 3.74% 3.77%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS LIMITED FUND
-----------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.330 $10.330 $ 9.880 $ 9.990 $ 9.990 $ 9.940 $10.100 $ 9.980 $ 9.960
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.450 $ 0.373 $ 0.354 $ 0.457 $ 0.384(1) $ 0.359 $ 0.378 $ 0.383 $ 0.383
Net realized and
unrealized gain
(loss) (0.004) (0.005) (0.006) 0.339 0.339 0.040(3) (0.106) 0.126 0.082
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.446 $ 0.368 $ 0.348 $ 0.796 $ 0.723 $ 0.399 $ 0.272 $ 0.509 $ 0.465
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.456) $(0.373) $(0.360) $(0.456) $(0.383) $(0.349) $(0.382) $(0.383) $(0.383)
In excess of net
investment income -- (0.005) (0.008) -- -- -- -- (0.006) (0.055)
From net realized gain -- -- -- -- -- -- -- -- (0.007)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.456) $(0.378) $(0.368) $(0.456) $(0.383) $(0.349) $(0.382) $(0.389) $(0.445)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.320 $10.320 $ 9.860 $10.330 $10.330 $ 9.990 $ 9.990 $10.100 $ 9.980
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 4.19% 3.60% 3.56% 8.29% 7.33% 3.83% 2.74% 5.08% 4.84%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $43,436 $ 2,747 $ 5,217 $43,575 $ 8,451 $23,995 $41,090 $91,809 $113,338
Ratios (As a percentage
of average daily net
assets):
Expenses(5)(6) 0.94% 1.70% 1.70% 0.96% 1.70% 0.91%(7) 1.68% 1.60% 1.57%
Expenses after
custodian fee
reduction(5) 0.91% 1.67% 1.67% 0.92% 1.66% 0.89%(7) 1.66% 1.58% --
Net investment
income 4.35% 3.61% 3.57% 4.53% 3.85% 4.76%(7) 3.90% 3.71% 3.89%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(7) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN LIMITED FUND
-----------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.040 $10.040 $ 9.740 $ 9.740 $ 9.740 $ 9.730 $ 9.630 $ 9.650
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.424 $ 0.356 $ 0.430 $ 0.357(1) $ 0.201 $ 0.382 $ 0.383 $ 0.364
Net realized and
unrealized gain
(loss) (0.056) (0.053) 0.329 0.329 0.001 0.012 0.090 0.030
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.368 $ 0.303 $ 0.759 $ 0.686 $ 0.202 $ 0.394 $ 0.473 $ 0.394
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.424) $(0.368) $(0.430) $(0.386) $(0.201) $(0.384) $(0.373) $(0.364)
In excess of net
investment income (0.014) (0.005) (0.029) -- (0.001) -- -- (0.050)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.438) $(0.373) $(0.459) $(0.386) $(0.202) $(0.384) $(0.373) $(0.414)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $ 9.970 $ 9.970 $10.040 $10.040 $ 9.740 $ 9.740 $ 9.730 $ 9.630
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 3.53% 3.06% 8.23% 7.24% 1.89% 4.14% 4.95% 4.24%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $ 9,786 $ 654 $ 9,177 $ 1,839 $ 406 $13,431 $18,705 $26,048
Ratios (As a percentage
of average daily net
assets):
Net expenses(4)(5) 1.32% 2.02% 1.36% 2.04% 1.18%(6) 1.99% 1.78% 1.55%
Net expenses after
custodian fee
reduction(4) 1.29% 1.99% 1.32% 2.00% 1.15%(6) 1.96% 1.75% --
Net investment
income 4.23% 3.56% 4.32% 3.72% 4.56%(6) 3.91% 3.92% 3.82%
- -----------------------------------------------------------------------------------------------------------------------
+ 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(4) 1.66%
Net investment
income 3.71%
Net investment income
per share $ 0.354
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, October
22, 1996, to March 31, 1997.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratios for the
year ended March 31, 1995 have not been adjusted to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW JERSEY LIMITED FUND
-----------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.350 $10.350 $10.070 $10.070 $ 9.960 $10.110 $10.020 $10.030
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.463 $ 0.383 $ 0.464 $ 0.391(1) $ 0.362 $ 0.375 $ 0.383 $ 0.370
Net realized and
unrealized gain
(loss) (0.030) (0.028) 0.279 0.279 0.102(3) (0.026) 0.093 0.068
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.433 $ 0.355 $ 0.743 $ 0.670 $ 0.464 $ 0.349 $ 0.476 $ 0.438
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.463) $(0.383) $(0.463) $(0.390) $(0.354) $(0.389) $(0.383) $(0.370)
In excess of net
investment income -- (0.002) -- -- -- -- (0.003) (0.060)
From net realized gain -- -- -- -- -- -- -- (0.018)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.463) $(0.385) $(0.463) $(0.390) $(0.354) $(0.389) $(0.386) $(0.448)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.320 $10.320 $10.350 $10.350 $10.070 $10.070 $10.110 $10.020
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 4.04% 3.46% 7.69% 6.73% 4.48% 3.53% 4.79% 4.53%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $36,591 $ 3,056 $35,879 $ 8,620 $22,230 $34,691 $78,039 $93,361
Ratios (As a percentage
of average daily net
assets):
Expenses(5)(6) 0.95% 1.72% 0.99% 1.72% 0.88%(7) 1.69% 1.60% 1.56%
Expenses after
custodian fee
reduction(5) 0.95% 1.72% 0.98% 1.71% 0.85%(7) 1.66% 1.58% --
Net investment
income 4.47% 3.70% 4.56% 3.85% 4.75%(7) 3.90% 3.77% 3.73%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) The per share amounts are not in accord with the net realized and
unrealized gain (loss) for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(7) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK LIMITED FUND
-----------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.510 $10.510 $ 9.950 $10.040 $10.040 $10.000 $10.150 $10.030 $10.040
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.468 $ 0.386 $ 0.368 $ 0.461 $ 0.388(1) $ 0.357 $ 0.387 $ 0.374 $ 0.378
Net realized and
unrealized gain
(loss) 0.047 0.050 0.053 0.470 0.470 0.035(3) (0.109) 0.135 0.049
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.515 $ 0.436 $ 0.421 $ 0.931 $ 0.858 $ 0.392 $ 0.278 $ 0.509 $ 0.427
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.465) $(0.386) $(0.368) $(0.461) $(0.388) $(0.352) $(0.387) $(0.374) $(0.378)
In excess of net
investment income -- -- (0.003) -- -- -- (0.001) (0.015) (0.055)
From net realized gain -- -- -- -- -- -- -- -- (0.004)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.465) $(0.386) $(0.371) $(0.461) $(0.388) $(0.352) $(0.388) $(0.389) $(0.437)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.560 $10.560 $10.000 $10.510 $10.510 $10.040 $10.040 $10.150 $10.030
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 4.78% 4.20% 4.28% 9.61% 8.65% 3.74% 2.79% 5.12% 4.41%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $57,864 $ 5,078 $ 2,737 $59,442 $12,220 $35,932 $60,097 $133,846 $166,691
Ratios (As a percentage
of average daily net
assets):
Expenses(5)(6) 0.91% 1.68% 1.67% 0.93% 1.70% 0.88%(7) 1.63% 1.57% 1.51%
Expenses after
custodian fee
reduction(5) 0.91% 1.68% 1.67% 0.91% 1.68% 0.86%(7) 1.61% 1.55% --
Net investment
income 4.42% 3.67% 3.65% 4.50% 3.77% 4.67%(7) 3.84% 3.66% 3.81%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(7) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO LIMITED FUND
-----------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.140 $10.140 $ 9.820 $ 9.820 $ 9.860 $ 9.840 $ 9.730 $ 9.730
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.458 $ 0.386 $ 0.461 $ 0.389(1) $ 0.205 $ 0.408 $ 0.398 $ 0.382
Net realized and
unrealized gain
(loss) (0.019) (0.023) 0.331 0.331 (0.037) (0.033) 0.085 0.032
- -----------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.439 $ 0.363 $ 0.792 $ 0.720 $ 0.168 $ 0.375 $ 0.483 $ 0.414
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.453) $(0.393) $(0.461) $(0.400) $(0.205) $(0.395) $(0.373) $(0.382)
In excess of net
investment income (0.016) -- (0.011) -- (0.003) -- -- (0.032)
- -----------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.469) $(0.393) $(0.472) $(0.400) $(0.208) $(0.395) $(0.373) $(0.414)
- -----------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.110 $10.110 $10.140 $10.140 $ 9.820 $ 9.820 $ 9.840 $ 9.730
- -----------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 4.19% 3.62% 8.40% 7.43% 1.51% 3.89% 5.07% 4.41%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $20,375 $ 2,205 $18,114 $ 4,249 $ 952 $24,587 $29,759 $34,279
Ratios (As a percentage
of average daily net
assets):
Net expenses(4)(5) 1.03% 1.75% 1.11% 1.80% 1.08%(6) 1.84% 1.67% 1.49%
Net expenses after
custodian fee
reduction(4) 1.00% 1.72% -- -- 1.05%(6) 1.81% 1.65% --
Net investment
income 4.51% 3.79% 4.57% 3.92% 4.75%(6) 4.06% 4.04% 3.95%
- -----------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or Administrator, or both. Had such actions not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage
of average daily net
assets):
Expenses(4) 1.60%
Net investment
income 3.84%
Net investment income
per share $ 0.371
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, October
22, 1996, to March 31, 1997.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratios for the
year ended March 31, 1995 have not been adjusted to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PENNSYLVANIA LIMITED FUND
-----------------------------------------------------------------------------------------------------------
YEAR ENDED MARCH 31,
-----------------------------------------------------------------------------------------------------------
1999(1) 1998 1997 1996 1995
-------------------------------- -------------------- ----------------------- -------- --------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS A(2) CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of year $10.550 $10.550 $ 9.980 $10.100 $10.100 $10.030 $10.190 $10.090 $10.100
- -----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.477 $ 0.400 $ 0.374 $ 0.481 $ 0.407(1) $ 0.371 $ 0.392 $ 0.388 $ 0.374
Net realized and
unrealized gain
(loss) (0.051) (0.053) (0.042) 0.445 0.445 0.063(3) (0.081) 0.110 0.065
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.426 $ 0.347 $ 0.332 $ 0.926 $ 0.852 $ 0.434 $ 0.311 $ 0.498 $ 0.439
- -----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.476) $(0.397) $(0.382) $(0.476) $(0.402) $(0.364) $(0.401) $(0.388) $(0.374)
In excess of net
investment income -- -- -- -- -- -- -- (0.010) (0.069)
From net realized gain -- -- -- -- -- -- -- -- (0.006)
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.476) $(0.397) $(0.382) $(0.476) $(0.402) $(0.364) $(0.401) $(0.398) $(0.449)
- -----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF YEAR $10.500 $10.500 $ 9.930 $10.550 $10.550 $10.100 $10.100 $10.190 $10.090
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(4) 3.90% 3.33% 3.36% 9.52% 8.55% 4.15% 3.12% 4.98% 4.50%
- -----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $41,048 $ 3,787 $ 5,803 $43,961 $ 8,277 $27,907 $33,971 $84,407 $103,553
Ratios (As a percentage
of average daily net
assets):
Expenses(5)(6) 0.94% 1.69% 1.71% 0.97% 1.71% 0.90%(7) 1.69% 1.62% 1.57%
Expenses after
custodian fee
reduction(5) 0.92% 1.67% 1.69% 0.95% 1.69% 0.88%(7) 1.67% 1.60% --
Net investment
income 4.52% 3.79% 3.74% 4.67% 3.95% 4.83%(7) 4.05% 3.79% 3.75%
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the commencement of offering of Class A shares, June
27, 1996, to March 31, 1997.
(3) The per share amount is not in accord with the net realized and unrealized
gain (loss) on investments for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized gains
and losses at such time.
(4) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(5) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(6) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Fund, as well as its corresponding
Portfolio, to increase its expense ratio by the effect of any expense
offset arrangements with its service providers. The expense ratio for the
year ended March 31, 1995 has not been adjusted to reflect this change.
(7) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
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 ten Funds, nine of which
are included in these financial statements. They include Eaton Vance
California Limited Maturity Municipals Fund ("California Limited Fund"),
Eaton Vance Connecticut Limited Maturity Municipals Fund ("Connecticut
Limited Fund"), Eaton Vance Florida Limited Maturity Municipals Fund
("Florida Limited Fund"), Eaton Vance Massachusetts Limited Maturity
Municipals Fund ("Massachusetts Limited Fund"), Eaton Vance Michigan Limited
Maturity Municipals Fund ("Michigan Limited Fund"), Eaton Vance New Jersey
Limited Maturity Municipals Fund ("New Jersey Limited Fund"), Eaton Vance New
York Limited Maturity Municipals Fund ("New York Limited Fund"), Eaton Vance
Ohio Limited Maturity Municipals Fund ("Ohio Limited Fund") and Eaton Vance
Pennsylvania Limited Maturity Municipals Fund ("Pennsylvania Limited Fund").
The Funds may offer three classes of shares: Class A (formerly Class II),
Class B (formerly Class I) and Class C. Class A shares are sold subject to a
sales charge imposed at the time of purchase. Class B and Class C shares are
sold at net asset value and are subject to a contingent deferred sales charge
(see Note 6). Class B shares held longer than (i) four years or (ii) the time
at which the contingent deferred sales charge applicable to such shares
expires will automatically convert to Class A shares. All classes of shares
have equal rights to assets and voting privileges. Realized and unrealized
gains and losses are allocated daily to each class of shares based on the
relative net assets of each class to the total net assets of the Fund. Net
investment income, other than class specific expenses, is allocated daily to
each class of shares based upon the ratio of the value of each class' paid
shares to the total value of all paid shares. Each class of shares differs in
its distribution plan and certain other class specific expenses. Each Fund
invests all of its investable assets in interests in a separate corresponding
open-end management investment company (a "Portfolio"), a New York Trust,
having the same investment objective as its corresponding Fund. The
California Limited Fund invests its assets in the California Limited Maturity
Municipals Portfolio, the Connecticut Limited Fund invests its assets in the
Connecticut Limited Maturity Municipals Portfolio, the Florida Limited Fund
invests its assets in the Florida Limited Maturity Municipals Portfolio, the
Massachusetts Limited Fund invests its assets in the Massachusetts Limited
Maturity Municipals Portfolio, the Michigan Limited Fund invests its assets
in the Michigan Limited Maturity Municipals Portfolio, the New Jersey Limited
Fund invests its assets in the New Jersey Limited Maturity Municipals
Portfolio, the New York Limited Fund invests its assets in the New York
Limited Maturity Municipals Portfolio, the Ohio Limited Fund invests its
assets in the Ohio Limited Maturity Municipals Portfolio and the Pennsylvania
Limited Fund invests its assets in the Pennsylvania Limited Maturity
Municipals Portfolio. The value of each Fund's investment in its
corresponding Portfolio reflects the Fund's proportionate interest in the net
assets of that Portfolio (99.99% at March 31, 1999 for each Fund except
Connecticut Limited Fund, Michigan Limited Fund and Ohio Limited Fund which
were 98.5%, 98.7% and 99.4%, respectively). The performance of each Fund is
directly affected by the performance of its corresponding Portfolio. The
financial statements of each Portfolio, including the portfolio of
investments, are included elsewhere in this report and should be read in
conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of each Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At March 31, 1999,
the following Funds, for federal income tax purposes, had capital loss
carryovers, which will reduce each Fund's taxable income arising from future
net realized gain on investments, if any, to the extent permitted by the
Internal Revenue Code, and thus will reduce the amount of the distributions
to
29
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
shareholders which would otherwise be necessary to relieve the Funds of any
liability for federal income or excise taxes. A portion of such capital loss
carryovers were acquired through the Fund Reorganization (see Note 8) and may
be subject to certain limitations. The amounts and expiration dates of the
capital loss carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
- --------------------------------------------------------------------------
California Limited Fund $ 49,293 March 31, 2005
2,010,530 March 31, 2004
97,718 March 31, 2003
Connecticut Limited Fund 595 March 31, 2006
2,392 March 31, 2005
298,644 March 31, 2004
235,754 March 31, 2003
Florida Limited Fund 355,606 March 31, 2006
133,020 March 31, 2005
2,955,585 March 31, 2004
169,273 March 31, 2003
Massachusetts Limited Fund 197,971 March 31, 2006
30,086 March 31, 2005
1,533,591 March 31, 2004
78,192 March 31, 2003
Michigan Limited Fund 128,453 March 31, 2006
910,654 March 31, 2004
409,992 March 31, 2003
New Jersey Limited Fund 213,255 March 31, 2006
1,767,217 March 31, 2004
321,276 March 31, 2003
New York Limited Fund 20,866 March 31, 2005
1,537,944 March 31, 2004
Ohio Limited Fund 762,343 March 31, 2004
580,024 March 31, 2003
Pennsylvania Limited Fund 25,743 March 31, 2005
1,041,487 March 31, 2004
</TABLE>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intends to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay exempt-interest dividends. The portion of such interest, if any, earned
on private activity bonds issued after August 7, 1986, may be considered a
tax preference item to shareholders.
D Deferred Organization Expenses -- Costs incurred by a Fund in connection with
its organization, including registration costs, are being amortized on the
straight-line basis over five years, beginning on the date each Fund
commenced operations.
E Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Funds or the Portfolios maintain with
IBT. All significant credit balances used to reduce each Fund's custodian
fees are reported as a reduction of expenses on the Statement of Operations.
G Other -- Investment transactions are accounted for on a trade date basis.
2 Distributions to Shareholders
- -------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Dividends are declared separately for each class
of shares. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest income
30
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
and capital gain distributions in additional shares of the same class of a
Fund at the net asset value as of the reinvestment date. Distributions are
paid in the form of additional shares of the same class or, at the election
of the shareholder, in cash. The Funds distinguish between distributions on a
tax basis and a financial reporting basis. Generally accepted accounting
principles require that only distributions in excess of tax basis earnings
and profits be reported in the financial statements as a return of capital.
Differences in the recognition or classification of income between the
financial statements and tax earnings and profits which result in temporary
over distributions for financial statement purposes are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. The tax treatment of
distributions for the calendar year will be reported to shareholders prior to
February 1, 2000 and will be based on tax accounting methods which may differ
from amounts determined for financial statement purposes.
3 Shares of Beneficial Interest
- -------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different classes.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 35,063 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 47,022 35,206
Redemptions (645,502) (822,966)
Exchange to Class A shares 293,151 1,807,527
Issued to EV Traditional California
Limited Fund Shareholders 303,260 --
- -------------------------------------------------------------------------
NET INCREASE 32,994 1,019,767
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CALIFORNIA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 72,974 85,408
Issued to shareholders electing to
receive payment of distribution in Fund
shares 5,973 27,495
Redemptions (68,913) (335,075)
Exchange to Class A shares (293,151) (1,807,527)
- -------------------------------------------------------------------------
NET DECREASE (283,117) (2,029,699)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 45,699 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 15,432 6,706
Redemptions (135,597) (122,878)
Exchange to Class A shares 113,698 653,370
Issued to EV Traditional Connecticut
Limited Fund Shareholders 105,182 --
- -------------------------------------------------------------------------
NET INCREASE 144,414 537,198
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CONNECTICUT LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 25,949 39,260
Issued to shareholders electing to
receive payment of distribution in Fund
shares 4,567 14,858
Redemptions (27,899) (195,469)
Exchange to Class A shares (113,698) (653,370)
- -------------------------------------------------------------------------
NET DECREASE (111,081) (794,721)
- -------------------------------------------------------------------------
</TABLE>
31
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
FLORIDA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 67,765 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 79,022 71,474
Redemptions (1,081,189) (2,067,316)
Exchange to Class A shares 430,954 3,424,984
Issued to EV Traditional Florida
Limited Fund Shareholders 439,652 --
- -------------------------------------------------------------------------
NET INCREASE (DECREASE) (63,796) 1,429,142
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FLORIDA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 79,523 105,262
Issued to shareholders electing to
receive payment of distribution in Fund
shares 7,697 52,346
Redemptions (71,236) (554,732)
Exchange to Class A shares (430,954) (3,424,984)
- -------------------------------------------------------------------------
NET DECREASE (414,970) (3,822,108)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FLORIDA LIMITED FUND
-------------------------------
YEAR ENDED
CLASS C MARCH 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 146,199
Issued to shareholders electing to
receive payment of distribution in Fund
shares 10,261
Redemptions (422,687)
Issued to EV Classic Florida
Limited Fund Shareholders 673,148
- -------------------------------------------------------------------------
NET INCREASE 406,921
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 239,891 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 91,990 77,012
Redemptions (821,910) (1,097,974)
Exchange to Class A shares 479,506 2,840,002
- -------------------------------------------------------------------------
NET INCREASE (DECREASE) (10,523) 1,819,040
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 143,453 52,696
Issued to shareholders electing to
receive payment of distribution in Fund
shares 11,932 54,876
Redemptions (228,227) (561,592)
Exchange to Class A shares (479,506) (2,840,002)
- -------------------------------------------------------------------------
NET DECREASE (552,348) (3,294,022)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS LIMITED FUND
-------------------------------
YEAR ENDED
CLASS C MARCH 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 160,484
Issued to shareholders electing to
receive payment of distribution in Fund
shares 13,021
Redemptions (95,723)
Issued to EV Classic Massachusetts
Limited Fund Shareholders 451,136
- -------------------------------------------------------------------------
NET INCREASE 528,918
- -------------------------------------------------------------------------
</TABLE>
32
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
MICHIGAN LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 44,059 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 21,324 9,875
Redemptions (212,469) (156,656)
Exchange to Class A shares 125,890 1,018,871
Issued to EV Traditional Michigan
Limited Fund Shareholders 89,196 --
- -------------------------------------------------------------------------
NET INCREASE 68,000 872,090
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 19,565 28,674
Issued to shareholders electing to
receive payment of distribution in Fund
shares 2,839 18,182
Redemptions (14,047) (223,733)
Exchange to Class A shares (125,890) (1,018,871)
- -------------------------------------------------------------------------
NET DECREASE (117,533) (1,195,748)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW JERSEY LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 36,737 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 94,464 71,798
Redemptions (642,677) (1,126,637)
Exchange to Class A shares 511,723 2,312,029
Issued to EV Traditional New Jersey
Limited Fund Shareholders 81,047 --
- -------------------------------------------------------------------------
NET INCREASE 81,294 1,257,190
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW JERSEY LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 56,963 116,912
Issued to shareholders electing to
receive payment of distribution in Fund
shares 13,888 56,169
Redemptions (96,239) (474,069)
Exchange to Class A shares (511,723) (2,312,029)
- -------------------------------------------------------------------------
NET DECREASE (537,111) (2,613,017)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW YORK LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 118,314 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 129,324 110,830
Redemptions (1,151,988) (1,864,566)
Exchange to Class A shares 674,211 3,833,043
Issued to EV Traditional New York
Limited Fund Shareholders 51,712 --
- -------------------------------------------------------------------------
NET INCREASE (DECREASE) (178,427) 2,079,307
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW YORK LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 101,333 112,437
Issued to shareholders electing to
receive payment of distribution in Fund
shares 17,857 79,378
Redemptions (127,420) (1,178,702)
Exchange to Class A shares (674,211) (3,833,043)
- -------------------------------------------------------------------------
NET DECREASE (682,441) (4,819,930)
- -------------------------------------------------------------------------
</TABLE>
33
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
NEW YORK LIMITED FUND
-------------------------------
YEAR ENDED
CLASS C MARCH 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 140,868
Issued to shareholders electing to
receive payment of distribution in Fund
shares 6,449
Redemptions (103,241)
Issued to EV Classic New York
Limited Fund Shareholders 229,639
- -------------------------------------------------------------------------
NET INCREASE 273,715
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OHIO LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 39,510 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 53,583 27,898
Redemptions (266,104) (286,153)
Exchange to Class A shares 238,326 1,947,200
Issued to EV Traditional Ohio
Limited Fund Shareholders 164,848 --
- -------------------------------------------------------------------------
NET INCREASE 230,163 1,688,945
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OHIO LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 59,687 40,352
Issued to shareholders electing to
receive payment of distribution in Fund
shares 7,956 37,539
Redemptions (29,956) (215,277)
Exchange to Class A shares (238,326) (1,947,200)
- -------------------------------------------------------------------------
NET DECREASE (200,639) (2,084,586)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS A MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 56,567 --
Issued to shareholders electing to
receive payment of distribution in Fund
shares 77,080 65,498
Redemptions (797,334) (947,640)
Exchange to Class A shares 403,468 2,286,266
- -------------------------------------------------------------------------
NET INCREASE (DECREASE) (260,219) 1,404,124
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA LIMITED FUND
-------------------------------
YEAR ENDED YEAR ENDED
CLASS B MARCH 31, 1999 MARCH 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 44,074 62,800
Issued to shareholders electing to
receive payment of distribution in Fund
shares 12,704 43,872
Redemptions (77,641) (399,781)
Exchange to Class A shares (403,468) (2,286,266)
- -------------------------------------------------------------------------
NET DECREASE (424,331) (2,579,375)
- -------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA LIMITED FUND
-------------------------------
YEAR ENDED
CLASS C MARCH 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------
Sales 123,863
Issued to shareholders electing to
receive payment of distribution in Fund
shares 15,159
Redemptions (69,088)
Issued to EV Classic Pennsylvania
Limited Fund Shareholders 514,215
- -------------------------------------------------------------------------
NET INCREASE 584,149
- -------------------------------------------------------------------------
</TABLE>
34
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios have engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. Certain of the
officers and Trustees of the Funds and Portfolios are officers and
directors/trustees of the above organizations (Note 5). Eaton Vance
Distributors, Inc. (EVD), a subsidiary of EVM and the Funds' principal
underwriter, received $430, $548, $853, $0, $0, $793, $446, $322 and $875 as
it portion of the sales charge on sales of Class A shares from California
Limited Fund, Connecticut Limited Fund, Florida Limited Fund, Massachusetts
Limited Fund, Michigan Limited Fund, New Jersey Limited Fund, New York
Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively,
for the year ended March 31, 1999.
Except as to Trustees of the Funds and Portfolios who are not members of
EVM's or BMR's organization, officers and Trustees receive remuneration for
their services to each Fund out of the investment adviser fee earned by BMR.
5 Distribution and Service Plans
- -------------------------------------------
Each Fund has adopted a distribution plan ("Class B Plans" and "Class C
Plans") pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan ("Class A Plans")(collectively the "Plans"). The Plans require
the Funds to pay the principal underwriter, EVD amounts equal to 1/365 of
0.75% of each Fund's Class B and Class C daily net assets, for providing
ongoing distribution services and facilities to the respective Fund. A Fund
will automatically discontinue payments to EVD during any period in which
there are no outstanding Uncovered Distribution Charges, which are equivalent
to the sum of (i) 3% (3 1/2% for Connecticut Limited Fund, Michigan Limited
Fund and Ohio Limited Fund) of the aggregate amount received by the Fund for
Class B shares sold plus, (ii) interest calculated by applying the rate of 1%
over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of contingent
deferred sales charges (see Note 6) and amounts theretofore paid to EVD. The
amount payable to EVD with respect to each day is accrued on such day as a
liability of each Fund and, accordingly, reduces each Fund's net assets. For
the year ended March 31, 1999, California Limited Fund, Connecticut Limited
Fund, Florida Limited Fund, Massachusetts Limited Fund, Michigan Limited
Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and
Pennsylvania Limited Fund paid or accrued $25,938, $14,111, $56,326, $38,098,
$7,243, $37,184, $53,537, $23,647 and $40,712, respectively for Class B
shares, and Florida Limited Fund, Massachusetts Limited Fund, New York
Limited Fund and Pennsylvania Limited Fund paid or accrued $41,604, $32,010,
$19,580, and $40,730, respectively for Class C shares, to or payable to EVD
representing 0.75% of average daily net assets attributable to Class B and
Class C shares. At March 31, 1999, the amount of Uncovered Distribution
Charges of EVD calculated under the Plans for California Limited Fund,
Connecticut Limited Fund, Florida Limited Fund, Massachusetts Limited Fund,
Michigan Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio
Limited Fund and Pennsylvania Limited Fund were approximately $261,000,
$216,000, $555,000, $308,000, $362,000, $292,000, $398,000, $466,000 and
$178,000, respectively for Class B shares, and for Florida Limited Fund,
Massachusetts Limited Fund, New York Limited Fund, and Pennsylvania Limited
Fund the amount of Uncovered Distribution Charges of EVD were approximately
$4,105,000, $898,000, $1,080,000 and $1,949,000, respectively for Class C
shares.
In addition, the Plans permit all classes of each Fund to make monthly
payments of service fees to EVD, Authorized Firms and other persons in
amounts not expected to exceed 0.25% of each Fund's average daily net assets
for any fiscal year. The Trustees have initially implemented the Plans by
authorizing the Funds to make quarterly service fee payments to EVD and
Authorized Firms in amounts not expected to exceed 0.15% per annum of each
Fund's average daily net assets attributable to Class A and Class B shares
based on the value of Fund shares sold by such persons and remaining
outstanding for at least one year. The Class C Plans require Florida Limited
Fund, Massachusetts Limited Fund, New York Limited Fund and Pennsylvania
Limited Fund to make monthly payments of service fees in amounts not expected
to exceed 0.25% of each Fund's average daily net assets attributable to Class
C shares for any fiscal year. For the year ended March 31, 1999, California
Limited Fund, Connecticut Limited Fund, Florida Limited Fund, Massachusetts
Limited Fund, Michigan Limited Fund, New Jersey Limited Fund, New York
Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund paid or accrued
service fees to or payable to EVD in the amount of $42,295, $13,631, $77,273,
$62,138, $14,918, $51,727, $83,275, $30,216 and $56,940, respectively for
Class A shares, and $2,512, $1,746, $8,799, $7,360, $1,048, $7,675, $9,996,
$3,599 and $6,872, respectively for Class B
35
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
shares. For the year ended March 31, 1999, Florida Limited Fund,
Massachusetts Limited Fund, New York Limited Fund and Pennsylvania Limited
Fund paid or accrued service fees to or payable to EVD in the amount of
$8,106, $6,402, $3,916 and $8,146, respectively for Class C shares. Service
fee payments are made for personal services and/or maintenance of shareholder
accounts.
Service fees paid to EVD and Authorized Firms are separate and distinct from
the sales commissions and distribution fees payable by the Fund to EVD, and
as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD.
Certain officers and Trustees of the Fund are officers or directors of EVD.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within four years of purchase, and on Class C shares
within one year of purchase. Generally, the CDSC is based upon the lower of
the net asset value at date of redemption or date of purchase. No charge is
levied on Class B and Class C shares acquired by reinvestment of dividends or
capital gains distributions. The CDSC for Class B shares is imposed at
declining rates that begin at 3% in the case of redemptions in the first year
of purchase. Class C shares are subject to a 1% CDSC if redeemed within one
year of purchase. No CDSC is levied on shares which have been sold to EVM or
its affiliates or to their respective employees or clients. CDSC charges are
paid to EVD to reduce the amount of Uncovered Distribution Charges calculated
under each Fund's Distribution Plan. CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. For the year ended
March 31, 1999, EVD received approximately $5,000, $800, $5,000, $10,000,
$700, $14,000, $13,000, $2,000 and $12,000, respectively for Class B shares,
of CDSC paid by shareholders of California Limited Fund, Connecticut Limited
Fund, Florida Limited Fund, Massachusetts Limited Fund, Michigan Limited
Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and
Pennsylvania Limited Fund and $100, $100, $500 and $500, respectively for
Class C shares, of CDSC paid by shareholders of Florida
Limited Fund, Massachusetts Limited Fund, New York Limited Fund, and
Pennsylvania Limited Fund.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 4,228,948
Decreases 11,447,139
<CAPTION>
CONNECTICUT LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 1,959,442
Decreases 3,186,038
<CAPTION>
FLORIDA LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 7,572,638
Decreases 22,890,275
<CAPTION>
MASSACHUSETTS LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 10,696,514
Decreases 18,230,235
<CAPTION>
MICHIGAN LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 1,993,253
Decreases 3,931,845
<CAPTION>
NEW JERSEY LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 6,467,186
Decreases 14,119,117
<CAPTION>
NEW YORK LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 10,991,886
Decreases 23,447,532
<CAPTION>
OHIO LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 4,003,683
Decreases 6,502,512
<CAPTION>
PENNSYLVANIA LIMITED FUND
<S> <C>
- -------------------------------------------------------
Increases $ 7,028,079
Decreases 16,336,396
</TABLE>
36
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
8 Transfer of Net Assets
- -------------------------------------------
Effective on April 1, 1998, Class I and Class II shares of EV Marathon
California Limited Fund, EV Marathon Connecticut Limited Fund, EV Marathon
Florida Limited Fund, EV Marathon Massachusetts Limited Fund, EV Marathon
Michigan Limited Fund, EV Marathon New Jersey Limited Fund, EV Marathon New
York Limited Fund, EV Marathon Ohio Limited Fund, and EV Marathon
Pennsylvania Limited Fund were designated Class B and Class A shares,
respectively. In addition, the Funds acquired the net assets of EV
Traditional California Limited Fund, EV Traditional Connecticut Limited Fund,
EV Traditional Florida Limited Fund, EV Traditional Michigan Limited Fund, EV
Traditional New Jersey Limited Fund, EV Traditional New York Limited Fund and
EV Traditional Ohio Limited Fund as well as the net assets of EV Classic
Florida Limited Fund, EV Classic Massachusetts Limited Fund, EV Classic New
York Limited Fund, and EV Classic Pennsylvania Limited Fund, pursuant to an
Agreement and Plan of Reorganization dated June 23, 1997. In accordance with
the agreement, the Funds, at the closing, issued Class A shares and Class C
shares as follows:
<TABLE>
<CAPTION>
AGGREGATE NET ASSET
CLASS A SHARES VALUE OF VALUE PER
FUND ISSUED SHARES ISSUED SHARE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
California Limited Fund 303,260 $3,133,613 $10.33
Connecticut Limited Fund 105,182 1,063,816 10.11
Florida Limited Fund 439,652 4,524,349 10.29
Michigan Limited Fund 89,196 895,423 10.04
New Jersey Limited Fund 81,047 839,250 10.35
New York Limited Fund 51,712 543,752 10.51
Ohio Limited Fund 164,848 1,671,340 10.14
</TABLE>
<TABLE>
<CAPTION>
AGGREGATE NET ASSET
CLASS C SHARES VALUE OF VALUE PER
FUND ISSUED SHARES ISSUED SHARE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------
Florida Limited Fund 673,148 $6,552,371 $9.73
Massachusetts Limited Fund 451,136 4,459,306 9.88
New York Limited Fund 229,639 2,285,786 9.95
Pennsylvania Limited Fund 514,215 5,132,765 9.98
</TABLE>
The transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. The net assets acquired,
including unrealized appreciation at the date of the transaction were as
follows:
<TABLE>
<CAPTION>
CLASS A AND CLASS C CLASS A AND CLASS C
FUND ACQUIRED NET ASSETS UNREALIZED APPRECIATION
<S> <C> <C>
- -----------------------------------------------------------------------------------------
California Limited Fund $ 3,133,613 $109,134
Connecticut Limited Fund 1,063,816 44,459
Florida Limited Fund 11,076,720 243,990
Massachusetts Limited Fund 4,459,306 166,397
Michigan Limited Fund 895,423 113,532
New Jersey Limited Fund 839,250 57,157
New York Limited Fund 2,829,538 114,001
Ohio Limited Fund 1,671,340 116,658
Pennsylvania Limited Fund 5,132,765 173,931
</TABLE>
Directly after the merger, the combined net assets of the Funds and the net
asset value of Class A shares, Class B shares, and Class C shares were as
follows:
<TABLE>
<CAPTION>
CLASS A NET CLASS B NET CLASS C NET
COMBINED ASSET VALUE ASSET VALUE ASSET VALUE
FUND NET ASSETS PER SHARE PER SHARE PER SHARE
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------
California Limited Fund $ 34,229,930 $10.33 $10.33 $ --
Connecticut Limited Fund 9,628,721 10.11 10.11 --
Florida Limited Fund 71,804,641 10.29 10.29 9.73
Massachusetts Limited Fund 56,485,735 10.33 10.33 9.88
Michigan Limited Fund 11,911,871 10.04 10.04 --
New Jersey Limited Fund 45,338,694 10.35 10.35 --
New York Limited Fund 74,492,033 10.51 10.51 9.95
Ohio Limited Fund 24,034,090 10.14 10.14 --
Pennsylvania Limited Fund 57,370,033 10.55 10.55 9.98
</TABLE>
9 Name Change
- -------------------------------------------
Effective April 1, 1998, the EV Marathon California Limited Fund, EV Marathon
Connecticut Limited Fund, EV Marathon Florida Limited Fund, EV Marathon
Massachusetts Limited Fund, EV Marathon Michigan Limited Fund, EV Marathon
New Jersey Limited Fund, EV Marathon New York Limited Fund, EV Marathon Ohio
Limited Fund and EV Marathon Pennsylvania Limited Fund changed their
respective names to Eaton Vance California Limited Maturity Municipals Fund,
Eaton Vance Connecticut Limited Maturity Municipals Fund, Eaton Vance Florida
Limited Maturity Municipals Fund, Eaton Vance Massachusetts 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, Eaton Vance Ohio Limited Maturity
Municipals Fund and Eaton Vance Pennsylvania Limited Maturity Municipals
Fund.
37
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS OF
EATON VANCE INVESTMENT TRUST:
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities of Eaton
Vance California Limited Maturity Municipals Fund, Eaton Vance Connecticut
Limited Maturity Municipals Fund, Eaton Vance Florida Limited Maturity
Municipals Fund, Eaton Vance Massachusetts 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, Eaton Vance Ohio Limited Maturity Municipals Fund, and Eaton
Vance Pennsylvania Limited Maturity Municipals Fund, (series of Eaton Vance
Investment Trust) as of March 31, 1999, and the related statements of operations
for year then ended, the statements of changes in net assets for the years ended
March 31, 1999 and 1998 and the financial highlights for each of the years in
the five year period ended March 31, 1999. 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, 1999, and the
results of their operations, the changes in their net assets and their financial
highlights for the respective stated period in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 30, 1999
38
<PAGE>
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Cogeneration -- 5.1%
---------------------------------------------------------------------------------------
NR BBB- $1,500 Central Valley Financing Authority,
Cogeneration, 5.20%, 7/1/99 $ 1,507,965
---------------------------------------------------------------------------------------
$ 1,507,965
---------------------------------------------------------------------------------------
Electric Utilities -- 7.3%
---------------------------------------------------------------------------------------
A2 A-1 $1,000 California Pollution Control Financing
Authority, (San Diego Gas & Electric),
5.90%, 6/1/14(1) $ 1,118,050
NR A+ 1,000 California Pollution Control Financing
Authority, (Southern California Edison
Co.), 6.85%, 12/1/08 1,031,950
---------------------------------------------------------------------------------------
$ 2,150,000
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,500 ABAG Finance Authority Certificates of
Participation, (Stanford University
Hospital), (MBIA), Escrowed to Maturity,
4.90%, 11/1/03 $ 1,583,744
Aaa AAA 1,000 ABAG Finance Authority Certificates of
Participation, (Stanford University
Hospital), (MBIA), Escrowed to Maturity,
5.125%, 11/1/05 1,075,000
NR A+ 1,000 California Statewide Communities
Development Corp., (Pacific Homes),
Prerefunded to 4/1/03, 5.90%, 4/1/09 1,081,630
NR NR 1,000 Sacramento Cogeneration Authority,
(Procter & Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 1,163,170
---------------------------------------------------------------------------------------
$ 4,903,544
---------------------------------------------------------------------------------------
General Obligations -- 1.0%
---------------------------------------------------------------------------------------
NR NR $ 300 Capistrano Unified School District,
5.65%, 9/1/15(2) $ 299,793
---------------------------------------------------------------------------------------
$ 299,793
---------------------------------------------------------------------------------------
Hospital -- 5.0%
---------------------------------------------------------------------------------------
NR NR $ 380 Eastern Plumas Health Care, (District
Hospital), 7.50%, 8/1/07 $ 405,992
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Hospital (continued)
---------------------------------------------------------------------------------------
NR NR $ 300 San Benito Health Care District, 5.375%,
10/1/12 $ 295,899
NR NR 350 San Gorgonio Memorial Health Care
District, 5.80%, 5/1/14 347,137
NR BBB+ $ 400 Stockton Health Facilities, (Dameron
Hospital), 5.70%, 12/1/14 406,680
---------------------------------------------------------------------------------------
$ 1,455,708
---------------------------------------------------------------------------------------
Housing -- 1.8%
---------------------------------------------------------------------------------------
Aaa NR $ 510 Corona SFMR, 6.05%, 5/1/27 $ 522,898
---------------------------------------------------------------------------------------
$ 522,898
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 2.6%
---------------------------------------------------------------------------------------
Baa1 A- $ 750 California Pollution Control Financing
Authority, (Browning Ferris Industries),
(AMT), 5.80%, 12/1/16 $ 759,338
---------------------------------------------------------------------------------------
$ 759,338
---------------------------------------------------------------------------------------
Insured-Education -- 2.7%
---------------------------------------------------------------------------------------
Aaa NR $ 475 California Educational Facilities
Authority, (San Diego University),
(AMBAC), 0.00%, 10/1/15 $ 212,496
Aaa AAA 250 Golden West Schools Financing Authority,
(MBIA), 5.80%, 2/1/16(2) 277,245
Aaa AAA 285 Golden West Schools Financing Authority,
(MBIA), 5.80%, 8/1/16(2) 316,655
---------------------------------------------------------------------------------------
$ 806,396
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 7.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Sacramento Municipal Utility District,
(AMBAC), 5.60%, 8/15/16 $ 1,068,710
Aaa AAA 1,000 Southern California Public Power
Authority Project, (AMBAC), 5.00%,
7/1/17 1,004,450
---------------------------------------------------------------------------------------
$ 2,073,160
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations -- 6.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,080 Fillmore Unified School District,
(FGIC), 0.00%, 7/1/15 $ 489,078
Aaa AAA 1,000 Mt. Diablo School District, (AMBAC),
5.70%, 8/1/14 1,079,640
Aaa AAA 705 Ukiah Unified School District, (FGIC),
0.00%, 8/1/10 424,100
---------------------------------------------------------------------------------------
$ 1,992,818
---------------------------------------------------------------------------------------
Insured-Hospital -- 5.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,900 Riverside County, (Riverside County
Hospital), (MBIA), 0.00%, 6/1/21 $ 609,311
Aaa AAA 1,000 Tri City Hospital District, (MBIA),
5.625%, 2/15/17 1,053,440
---------------------------------------------------------------------------------------
$ 1,662,751
---------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 9.1%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Anaheim Public Financing Authority,
(Public Improvements), (FSA), 0.00%,
9/1/19 $ 708,920
Aaa AAA 500 California State Public Works Board,
(California Community College), (AMBAC),
5.625%, 3/1/16 534,290
Aaa AAA 1,355 California State Public Works Board,
(Department of Corrections), (AMBAC),
5.25%, 12/1/13 1,441,395
---------------------------------------------------------------------------------------
$ 2,684,605
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 7.1%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 San Mateo County Transportation
District, (MBIA), 5.25%, 6/1/17 $ 2,092,039
---------------------------------------------------------------------------------------
$ 2,092,039
---------------------------------------------------------------------------------------
Insured-Transportation -- 4.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 750 San Francisco, City and County Airports,
(MBIA), 5.60%, 5/1/13 $ 798,405
Aaa AAA 1,000 San Joaquin Hills, Transportation
Corridor Agency Bridge & Toll Road,
(MBIA), 0.00%, 1/15/12 551,010
---------------------------------------------------------------------------------------
$ 1,349,415
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.4%
---------------------------------------------------------------------------------------
NR A+ $ 750 California Statewide Communities
Development Authority, (San Gabriel
Valley), 5.50%, 9/1/14 $ 765,713
Baa2 NR 500 Corona PFA, Public Improvement Revenue,
5.95%, 7/1/07 528,670
---------------------------------------------------------------------------------------
$ 1,294,383
---------------------------------------------------------------------------------------
Nursing Home -- 2.6%
---------------------------------------------------------------------------------------
NR BBB $ 750 ABAG Finance Authority, (American
Baptist Homes), 5.75%, 10/1/17 $ 762,413
---------------------------------------------------------------------------------------
$ 762,413
---------------------------------------------------------------------------------------
Special Tax Revenue -- 6.9%
---------------------------------------------------------------------------------------
NR NR $ 300 Alameda Public Financing Authority,
5.45%, 9/2/14 $ 298,284
NR NR 300 Brentwood Infrastructure Financing
Authority, 5.50%, 9/2/12 291,807
NR NR 315 Industry, (Catellus Commerce Center
Assessment District), 5.55%, 9/2/13 311,998
NR NR 360 Irvine, Improvement Bond Act 1915,
(Assessment District North 97-16, Group
Two), 5.40%, 9/2/10 366,930
NR BBB 390 Pomona Redevelopment Agency, (West Holt
Avenue Redevelopment), 5.50%, 5/1/13 399,797
NR NR 365 Torrance Redevelopment Agency, 5.50%,
9/1/12 371,333
---------------------------------------------------------------------------------------
$ 2,040,149
---------------------------------------------------------------------------------------
Water and Sewer -- 3.5%
---------------------------------------------------------------------------------------
A1 A+ $1,000 Los Angeles City Wastewater System,
6.90%, 6/1/08(1) $ 1,026,310
---------------------------------------------------------------------------------------
$ 1,026,310
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $27,931,688) $ 29,383,685
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
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, 1999, 52.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 2.4% to a high of 28.4% of total
investments.
(1) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(2) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
CONNECTICUT LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Education -- 4.1%
--------------------------------------------------------------------------------------
NR BBB- $200 Connecticut HEFA, (Quinnipiac College),
6.00%, 7/1/13 $ 207,832
Baa3 BBB- 140 Connecticut HEFA, (Sacred Heart
University), 6.00%, 7/1/08 157,979
--------------------------------------------------------------------------------------
$ 365,811
--------------------------------------------------------------------------------------
Electric Utilities -- 2.7%
--------------------------------------------------------------------------------------
Baa1 BBB+ $250 Puerto Rico Electric Power Authority,
4.75%, 7/1/24 $ 238,488
--------------------------------------------------------------------------------------
$ 238,488
--------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.7%
--------------------------------------------------------------------------------------
Baa1 BBB+ $400 Connecticut HEFA, (Fairfield
University), Prerefunded to 7/1/99,
6.90%, 7/1/14 $ 411,608
NR NR 510 Connecticut HEFA, (New Britain
Hospital), Prerefunded to 7/1/02, 7.50%,
7/1/06 559,724
NR BBB- 300 Connecticut HEFA, (Quinnipiac College),
Prerefunded to 07/01/03, 6.00%, 7/1/13 329,712
Aaa AAA 250 South Central Connecticut Regional Water
Authority, (AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07 271,273
--------------------------------------------------------------------------------------
$ 1,572,317
--------------------------------------------------------------------------------------
General Obligations -- 11.9%
--------------------------------------------------------------------------------------
Aaa NR $200 Avon, 5.00%, 1/15/12 $ 210,326
Aa3 AA 190 Connecticut State, 0.00%, 11/15/10 111,996
Aa3 AA 150 Connecticut State, 5.125%, 8/15/11 157,740
Aa2 AA 100 Danbury, 5.00%, 8/1/17 101,080
Baa1 A 115 Puerto Rico, 0.00%, 7/1/08 76,403
Baa1 A 400 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/19 393,712
--------------------------------------------------------------------------------------
$ 1,051,257
--------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Hospital -- 1.5%
--------------------------------------------------------------------------------------
Baa2 NR $125 Connecticut HEFA, (Griffin Hospital),
6.00%, 7/1/13 $ 128,788
--------------------------------------------------------------------------------------
$ 128,788
--------------------------------------------------------------------------------------
Housing -- 1.1%
--------------------------------------------------------------------------------------
Aa NR $100 Connecticut HFA, MRB, (AMT), 7.40%,
11/15/99 $ 100,930
--------------------------------------------------------------------------------------
$ 100,930
--------------------------------------------------------------------------------------
Industrial Development Revenue -- 11.9%
--------------------------------------------------------------------------------------
A1 NR $625 Connecticut Development Authority,
(Frito Lay), 6.375%, 7/1/04 $ 634,099
Baa3 BBB- 250 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 269,680
A3 BBB+ 150 Sprague, Environmental Improvement,
(International Paper Co.), (AMT), 5.70%,
10/1/21 153,029
--------------------------------------------------------------------------------------
$ 1,056,808
--------------------------------------------------------------------------------------
Insured-Education -- 5.0%
--------------------------------------------------------------------------------------
Aaa AAA $200 Connecticut HEFA, (Choate Rosemary
Hall), (MBIA), 5.00%, 7/1/14 $ 203,468
Aaa AAA 240 University of Connecticut, (FGIC),
5.00%, 2/1/15 243,149
--------------------------------------------------------------------------------------
$ 446,617
--------------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.2%
--------------------------------------------------------------------------------------
Aaa AAA $250 Connecticut Municipal Electric
Authority, (MBIA), 6.00%, 1/1/07 $ 279,750
--------------------------------------------------------------------------------------
$ 279,750
--------------------------------------------------------------------------------------
Insured-General Obligations -- 13.7%
--------------------------------------------------------------------------------------
Aaa AAA $250 Bradford, (FGIC), 5.40%, 2/15/14 $ 261,700
Aaa AAA 400 Bridgeport, (AMBAC), 6.00%, 9/1/06 448,299
Aaa AAA 500 Old Saybrook, (AMBAC), 4.10%, 8/15/01 507,724
--------------------------------------------------------------------------------------
$ 1,217,723
--------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
CONNECTICUT LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
--------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Hospital -- 12.8%
--------------------------------------------------------------------------------------
Aaa AAA $150 Connecticut HEFA, (Greenwich Hospital),
(MBIA), 5.75%, 7/1/06 $ 165,228
Aaa NR 300 Connecticut HEFA, (Middlesex Health
Services), (MBIA), 5.125%, 7/1/17 301,164
Aaa AAA 370 Connecticut HEFA, (St. Raphael
Hospital),
(AMBAC), 5.10%, 7/1/07 392,596
Aaa AAA 250 Connecticut HEFA, (Stamford Hospital),
(MBIA), 6.50%, 7/1/06 270,558
--------------------------------------------------------------------------------------
$ 1,129,546
--------------------------------------------------------------------------------------
Insured-Miscellaneous -- 1.8%
--------------------------------------------------------------------------------------
Aaa AAA $150 Woodstock, Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 $ 159,290
--------------------------------------------------------------------------------------
$ 159,290
--------------------------------------------------------------------------------------
Insured-Transportation -- 7.9%
--------------------------------------------------------------------------------------
Aaa AAA $600 Connecticut State Airport, (Bradley
International Airport), (FGIC), 7.40%,
10/1/04 $ 700,373
--------------------------------------------------------------------------------------
$ 700,373
--------------------------------------------------------------------------------------
Solid Waste -- 2.9%
--------------------------------------------------------------------------------------
NR BBB+ $250 Eastern Connecticut Resources Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.00%, 1/1/03 $ 254,253
--------------------------------------------------------------------------------------
$ 254,253
--------------------------------------------------------------------------------------
Water and Sewer -- 1.8%
--------------------------------------------------------------------------------------
Aaa AAA $150 Connecticut State Clean Water Fund,
4.875%, 5/1/09 $ 155,604
--------------------------------------------------------------------------------------
$ 155,604
--------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $8,361,603) $ 8,857,555
--------------------------------------------------------------------------------------
</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, 1999, 47.5% 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 insured by
financial institutions ranged from a low of 13.6% to a high of 20.1% of total
investments.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Cogeneration -- 1.3%
---------------------------------------------------------------------------------------
NR NR $ 500 Palm Beach County, (Okeelanta Power),
(AMT), 6.85%, 2/15/21(1) $ 385,000
NR NR 500 Palm Beach County, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 380,000
---------------------------------------------------------------------------------------
$ 765,000
---------------------------------------------------------------------------------------
Electric Utilities -- 8.0%
---------------------------------------------------------------------------------------
Aa2 AA $2,500 Jacksonville Electric Authority, (St.
Johns River Power Park), 5.375%, 10/1/16 $ 2,583,675
A1 AA- 2,000 Tallahassee Electric, 5.90%, 10/1/05 2,156,620
---------------------------------------------------------------------------------------
$ 4,740,295
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,015 Dade County, Educational Facilities
Authority, (MBIA), Prerefunded to
10/1/01, 7.00%, 10/1/08 $ 1,117,556
Aaa AAA 1,000 Hillsborough County Aviation Authority,
(Tampa International Airport), (FGIC),
Prerefunded to 10/01/99, 6.85%, 10/1/06 1,038,520
Aaa AAA 3,000 Jacksonville Health Facilities
Authority, (Baptist Medical Center),
(MBIA), Prerefunded to 6/1/99, 7.25%,
6/1/05(2) 3,080,309
Aaa AA- 500 Orlando Utility Community Water and
Electric, Prerefunded to 10/1/01, 6.50%,
10/1/20 544,590
---------------------------------------------------------------------------------------
$ 5,780,975
---------------------------------------------------------------------------------------
General Obligations -- 13.7%
---------------------------------------------------------------------------------------
Aa2 AA+ $3,000 Florida State Board of Education, 5.55%,
6/1/11 $ 3,212,549
Baa1 A 1,050 Puerto Rico, 0.00%, 7/1/08 697,589
Baa1 A- 2,000 Puerto Rico Municipal Finance Agency,
5.50%, 7/1/01 2,078,000
Baa1 A 1,000 Puerto Rico Public Building Authority,
6.50%, 7/1/03 1,091,640
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
General Obligations (continued)
---------------------------------------------------------------------------------------
NR AAA $1,000 Virgin Islands Public Finance Authority,
(Matching Loan Fund Notes), 6.80%,
10/1/00 $ 1,051,640
---------------------------------------------------------------------------------------
$ 8,131,418
---------------------------------------------------------------------------------------
Hospital -- 3.8%
---------------------------------------------------------------------------------------
NR BBB+ $1,250 Escambia County Health Facilities
Authority, (Baptist Hospital, Inc. and
Baptist Manor, Inc.), 6.00%, 10/1/14 $ 1,299,675
Baa1 NR 450 Jacksonville Health Facilities
Authority, (National Benevolent
Association-Cypress Village), 6.25%,
12/1/99 457,835
Baa1 NR 480 Jacksonville Health Facilities
Authority, (National Benevolent
Association-Cypress Village), 6.50%,
12/1/00 501,365
---------------------------------------------------------------------------------------
$ 2,258,875
---------------------------------------------------------------------------------------
Housing -- 0.7%
---------------------------------------------------------------------------------------
NR A $ 425 Clearwater Housing Authority, (Hamptons
at Clearwater), 5.40%, 5/1/13 $ 440,279
---------------------------------------------------------------------------------------
$ 440,279
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 3.6%
---------------------------------------------------------------------------------------
Baa2 BBB $2,000 Polk County IDR, (IMC Fertilizer),
(AMT), 7.525%, 1/1/15 $ 2,118,280
---------------------------------------------------------------------------------------
$ 2,118,280
---------------------------------------------------------------------------------------
Insured-Cogeneration -- 5.2%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County, Resource Recovery
Facilities, (AMBAC), (AMT), 5.30%,
10/1/07 $ 2,136,000
Aaa NR 1,000 Tampa Solid Waste System, (McKay Bay
Refuse to Energy), (AMBAC), 4.75%,
10/1/17 961,300
---------------------------------------------------------------------------------------
$ 3,097,300
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Electric Utilities -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Dade County, Water and Sewer System,
(FGIC), 5.25%, 10/1/21 $ 1,021,460
---------------------------------------------------------------------------------------
$ 1,021,460
---------------------------------------------------------------------------------------
Insured-General Obligations -- 7.9%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Dade County Local School District,
(MBIA), 5.00%, 2/15/15 $ 2,022,420
Aaa AAA 520 Dade County, (MBIA), 0.00%, 10/1/06 375,731
Aaa AAA 330 Dade County, (MBIA), 0.00%, 10/1/08 214,625
Aaa AAA 1,000 Miami-Dade County School District,
(FSA), 5.375%, 8/1/15 1,067,450
Aaa AAA 1,000 Reedy Creek Improvement District,
(MBIA), 5.25%, 6/1/14 1,039,380
---------------------------------------------------------------------------------------
$ 4,719,606
---------------------------------------------------------------------------------------
Insured-Hospital -- 7.0%
---------------------------------------------------------------------------------------
Aaa AAA $2,500 Naples, (Naples Community Hospital,
Inc.), (MBIA), 5.50%, 10/1/16 $ 2,608,025
Aaa AAA 1,000 Orange County Health Facilities
Authority, (Adventist Health System/
Sunbelt, Inc.), (FSA), 5.50%, 11/15/02 1,057,150
Aaa AAA 500 Sarasota County Public Hospital, (MBIA),
5.25%, 7/1/18 516,865
---------------------------------------------------------------------------------------
$ 4,182,040
---------------------------------------------------------------------------------------
Insured-Housing -- 4.2%
---------------------------------------------------------------------------------------
Aaa AAA $1,200 Florida Housing Finance Authority,
(Leigh Meadows Apartments), (AMBAC),
5.85%, 9/1/10 $ 1,283,244
Aaa AAA 1,110 Florida Housing Finance Authority,
(Stottert Arms Apartments), (AMBAC),
5.90%, 9/1/10 1,185,968
---------------------------------------------------------------------------------------
$ 2,469,212
---------------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 1.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Pinellas County Resource Recovery,
(MBIA), 5.125%, 10/1/04 $ 1,053,290
---------------------------------------------------------------------------------------
$ 1,053,290
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Palm Beach County Criminal Justice
Facilities, (FGIC), 5.375%, 6/1/10 $ 1,083,850
---------------------------------------------------------------------------------------
$ 1,083,850
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Miami-Dade County Professional Sports
Franchise Facilities, (MBIA), 0.00%,
10/1/13 $ 992,660
---------------------------------------------------------------------------------------
$ 992,660
---------------------------------------------------------------------------------------
Insured-Transportation -- 10.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Broward County Airport System, (MBIA),
5.375%, 10/1/13 $ 1,047,100
Aaa AAA 1,500 Broward County Port Facilities, (MBIA),
5.375%, 9/1/12 1,578,165
Aaa AAA 2,000 Dade County, Seaport Revenue, (MBIA),
5.125%, 10/1/16 2,034,760
Aaa AAA 1,670 Hillsborough County Aviation Authority,
(Tampa International Airport), (FGIC),
6.85%, 10/1/06 1,732,525
---------------------------------------------------------------------------------------
$ 6,392,550
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 9.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 380 Collier County, Water and Sewer Revenue,
(FGIC), 5.125%, 7/1/15(3) $ 390,146
Aaa AAA 2,000 Dade County, Water and Sewer System,
(FGIC), 5.25%, 10/1/11 2,111,560
Aaa AAA 2,000 Manatee County, Public Utilities,
(MBIA), 6.75%, 10/1/04 2,278,120
Aaa AAA 1,000 Pasco County, Water and Sewer Revenue,
(FGIC), 5.40%, 10/1/03 1,067,960
---------------------------------------------------------------------------------------
$ 5,847,786
---------------------------------------------------------------------------------------
Nursing Home -- 2.3%
---------------------------------------------------------------------------------------
NR NR $ 350 Citrus County IDA, (Beverly
Enterprises), 5.00%, 4/1/03 $ 349,248
NR NR 1,000 Volusia County, (Beverly Enterprises),
5.875%, 7/1/07 1,006,840
---------------------------------------------------------------------------------------
$ 1,356,088
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Senior Living / Life Care -- 3.7%
---------------------------------------------------------------------------------------
Baa1 A- $1,000 Highlands County HFA, (Adventist Health
System), 5.25%, 11/15/20 $ 980,930
NR NR 600 North Miami HFA, (Imperial Club), 6.75%,
1/1/33 589,038
NR NR 600 Okaloosa County, Retirement Rental
Housing, (Encore Retirement Partners),
6.125%, 2/1/14 599,070
---------------------------------------------------------------------------------------
$ 2,169,038
---------------------------------------------------------------------------------------
Special Tax Revenue -- 1.2%
---------------------------------------------------------------------------------------
NR NR $ 650 North Springs, Improvement District,
Special Assessment Revenue, (Heron Bay),
7.00%, 5/1/19 $ 692,387
---------------------------------------------------------------------------------------
$ 692,387
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $56,582,960) $ 59,312,389
---------------------------------------------------------------------------------------
</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, 1999, 60.9% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 3.6% to a high of 33.7% of total
investments.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(3) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
MASSACHUSETTS LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Cogeneration -- 2.0%
---------------------------------------------------------------------------------------
NR BBB $1,000 Massachusetts IFA, (Ogden Haverhill),
(AMT), 5.50%, 12/1/13 $ 1,014,110
---------------------------------------------------------------------------------------
$ 1,014,110
---------------------------------------------------------------------------------------
Education -- 6.8%
---------------------------------------------------------------------------------------
NR A $ 500 Massachusetts IFA, (Belmont Hill
School), 5.15%, 9/1/13 $ 506,225
Baa3 BBB- 500 Massachusetts IFA, (Dana Hall), 5.90%,
7/1/27 515,935
A3 NR 1,030 Massachusetts IFA, (Park School), 5.50%,
9/1/16 1,079,687
Baa1 BBB+ 750 Massachusetts IFA, (St. Johns High
School, Inc.), 5.70%, 6/1/18 775,298
Baa1 NR 500 Massachusetts IFA, (Wentworth Institute
of Technology), 5.55%, 10/1/13 509,585
---------------------------------------------------------------------------------------
$ 3,386,730
---------------------------------------------------------------------------------------
Electric Utilities -- 2.1%
---------------------------------------------------------------------------------------
Baa2 BBB+ $1,000 Massachusetts Municipal Wholesale
Electric Co., 5.70%, 7/1/01 $ 1,040,870
---------------------------------------------------------------------------------------
$ 1,040,870
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.4%
---------------------------------------------------------------------------------------
Aa3 AA- $ 785 Massachusetts Bay Transportation
Authority, Prerefunded to 3/01/05,
5.75%, 3/1/18 $ 867,598
Aaa NR 905 Massachusetts HEFA, (Fairview Extended
Care), Prerefunded to 1/1/01, 10.125%,
1/1/11 1,022,107
Baa3 NR 793 Massachusetts HEFA, (Milford-
Whitinsville Hospital), Escrowed to
Maturity, 7.125%, 7/15/02 839,912
Aaa BBB 500 Massachusetts HEFA, (Sisters of
Providence Hospital), Escrowed to
Maturity, 6.00%, 11/15/00 521,295
Aaa AAA 400 Massachusetts Turnpike Authority,
(FGIC), Escrowed to Maturity, 5.125%,
1/1/23 406,484
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
---------------------------------------------------------------------------------------
Aaa NR $2,000 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20 $ 2,024,420
---------------------------------------------------------------------------------------
$ 5,681,816
---------------------------------------------------------------------------------------
General Obligations -- 13.9%
---------------------------------------------------------------------------------------
Aa2 NR $ 500 Burlington, 5.00%, 2/1/15 $ 512,365
Aa2 NR 500 Burlington, 5.00%, 2/1/16 511,135
Aa3 AA- 1,000 Massachusetts, 5.00%, 11/1/14 1,014,790
Aa3 AA- 1,000 Massachusetts, 5.40%, 11/1/06 1,082,270
Aa3 AA- 1,260 Massachusetts Bay Transportation
Authority, 5.50%, 3/1/08 1,377,041
Aa3 AA- 215 Massachusetts Bay Transportation
Authority, 5.75%, 3/1/18 229,551
Aa3 NR 2,500 Massachusetts State Federal Highway,
Grant Anticipation Notes, 0.00%, 6/15/15 1,110,600
A1 AA- 1,000 Woods Hole, Martha's Vineyard and
Nantucket Steamship Authority, 6.60%,
3/1/03 1,096,200
---------------------------------------------------------------------------------------
$ 6,933,952
---------------------------------------------------------------------------------------
Health Care-Miscellaneous -- 1.0%
---------------------------------------------------------------------------------------
Ba2 BB $ 500 Massachusetts Development Finance
Agency, (New England Center for
Children), 5.30%, 11/1/08 $ 497,380
---------------------------------------------------------------------------------------
$ 497,380
---------------------------------------------------------------------------------------
Hospital -- 17.2%
---------------------------------------------------------------------------------------
Baa2 BBB $ 750 Massachusetts HEFA, (Caritas Christi
Obligation Group), 5.70%, 7/1/15 $ 758,250
Aa2 AA+ 3,000 Massachusetts HEFA, (Daughters of
Charity Issue), 5.75%, 7/1/02 3,167,190
NR BBB+ 770 Massachusetts HEFA, (Jordan Hospital),
5.00%, 10/1/11 778,262
Baa2 BBB- 1,000 Massachusetts HEFA, (Milford-
Whitinsville Regional Hospital), 5.75%,
7/15/13 1,024,110
Baa3 NR 860 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 880,038
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
MASSACHUSETTS LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital (continued)
---------------------------------------------------------------------------------------
NR BBB- $1,845 Massachusetts HEFA, (North Adams
Regional Hospital), 6.25%, 7/1/04 $ 1,984,519
---------------------------------------------------------------------------------------
$ 8,592,369
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 0.7%
---------------------------------------------------------------------------------------
NR BBB+ $ 350 Massachusetts Development Finance
Agency, (YMCA of Greater Boston), 5.25%,
11/1/13 $ 342,657
---------------------------------------------------------------------------------------
$ 342,657
---------------------------------------------------------------------------------------
Insured-Education -- 2.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,015 Massachusetts IFA, (Dexter School),
(MBIA), 5.40%, 5/1/13 $ 1,070,074
---------------------------------------------------------------------------------------
$ 1,070,074
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 4.4%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Massachusetts Municipal Wholesale
Electric Co., (AMBAC), 6.625%, 7/1/03 $ 2,202,560
---------------------------------------------------------------------------------------
$ 2,202,560
---------------------------------------------------------------------------------------
Insured-General Obligations -- 8.4%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Haverhill, (FGIC), 5.00%, 6/15/17 $ 1,001,110
Aaa AAA 2,000 Massachusetts Bay Transportation
Authority, (AMBAC), 5.25%, 3/1/11 2,147,960
Aaa AAA 1,000 Massachusetts, (AMBAC), 5.00%, 7/1/12 1,040,800
---------------------------------------------------------------------------------------
$ 4,189,870
---------------------------------------------------------------------------------------
Insured-Hospital -- 3.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,500 Massachusetts HEFA, (Lowell General
Hospital), (FSA), 5.25%, 6/1/16 $ 1,533,705
---------------------------------------------------------------------------------------
$ 1,533,705
---------------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 3.0%
---------------------------------------------------------------------------------------
Aaa AAA $1,400 Massachusetts IFA, (Nantucket Electric),
(AMBAC), (AMT), 5.30%, 7/1/04 $ 1,477,518
---------------------------------------------------------------------------------------
$ 1,477,518
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 3.5%
---------------------------------------------------------------------------------------
NR BBB $1,650 Puerto Rico, ITEM & ECFA, (Guaynabo
Municipal Government), 5.375%, 7/1/06 $ 1,771,589
---------------------------------------------------------------------------------------
$ 1,771,589
---------------------------------------------------------------------------------------
Nursing Home -- 2.1%
---------------------------------------------------------------------------------------
NR NR $ 965 Massachusetts IFA, (Age Institute of
Massachusetts), 7.60%, 11/1/05 $ 1,023,952
---------------------------------------------------------------------------------------
$ 1,023,952
---------------------------------------------------------------------------------------
Pooled Loans -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,595 Massachusetts Water Pollution Abatement
Trust, 0.00%, 8/1/12 $ 848,524
---------------------------------------------------------------------------------------
$ 848,524
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 2.2%
---------------------------------------------------------------------------------------
NR BBB $ 600 Massachusetts Development Finance
Agency, (Berkshire Retirement), 5.60%,
7/1/19 $ 599,220
NR NR 500 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 476,985
---------------------------------------------------------------------------------------
$ 1,076,205
---------------------------------------------------------------------------------------
Special Tax Revenue -- 4.6%
---------------------------------------------------------------------------------------
Aa3 AA $ 500 Massachusetts Special Obligations,
5.00%, 6/1/14 $ 514,190
NR AAA 1,750 Virgin Islands Public Finance Authority,
(Matching Loan Fund Notes), 6.70%,
10/1/99 1,781,500
---------------------------------------------------------------------------------------
$ 2,295,690
---------------------------------------------------------------------------------------
Transportation -- 3.3%
---------------------------------------------------------------------------------------
Aa3 AA- $1,000 Massachusetts Port Authority Revenue,
6.00%, 7/1/13 $ 1,088,740
Baa1 A 500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 537,675
---------------------------------------------------------------------------------------
$ 1,626,415
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MASSACHUSETTS LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer -- 6.5%
---------------------------------------------------------------------------------------
Aa1 AA $2,100 Massachusetts Water Pollution Abatement
Trust, 5.25%, 8/1/14 $ 2,205,105
Aa3 AA+ 1,000 Massachusetts Water Pollution Abatement
Trust, 5.25%, 8/1/14 1,033,850
---------------------------------------------------------------------------------------
$ 3,238,955
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $47,451,800) $ 49,844,941
---------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of issuers of debt 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, 1999, 21.8% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 2.1% to a high of 13.8% of total
investments.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
MICHIGAN LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Economic Development Revenue -- 1.3%
---------------------------------------------------------------------------------------
NR B+ $ 150 Michigan State Strategic Fund, (Crown
Paper), 6.25%, 8/1/12 $ 137,537
---------------------------------------------------------------------------------------
$ 137,537
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Grand Ledge Public School District,
(MBIA), Prerefunded to 5/1/04, 7.875%,
5/1/11 $ 1,196,799
Aa1 AA+ 500 Michigan Municipal Bond Authority,
Escrowed to Maturity, 7.00%, 10/1/02 553,790
---------------------------------------------------------------------------------------
$ 1,750,589
---------------------------------------------------------------------------------------
General Obligations -- 5.3%
---------------------------------------------------------------------------------------
Baa1 A- $ 495 Detroit, 6.40%, 4/1/05 $ 546,435
---------------------------------------------------------------------------------------
$ 546,435
---------------------------------------------------------------------------------------
Hospital -- 14.6%
---------------------------------------------------------------------------------------
Aa3 AA $ 500 Kent Hospital Finance Authority,
(Spectrum Health), 5.25%, 1/15/09 $ 523,540
NR BBB 100 Michigan Hospital Finance Authority,
(Central MI Community Hospital), 6.00%,
10/1/05 108,197
NR BBB 100 Michigan Hospital Finance Authority,
(Central MI Community Hospital), 6.10%,
10/1/06 109,225
NR BBB 225 Michigan Hospital Finance Authority,
(Central MI Community Hospital), 6.20%,
10/1/07 247,930
NR BBB 500 Michigan Hospital Finance Authority,
(Gratiot Community Hospital), 6.10%,
10/1/07 532,440
---------------------------------------------------------------------------------------
$ 1,521,332
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 3.6%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 350 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 $ 377,552
---------------------------------------------------------------------------------------
$ 377,552
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 5.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Monroe County, (The Detroit Edison Co.),
(AMBAC), (AMT), 6.35%, 12/1/04 $ 552,640
---------------------------------------------------------------------------------------
$ 552,640
---------------------------------------------------------------------------------------
Insured-General Obligations -- 18.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Detroit School District, (AMBAC), 6.50%,
5/1/10 $ 585,780
Aaa AAA 250 Fowlerville, Community Schools District,
(FSA), 4.50%, 5/1/15 242,880
Aaa AAA 500 Hartland School District, (FGIC),
5.125%, 5/1/17 504,440
Aaa AAA 100 Parchment School District, (MBIA),
5.00%, 5/1/25 99,923
Aaa AAA 225 Paw Paw, Public School District, (FGIC),
5.00%, 5/1/21 224,840
Aaa AAA 250 Portage, Public Schools, (FSA), 4.50%,
5/1/14 241,095
---------------------------------------------------------------------------------------
$ 1,898,958
---------------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 1.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 300 Michigan Building Authority, Facilities
Program, (AMBAC), 0.00%, 10/15/08 $ 195,864
---------------------------------------------------------------------------------------
$ 195,864
---------------------------------------------------------------------------------------
Insured-Transportation -- 3.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 770 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 $ 335,751
---------------------------------------------------------------------------------------
$ 335,751
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 5.1%
---------------------------------------------------------------------------------------
Aa2 AA $ 500 Michigan Building Authority, 6.10%,
10/1/01 $ 529,940
---------------------------------------------------------------------------------------
$ 529,940
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MICHIGAN LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Miscellaneous -- 1.5%
---------------------------------------------------------------------------------------
NR NR $ 150 Pittsfield Township EDC, (Arbor
Hospice), 7.875%, 8/15/27 $ 157,526
---------------------------------------------------------------------------------------
$ 157,526
---------------------------------------------------------------------------------------
Nursing Home -- 4.1%
---------------------------------------------------------------------------------------
NR NR $ 395 Michigan Hospital Finance Authority,
(Presbyterian Villages), 6.20%, 1/1/06 $ 427,189
---------------------------------------------------------------------------------------
$ 427,189
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 3.0%
---------------------------------------------------------------------------------------
NR BBB $ 300 Kalamazoo, (Friendship Village), 6.125%,
5/15/17 $ 314,739
---------------------------------------------------------------------------------------
$ 314,739
---------------------------------------------------------------------------------------
Special Tax Revenue -- 16.1%
---------------------------------------------------------------------------------------
NR BBB+ $1,000 Battle Creek Downtown Development
Authority, 6.65%, 5/1/02 $ 1,072,420
NR A- 2,000 Detroit Downtown Development Authority
Tax Increment, 0.00%, 7/1/21 598,060
---------------------------------------------------------------------------------------
$ 1,670,480
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $9,640,542) $ 10,416,532
---------------------------------------------------------------------------------------
</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, 1999, 40.1% of such securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 4.6% to a high of 16.0% of total
investments.
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
NEW JERSEY LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Assisted Living -- 1.8%
---------------------------------------------------------------------------------------
NR NR $ 650 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.00%, 10/1/07 $ 712,693
---------------------------------------------------------------------------------------
$ 712,693
---------------------------------------------------------------------------------------
Cogeneration -- 9.3%
---------------------------------------------------------------------------------------
NR BBB- $2,150 New Jersey EDA, (Trigen-Trenton), (AMT),
6.10%, 12/1/05 $ 2,287,062
NR BB+ 735 New Jersey EDA, (Vineland Cogeneration),
(AMT), 7.875%, 6/1/19 793,602
NR NR 550 Port Authority of New York and New
Jersey, (KIAC), (AMT), 6.50%, 10/1/01 577,462
---------------------------------------------------------------------------------------
$ 3,658,126
---------------------------------------------------------------------------------------
Education -- 1.5%
---------------------------------------------------------------------------------------
Baa1 BBB $ 585 New Jersey Educational Facilities
Authority, (Georgian Court College),
4.80%, 7/1/08 $ 584,526
---------------------------------------------------------------------------------------
$ 584,526
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Elizabeth, (MBIA), Prerefunded to
11/15/00, 6.20%, 11/15/02 $ 530,480
NR NR 310 New Jersey EDA, (Cadbury Corp.),
Prerefunded to 7/1/01, 8.00%, 7/1/15 346,809
Aaa NR 2,030 New Jersey EDA, (Princeton Custodial
Receipts), Escrowed to Maturity, 0.00%,
12/15/12 1,066,765
---------------------------------------------------------------------------------------
$ 1,944,054
---------------------------------------------------------------------------------------
General Obligations -- 6.0%
---------------------------------------------------------------------------------------
Aa3 AA $ 500 Jersey City School District, 6.25%,
10/1/10 $ 577,155
Baa1 A 1,050 Puerto Rico, 0.00%, 7/1/08 697,589
Aa2 AA- 1,000 South Brunswick, 7.125%, 7/15/02 1,103,890
---------------------------------------------------------------------------------------
$ 2,378,634
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Hospital -- 8.1%
---------------------------------------------------------------------------------------
A3 A- $ 340 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center), 6.25%, 7/1/00 $ 351,631
A3 A- 1,000 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center), 6.45%, 7/1/02 1,074,120
A3 A- 750 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Care Center), 6.55%, 7/1/03 818,348
Baa2 BBB 880 New Jersey Health Care Facilities
Financing Authority, (St. Elizabeth's
Hospital), 5.75%, 7/1/08 942,058
---------------------------------------------------------------------------------------
$ 3,186,157
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 7.0%
---------------------------------------------------------------------------------------
Aa3 NR $ 425 New Jersey EDA, (Economic Growth),
(AMT), 6.00%, 12/1/02 $ 440,772
NR NR 500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 560,315
Baa3 BBB- 1,625 Port Authority of New York and New
Jersey, (Delta Airlines), 6.95%, 6/1/08 1,760,330
---------------------------------------------------------------------------------------
$ 2,761,417
---------------------------------------------------------------------------------------
Insured-Education -- 1.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 New Jersey Educational Facilities
Authority, (Seton Hall University),
(FGIC), 6.10%, 7/1/01 $ 527,585
---------------------------------------------------------------------------------------
$ 527,585
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 2.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Middlesex County Utilities Authority,
(FGIC), 6.10%, 12/1/01 $ 1,065,620
---------------------------------------------------------------------------------------
$ 1,065,620
---------------------------------------------------------------------------------------
Insured-General Obligations -- 28.0%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Atlantic City Board of Education,
(AMBAC), 6.00%, 12/1/02 $ 1,079,020
Aaa AAA 1,175 Edison, (AMBAC), 4.70%, 1/1/04 1,217,136
Aaa AAA 1,200 Kearney, (FSA), 6.50%, 2/1/04 1,307,064
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
NEW JERSEY LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 725 Monroe Township Board of Education,
(FGIC), 5.20%, 8/1/11 $ 770,117
Aaa AAA 825 Monroe Township Board of Education,
(FGIC), 5.20%, 8/1/14 869,195
Aaa AAA 850 Roselle, (MBIA), 4.65%, 10/15/03 881,467
Aaa AAA 1,000 South Brunswick Township Board of
Education, (FGIC), 6.40%, 8/1/03 1,103,460
Aaa AAA 2,000 Washington Township Board of Education,
(MBIA), 5.125%, 2/1/15 2,042,679
Aaa AAA 1,585 West Deptford Township, (AMBAC), 5.90%,
3/1/09 1,781,793
---------------------------------------------------------------------------------------
$ 11,051,931
---------------------------------------------------------------------------------------
Insured-Hospital -- 9.3%
---------------------------------------------------------------------------------------
Aaa AAA $1,300 New Jersey Health Care Facilities
Financing Authority, (AHS Hospital
Corp.), (AMBAC), 6.00%, 7/1/12 $ 1,465,854
Aaa AAA 1,910 New Jersey Health Care Facilities
Financing Authority, (Dover General
Hospital and Medical Center), (MBIA),
7.00%, 7/1/04 2,179,252
---------------------------------------------------------------------------------------
$ 3,645,106
---------------------------------------------------------------------------------------
Insured-Solid Waste -- 0.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 250 Bergen County Utilities Authority, Solid
Waste System, (FGIC), 6.00%, 6/15/02 $ 267,253
---------------------------------------------------------------------------------------
$ 267,253
---------------------------------------------------------------------------------------
Insured-Transportation -- 7.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 New Jersey Turnpike Authority, (FSA),
5.90%, 1/1/03 $ 1,071,580
Aaa AAA 895 New Jersey Turnpike Authority, (FSA),
6.40%, 1/1/02 956,576
Aaa AAA 1,000 Port Authority of New York and New
Jersey, (AMBAC), 5.125%, 7/15/14 1,025,610
---------------------------------------------------------------------------------------
$ 3,053,766
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/16 $ 240,583
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Water and Sewer (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/17 $ 227,932
Aaa AAA 565 Pennsville Sewer Authority, (MBIA),
0.00%, 11/1/18 215,412
---------------------------------------------------------------------------------------
$ 683,927
---------------------------------------------------------------------------------------
Solid Waste -- 2.1%
---------------------------------------------------------------------------------------
A1 AA- $ 500 Gloucester County Improvement Authority,
Solid Waste System, 5.40%, 9/1/00 $ 514,015
B1 NR 300 The Atlantic County Utilities Authority,
Solid Waste System, 7.00%, 3/1/08 299,622
---------------------------------------------------------------------------------------
$ 813,637
---------------------------------------------------------------------------------------
Transportation -- 7.8%
---------------------------------------------------------------------------------------
Aa2 NR $1,000 New Jersey Transportation Trust,
Variable Rate, 6.56%, 6/15/17(1)(2) $ 1,002,220
A1 AA- 1,000 Port Authority of New York and New
Jersey, 5.375%, 10/15/16 1,030,830
A1 AA- 1,000 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 1,057,450
---------------------------------------------------------------------------------------
$ 3,090,500
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $36,941,483) $ 39,424,932
---------------------------------------------------------------------------------------
</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, 1999, 52.8% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 8.5% to a high of 16.7% of total
investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $1,002,220 or 2.5% of the
Portfolio's net assets.
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW YORK LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Assisted Living -- 1.7%
---------------------------------------------------------------------------------------
NR NR $ 560 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/99 $ 563,562
NR NR 500 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 533,875
---------------------------------------------------------------------------------------
$ 1,097,437
---------------------------------------------------------------------------------------
Cogeneration -- 2.4%
---------------------------------------------------------------------------------------
NR NR $ 950 Port Authority of New York and New
Jersey, (KIAC), (AMT), 6.50%, 10/1/01 $ 997,434
NR NR 600 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 603,144
---------------------------------------------------------------------------------------
$ 1,600,578
---------------------------------------------------------------------------------------
Education -- 0.3%
---------------------------------------------------------------------------------------
A3 A- $ 100 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/15 $ 104,148
A3 A- 105 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/19 107,963
---------------------------------------------------------------------------------------
$ 212,111
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.9%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 New York State Medical Care Facilities
Finance Agency, (New York State
Hospital), (AMBAC), Escrowed to
Maturity, 6.10%, 2/15/04 $ 1,094,160
Aaa AAA 2,500 New York State Medical Care Facilities
Finance Agency, (New York State
Hospital), (AMBAC), Escrowed to
Maturity, 6.20%, 2/15/05 2,778,950
---------------------------------------------------------------------------------------
$ 3,873,110
---------------------------------------------------------------------------------------
General Obligations -- 4.9%
---------------------------------------------------------------------------------------
A3 A- $ 750 New York City, 0.00%, 8/1/07 $ 518,033
A3 A- 1,000 New York City, 0.00%, 8/1/08 657,110
A3 A- 1,000 New York City, 0.00%, 8/1/08 657,110
A3 A- 1,285 New York City, 6.375%, 8/1/06 1,395,741
---------------------------------------------------------------------------------------
$ 3,227,994
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Hospital -- 4.9%
---------------------------------------------------------------------------------------
Baa1 BBB+ $2,000 New York State Dormitory Authority,
(Department of Health), 5.375%, 7/1/08 $ 2,124,080
Baa NR 1,000 New York State Dormitory Authority,
(Nyack Hospital), 6.00%, 7/1/06 1,081,430
---------------------------------------------------------------------------------------
$ 3,205,510
---------------------------------------------------------------------------------------
Hotel -- 0.7%
---------------------------------------------------------------------------------------
NR NR $1,210 Niagara County IDA, (Wintergarden Inn
Associates), 9.75%, 6/1/11(1) $ 484,000
---------------------------------------------------------------------------------------
$ 484,000
---------------------------------------------------------------------------------------
Housing -- 10.8%
---------------------------------------------------------------------------------------
Aa AA $3,870 New York City Housing Development Corp.,
MFMR, 5.625%, 5/1/12 $ 4,117,293
Aa2 NR 1,500 New York State Mortgage Agency Revenue,
(AMT), 6.45%, 10/1/21 1,627,830
Aa2 NR 1,300 New York State Mortgage Agency, (AMT),
5.20%, 10/1/08 1,349,647
---------------------------------------------------------------------------------------
$ 7,094,770
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 11.6%
---------------------------------------------------------------------------------------
NR NR $ 500 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 500,640
A3 A 2,000 New York City, (Terminal One Group),
6.00%, 1/1/07 2,156,560
Baa3 BBB- 2,875 Port Authority of New York and New
Jersey, (Delta Airlines), 6.95%, 6/1/08 3,114,430
Baa3 BBB- 1,700 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,833,824
---------------------------------------------------------------------------------------
$ 7,605,454
---------------------------------------------------------------------------------------
Insured-Education -- 7.0%
---------------------------------------------------------------------------------------
Aaa AAA $2,250 Nassau County IDA, (Hofstra University),
(MBIA), 5.25%, 7/1/10 $ 2,396,498
Aaa AAA 1,075 New York State Dormitory Authority, (Mt.
Sinai School of Medicine), (MBIA),
6.75%, 7/1/09 1,165,365
Aaa AAA 500 New York State Dormitory Authority, (New
York University), (AMBAC), 5.75%,
7/1/12(2) 527,740
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
NEW YORK LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Education (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Niagara County IDA, (Niagara
University), (AMBAC), 5.25%, 10/1/18 $ 510,615
---------------------------------------------------------------------------------------
$ 4,600,218
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 8.0%
---------------------------------------------------------------------------------------
Aaa AAA $5,000 New York State Energy Research and
Development Authority, (Central Hudson
Gas), (FGIC), 7.375%, 10/1/14 $ 5,244,549
---------------------------------------------------------------------------------------
$ 5,244,549
---------------------------------------------------------------------------------------
Insured-General Obligations -- 2.1%
---------------------------------------------------------------------------------------
Aaa AAA $2,750 New York State Local Government
Assistance Corp., (MBIA), 0.00%, 4/1/13 $ 1,404,013
---------------------------------------------------------------------------------------
$ 1,404,013
---------------------------------------------------------------------------------------
Insured-Hospital -- 0.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 New York State Dormitory Authority,
(Methodist Hospital), (AMBAC), 5.00%,
7/1/10 $ 516,265
---------------------------------------------------------------------------------------
$ 516,265
---------------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 0.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 City University of New York, (John Jay
College), (AMBAC), 5.00%, 8/15/08 $ 525,360
---------------------------------------------------------------------------------------
$ 525,360
---------------------------------------------------------------------------------------
Insured-Transportation -- 3.7%
---------------------------------------------------------------------------------------
Aaa AAA $2,240 Metropolitan Transportation Authority
for the City of New York, (FGIC), 5.70%,
7/1/10(3) $ 2,453,942
---------------------------------------------------------------------------------------
$ 2,453,942
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 12.5%
---------------------------------------------------------------------------------------
Baa1 BBB+ $2,180 New York State Energy Research and
Development Authority, (Western NY
Nuclear Service Center), 6.00%, 4/1/06 $ 2,384,767
Baa1 A- 2,000 New York State HFA, 6.375%, 11/1/03(3) 2,186,540
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Lease Revenue /
Certificates of Participation (continued)
---------------------------------------------------------------------------------------
NR BBB $1,485 New York State Thruway Authority, 0.00%,
1/1/04 $ 1,216,675
Baa1 BBB+ 1,300 New York State Thruway Authority, 5.25%,
4/1/13 1,322,399
Baa1 BBB+ 1,000 New York State Urban Development Corp.,
(Youth Facilities), 5.75%, 4/1/10 1,084,890
---------------------------------------------------------------------------------------
$ 8,195,271
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 0.8%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 500 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 $ 496,530
---------------------------------------------------------------------------------------
$ 496,530
---------------------------------------------------------------------------------------
Special Tax Revenue -- 7.1%
---------------------------------------------------------------------------------------
A3 A+ $4,500 New York State Local Government
Assistance Corp., 5.25%, 4/1/16 $ 4,682,925
---------------------------------------------------------------------------------------
$ 4,682,925
---------------------------------------------------------------------------------------
Transportation -- 6.6%
---------------------------------------------------------------------------------------
Baa1 BBB+ $1,000 Port Authority of New York and New
Jersey, (AMT), 5.75%, 4/1/16 $ 1,066,890
A1 AA- 3,000 Port Authority of New York and New
Jersey, (AMT), 6.00%, 7/1/14 3,257,490
---------------------------------------------------------------------------------------
$ 4,324,380
---------------------------------------------------------------------------------------
Water and Sewer -- 7.4%
---------------------------------------------------------------------------------------
A1 A $3,000 New York City Municipal Water Finance
Authority, 5.125%, 6/15/21 $ 2,968,380
A1 A 1,825 New York City Municipal Water Finance
Authority, 5.70%, 6/15/02 1,929,463
---------------------------------------------------------------------------------------
$ 4,897,843
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $62,315,489) $ 65,742,260
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
NEW YORK LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
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, 1999, 28.3% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 7.6% to a high of 11.7% of total
investments.
(1) Non-income producing security.
(2) When-issued security.
(3) Security (or a portion thereof) has been segregated to cover when-issued
securities.
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
OHIO LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.9%
---------------------------------------------------------------------------------------
Aaa NR $ 240 Greene County IDA, (Fairview Extended
Care), Prerefunded to 1/1/01, 10.125%,
1/1/11 $ 271,229
Aa2 NR 1,000 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 1,094,579
---------------------------------------------------------------------------------------
$ 1,365,808
---------------------------------------------------------------------------------------
General Obligations -- 14.0%
---------------------------------------------------------------------------------------
NR NR $ 300 Kings County Local School District,
7.60%, 12/1/10 $ 348,156
Aa3 NR 250 Oak Hills, 5.60%, 12/1/17 263,623
Aa1 AA+ 675 Ohio, 0.00%, 8/1/04 545,616
Aa1 AA+ 500 Ohio, 0.00%, 8/1/05 385,710
Aa1 AA+ 250 Ohio, 0.00%, 8/1/08 166,543
A3 NR 1,000 Wauseon School District, 7.25%, 12/1/10 1,082,900
NR NR 410 Youngstown County School District,
6.40%, 7/1/00 418,221
---------------------------------------------------------------------------------------
$ 3,210,769
---------------------------------------------------------------------------------------
Hospital -- 7.0%
---------------------------------------------------------------------------------------
A A $1,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08 $ 1,085,509
Baa2 BBB 250 Hamilton County Health System,
(Providence Hospital), 6.00%, 7/1/01 259,438
NR A- 250 Parma, Hospital Improvement Revenue,
(Parma Community General Hospital
Association), 5.25%, 11/1/13 252,475
---------------------------------------------------------------------------------------
$ 1,597,422
---------------------------------------------------------------------------------------
Housing -- 7.3%
---------------------------------------------------------------------------------------
NR AAA $1,000 Cuyahoga County, (National Terminal
Apts.), 6.40%, 7/1/16 $ 1,084,130
NR NR 295 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 301,121
NR NR 290 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 291,351
---------------------------------------------------------------------------------------
$ 1,676,602
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 13.6%
---------------------------------------------------------------------------------------
NR NR $ 500 Cuyahoga County, (Rock and Roll Hall of
Fame), 5.45%, 12/1/05 $ 524,920
NR NR 250 Cuyahoga County, (Rock and Roll Hall of
Fame), 5.85%, 12/1/08 268,713
NR BBB 500 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 503,995
NR A- 1,020 Ohio Economic Development Commission,
(ABS Industries), (AMT), 6.00%, 6/1/04 1,078,823
NR A- 450 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 465,521
NR NR 250 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT), 9.00%,
6/1/21 267,725
---------------------------------------------------------------------------------------
$ 3,109,697
---------------------------------------------------------------------------------------
Insured-Education -- 4.4%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Ohio Public Facilities Commission,
(Higher Educational Facilities),
(AMBAC), 4.30%, 12/1/08 $ 1,001,040
---------------------------------------------------------------------------------------
$ 1,001,040
---------------------------------------------------------------------------------------
Insured-General Obligations -- 26.9%
---------------------------------------------------------------------------------------
Aaa NR $ 265 Clinton Massie Local School District,
(AMBAC), 0.00%, 12/1/11 $ 147,947
Aaa NR 265 Clinton Massie Local School District,
(MBIA), 0.00%, 12/1/09 165,283
Aaa AAA 225 Finneytown Local School District,
(FGIC), 6.15%, 12/1/11 261,716
Aaa AAA 500 Forest Hills Local School District,
(MBIA), 6.00%, 12/1/09 571,845
Aaa AAA 500 South-Western City School District,
Franklin and Pickway Counties, (AMBAC),
4.75%, 12/1/26 473,815
Aaa AAA 1,000 Southwest Licking School Facilities
Improvement, (FGIC), 7.10%, 12/1/16 1,173,549
Aaa AAA 500 Strongsville City School District,
(MBIA), 5.375%, 12/1/12 539,750
Aaa AAA 1,500 West Clermont School District, (AMBAC),
6.90%, 12/1/12 1,745,969
Aaa AAA 500 West Clermont School District, (AMBAC),
7.125%, 12/1/19 579,980
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
OHIO LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 460 Wyoming, School District, (FGIC), 5.75%,
12/1/17 $ 508,332
---------------------------------------------------------------------------------------
$ 6,168,186
---------------------------------------------------------------------------------------
Insured-Hospital -- 3.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Cuyahoga County, (Metrohealth System),
(MBIA), 5.50%, 2/15/12 $ 539,030
NR AA 250 Knox County Hospital Facilities Revenue,
(Knox Community Hospital), (AGR), 5.00%,
6/1/12 253,968
---------------------------------------------------------------------------------------
$ 792,998
---------------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 2.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Akron Economic Development, (MBIA),
6.00%, 12/1/12 $ 569,035
---------------------------------------------------------------------------------------
$ 569,035
---------------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 2.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland, (Cleveland Stadium), (AMBAC),
5.25%, 11/15/17 $ 509,145
---------------------------------------------------------------------------------------
$ 509,145
---------------------------------------------------------------------------------------
Insured-Transportation -- 2.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Cleveland Airport, (FSA), (AMT), 5.50%,
1/1/07 $ 536,260
---------------------------------------------------------------------------------------
$ 536,260
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 2.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Hamilton County Sewer System, (FGIC),
5.50%, 12/1/11 $ 546,575
---------------------------------------------------------------------------------------
$ 546,575
---------------------------------------------------------------------------------------
Nursing Home -- 3.6%
---------------------------------------------------------------------------------------
NR NR $ 600 Cuyahoga County HFA, (Benjamin Rose
Institute), 5.50%, 12/1/17 $ 597,870
NR NR 210 Fairfield EDA, (Beverly Enterprises),
8.50%, 1/1/03 223,558
---------------------------------------------------------------------------------------
$ 821,428
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Pooled Loans -- 0.9%
---------------------------------------------------------------------------------------
NR NR $ 200 Toledo Lucas County Port Authority
Development Revenue, (Northwest Ohio
Bond Fund), 5.10%, 5/15/12 $ 199,212
---------------------------------------------------------------------------------------
$ 199,212
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 1.9%
---------------------------------------------------------------------------------------
NR NR $ 200 Ohio Housing Finance Agency, Retirement
Rental Housing, (Encore Retirement
Partners), 6.75%, 3/1/19 $ 200,414
NR NR 250 Summit County Healthcare Facilities
Revenue, (Village at Saint Edward),
5.75%, 12/1/25 243,660
---------------------------------------------------------------------------------------
$ 444,074
---------------------------------------------------------------------------------------
Special Tax Revenue -- 1.6%
---------------------------------------------------------------------------------------
NR NR $ 353 Columbus Special Assessment, 6.05%,
9/15/05 $ 367,241
---------------------------------------------------------------------------------------
$ 367,241
---------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $21,838,423) $ 22,915,492
---------------------------------------------------------------------------------------
</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, 1999, 44.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 1.1% to a high of 19.5% of total
investments.
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Assisted Living -- 4.4%
---------------------------------------------------------------------------------------
NR NR $ 885 Chester County IDA, (Kimberton), 8.00%,
9/1/05 $ 956,322
NR NR 1,120 Delaware County IDA, (Glen Riddle),
(AMT), 8.125%, 9/1/05(1) 1,220,587
---------------------------------------------------------------------------------------
$ 2,176,909
---------------------------------------------------------------------------------------
Certificates of Participation -- 1.0%
---------------------------------------------------------------------------------------
NR NR $ 500 Cliff House Trust, (AMT), 6.625%, 6/1/27 $ 500,000
---------------------------------------------------------------------------------------
$ 500,000
---------------------------------------------------------------------------------------
Cogeneration -- 3.3%
---------------------------------------------------------------------------------------
NR BBB- $1,500 Pennsylvania EDA, (Resources
Recovery-Colver), (AMT), 7.05%,
12/1/10(1) $ 1,646,490
---------------------------------------------------------------------------------------
$ 1,646,490
---------------------------------------------------------------------------------------
Education -- 2.7%
---------------------------------------------------------------------------------------
Baa3 NR $ 740 Pennsylvania HEFA, (Delaware Valley
College of Science and Agriculture),
5.25%, 4/5/12 $ 734,124
NR BBB- 625 Pennsylvania HEFA, (Gwynedd-Mercy
College), 5.60%, 11/1/22 629,806
---------------------------------------------------------------------------------------
$ 1,363,930
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Harrisburg Authority, (FSA), Escrowed to
Maturity, 6.25%, 6/1/01 $ 527,940
Aaa AAA 1,500 Somerset County, General Authority,
(FGIC), Escrowed to Maturity, 6.50%,
10/15/01 1,606,230
NR NR 920 Virgin Islands Water and Power
Authority, Prerefunded to 7/1/01, 7.40%,
7/1/11 1,002,239
Aaa AAA 5,000 Westmoreland County, Municipal
Authority, (FGIC), Escrowed to Maturity,
0.00%, 8/15/19 1,795,850
---------------------------------------------------------------------------------------
$ 4,932,259
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
General Obligations -- 0.4%
---------------------------------------------------------------------------------------
Baa1 A $ 500 Puerto Rico, 0.00%, 7/1/16 $ 212,945
---------------------------------------------------------------------------------------
$ 212,945
---------------------------------------------------------------------------------------
Hospital -- 15.0%
---------------------------------------------------------------------------------------
NR BBB $1,000 Allentown, Area Hospital Authority,
(Sacred Heart Hospital), 6.50%, 11/15/08 $ 1,071,490
Baa3 BBB+ 650 Hazleton Health Services Authority, (St.
Joseph's Hospital), 5.85%, 7/1/06 690,417
A3 A 1,200 Lehigh County, General Purpose
Authority, (Muhlenberg Hospital), 5.75%,
7/15/10 1,315,500
NR BBB- 200 McKean County Hospital Authority,
(Bradford Hospital), 5.375%, 10/1/03 204,718
Caa1 B 1,000 Monroeville Hospital Authority, (Forbes
Health), 5.75%, 10/1/05 961,250
Baa2 NR 1,030 Montgomery County HEFA, (Montgomery
Hospital), 6.25%, 7/1/06 1,099,010
Baa1 NR 500 New Castle Area Hospital Authority, (St.
Francis Hospital of New Castle), 5.90%,
11/15/00 516,230
NR BBB 245 Northhampton County Hospital Authority,
(Easton Hospital), 6.90%, 1/1/02 254,342
NR A- 1,350 South Fork Municipal Authority, (Lee
Hospital), 5.50%, 7/1/11 1,364,445
---------------------------------------------------------------------------------------
$ 7,477,402
---------------------------------------------------------------------------------------
Housing -- 2.1%
---------------------------------------------------------------------------------------
Aa2 AA+ $1,000 Pennsylvania Housing Finance Agency,
Single Family, (AMT), 5.85%, 10/1/27 $ 1,046,380
---------------------------------------------------------------------------------------
$ 1,046,380
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 2.5%
---------------------------------------------------------------------------------------
A3 BBB+ $1,200 Erie IDA, (International Paper), (AMT),
5.85%, 12/1/20 $ 1,238,340
---------------------------------------------------------------------------------------
$ 1,238,340
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Education -- 6.2%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Allegheny County, Higher Education
Building Authority, (Dusquesne
University), (AMBAC), 5.00%, 3/1/16 $ 2,003,480
NR AAA 700 Montgomery County HEFA, (Saint Joseph's
University), (CLEE), 6.00%, 12/15/02 752,087
Aaa AAA 300 Pennsylvania Public School Building
Authority, (Community College), (MBIA),
5.25%, 10/15/13 312,888
---------------------------------------------------------------------------------------
$ 3,068,455
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 9.7%
---------------------------------------------------------------------------------------
Aaa AAA $2,000 Cambria County IDA, (Pennsylvania
Electric Co.), (MBIA), 5.35%, 11/1/10 $ 2,153,020
Aaa AAA 2,500 Indiana County IDA, (Pennsylvania
Electric Co.), (MBIA), 5.35%, 11/1/10 2,691,275
---------------------------------------------------------------------------------------
$ 4,844,295
---------------------------------------------------------------------------------------
Insured-General Obligations -- 6.3%
---------------------------------------------------------------------------------------
Aaa NR $1,635 Harrisburg, (AMBAC), 0.00%, 9/15/12 $ 850,135
Aaa AAA 1,355 McKeesport, (FGIC), 0.00%, 10/1/11 760,453
Aaa AAA 1,000 Pennsylvania, (AMBAC), 5.00%, 11/15/15 1,010,220
Aaa AAA 500 Pleasant Valley School District, (FGIC),
5.00%, 9/1/10 528,760
---------------------------------------------------------------------------------------
$ 3,149,568
---------------------------------------------------------------------------------------
Insured-Hospital -- 12.4%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Allegheny County Hospital Development
Authority, (South Hills Health), (MBIA),
5.50%, 5/1/08 $ 1,080,020
Aaa AAA 1,000 Erie County Hospital Authority, (Hamot
Health System), (AMBAC), 7.10%, 2/15/10 1,081,890
NR AAA 1,030 Indiana County Hospital Authority,
(Indiana Hospital), (CLEE), 5.75%,
7/1/00 1,059,252
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Hospital (continued)
---------------------------------------------------------------------------------------
NR AAA $ 825 Indiana County Hospital Authority,
(Indiana Hospital), (CLEE), 5.875%,
7/1/01 $ 863,437
Aaa AAA 2,050 Sayre Health Care Facilities Authority,
(Guthrie Medical Center), (AMBAC),
6.50%, 3/1/00 2,108,405
---------------------------------------------------------------------------------------
$ 6,193,004
---------------------------------------------------------------------------------------
Insured-Lease Revenue /
Certificates of Participation -- 2.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Northumberland County Authority, (MBIA),
6.50%, 10/15/01 $ 1,070,820
---------------------------------------------------------------------------------------
$ 1,070,820
---------------------------------------------------------------------------------------
Insured-Solid Waste -- 2.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Lancaster County, Solid Waste Management
Authority Resources Recovery System,
(AMBAC), 5.375%, 12/15/15 $ 1,035,090
---------------------------------------------------------------------------------------
$ 1,035,090
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.1%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Pennsylvania Intergovernmental
Cooperative Authority, (Philadelphia
Funding Program), (FGIC), 5.25%,
6/15/11(2) $ 1,047,830
---------------------------------------------------------------------------------------
$ 1,047,830
---------------------------------------------------------------------------------------
Insured-Transportation -- 7.7%
---------------------------------------------------------------------------------------
Aaa AAA $1,000 Allegheny County Airport Revenue,
(MBIA), 5.75%, 1/1/10 $ 1,089,940
Aaa AAA 590 Allegheny County Airport Revenue,
(MBIA), 5.75%, 1/1/12 643,826
Aaa AAA 1,000 Philadelphia Airport Revenue, (FGIC),
5.375%, 7/1/14 1,041,070
Aaa AAA 1,000 Southeastern Pennsylvania Transportation
Authority, (FGIC), 5.55%, 3/1/14 1,064,680
---------------------------------------------------------------------------------------
$ 3,839,516
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
RATINGS
(UNAUDITED)
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nursing Home -- 1.5%
---------------------------------------------------------------------------------------
NR NR $ 250 Chartiers Valley, Industrial and
Commercial Development Authority,
(Beverly Enterprises), 5.30%, 6/1/02 $ 253,930
NR NR 250 Chartiers Valley, Industrial and
Commercial Development Authority,
(Beverly Enterprises), 5.35%, 6/1/03 253,838
NR NR 250 Green County IDA, (Beverly Enterprises,
Inc.), 5.50%, 3/1/08 247,560
---------------------------------------------------------------------------------------
$ 755,328
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 2.8%
---------------------------------------------------------------------------------------
NR NR $ 245 Delaware County Authority, (White Horse
Village), 6.30%, 7/1/03 $ 259,457
NR NR 505 Delaware County Authority, (White Horse
Village), 6.40%, 7/1/04 540,946
Baa2 BBB+ 590 Hazleton Health Services Authority,
(Hazleton General Hospital), 5.50%,
7/1/07 615,936
---------------------------------------------------------------------------------------
$ 1,416,339
---------------------------------------------------------------------------------------
Solid Waste -- 3.7%
---------------------------------------------------------------------------------------
Baa2 A- $ 500 Greater Lebanon Refuse Authority, 6.20%,
5/15/99 $ 501,800
Baa2 A- 500 Greater Lebanon Refuse Authority, 6.20%,
11/15/99 509,075
Baa2 A- 300 Greater Lebanon Refuse Authority, 6.40%,
5/15/00 309,081
Baa2 A- 500 Greater Lebanon Refuse Authority, 6.40%,
11/15/00 520,720
---------------------------------------------------------------------------------------
$ 1,840,676
---------------------------------------------------------------------------------------
Transportation -- 2.1%
---------------------------------------------------------------------------------------
Aa3 AA- $1,000 Southeastern Pennsylvania Transportation
Authority, 6.00%, 6/1/01 $ 1,050,130
---------------------------------------------------------------------------------------
$ 1,050,130
---------------------------------------------------------------------------------------
Total Tax Exempt Investments -- 100.0%
(identified cost $47,736,936) $ 49,905,706
---------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Fedreral Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic development in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 56.5% of the securities in the portfolio of
investments are backed by bond issuance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from a low of 1.1% to a high of 18.1% of total
investments.
(1) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(2) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $ 27,931,688 $ 8,361,603 $ 56,582,960 $47,451,800 $ 9,640,542
Unrealized appreciation 1,451,997 495,952 2,729,429 2,393,141 775,990
- --------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 29,383,685 $ 8,857,555 $ 59,312,389 $49,844,941 $ 10,416,532
- --------------------------------------------------------------------------------------------------------------------
Cash $ 750 $ 117,488 $ 559 $ 1,014,263 $ 922
Interest receivable 406,394 123,403 1,163,596 687,100 211,306
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 29,790,829 $ 9,098,446 $ 60,476,544 $51,546,304 $ 10,628,760
- --------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities $ 883,572 $ -- $ 386,901 $ -- $ --
Demand note payable 227,000 -- 138,000 -- 13,000
Other accrued expenses 2,152 533 3,433 2,859 30
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,112,724 $ 533 $ 528,334 $ 2,859 $ 13,030
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 28,678,105 $ 9,097,913 $ 59,948,210 $51,543,445 $ 10,615,730
- --------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $ 27,226,108 $ 8,601,961 $ 57,218,781 $49,150,304 $ 9,839,740
Net unrealized appreciation (computed on
the basis of identified cost) 1,451,997 495,952 2,729,429 2,393,141 775,990
- --------------------------------------------------------------------------------------------------------------------
TOTAL $ 28,678,105 $ 9,097,913 $ 59,948,210 $51,543,445 $ 10,615,730
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------
Investments --
Identified cost $ 36,941,483 $ 62,315,489 $ 21,838,423 $ 47,736,936
Unrealized appreciation 2,483,449 3,426,771 1,077,069 2,168,770
- ----------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 39,424,932 $ 65,742,260 $ 22,915,492 $ 49,905,706
- ----------------------------------------------------------------------------------------------------
Cash $ 2 $ 269 $ 658 $ 1,163,007
Interest receivable 562,003 1,196,373 366,745 747,368
Receivable for daily variation margin on
financial futures contracts -- -- -- 7,177
- ----------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 39,986,937 $ 66,938,902 $ 23,282,895 $ 51,823,258
- ----------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ -- $ 200,652 $ --
Payable for when-issued securities -- 528,820 -- 1,050,005
Demand note payable 202,000 535,000 280,000 --
Other accrued expenses 4,246 2,329 1,390 2,561
- ----------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 206,246 $ 1,066,149 $ 482,042 $ 1,052,566
- ----------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 39,780,691 $ 65,872,753 $ 22,800,853 $ 50,770,692
- ----------------------------------------------------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $ 37,297,242 $ 62,445,982 $ 21,723,784 $ 48,601,922
Net unrealized appreciation (computed on
the basis of identified cost) 2,483,449 3,426,771 1,077,069 2,168,770
- ----------------------------------------------------------------------------------------------------
TOTAL $ 39,780,691 $ 65,872,753 $ 22,800,853 $ 50,770,692
- ----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------
Investment Income
- ----------------------------------------------------------------------------------------------------------------
Interest $ 1,679,122 $507,449 $ 3,463,508 $2,808,095 $ 609,481
- ----------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,679,122 $507,449 $ 3,463,508 $2,808,095 $ 609,481
- ----------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 145,652 $ 43,610 $ 301,844 $ 244,974 $ 51,653
Trustees fees and expenses 1,814 186 6,125 8,079 185
Legal and accounting services 19,363 17,262 22,562 22,463 17,362
Custodian fee 24,474 12,787 44,966 39,437 15,567
Bond pricing -- 4,546 -- -- --
Amortization of organization expenses 136 -- 378 354 --
Miscellaneous 7,316 480 11,530 7,341 6,029
- ----------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 198,755 $ 78,871 $ 387,405 $ 322,648 $ 90,796
- ----------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 4,392 $ 2,917 $ 12,287 $ 17,586 $ 3,575
Reduction of investment adviser fee -- 21,626 -- -- --
- ----------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 4,392 $ 24,543 $ 12,287 $ 17,586 $ 3,575
- ----------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 194,363 $ 54,328 $ 375,118 $ 305,062 $ 87,221
- ----------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,484,759 $453,121 $ 3,088,390 $2,503,033 $ 522,260
- ----------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 508,612 $ 49,350 $ 848,816 $ 732,983 $ 169,914
Financial futures contracts (130,540) (29,661) (208,377) (284,350) (53,859)
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 378,072 $ 19,689 $ 640,439 $ 448,633 $ 116,055
- ----------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (263,755) $ 13,577 $ (716,010) $ (473,609) $ (183,643)
Financial futures contracts (209) 3,630 11,838 15,948 2,436
- ----------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (263,964) $ 17,207 $ (704,172) $ (457,661) $ (181,207)
- ----------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 114,108 $ 36,896 $ (63,733) $ (9,028) $ (65,152)
- ----------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,598,867 $490,017 $ 3,024,657 $2,494,005 $ 457,108
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED LIMITED LIMITED LIMITED
PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------
Interest $ 2,292,343 $ 3,689,798 $ 1,291,008 $2,910,538
- -------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,292,343 $ 3,689,798 $ 1,291,008 $2,910,538
- -------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------
Investment adviser fee $ 196,075 $ 319,237 $ 109,528 $ 248,326
Trustees fees and expenses 2,292 8,079 229 8,080
Legal and accounting services 22,461 22,606 17,168 22,466
Custodian fee 28,180 32,874 20,899 36,372
Amortization of organization expenses 105 219 -- 240
Miscellaneous 14,628 23,713 8,898 15,678
- -------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 263,741 $ 406,728 $ 156,722 $ 331,162
- -------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 5,946 $ 10,902
- -------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 5,946 $ 10,902
- -------------------------------------------------------------------------------------------------
NET EXPENSES $ 263,741 $ 406,728 $ 150,776 $ 320,260
- -------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,028,602 $ 3,283,070 $ 1,140,232 $2,590,278
- -------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 302,337 $ 654,504 $ 126,261 $ 722,466
Financial futures contracts (135,039) (287,095) (100,635) (166,778)
- -------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 167,298 $ 367,409 $ 25,626 $ 555,688
- -------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (313,608) $ (30,963) $ (85,291) $ (771,207)
Financial futures contracts 10,457 17,434 3,457 (3,369)
- -------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (303,151) $ (13,529) $ (81,834) $ (774,576)
- -------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ (135,853) $ 353,880 $ (56,208) $ (218,888)
- -------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,892,749 $ 3,636,950 $ 1,084,024 $2,371,390
- -------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,484,759 $ 453,121 $ 3,088,390 $ 2,503,033 $ 522,260
Net realized gain 378,072 19,689 640,439 448,633 116,055
Net change in unrealized appreciation
(depreciation) (263,964) 17,207 (704,172) (457,661) (181,207)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,598,867 $ 490,017 $ 3,024,657 $ 2,494,005 $ 457,108
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,228,958 $ 1,959,442 $ 7,572,648 $ 10,696,524 $ 1,993,253
Withdrawals (11,447,139) (3,186,038) (22,890,275) (18,230,235) (3,931,845)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (7,218,181) $ (1,226,596) $ (15,317,627) $ (7,533,711) $ (1,938,592)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (5,619,314) $ (736,579) $ (12,292,970) $ (5,039,706) $ (1,481,484)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 34,297,419 $ 9,834,492 $ 72,241,180 $ 56,583,151 $ 12,097,214
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 28,678,105 $ 9,097,913 $ 59,948,210 $ 51,543,445 $ 10,615,730
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,028,602 $ 3,283,070 $ 1,140,232 $ 2,590,278
Net realized gain 167,298 367,409 25,626 555,688
Net change in unrealized appreciation
(depreciation) (303,151) (13,529) (81,834) (774,576)
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,892,749 $ 3,636,950 $ 1,084,024 $ 2,371,390
- ------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 6,467,196 $ 10,991,896 $ 4,003,683 $ 7,028,085
Withdrawals (14,119,117) (23,447,532) (6,502,512) (16,336,396)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (7,651,921) $ (12,455,636) $ (2,498,829) $ (9,308,311)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (5,759,172) $ (8,818,686) $ (1,414,805) $ (6,936,921)
- ------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------
At beginning of year $ 45,539,863 $ 74,691,439 $ 24,215,658 $ 57,707,613
- ------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 39,780,691 $ 65,872,753 $ 22,800,853 $ 50,770,692
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT FLORIDA MASSACHUSETTS MICHIGAN
LIMITED LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,871,830 $ 536,076 $ 4,031,956 $ 3,067,243 $ 661,189
Net realized gain (loss) 461,548 3,686 (130,866) (1,637) (127,469)
Net change in unrealized appreciation
(depreciation) 1,003,947 369,866 2,784,387 2,081,917 563,973
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,337,325 $ 909,628 $ 6,685,477 $ 5,147,523 $ 1,097,693
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 1,661,073 $ 1,135,100 $ 7,486,705 $ 4,381,569 $ 1,024,096
Withdrawals (13,895,420) (4,484,203) (34,840,194) (22,915,877) (5,021,007)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (12,234,347) $ (3,349,103) $ (27,353,489) $ (18,534,308) $ (3,996,911)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (8,897,022) $ (2,439,475) $ (20,668,012) $ (13,386,785) $ (2,899,218)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 43,194,441 $ 12,273,967 $ 92,909,192 $ 69,969,936 $ 14,996,432
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 34,297,419 $ 9,834,492 $ 72,241,180 $ 56,583,151 $ 12,097,214
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW JERSEY NEW YORK OHIO PENNSYLVANIA
LIMITED LIMITED LIMITED LIMITED
Increase (Decrease) in Net Assets PORTFOLIO PORTFOLIO PORTFOLIO PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,529,742 $ 4,189,775 $ 1,365,120 $ 3,105,101
Net realized gain (loss) (191,388) 1,126,492 148,476 430,385
Net change in unrealized appreciation
(depreciation) 1,679,398 2,952,942 773,615 2,258,821
- ------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,017,752 $ 8,269,209 $ 2,287,211 $ 5,794,307
- ------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,886,225 $ 3,255,202 $ 1,303,141 $ 2,758,619
Withdrawals (19,630,053) (36,846,720) (7,844,546) (18,720,920)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (16,743,828) $ (33,591,518) $ (6,541,405) $ (15,962,301)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (12,726,076) $ (25,322,309) $ (4,254,194) $ (10,167,994)
- ------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------
At beginning of year $ 58,265,939 $ 100,013,748 $ 28,469,852 $ 67,875,607
- ------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 45,539,863 $ 74,691,439 $ 24,215,658 $ 57,707,613
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.62% 0.61% 0.63% 0.58% 0.53%
Expenses after custodian fee reduction 0.61% 0.59% 0.61% 0.55% --
Net investment income 4.67% 4.86% 4.98% 4.82% 4.72%
Portfolio Turnover 29% 40% 57% 36% 56%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $28,678 $34,297 $43,194 $59,216 $82,344
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.60% 0.54% 0.54% 0.39% 0.17%
Net expenses after custodian fee
reduction 0.57% 0.52% 0.50% 0.35% --
Net investment income 4.79% 4.96% 5.09% 4.91% 4.95%
Portfolio Turnover 5% 23% 46% 52% 73%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $9,098 $9,834 $12,274 $14,862 $17,316
- ------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such actions not been taken, the ratios would have been as
follows:
Expenses(1) 0.83% 0.77% 0.78% 0.72% 0.67%
Expenses after custodian fee reduction 0.80% 0.75% 0.74% 0.68% --
Net investment income 4.56% 4.73% 4.85% 4.58% 4.45%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratios for the year ended March 31, 1995 have not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.59% 0.58% 0.59% 0.55% 0.52%
Expenses after custodian fee reduction 0.57% 0.55% 0.57% 0.54% --
Net investment income 4.68% 4.90% 4.90% 4.73% 4.73%
Portfolio Turnover 16% 38% 66% 20% 44%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $59,948 $72,241 $92,909 $127,835 $164,579
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.60% 0.60% 0.60% 0.57% 0.54%
Expenses after custodian fee reduction 0.57% 0.56% 0.58% 0.55% --
Net investment income 4.67% 4.90% 4.97% 4.72% 4.90%
Portfolio Turnover 19% 46% 60% 27% 46%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $51,543 $56,583 $69,970 $97,135 $119,120
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.82% 0.71% 0.79% 0.68% 0.48%
Net expenses after custodian fee
reduction 0.79% 0.67% 0.76% 0.64% --
Net investment income 4.72% 5.00% 5.09% 5.00% 4.88%
Portfolio Turnover 16% 21% 28% 40% 111%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $10,616 $12,097 $14,996 $21,191 $33,198
- ------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolios may reflect a reduction of the investment adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such actions not been taken, the ratios would have been as
follows:
Expenses(1) 0.59%
Net investment income 4.77%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratios for the year ended March 31, 1995 have not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.62% 0.62% 0.61% 0.57% 0.54%
Expenses after custodian fee reduction 0.62% 0.61% 0.58% 0.55% --
Net investment income 4.78% 4.91% 4.96% 4.78% 4.73%
Portfolio Turnover 13% 21% 37% 42% 44%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $39,781 $45,540 $58,266 $80,173 $97,280
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.59% 0.61% 0.58% 0.55% 0.52%
Expenses after custodian fee reduction 0.59% 0.59% 0.56% 0.53% --
Net investment income 4.74% 4.81% 4.87% 4.66% 4.79%
Portfolio Turnover 17% 53% 58% 32% 31%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $65,873 $74,691 $100,014 $138,728 $173,632
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.67% 0.64% 0.68% 0.63% 0.46%
Net expenses after custodian fee
reduction 0.64% 0.64% 0.65% 0.61% --
Net investment income 4.85% 5.05% 5.20% 5.06% 4.96%
Portfolio Turnover 19% 29% 34% 47% 120%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $22,801 $24,216 $28,470 $33,529 $39,435
- ------------------------------------------------------------------------------------------------------------------
+ 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%
Net investment income 4.84%
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA LIMITED PORTFOLIO
------------------------------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.62% 0.60% 0.61% 0.58% 0.53%
Expenses after custodian fee reduction 0.60% 0.58% 0.59% 0.56% --
Net investment income 4.83% 5.03% 5.11% 4.81% 4.77%
Portfolio Turnover 16% 36% 51% 24% 39%
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $50,771 $57,708 $67,876 $92,194 $113,606
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended March 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended March 31, 1995 has not been adjusted
to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
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), Massachusetts Limited Maturity Municipals Portfolio
(Massachusetts Limited Portfolio), Michigan Limited Maturity Municipals
Portfolio (Michigan Limited Portfolio), New Jersey Limited Maturity
Municipals Portfolio (New Jersey Limited Portfolio), New York Limited
Maturity Municipals Portfolio (New York Limited Portfolio), Ohio Limited
Maturity Municipals Portfolio (Ohio Limited Portfolio) and Pennsylvania
Limited Maturity Municipals Portfolio (Pennsylvania Limited Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940 as non-diversified open-end management investment companies which
were organized as trusts under the laws of the State of New York on May 1,
1992. The Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit.
Interest income received by the Portfolios on investments in municipal bonds,
which is excludable from gross income under the Internal Revenue Code, will
retain its status as income exempt from federal income tax when allocated to
each Portfolio's investors. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986, may be considered a tax
preference item for investors.
D Deferred Organization Expenses -- Costs incurred by a Portfolio in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years, beginning on the date each Portfolio
commenced operations.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reflected as a
reduction of operating expense on the Statement of Operations.
79
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
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, 1999, each Portfolio paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
- ---------------------------------------------------------------------
California Limited $ 145,652 0.46%
Connecticut Limited $ 43,610 0.46%
Florida Limited $ 301,844 0.46%
Massachusetts Limited $ 244,974 0.46%
Michigan Limited $ 51,653 0.47%
New Jersey Limited $ 196,075 0.46%
New York Limited $ 319,237 0.46%
Ohio Limited $ 109,528 0.47%
Pennsylvania Limited $ 248,326 0.46%
</TABLE>
* As a percentage of average daily net assets.
To enhance the net income of the Connecticut Limited Portfolio, BMR made a
reduction of its fee in the amount of $21,626.
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, 1999, no significant amounts have been deferred.
Certain of the officers and one Trustee 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, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA LIMITED PORTFOLIO CONNECTICUT LIMITED PORTFOLIO
<S> <C> <C>
- ----------------------------------------------------------------------------------------
Purchases $ 9,214,224 $ 464,365
Sales 13,658,473 1,303,628
<CAPTION>
FLORIDA LIMITED PORTFOLIO MASSACHUSETTS LIMITED PORTFOLIO
<S> <C> <C>
- ----------------------------------------------------------------------------------------
Purchases $ 10,356,183 $ 10,233,856
Sales 22,776,891 16,444,858
<CAPTION>
MICHIGAN LIMITED PORTFOLIO NEW JERSEY LIMITED PORTFOLIO
<S> <C> <C>
- ----------------------------------------------------------------------------------------
Purchases $ 1,766,466 $ 5,272,918
Sales 3,497,701 10,750,504
<CAPTION>
NEW YORK LIMITED PORTFOLIO OHIO LIMITED PORTFOLIO
<S> <C> <C>
- ----------------------------------------------------------------------------------------
Purchases $ 12,014,567 $ 4,313,016
Sales 21,758,268 4,816,807
<CAPTION>
PENNSYLVANIA LIMITED PORTFOLIO
<S> <C> <C>
- -----------------------------------------------------
Purchases $ 8,691,342
Sales 15,149,837
</TABLE>
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, 1999, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
CALIFORNIA CONNECTICUT
LIMITED PORTFOLIO LIMITED PORTFOLIO
<S> <C> <C>
- -----------------------------------------------------------------------
AGGREGATE COST $ 27,931,688 $ 8,361,603
- -----------------------------------------------------------------------
Gross unrealized appreciation $ 1,464,257 $ 496,289
Gross unrealized depreciation (12,260) (337)
- -----------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,451,997 $ 495,952
- -----------------------------------------------------------------------
</TABLE>
80
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
FLORIDA MASSACHUSETTS
LIMITED PORTFOLIO LIMITED PORTFOLIO
- -----------------------------------------------------------------------
<S> <C> <C>
AGGREGATE COST $ 56,582,960 $ 47,451,800
- -----------------------------------------------------------------------
Gross unrealized appreciation $ 2,753,436 $ 2,441,970
Gross unrealized depreciation (24,007) (48,829)
- -----------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,729,429 $ 2,393,141
- -----------------------------------------------------------------------
<CAPTION>
MICHIGAN NEW JERSEY
LIMITED PORTFOLIO LIMITED PORTFOLIO
<S> <C> <C>
- -----------------------------------------------------------------------
AGGREGATE COST $ 9,640,542 $ 36,941,483
- -----------------------------------------------------------------------
Gross unrealized appreciation $ 796,029 $ 2,518,767
Gross unrealized depreciation (20,039) (35,318)
- -----------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 775,990 $ 2,483,449
- -----------------------------------------------------------------------
<CAPTION>
NEW YORK OHIO
LIMITED PORTFOLIO LIMITED PORTFOLIO
<S> <C> <C>
- -----------------------------------------------------------------------
AGGREGATE COST $ 62,315,489 $ 21,838,423
- -----------------------------------------------------------------------
Gross unrealized appreciation $ 3,440,520 $ 1,086,496
Gross unrealized depreciation (13,749) (9,427)
- -----------------------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,426,771 $ 1,077,069
- -----------------------------------------------------------------------
<CAPTION>
PENNSYLVANIA
LIMITED PORTFOLIO
<S> <C> <C>
- --------------------------------------------------
AGGREGATE COST $ 47,736,936
- --------------------------------------------------
Gross unrealized appreciation $ 2,231,709
Gross unrealized depreciation (62,939)
- --------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,168,770
- --------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million unsecured line of credit agreement
with a group of banks. The Portfolios may temporarily borrow from the line of
credit to satisfy redemption requests or settle investment transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above either the Eurodollar rate or federal funds effective rate. In
addition, a fee computed at an annual rate of 0.10% on the daily unused
portion of the line of credit is allocated among the participating portfolios
and funds at the end of each quarter. At March 31, 1999, the California
Limited Portfolio, Florida Limited Portfolio, Michigan Limited Portfolio, New
Jersey Limited Portfolio, New York Limited Portfolio and Ohio Limited
Portfolio, had balances outstanding pursuant to this line of credit of
$227,000, $138,000, $13,000, $202,000, $535,000, and $280,000, respectively.
The Portfolios did not have any significant borrowings or allocated fees
during the year ended March 31, 1999.
6 Financial Instruments
- -------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
At March 31, 1999 there were no outstanding obligations under these financial
instruments.
81
<PAGE>
LIMITED MATURITY MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF
CALIFORNIA LIMITED MATURITY MUNICIPALS PORTFOLIO
CONNECTICUT LIMITED MATURITY MUNICIPALS PORTFOLIO
FLORIDA LIMITED MATURITY MUNICIPALS PORTFOLIO
MASSACHUSETTS 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
PENNSYLVANIA LIMITED MATURITY MUNICIPALS PORTFOLIO:
- --------------------------------------------------
We have audited the accompanying statements of assets and liabilities of
California Limited Maturity Municipals Portfolio, Connecticut Limited Maturity
Municipals Portfolio, Florida Limited Maturity Municipals Portfolio,
Massachusetts 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, and Pennsylvania Limited Maturity Municipals Portfolio, (the
Portfolios) as of March 31, 1999, the related statements of operations for the
year then ended, and the statements of changes in net assets for the years ended
March 31, 1999, and 1998 and the supplementary data for each of the years in the
five year period ended March 31, 1999. These financial statements and
supplementary data are the responsibility of each Portfolio'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, 1999 by correspondence with the custodian and brokers; where replies were
not received from brokers, we performed other auditing 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 aforementioned Portfolios,
as of March 31, 1999, 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
April 30, 1999
82
<PAGE>
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS AS OF MARCH 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
LIMITED MATURITY MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
William H. Ahern, Jr.
Vice President and Portfolio Manager of
Connecticut, Massachusetts, Michigan,
New Jersey, New York and Ohio Limited
Maturity Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio Manager of
California and Florida Limited Maturity
Municipals Portfolios
Timothy T. Browse
Vice President and Portfolio Manager of
Pennsylvania Limited Maturity Municipals Portfolio
James L. OConnor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School
of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
83
<PAGE>
INVESTMENT ADVISER OF THE LIMITED MATURITY MUNICIPALS PORTFOLIOS
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(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
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution
plan, sales charges and expenses. Please read the prospectus carefully before
you invest or send money.
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2-2140-5/99 9LTFSRC-5/99
