<PAGE>
[LOGO] MUTUAL FUND [PHOTO]
FOR PEOPLE
WHO PAY EDUCATION
TAXES
Semiannual Report September 30, 1999
[PHOTO] EATON VANCE
NATIONAL
LIMITED MATURITY
MUNICIPALS
FUND
Global Management-Global Distribution
[PHOTO]
<PAGE>
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manger
Investment Environment
- -------------------------------------------------------------------------------
The Economy
- - The U.S. economy grew 4.6% in the first quarter, and posted a more moderate
2.3% growth rate in the second quarter. However, while inflation appeared to
remain in check, rising energy prices and labor cost pressures caught the eye
of the Federal Reserve. In late June, the Fed raised its Federal funds rate -
a key short-term interest rate barometer - by 25 basis points (.25%), and
repeated the move in August.
- - Municipal bonds gained ground on Treasuries in the first quarter, as supply
pressures, which weighed so heavily on the municipal market in 1998, eased
somewhat. By early Fall, however, the municipal market was being adversely
affected by the uncertainty regarding possible Federal Reserve actions, as
well as confusion over tax proposals pending in Congress.
Management Discussion
- - Muni yields were dramatically higher in the first half of 1999, so management
focused on identifying bonds or specific lots of bonds that could be sold at a
loss and using the proceeds to purchase more desirable bonds. This strategy
allowed management to realize a capital loss the Fund can use to offset future
gains, thereby lowering potential tax liability.
- - With credit quality spreads remaining narrow in the first half of 1999,
management took the opportunity to look for ways to increase the Portfolio's
overall credit quality. Emphasis on call protection has remained an important
component of management's strategy. Management continually strives to improve
the call characteristics of issues in the Portfolio.
The Fund
- -------------------------------------------------------------------------------
The Past Six Months
- - During the six months ended September 30, 1999, the Fund's Class A shares had
a total return of -1.61%.(1) This return was the result of a decline in net
asset value (NAV) to $10.06 on September 30, 1999 from $10.49 on March 31,
1999, and the reinvestment of $0.262 in tax-free dividend income.(2)
- - The Fund's Class B shares had a total return of -1.99%(1) during the period,
the result of a decrease in NAV to $10.06 from $10.49, and the reinvestment
of $0.223 per share in dividend income.(2)
- - The Fund's Class C shares had a total return of -2.10%(1) during the period,
the result of a decrease in NAV to $9.41 from $9.82, and the reinvestment of
$0.205 per share in dividend income.(2)
- - Based on the Fund's most recent distributions and NAVs on September 30, 1999,
the distribution rates were 5.20% for Class A, 4.41% for Class B, and 4.35%
for Class C.(3)
- - The SEC 30-day yields for Class A, B, and C shares at September 30 were 4.79%,
4.15%, and 4.05%, respectively.(4)
(1)These returns do not include the 2.25% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred salescharges (CDSC) for
Class B and Class C shares. (2)A portion of the Fund's income could be
subject to federal income tax and/or alternative minimum tax; income may be
subject to state income tax. (3)The Fund's distribution rate represents
actual distributions paid to shareholders and is calculated by dividing the
last distribution per share (annualized)by the net asset value. (4)The
Fund's SEC yield is calculated by dividing the net investment income per
share for the 30-day period by the offering price at the end of the period
and annualizing the result. (5)Returns are historical and are calculated by
determining the percentage change in net asset value with all distributions
reinvested. SEC returns for Class A reflect the maximum 2.25% sales charge.
SEC returns for Class B reflect applicable CDSC based on the following
schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th year. SEC
1-Year return for Class C reflects 1% CDSC. (6)Five largest sector holdings
and portfolio overview are subject to change due to active management.
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.
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
Fund Information
as of September 30, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B Class C
Average Annual Total Returns (at net asset value)
- -------------------------------------------------
<S> <C> <C> <C>
One Year -0.75% -1.52% -1.64%
Five Years N.A. 4.29 4.03
Life of Fund+ 4.92 4.59 3.09
</TABLE>
<TABLE>
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------
<S> <C> <C> <C>
One Year -3.02% -4.36% -2.58%
Five Years N.A. 4.29 4.03
Life of Fund+ 4.59 4.59 3.09
</TABLE>
+Inception date: Class A: 6/27/96; Class B: 5/22/92; Class C:12/08/93 2
[BAR CHART]
Five Largest Sectors(6) By total net assets
- -------------------------------------------
Escrowed/Prerefunded 20.5%
Industrial Development Revenue 13.9%
General Obligation 9.3%
Cogeneration 8.8%
Housing 6.8%
<TABLE>
<CAPTION>
Portfolio Overview(6) By total net assets
- -------------------------------------------
<S> <C>
Number of Issues 86
Duration 5.8 years
Effective Maturity 7.9 years
Average Rating BBB
Average Call 7.3 Years
Average Dollar Price $105.25
</TABLE>
2
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF SEPTEMBER 30, 1999
<S> <C>
Assets
- -----------------------------------------------------
Investment in National Limited Maturity
Municipals Portfolio, at value
(identified cost, $82,490,716) $83,063,866
Receivable for Fund shares sold 109,233
- -----------------------------------------------------
TOTAL ASSETS $83,173,099
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Dividends payable $ 156,914
Payable for Fund shares redeemed 129,345
Accrued expenses 50,719
- -----------------------------------------------------
TOTAL LIABILITIES $ 336,978
- -----------------------------------------------------
NET ASSETS $82,836,121
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Paid-in capital $85,883,239
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (3,816,836)
Accumulated undistributed net investment
income 196,568
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 573,150
- -----------------------------------------------------
TOTAL $82,836,121
- -----------------------------------------------------
Class A Shares
- -----------------------------------------------------
NET ASSETS $67,023,785
SHARES OUTSTANDING 6,663,885
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.06
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 97.75 of $10.06) $ 10.29
- -----------------------------------------------------
Class B Shares
- -----------------------------------------------------
NET ASSETS $ 5,088,916
SHARES OUTSTANDING 505,974
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.06
- -----------------------------------------------------
Class C Shares
- -----------------------------------------------------
NET ASSETS $10,723,420
SHARES OUTSTANDING 1,139,399
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.41
- -----------------------------------------------------
</TABLE>
On sales of $100,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 1999
<S> <C>
Investment Income
- -----------------------------------------------------
Interest allocated from Portfolio $ 2,594,402
Expenses allocated from Portfolio (257,786)
- -----------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 2,336,616
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Trustees fees and expenses $ 1,241
Distribution and service fees
Class A 35,458
Class B 24,580
Class C 53,770
Transfer and dividend disbursing agent
fees 28,871
Registration fees 10,476
Printing and postage 9,724
Custodian fee 8,259
Legal and accounting services 1,687
Miscellaneous 3,641
- -----------------------------------------------------
TOTAL EXPENSES $ 177,707
- -----------------------------------------------------
NET INVESTMENT INCOME $ 2,158,909
- -----------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 119,472
Financial futures contracts 118,102
- -----------------------------------------------------
NET REALIZED GAIN $ 237,574
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,873,815)
- -----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(3,873,815)
- -----------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,636,241)
- -----------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,477,332)
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) MARCH 31, 1999
<S> <C> <C>
- ----------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,158,909 $ 4,357,641
Net realized gain 237,574 372,695
Net change in unrealized
appreciation (depreciation) (3,873,815) (1,182,416)
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $(1,477,332) $ 3,547,920
- ----------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $(1,788,558) $ (3,615,580)
Class B (117,734) (307,519)
Class C (228,911) (398,999)
In excess of net investment income
Class C (400) (6,536)
- ----------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(2,135,603) $ (4,328,634)
- ----------------------------------------------------------------------------------------
Transactions in shares of beneficial interest
Proceeds from sale of shares
Class A $ 1,625,224 $ 7,371,984
Class B 989,071 2,345,291
Class C 2,000,039 9,829,014
Issued in reorganization of EV Traditional and
Classic National Limited Maturity Municipals
Funds
Class A -- 12,949,960
Class C -- 7,722,266
Net asset value of shares issued to
shareholders in payment of distributions
declared
Class A 678,151 1,179,583
Class B 63,712 187,434
Class C 168,916 293,045
Cost of shares redeemed
Class A (5,399,979) (13,891,191)
Class B (1,181,249) (2,497,374)
Class C (2,185,884) (6,547,691)
Net asset value of shares exchanged
Class A 377,768 6,070,355
Class B (377,768) (6,070,355)
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(3,241,999) $ 18,942,321
- ----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $(6,854,934) $ 18,161,607
- ----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
NET ASSETS (UNAUDITED) MARCH 31, 1999
<S> <C> <C>
- ----------------------------------------------------------------------------------------
At beginning of period $89,691,055 $ 71,529,448
- ----------------------------------------------------------------------------------------
AT END OF PERIOD $82,836,121 $ 89,691,055
- ----------------------------------------------------------------------------------------
Accumulated undistributed
net investment income
included in net assets
- ----------------------------------------------------------------------------------------
AT END OF PERIOD $ 196,568 $ 173,262
- ----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1999 ----------------------------
(UNAUDITED) 1999 1998 1997(1)
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Net asset value -- Beginning of period $10.490 $10.580 $10.070 $10.030
- --------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------
Net investment income $ 0.267 $ 0.519 $ 0.527 $ 0.393
Net realized and unrealized gain (loss) (0.435) (0.090) 0.488 0.033(2)
- --------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.168) $ 0.429 $ 1.015 $ 0.426
- --------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------
From net investment income $(0.262) $(0.519) $(0.505) $(0.386)
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.262) $(0.519) $(0.505) $(0.386)
- --------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $10.060 $10.490 $10.580 $10.070
- --------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (1.61)% 3.89% 10.50% 4.06%
- --------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $67,024 $73,048 $59,992 $37,072
Ratios (As a percentage of average daily net
assets):
Expenses(4) 0.87%(5) 0.98% 0.99% 0.99%(5)
Expenses after custodian fee reduction(4) 0.85%(5) 0.97% 0.98% 0.97%(5)
Net investment income 5.16%(5) 4.96% 5.16% 5.14%(5)
Portfolio Turnover of the Portfolio 7% 26% 41% 68%
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, June 27, 1996, to March 31,
1997.
(2) 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.
(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 the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
----------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1999 --------------------------------------------------
(UNAUDITED) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.490 $10.580 $10.070 $10.170 $ 10.130 $ 10.160
- ------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------
Net investment income $ 0.223 $ 0.412 $ 0.454 $ 0.428 $ 0.413 $ 0.400
Net realized and unrealized
gain (loss) (0.430) (0.066) 0.488 (0.098) 0.040 0.033
- ------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.207) $ 0.346 $ 0.942 $ 0.330 $ 0.453 $ 0.433
- ------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------
From net investment income $(0.223) $(0.436) $(0.432) $(0.430) $ (0.413) $ (0.400)
In excess of net investment
income -- -- -- -- -- (0.058)
From net realized gain -- -- -- -- -- (0.005)
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.223) $(0.436) $(0.432) $(0.430) $ (0.413) $ (0.463)
- ------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.060 $10.490 $10.580 $10.070 $ 10.170 $ 10.130
- ------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (1.99)% 3.29% 9.52% 3.30% 4.51% 4.43%
- ------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 5,089 $ 5,450 $11,538 $48,692 $112,027 $141,289
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.66%(5) 1.73% 1.73% 1.69% 1.64% 1.57%
Expenses after custodian
fee reduction(3) 1.64%(5) 1.72% 1.72% 1.67% 1.63% --
Net investment income 4.35%(5) 4.23% 4.42% 4.37% 4.04% 3.99%
Portfolio Turnover of the
Portfolio 7% 26% 41% 68% 68% 56%
- ------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) 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.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1999 -----------------------
(UNAUDITED) 1999
<S> <C> <C>
- ---------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.820 $ 9.920
- ---------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------
Net investment income $ 0.205 $ 0.407
Net realized and unrealized
loss (0.410) (0.089)
- ---------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.205) $ 0.318
- ---------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------
From net investment income $(0.205) $(0.411)
In excess of net investment
income --(1) (0.007)
- ---------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.205) $(0.418)
- ---------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.410 $ 9.820
- ---------------------------------------------------------------------------
TOTAL RETURN(2) (2.10)% 3.24%
- ---------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $10,723 $11,193
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.77%(4) 1.81%
Expenses after custodian
fee reduction(3) 1.75%(4) 1.80%
Net investment income 4.26%(4) 4.10%
Portfolio Turnover of the
Portfolio 7% 26%
- ---------------------------------------------------------------------------
</TABLE>
(1) Distributions in excess of net investment income are less than $0.001 per
share.
(2) 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.
(3) Includes the Fund's share of the Portfolio's allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance National Limited Maturity Municipals Fund (the Fund) is a
diversified series of Eaton Vance Investment Trust (the Trust). The Trust is
an entity of the type commonly known as a Massachusetts business trust and is
registered under the Investment Company Act of 1940, as amended, as an
open-end management investment company. The Fund offers three classes of
shares: Class A (formerly Class II), Class B (formerly Class I) and Class C
shares. Class A shares are generally sold subject to a sales charge imposed
at 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. Each class represents a pro rata
interest in the Fund, but votes separately on class-specific matters and (as
noted below) is subject to different expenses. Realized and unrealized gains
or 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. The Fund invests
all of its investable assets in interests in the National Limited Maturity
Municipals Portfolio (the Portfolio), a New York trust, having the same
investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (99.99% at September 30, 1999). The performance of the Fund is
directly affected by the performance of the Portfolio. The financial
statements of the Portfolio, including the portfolio of investments, are
included elsewhere in this report and should be read in conjunction with the
Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 1999, the Fund, for federal income tax purposes, had a capital
loss carryover of $4,054,411 which will reduce the taxable income arising
from future net realized gain on investments, if any, to the extent permitted
by the Internal Revenue Code and thus will reduce the amount of distributions
to shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal income tax. Such capital loss carryover will expire on
March 31, 2003 ($1,528,831), March 31, 2004 ($1,214,155), March 31, 2005
($990,979), and March 31, 2006 ($320,446). Dividends paid by the Fund from
net interest on tax-exempt municipal bonds allocated from the Portfolio are
not includable by shareholders as gross income for federal income tax
purposes because the Fund and Portfolio intend to meet certain requirements
of the Internal Revenue Code applicable to regulated Investment companies
which will enable the Fund to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item to shareholders.
D Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintains with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of operating expenses on the Statement of
Operations.
8
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
F Other -- Investment transactions are accounted for on a trade-date basis.
G Interim Financial Statements -- The interim financial statements relating to
September 30, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
The net income of the Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Dividends are declared separately for each class
of shares. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest income and capital gain distributions in additional shares of the
same class of the Fund at the net asset value as of the reinvestment date.
Distributions are paid in the form of additional shares of the same class or,
at the election of the shareholder, in cash. The Fund distinguishes between
distributions on a tax basis and a financial reporting basis. Generally
accepted accounting principles require that only distributions in excess of
tax basis earnings and profits be reported in the financial statements as a
return of capital. Differences in the recognition or classification of income
between the financial statements and tax earnings and profits which result in
over distributions for financial statement purposes only are classified as
distributions in excess of net investment income or accumulated net realized
gains. Permanent differences between book and tax accounting relating to
distributions are reclassified to paid-in capital. The tax treatment of
distributions for the calendar year will be reported to shareholders prior to
February 1, 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 Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Fund and) classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
CLASS A (UNAUDITED) MARCH 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 121,030 698,813
Issued to shareholders electing to
receive payment of distribution in Fund
shares 65,848 111,504
Redemptions (523,861) (1,312,375)
Exchange to Class A shares 36,777 573,363
Issued to EV Tradtional National Limited
Maturity Municipals Fund Shareholders -- 1,224,418
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (300,206) 1,295,723
----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
CLASS B (UNAUDITED) MARCH 31, 1999
----------------------------------------------------------------------------
<S> <C> <C>
Sales 95,239 221,173
Issued to shareholders electing to
receive payment of distribution in Fund
shares 6,180 17,715
Redemptions (78,305) (236,471)
Exchange to Class A shares (36,756) (573,363)
----------------------------------------------------------------------------
NET DECREASE (13,642) (570,946)
----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
CLASS C (UNAUDITED) MARCH 31, 1999
----------------------------------------------------------------------------
<S> <C> <C>
Sales 207,108 993,040
Issued to shareholders electing to
receive payment of distribution in Fund
shares 17,510 29,613
Redemptions (225,420) (661,276)
Issued to EV Classic National Limited
Maturity Municipals Fund Shareholders -- 778,824
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (802) 1,140,201
----------------------------------------------------------------------------
</TABLE>
9
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report. Certain officers and Trustees of the Fund
and of the Portfolio are officers of the above organizations. The Fund was
informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and
the Fund's principal underwriter, received $4,324 from the Fund as its
portion of the sales charge on sales of Class A shares for the six months
ended September 30, 1999.
Except as to Trustees of the Fund and the Portfolio who are not members of
EVM's organization, officers and Trustees receive remuneration for their
services to the Fund out of such investment adviser fee.
5 Distribution and Service Plans
- -------------------------------------------
The Fund has adopted distribution plans pursuant to Rule 12b-1 under the
Investment Company Act of 1940 ("Class B Plan" and "Class C Plan") and a
service plan for Class A ("Class A Plan") (collectively, "the Plans"). The
Class B and Class C Plans require the Fund to pay EVD amounts equal to 1/365
of 0.75% of the Fund's daily net assets attributable to Class B and Class C
shares for providing ongoing distribution services and facilities to the
Fund. The Fund will automatically discontinue payments to EVD during any
period in which there are no outstanding Uncovered Distribution Charges,
which are equivalent to the sum of (i) 3% of the aggregate amount received by
the Fund for Class B shares sold, plus (ii) interest calculated by applying
the rate of 1% over the prevailing prime rate to the outstanding balance of
Uncovered Distribution Charges of EVD of each respective class, reduced by
the aggregate amount of contingent deferred sales charges (see Note 6) and
amounts theretofore paid to or payable to EVD. The amount payable to EVD with
respect to each day is accrued on such day as a liability of the Fund and,
accordingly, reduces the Fund's net assets. For the six months ended
September 30, 1999, the Fund paid or accrued $20,483 and $40,328 for Class B
and Class C shares, respectively, to EVD, representing 0.75% (annualized) of
the average daily net assets for Class B and Class C shares. At September 30,
1999, the amount of Uncovered Distribution Charges of EVD calculated under
the Plan was approximately $373,000 and $4,713,000 for Class B and Class C
shares, respectively.
The Plans authorize each class to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets for each fiscal year. The Trustees have
initially implemented the Plans by authorizing the Fund to make quarterly
service fee payments to EVD and investment dealers in amounts not expected to
exceed 0.15% per annum of the Fund's average daily net assets attributable to
Class A and Class B shares based on the value of Fund shares sold by such
persons and remaining outstanding for at least one year. On October 4, 1999,
the Trustees approved service fee payments of 0.15% per annum of the Fund's
average daily net assets attributable to Class A and Class B shares for any
fiscal year on shares of the Trust sold on or after October 12, 1999. The
Class C Plan requires the Fund to make monthly payments of service fees in
amounts not expected to exceed 0.25% of the Fund's average daily net assets
attributable to Class C shares for any fiscal year. Service fee payments for
the six months ended September 30, 1999 amounted to $35,458, $4,097, and
$13,442 for Class A, Class B, and Class C shares, respectively. Service fee
payments are made for personal services and/or the maintenance of shareholder
accounts. Service fees are separate and distinct from the sales commissions
and distribution fees payable by the Fund to EVD, and, as such are not
subject to automatic discontinuance when there are no outstanding Uncovered
Distribution Charges of EVD.
Certain officers and Trustees of the Fund are officers or directors of EVD.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within four years of purchase and on redemptions of
Class C shares made within one year of purchase. Generally, the CDSC is based
upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on 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 and may be waived under certain other limited
conditions. CDSC charges are paid to EVD to reduce the amount of Uncovered
Distribution Charges calculated under the Fund's Distribution Plan (see Note
5). CDSC charges received when no Uncovered Distribution Charges exist will
be credited to the Fund.
10
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
EVD received approximately $5,000 and $3,000 of CDSC paid by shareholders for
Class B and Class C shares, respectively, for the six months ended September
30, 1999.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended September 30, 1999, aggregated $4,641,270 and $10,235,975,
respectively.
8 Transfer of Net Assets
- -------------------------------------------
On April 1, 1998, the existing Class I and Class II shares of EV Marathon
National Limited Maturity Municipals Fund were designated Class B and Class A
shares, respectively. In addition, the Fund acquired the net assets of the EV
Traditional National Limited Maturity Municipals Fund and EV Classic National
Limited Maturity Municipals Fund pursuant to an Agreement and Plan of
Reorganization dated June 23, 1997. In accordance with the agreement, EV
Marathon National Limited Maturity Municipals Fund, at the closing, issued
1,224,418 Class A shares and 778,824 Class C shares of the Fund having an
aggregate value of $12,949,960 and $7,722,266, respectively. As a result, the
Fund issued 0.965 shares of Class A and one share of Class C for each share
of EV Traditional National Limited Maturity Municipals Fund and EV Classic
National Limited Maturity Municipals Fund, respectively. The transaction was
structured for tax purposes to qualify as a tax free reorganization under the
Internal Revenue Code. The EV Traditional National Limited Maturity
Municipals Fund's and EV Classic National Limited Maturity Municipals Fund's
net assets at the date of the transaction were $12,949,960 and $7,722,266,
including $480,130 and $490,592 of unrealized appreciation, respectively.
Directly after the merger, the combined net assets of the Eaton Vance
National Limited Maturity Municipals Fund (formerly "EV Marathon National
Limited Maturity Municipals Fund") were $92,201,674 with a net asset value of
$10.58, $10.58 and $9.92 for Class A, Class B and Class C, respectively.
9 Name Change
- -------------------------------------------
Effective April 1, 1998, EV Marathon National Limited Maturity Municipals
Fund changed its name to Eaton Vance National Limited Maturity Municipals
Fund.
10 Subsequent Event
- -------------------------------------------
Prior to the opening of business on November 1,1999, the Fund acquired the
net assets of Eaton Vance Connecticut Limited Maturity Municipals Fund and
Eaton Vance Michigan Limited Maturity Municipals Fund, pursuant to an
Agreement and Plan of Reorganization. The transaction was structured for tax
purposes to qualify as a "tax free" reorganization under the Internal Revenue
Code to the Funds and their shareholders.
11
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 99.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Assisted Living -- 1.2%
- ----------------------------------------------------------------------------
$ 915 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.00%, 10/1/07 $ 966,615
- ----------------------------------------------------------------------------
$ 966,615
- ----------------------------------------------------------------------------
Cogeneration -- 8.8%
- ----------------------------------------------------------------------------
$1,075 New Jersey EDA, (Trigen-Trenton), (AMT),
6.10%, 12/1/05 $ 1,105,283
1,250 New Jersey EDA, (Vineland Cogeneration),
(AMT), 7.875%, 6/1/19 1,316,962
500 Palm Beach County, FL, (Okeelanta
Power), (AMT), 6.85%, 2/15/21(1) 307,500
500 Palm Beach County, FL, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 302,500
1,800 Pennsylvania EDA, (Resource Recovery-
Northampton), 6.75%, 1/1/07 1,890,090
2,000 Pennsylvania EDA, (Resource
Recovery-Colver), (AMT), 7.05%, 12/1/10 2,155,200
500 Robbins, Cook County, IL, (Robbins
Resource Recovery Partners, L.P.),
8.375%, 10/15/10 268,750
- ----------------------------------------------------------------------------
$ 7,346,285
- ----------------------------------------------------------------------------
Education -- 2.6%
- ----------------------------------------------------------------------------
$1,000 New Hampshire HEFA, (Colby-Sawyer
College), 7.20%, 6/1/12 $ 1,047,940
1,700 University of Illinois, 0.00%, 4/1/15 697,493
1,000 University of Illinois, 0.00%, 4/1/16 384,280
- ----------------------------------------------------------------------------
$ 2,129,713
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 20.5%
- ----------------------------------------------------------------------------
$3,500 California Statewide Communities
Development Corp., (Pacific Homes),
Prerefunded to 4/1/03, 5.90%, 4/1/09 $ 3,755,430
940 Florence, KY, Housing Facilities,
(Bluegrass Housing), Escrowed to
Maturity, 7.25%, 5/1/07 1,021,592
500 Grand Ledge, MI, Public School District,
(MBIA), Prerefunded to 5/1/04,
7.875%, 5/1/11 576,970
4,185 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/25 761,879
3,500 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity, 6.45%, 1/1/17 3,837,015
945 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity, 7.876%, 1/1/11 1,088,423
874 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
Escrowed to Maturity, 7.125%, 7/15/02 914,288
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- ----------------------------------------------------------------------------
$3,000 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20 $ 2,771,370
670 Richardson, TX, Hospital Authority
(Baylor/ Richardson Medical Center),
Prerefunded to 12/01/03, 6.50%, 12/1/12 727,687
1,410 Saint Tammany Public Trust Finance
Authority, LA (Christwood), Escrowed to
Maturity, 8.75%, 11/15/05 1,592,059
- ----------------------------------------------------------------------------
$17,046,713
- ----------------------------------------------------------------------------
General Obligations -- 9.3%
- ----------------------------------------------------------------------------
$4,000 Detroit, MI, 6.50%, 4/1/02(2) $ 4,175,320
750 New York City, NY, 0.00%, 8/1/07 505,447
750 Ohio State, 0.00%, 8/1/08 481,035
1,000 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/15 927,280
750 Wisconsin, (AMT), 5.10%, 5/1/15 693,892
910 Youngstown, OH, County School District,
6.40%, 7/1/00 918,572
- ----------------------------------------------------------------------------
$ 7,701,546
- ----------------------------------------------------------------------------
Health Care-Miscellaneous -- 0.7%
- ----------------------------------------------------------------------------
$ 590 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 6.00%, 12/1/36 $ 571,646
- ----------------------------------------------------------------------------
$ 571,646
- ----------------------------------------------------------------------------
Hospital -- 7.7%
- ----------------------------------------------------------------------------
$1,900 Colorado HFA, (Steamboat Springs
Health), 5.00%, 9/15/03 $ 1,877,637
500 Cuyahoga County, OH, Hospital Authority,
(Cleveland Health Clinic),
5.25%, 1/1/12 489,135
750 Forsyth County, GA, Hospital Authority,
(Georgia Baptist Health Care System),
6.00%, 10/1/08 718,837
750 Massachusetts HEFA, (Partners Healthcare
System), 5.00%, 7/1/09 727,147
600 Michigan Hospital Finance Authority,
(Gratiot Community Hospital),
6.10%, 10/1/07 613,050
500 New Hampshire HEFA, (Littleton Hospital
Association), 5.45%, 5/1/08 478,820
1,070 Richardson, TX, Hospital Authority
(Baylor/ Richardson Medical Center),
6.50%, 12/1/12 1,085,034
465 San Gorgonio, CA, Memorial Health Care
District, 5.60%, 5/1/11 433,059
- ----------------------------------------------------------------------------
$ 6,422,719
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Housing -- 6.8%
- ----------------------------------------------------------------------------
$1,005 Illinois Development Finance Authority,
Elderly Housing, (Mattoon Tower),
(Section 8), 6.35%, 7/1/10 $ 1,022,758
760 Illinois Development Finance Authority,
Elderly Housing, (Rome Meadows),
6.40%, 2/1/03 770,131
1,145 Illinois Development Finance Authority,
Elderly Housing, (Rome Meadows),
6.65%, 2/1/06 1,165,541
715 Sandaval County, NM, Multifamily,
6.00%, 5/1/32 678,807
2,000 Wisconsin Housing and Economic
Development Authority, (Home Ownership),
(AMT), 6.45%, 9/1/27 2,057,180
- ----------------------------------------------------------------------------
$ 5,694,417
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 13.9%
- ----------------------------------------------------------------------------
$ 635 Austin, TX (Cargoport Development LLC)
(AMT), 7.50%, 10/1/07 $ 647,865
450 Austin, TX, (Cargoport Development LLC),
(AMT), 8.30%, 10/1/21 472,833
1,000 Clark County, NV, (Nevada Power Co.),
(AMT), 5.90%, 10/1/30 945,530
1,000 Columbus, NC, (International Paper Co.),
5.80%, 12/1/16 979,170
900 Eagle County, CO, Airport Terminal
Corp., (American Airlines), (AMT),
6.75%, 5/1/06 922,761
500 Gulf Coast, TX, Waste Disposal,
(Champion International Corp.), (AMT),
6.875%, 12/1/28 529,295
900 Iowa Finance Authority, (Southbridge
Mall), 6.375%, 12/1/13 874,035
500 Jones County, MS, (International Paper
Co.), 5.80%, 10/1/21 480,795
495 Kimball, NE, EDA, (Clean Harbors, Inc.),
10.75%, 9/1/26 522,641
315 Los Angeles, CA, Regional Airport
Improvement Corporate Lease, (TransWorld
Airlines), 6.125%, 5/15/00 314,975
950 Michigan State Strategic Fund, (Crown
Paper), 6.25%, 8/1/12 813,561
500 Missouri Development Finance Authority,
Solid Waste Disposal, (Proctor and
Gamble Paper Products), (AMT),
5.20%, 3/15/29 449,120
1,000 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 1,083,710
750 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT),
9.00%, 6/1/21 790,268
500 Peru, IL, (Freightways Corp.),
5.25%, 11/1/03 486,650
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ----------------------------------------------------------------------------
$1,195 Santa Fe, NM, (Crow Hobbs),
8.25%, 9/1/05 $ 1,207,177
- ----------------------------------------------------------------------------
$11,520,386
- ----------------------------------------------------------------------------
Insured-Education -- 1.0%
- ----------------------------------------------------------------------------
$ 620 Golden West Schools Financing Authority,
(MBIA), 5.80%, 2/1/16 $ 647,671
500 Southern Illinois University, Housing
and Auxiliary Facilities, (MBIA),
0.00%, 4/1/17 179,180
- ----------------------------------------------------------------------------
$ 826,851
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 1.1%
- ----------------------------------------------------------------------------
$1,000 Intermountain Power Agency, UT, (MBIA),
5.00%, 7/1/19 $ 899,510
- ----------------------------------------------------------------------------
$ 899,510
- ----------------------------------------------------------------------------
Insured-General Obligations -- 1.1%
- ----------------------------------------------------------------------------
$1,000 Paw Paw, MI, Public School District,
(FGIC), 5.00%, 5/1/21(2) $ 907,310
- ----------------------------------------------------------------------------
$ 907,310
- ----------------------------------------------------------------------------
Insured-Hospital -- 2.9%
- ----------------------------------------------------------------------------
$2,000 El Paso County, TX, Hospital District,
(MBIA), 0.00%, 8/15/06 $ 1,418,500
1,000 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Health), (MBIA), 5.25%, 7/1/13 985,010
- ----------------------------------------------------------------------------
$ 2,403,510
- ----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.6%
- ----------------------------------------------------------------------------
$ 500 George L. Smith, (Georgia World Congress
Center-Domed Stadium), (MBIA), (AMT),
6.00%, 7/1/06(3) $ 522,890
- ----------------------------------------------------------------------------
$ 522,890
- ----------------------------------------------------------------------------
Insured-Transportation -- 1.7%
- ----------------------------------------------------------------------------
$ 500 Cleveland Airport, OH, (FSA), (AMT),
5.50%, 1/1/07 $ 513,635
2,500 E-470 Public Highway Authority, CO,
(MBIA), 0.00%, 9/1/17 888,075
- ----------------------------------------------------------------------------
$ 1,401,710
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Miscellaneous -- 0.6%
- ----------------------------------------------------------------------------
$ 500 San Juan, NM, Pueblo Development
Authority, 7.097%, 10/15/06 $ 482,555
- ----------------------------------------------------------------------------
$ 482,555
- ----------------------------------------------------------------------------
Nursing Home -- 5.8%
- ----------------------------------------------------------------------------
$1,105 Arizona HFA, Assisted Living Facilites,
(Mesa), 7.625%, 1/1/06 $ 1,108,337
500 Citrus County, FL, IDA, (Beverly
Enterprises), 5.00%, 4/1/03 488,920
965 Clovis, NM, IDR, (Retirement Ranches,
Inc.), 7.75%, 4/1/19 1,008,589
680 Fairfield, OH, EDA, (Beverly
Enterprises), 8.50%, 1/1/03 708,764
1,455 Massachusetts IFA, (Age Institute of
Massachusetts), 7.60%, 11/1/05 1,495,725
- ----------------------------------------------------------------------------
$ 4,810,335
- ----------------------------------------------------------------------------
Pooled Loans -- 4.9%
- ----------------------------------------------------------------------------
$1,900 Arizona Educational Loan Marketing
Corp., (AMT), 6.25%, 6/1/06 $ 2,008,870
1,000 Arizona Student Loan Acquisition
Authority, (AMT), 7.625%, 5/1/10 1,063,540
1,000 Arkansas Student Loan Authority, (AMT),
6.25%, 6/1/10 1,012,100
- ----------------------------------------------------------------------------
$ 4,084,510
- ----------------------------------------------------------------------------
Senior Living / Life Care -- 5.6%
- ----------------------------------------------------------------------------
$ 785 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 $ 724,186
2,000 Illinois HFA, (Lutheran Social
Services), 6.125%, 8/15/10 1,980,300
500 Kansas City, MO, IDR, (Kingswood Manor),
5.80%, 11/15/17 455,570
250 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 222,233
500 North Miami, FL, Health Facilities
Authority, (Imperial Club),
6.75%, 1/1/33 458,210
305 Okaloosa County, FL, Retirement Rental
Housing, (Encore Retirement Partners),
5.25%, 2/1/04 285,843
500 Wisconsin HEFA, (Senior Housing),
7.00%, 8/1/29 496,220
- ----------------------------------------------------------------------------
$ 4,622,562
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Special Tax Revenue -- 0.9%
- ----------------------------------------------------------------------------
$ 250 Frederick County, MD, Urbana Community
Development Authority, 6.625%, 7/1/25 $ 241,155
525 Longleaf, FL, Community Development
District, 6.20%, 5/1/09 503,218
- ----------------------------------------------------------------------------
$ 744,373
- ----------------------------------------------------------------------------
Transportation -- 1.6%
- ----------------------------------------------------------------------------
$ 260 Memphis-Shelby County, TN, Airport
Authority, 6.12%, 12/1/16 $ 251,800
1,000 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 1,101,850
- ----------------------------------------------------------------------------
$ 1,353,650
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.3%
(identified cost $81,894,844) $82,459,806
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.7% $ 604,070
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $83,063,876
- ----------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
At September 30, 1999, the concentration of the Portfolio's investments in the
various states, determined as a percentage of total investments, is as follows:
<TABLE>
<CAPTION>
<S> <C>
Arizona 11.0%
Others, representing less than 10% 89.0%
individually
</TABLE>
The Portfolio invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at
September 30, 1999, 9.1% 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 0.6% to 7.4% 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
14
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF SEPTEMBER 30, 1999
<S> <C>
Assets
- -----------------------------------------------------
Investments, at value
(identified cost, $81,894,844) $82,459,806
Receivable for investments sold 145,000
Interest receivable 1,556,877
- -----------------------------------------------------
TOTAL ASSETS $84,161,683
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Demand note payable $ 500,000
Payable for when-issued securities 522,390
Due to bank 71,680
Accrued expenses 3,737
- -----------------------------------------------------
TOTAL LIABILITIES $ 1,097,807
- -----------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $83,063,876
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Net proceeds from capital contributions
and withdrawals $82,498,914
Net unrealized appreciation (computed on
the basis of identified cost) 564,962
- -----------------------------------------------------
TOTAL $83,063,876
- -----------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
SEPTEMBER 30, 1999
<S> <C>
Investment Income
- -----------------------------------------------------
Interest $ 2,594,402
- -----------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,594,402
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Investment adviser fee $ 207,516
Trustees fees and expenses 4,524
Legal and accounting services 22,485
Custodian fee 22,921
Miscellaneous 7,665
- -----------------------------------------------------
TOTAL EXPENSES $ 265,111
- -----------------------------------------------------
Deduct:
Reduction of custodian fee $ 7,325
- -----------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 7,325
- -----------------------------------------------------
NET EXPENSES $ 257,786
- -----------------------------------------------------
NET INVESTMENT INCOME $ 2,336,616
- -----------------------------------------------------
Realized and Unrealized
Gain (Loss)
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 119,472
Financial futures contracts 118,102
- -----------------------------------------------------
NET REALIZED GAIN $ 237,574
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,882,003)
- -----------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(3,882,003)
- -----------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,644,429)
- -----------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,307,813)
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
SEPTEMBER 30, 1999 YEAR ENDED
INCREASE (DECREASE) IN NET ASSETS (UNAUDITED) MARCH 31, 1999
<S> <C> <C>
- ------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,336,616 $ 4,830,146
Net realized gain 237,574 372,695
Net change in unrealized
appreciation (depreciation) (3,882,003) (1,182,416)
- ------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS FROM
OPERATIONS $ (1,307,813) $ 4,020,425
- ------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,641,270 $ 26,384,868
Withdrawals (10,235,975) (33,566,159)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (5,594,705) $ (7,181,291)
- ------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (6,902,518) $ (3,160,866)
- ------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------
At beginning of period $ 89,966,394 $ 93,127,260
- ------------------------------------------------------------------------------------------
AT END OF PERIOD $ 83,063,876 $ 89,966,394
- ------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED MARCH 31,
SEPTEMBER 30, 1999 ---------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------
Expenses(1) 0.61%(2) 0.61% 0.60% 0.60% 0.57% 0.53%
Expenses after custodian fee reduction 0.59%(2) 0.60% 0.59% 0.58% 0.56% --
Net investment income 5.39%(2) 5.32% 5.53% 5.45% 5.08% 5.02%
Portfolio Turnover 7% 26% 41% 68% 68% 56%
- -----------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $83,064 $89,966 $93,127 $102,504 $134,776 $169,621
- -----------------------------------------------------------------------------------------------------------------
</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.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
National Limited Maturity Municipals Portfolio (the Portfolio) seeks to
provide (1) a high level of income exempt from regular federal income tax and
(2) limited principal fluctuation. The Portfolio is registered under the
Investment Company Act of 1940 as a diversified open-end management
investment company which was organized as a trust under the laws of the State
of New York on May 1, 1992. The Declaration of Trust permits the Trustees to
issue interests in the Portfolio. The following is a summary of significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuation -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on the
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair value using methods determined
in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for Federal
income tax purposes.
C Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its respective investors,
each investor's distributive share of the Portfolio's net taxable (if any)
and tax-exempt investment income, net realized capital gains, and any other
items of income, gain, loss, deduction or credit. Interest income received by
the Portfolio on investments in municipal bonds, which is excludable from
gross income under the Internal Revenue Code, will retain its status as
income exempt from federal income tax when allocated to the Portfolio's
investors. The portion of such interest, if any, earned on private activity
bonds issued after August 7, 1986 may be considered a tax preference item for
investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
The Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by the Portfolio, the premium paid is
recorded as an investment, the value of which is marked-to-market daily. When
a purchased option expires, the Portfolio will realize a loss in the amount
of the cost of the option. When the Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When the Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing put options is limited
to the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued and delayed delivery transactions. The Portfolio records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expenses on the Statement of Operations.
H Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial
18
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
J Interim Financial Statements -- The interim financial statements relating to
September 30, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended September 30, 1999, the fee was
equivalent to 0.48% (annualized) of the Portfolio's average net assets for
such period and amounted to $207,516. Except as to Trustees of the Portfolio
who are not members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their services to the Portfolio out of such
investment adviser fee. Certain officers and Trustees of the Portfolio are
officers of the above organizations. Trustees of the Portfolio that are not
affiliated with the Investment Adviser may elect to defer receipt of all or a
percentage of their annual fees in accordance with the terms of the Trustees
Deferred Compensation Plan. For the six months ended September 30, 1999, no
significant amounts have been deferred.
3 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million ($120 million effective October 12,
1999) unsecured line of credit agreement with a group of banks. The Portfolio
may temporarily borrow from the line of credit to satisfy redemption requests
or settle investment transactions. Interest is charged to each portfolio or
fund based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. At September
30, 1999, the National Limited Maturity Municipals Portfolio had $500,000
outstanding pursuant to this line of credit.
4 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $5,939,946 and $9,112,788 respectively,
for the six months ended September 30, 1999.
5 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation/depreciation in the value of the
investments owned at September 30, 1999, as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $81,894,844
-----------------------------------------------------
Gross unrealized appreciation $ 2,418,729
Gross unrealized depreciation (1,853,767)
-----------------------------------------------------
NET UNREALIZED APPRECIATION $ 564,962
-----------------------------------------------------
</TABLE>
6 Financial Instruments
- -------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its investing activities to assist in
managing exposure to various market risks. These financial instruments
include written options and futures contracts and may involve, to a varying
degree, elements of risk in excess of the amounts recognized for financial
statement purposes. The notional or contractual amounts of these instruments
represent the investment the Portfolio has in particular classes of financial
instruments and does not necessarily represent the amounts potentially
subject to risk. The measurement of the risks associated with these
instruments is meaningful only when all related and offsetting transactions
are considered.
At September 30, 1999, there were no outstanding obligations under these
financials instruments.
7 Subsequent Event
- -------------------------------------------
Prior to the opening of business on November 1,1999, the Portfolio acquired
the net assets of Eaton Vance Connecticut Limited Maturity Municipals Fund
and Eaton Vance Michigan Limited Maturity Municipals Fund, pursuant to an
Agreement and Plan of Reorganization. The transaction was structured for tax
purposes to qualify as a "tax free" reorganization under the Internal Revenue
Code.
19
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF SEPTEMBER 30, 1999
INVESTMENT MANAGEMENT
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND
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
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
Jack L. Treynor
Investment Adviser and Consultant
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
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
Jack L. Treynor
Investment Adviser and Consultant
20
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
THIS PAGE INTENTIONALLY LEFT BLANK
<PAGE>
INVESTMENT ADVISER OF
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND
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
Boston, MA 02116
TRANSFER AGENT
First Data Investor Services Group, Inc.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
3-4637 LNASRC11/99
