<PAGE>
[LOGO] MUTUAL FUNDS
FOR PEOPLE [EDUCATION]
WHO PAY
TAXES-Registered Trademark-
Annual Report March 31, 2000
EATON VANCE
NATIONAL
[CAR ON STREET] LIMITED MATURITY
MUNICIPALS
FUND
[SEAL]
[BRIDGE]
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND as of March 31, 2000
- -------------------------------------------------------------------------------
L E T T E R T O S H A R E H O L D E R S
- -------------------------------------------------------------------------------
Eaton Vance National Limited Maturity Municipals Fund,
[PHOTO] Class A, had a total return of -1.68% for the year ended
March 31, 2000. That return was the result of a decrease in
Thomas J. Fetter net asset value (NAV) to $9.79 on March 31, 2000 from $10.49
President on March 31, 1999, and the reinvestment of $0.525 in dividends
exempt from regular federal income tax.(1)
Class B shares had a total return of -2.46% for the year ended March 31, 2000,
the result of a decrease in NAV to $9.79 from $10.49, and the reinvestment of
$0.445 in dividends exempt from regular federal income tax.(1)
Class C shares had a total return of -2.57% for the year ended March 31, 2000,
the result of a decline in NAV to $9.16 from $9.82, and the reinvestment of
$0.410 in dividends exempt from regular federal income tax.(1)
Based on the Fund's most recent dividends and net asset values of $9.79,
$9.79, and $9.16, the Fund's Class A, B and C shares had distribution rates
of 5.34%, 4.54%, and 4.47%, respectively, at March 31, 2000.2 The
distribution rates of Classes A, B and C are equivalent to taxable rates of
8.84%, 7.52% and 7.40%, respectively.(3)
SEC 30-day yields for Classes A, B, and C shares were 4.94%, 4.32%, and 4.22%,
respectively, at March 31, 2000.4 The SEC 30-day yields of Classes A, B and C
are equivalent to taxable yields of 8.18%, 7.15% and 6.99%, respectively.(3)
Municipal bonds finance vital
public projects while providing
relief to tax-weary investors...
Through their purchases of municipal bonds, investors provide financing for a
broad array of vital public works, including those for transportation
facilities, highway construction and industrial development. These projects not
only improve our quality of life, but also promote private enterprise and
create new jobs.
Adding to their unique role, municipal bonds are among the few tax-advantaged
vehicles remaining for investors. Eaton Vance National Limited Maturity
Municipals Fund will continue its traditional investment pursuit: maintaining a
portfolio of primarily investment-grade quality, intermediate-term bonds with
competitive levels of tax-exempt income. Our goal remains to provide excellent
income opportunities for today's tax-burdened investors.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 10, 2000
Fund Information
as of March 31, 2000
Performance(5) Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -1.68% -2.46% -2.57
Five Years N.A. 3.56 3.32
Life of Fund+ 4.59 4.23 2.76
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -3.88% -5.26% -3.50%
Five Years N.A. 3.56 3.32
Life of Fund+ 4.29 4.23 2.76
+Inception dates: Class A: 6/27/96; Class B: 5/22/92; Class C: 12/8/93
Five Largest Sector Weightings(6)
Escrowed/Prerefunded 17.1%
Industrial Development Bonds 12.0%
Cogeneration 8.0%
General Obligations 7.6%
Hospital 7.3%
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, 2000 was designated as an
exempt-interest dividend.
(1) These returns do not include the 2.25% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charge (CDSC) for
Class B or C shares. A portion of the Fund's income may be subject to federal
income and/or federal alternative minimum tax. Income may be subject to state
tax. (2) 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. (3) Taxable-equivalent figures assume
maximum 39.6% federal income tax rate. A lower rate would result in lower
tax-equivalent figures. (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. Class C 1-year SEC return reflects 1% CDSC. (6) Five largest sector
weightings account for 52.0% of the Portfolio's investments, determined by
dividing the total market value of the holdings by the total investments of the
Portfolio. Holdings are subject to change.
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.
2
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND as of March 31, 2000
- -------------------------------------------------------------------------------
M A N A G E M E N T D I S C U S S I O N
- -------------------------------------------------------------------------------
AN INTERVIEW WITH
[PHOTO] WILLIAM H. AHERN,
PORTFOLIO MANAGER OF
William H. Ahern EATON VANCE NATIONAL LIMITED
Portfolio Manager MATURITY MUNICIPALS FUND.
Q: Bill, the fixed-income markets featured a good deal of
volatility in the past year. What contributed to this
volatile climate?
A: There were several factors. First, the Federal Reserve's actions have
pushed interest rates significantly higher, with the greatest impact on the
short-term and intermediate-term segments of the market. Second, the
investment climate has been made more difficult by the inversion of the
yield curve. That is, short-term bond yields have risen more than long-term
yields. This inversion was not seen in the municipal market, but shifts in
the Treasury curve impact supply and demand in the municipal market.
Finally, the stock market rallied through much of the period, creating a
difficult competitive environment for fixed-income investments, including
the municipal market.
Q: What brought about the inversion of the yield curve?
A: The Federal Reserve has been relentless in its fight against potential
inflation, raising short-term rates five times in the past year. The Fed's
actions have resulted in sharply higher short-term rates. However,
investors in LONGER-TERM bonds have applauded the Fed's efforts because
inflation poses the greatest threat to longer-duration investments. As a
result, interest rates have risen less at the longer-end of the yield
curve.
In addition, the Treasury department has indicated plans to selectively buy
back longer-term bonds, which will significantly limit supply. That specter
has further accentuated the inversion of the curve. Five-year municipal
yields rose from 3.90% on March 31, 1999 to 4.98% on March 31, 2000, a rise
of 108 basis points (1.08%). In contrast, thirty-year municipal yields rose
from 5.21% to 5.88%, a rise of just 67 basis points (.67%).
Q: How have you structured the Portfolio in that difficult environment?
A: Escrowed bonds - bonds that have been pre- refunded in anticipation of
their call date and backed by Treasury bonds - remained the Portfolio's
largest sector weighting at March 31, constituting 17.1% of the Portfolio.
The next
Portfolio Quality Weightings(1)
- --------------------------------------------------------------------------------
[PIE CHART]
Portfolio Overview(1)
- --------------------------------------------------------------------------------
Number of Issues 136
Average Rating A-
Duration 6.5 Yrs.
Effective Maturity 10.3 Yrs.
Average Call 6.9 Yrs.
Average Dollar Price $95.37
(1)Because the Fund is actively managed, Portfolio Quality Ratings and
Portfolio Overview are subject to change. In the opinion of management, 10.1%
of the non-rated portion (32.7%) of the Portfolio would, if rated, warrant an
investment-grade rating.
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.
3
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND as of March 31, 2000
- -------------------------------------------------------------------------------
M A N A G E M E N T D I S C U S S I O N C O N T ' D
- -------------------------------------------------------------------------------
largest weighting consisted of industrial development revenue bonds (IDB),
which represented 12.0% of the Portfolio. Cogeneration bonds followed, at
8.0% of the Portfolio.
Q: Escrowed bonds were the Portfolio's largest concentration. Why have you
found them attractive?
A: Escrowed bonds are those which have been pre-refunded by their issuers and
are valued by investors for their perceived quality and relative high
income. Issued when prevailing interest rates were much higher, they tend
to carry very attractive coupons. Because they are backed by Treasury
bonds, they are deemed to be of the very highest quality. Finally, because
they are escrowed to their nearest call date, their prices tend to be more
stable. Thus, they can be an excellent defensive investment, especially in
a volatile climate such as we've just been through.
Q: Industrial development revenue bonds were again a major focus of the
Portfolio. Where were you invested?
A: The Portfolio's IDB holdings were diversified along a broad range of
industries and locales and included projects for some nationally recognized
companies. The Portfolio's bonds
- --------------------------------------------------------------------------------
Your Investment at Work
- ---------------------------------------------------------
Connecticut Airport
Bradley International Airport
- - These bonds were issued to finance the the costs of terminal and
maintenance facility expansion at Bradley International Airport in Windsor
Locks. Expansion of gates and parking facilities is scheduled for
completion in 2003.
- - Passenger traffic at Bradley increased 21% in March over the same period a
year ago. The surge is tied to the onset of service by Southwest Airlines.
Delta Airlines plans to commence Bradley's first international service in
June.
- - The bond carries an attractive 7.40% coupon. This issue was representative
of the Portfolio's efforts to find good income opportunities in
higher-yielding bonds.
- --------------------------------------------------------------------------------
included such projects as a solid waste facility in Missouri for Proctor &
Gamble; an expanded terminal in Colorado for American Airlines; and a
facility in Connecticut for Frito-Lay. These bonds supported economic
growth for industry while providing excellent income opportunities for
investors.
Q: Cogeneration bonds were a fairly large investment. What sort of projects do
they finance?
A: Cogeneration facilities use by-products of energy generation to create
additional energy. A plant that creates electric energy will use the excess
heat created by turbines to create steam energy. These newer technologies
are considered environmentally friendly because they produce significantly
fewer emissions.
In addition, because they utilize what would otherwise be wasted,
cogeneration facilities are generally more efficient than previous
technologies and may produce large savings over the lifetime of a facility.
For example, in Colver, Pennsylvania, a state Economic Devolopment
Authority issue financed a 102-megawatt facility that generates
electricity. The plant utilizes 552,000 tons annually of bituminous coal
refuse left over from many years of coal mining in the region.
Q: Did senior life care facilities continue to play a role in the Portfolio?
A: Yes. This sector remained a good source of tax-exempt income. In a rapidly
aging nation, these projects have become increasingly popular in recent
years. Typically, private rooms, meals, exercise and social activities are
provided, as is the availability of medicare care, when needed. The needs
of residents may vary widely, ranging from a high degree of independence to
a more elaborate degree of care.
The Portfolio focused on projects with proven concepts and on providers
that are likely to remain among the leaders. From a credit standpoint,
these are typically research-intensive, non-rated bonds. Utilizing our
extensive
4
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND as of March 31, 2000
- -------------------------------------------------------------------------------
M A N A G E M E N T D I S C U S S I O N C O N T ' D
- -------------------------------------------------------------------------------
research capabilities in the non-rated segment of the municipal market, we
have been able to find some excellent, higher-yielding opportunities in
these sectors.
Q: Bill, what is your outlook for the municipal market in the coming year?
A: I believe that the outlook for municipal bonds is generally favorable.
While the economy continues to grow, increases in productivity, global
competition and the continued vigilance of the Federal Reserve are helping
to keep inflation under control. Over the short-term, of course, we can't
rule out the possibility of further Fed rate hikes. That would create some
temporary hurdles. However, over the longer-term, with the likelihood of
increasing budget surpluses at the Federal level and the pay-down of
long-term debt, there is room for optimism about intermediate-term bonds.
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
NATIONAL LIMITED MATURITY MUNICIPALS FUND CLASS B VS. THE LEHMAN
BROTHERS 7-YEAR MUNICIPAL BOND INDEX
JUNE 31, 1992 - MARCH 31, 2000
Date Natl Limited Lehman Index
5/31/92 $10,000 $10,000
6/30/92 $10,120 $10,159
7/31/92 $10,459 $10,462
8/31/92 $10,327 $10,354
9/30/92 $10,391 $10,438
10/31/92 $10,274 $10,368
11/30/92 $10,517 $10,522
12/31/92 $10,613 $10,608
1/31/93 $10,722 $10,763
2/28/93 $11,041 $11,093
3/31/93 $10,905 $10,947
4/30/93 $10,983 $11,015
5/31/93 $11,031 $11,048
6/30/93 $11,157 $11,250
7/31/93 $11,180 $11,252
8/31/93 $11,344 $11,451
9/30/93 $11,441 $11,577
10/31/93 $11,464 $11,607
11/30/93 $11,391 $11,505
12/31/93 $11,549 $11,716
1/31/94 $11,652 $11,840
2/28/94 $11,465 $11,583
3/31/94 $11,134 $11,274
4/30/94 $11,193 $11,356
5/31/94 $11,258 $11,413
6/30/94 $11,224 $11,392
7/31/94 $11,357 $11,553
8/31/94 $11,381 $11,613
9/30/94 $11,281 $11,502
10/31/94 $11,171 $11,387
11/30/94 $11,023 $11,221
12/31/94 $11,180 $11,391
1/31/95 $11,369 $11,604
2/28/95 $11,556 $11,866
3/31/95 $11,627 $11,989
4/30/95 $11,635 $12,021
5/31/95 $11,821 $12,341
6/30/95 $11,780 $12,330
7/31/95 $11,880 $12,487
8/31/95 $11,965 $12,634
9/30/95 $12,029 $12,683
10/31/95 $12,117 $12,793
11/30/95 $12,228 $12,934
12/31/95 $12,279 $13,003
1/31/96 $12,368 $13,129
2/29/96 $12,302 $13,084
3/31/96 $12,151 $12,956
4/30/96 $12,133 $12,932
5/31/96 $12,113 $12,913
6/30/96 $12,149 $13,012
7/31/96 $12,201 $13,120
8/31/96 $12,233 $13,127
9/30/96 $12,351 $13,246
10/31/96 $12,442 $13,388
11/30/96 $12,647 $13,612
12/31/96 $12,569 $13,570
1/31/97 $12,538 $13,619
2/28/97 $12,662 $13,732
3/31/97 $12,553 $13,554
4/30/97 $12,658 $13,624
5/31/97 $12,803 $13,795
6/30/97 $12,900 $13,927
7/31/97 $13,133 $14,249
8/31/97 $13,053 $14,149
9/30/97 $13,163 $14,298
10/31/97 $13,221 $14,383
11/30/97 $13,296 $14,434
12/31/97 $13,493 $14,610
1/31/98 $13,669 $14,763
2/28/98 $13,719 $14,777
3/31/98 $13,747 $14,777
4/30/98 $13,702 $14,691
5/31/98 $13,852 $14,907
6/30/98 $13,899 $14,949
7/31/98 $13,905 $14,999
8/31/98 $14,048 $15,227
9/30/98 $14,132 $15,423
10/31/98 $14,112 $15,445
11/30/98 $14,125 $15,487
12/31/98 $14,159 $15,520
1/31/99 $14,250 $15,747
2/28/99 $14,196 $15,657
3/31/99 $14,200 $15,652
4/30/99 $14,279 $15,689
5/31/99 $14,250 $15,611
6/30/99 $14,080 $15,386
7/31/99 $14,088 $15,490
8/31/99 $13,964 $15,455
9/30/99 $13,917 $15,512
10/31/99 $13,732 $15,446
11/30/99 $13,826 $15,559
12/31/99 $13,695 $15,498
1/31/00 $13,557 $15,460
2/29/00 $13,675 $15,523
3/31/00 $13,852 $15,743
Performance** Class A Class B Class C
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -1.68% -2.46% -2.57
Five Years N.A. 3.56 3.32
Life of Fund+ 4.59 4.23 2.76
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -3.88% -5.26% -3.50%
Five Years N.A. 3.56 3.32
Life of Fund+ 4.29 4.23 2.76
+Inception dates: Class A: 6/27/96; Class B: 5/22/92; Class C: 12/8/93
* Source: TowersData, Bethesda, MD.
The chart compares the total return of the Fund's Class B shares with that of
the Lehman Brothers 7-Year Municipal Bond Index, a broad-based, unmanaged
market index of intermediate-term municipal bonds. Returns are calculated by
determining the percentage change in net asset value (NAV) with all
distributions reinvested. The lines on the chart represent the total returns
of $10,000 hypothetical investments in the Fund and the 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 6/27/96 at net asset value would
have been worth $11,734 on March 31, 2000; $11,471, including the Fund's 2.25%
maximum sales charge. An investment in the Fund's Class C shares on 12/8/93 at
net asset value would have been worth $11,877 on March 31, 2000.
**Returns are calculated by determining the percentage change in net asset value
(NAV) with all distributions reinvested. SEC returns for Class A reflect the
maximum 2.25% sales charge. SEC returns for Class B reflect applicable CDSC
based on the following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd
year; 1% - 4th year. SEC 1-Year return for Class C reflects 1% CDSC.
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.
5
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF MARCH 31, 2000
<S> <C>
Assets
- -----------------------------------------------------
Investment in National Limited Maturity
Municipals Portfolio, at value
(identified cost, $91,211,845) $89,936,543
Receivable for Fund shares sold 44,702
- -----------------------------------------------------
TOTAL ASSETS $89,981,245
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for Fund shares redeemed $ 447,818
Dividends payable 195,600
Accrued expenses 93,601
- -----------------------------------------------------
TOTAL LIABILITIES $ 737,019
- -----------------------------------------------------
NET ASSETS $89,244,226
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Paid-in capital $96,527,945
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (6,103,997)
Accumulated undistributed net
investment income 95,580
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (1,275,302)
- -----------------------------------------------------
TOTAL $89,244,226
- -----------------------------------------------------
Class A Shares
- -----------------------------------------------------
NET ASSETS $75,080,642
SHARES OUTSTANDING 7,672,743
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.79
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 97.75 of $9.79) $ 10.02
- -----------------------------------------------------
Class B Shares
- -----------------------------------------------------
NET ASSETS $ 6,452,038
SHARES OUTSTANDING 659,333
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.79
- -----------------------------------------------------
Class C Shares
- -----------------------------------------------------
NET ASSETS $ 7,711,546
SHARES OUTSTANDING 842,241
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.16
- -----------------------------------------------------
</TABLE>
On sales of $100,000 or more, the offering price of Class A shares is
reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
MARCH 31, 2000
<S> <C>
Investment Income
- -----------------------------------------------------
Interest allocated from Portfolio $ 5,444,661
Expenses allocated from Portfolio (564,379)
- -----------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 4,880,282
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Trustees fees and expenses $ 2,502
Distribution and service fees
Class A 93,077
Class B 52,798
Class C 100,136
Transfer and dividend disbursing agent
fees 77,983
Registration fees 59,799
Printing and postage 26,060
Custodian fee 20,698
Legal and accounting services 19,329
Miscellaneous 11,041
- -----------------------------------------------------
TOTAL EXPENSES $ 463,423
- -----------------------------------------------------
NET INVESTMENT INCOME $ 4,416,859
- -----------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (125,180)
Financial futures contracts 114,174
- -----------------------------------------------------
NET REALIZED LOSS $ (11,006)
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(5,689,135)
Financial futures contracts (33,132)
- -----------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(5,722,267)
- -----------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(5,733,273)
- -----------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,316,414)
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
- ------------------------------------------------------------------------
From operations --
Net investment income $ 4,416,859 $ 4,357,641
Net realized gain (loss) (11,006) 372,695
Net change in unrealized
appreciation (depreciation) (5,722,267) (1,182,416)
- ------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (1,316,414) $ 3,547,920
- ------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (3,798,298) $ (3,615,580)
Class B (255,520) (307,519)
Class C (425,763) (398,999)
In excess of net investment income
Class B (4,101) --
Class C (10,859) (6,536)
- ------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (4,494,541) $ (4,328,634)
- ------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 7,602,253 $ 7,371,984
Class B 1,785,208 2,345,291
Class C 3,548,099 9,829,014
Issued in reorganizations (see
Note 8)
Class A 14,683,269 12,949,960
Class B 1,555,876 --
Class C -- 7,722,266
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 1,468,257 1,179,583
Class B 122,091 187,434
Class C 276,603 293,045
Cost of shares redeemed
Class A (16,114,691) (13,891,191)
Class B (3,010,386) (2,497,374)
Class C (6,552,453) (6,547,691)
Net asset value of shares exchanged
Class A 594,717 6,070,355
Class B (594,717) (6,070,355)
- ------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 5,364,126 $ 18,942,321
- ------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $ (446,829) $ 18,161,607
- ------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
YEAR ENDED YEAR ENDED
NET ASSETS MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
- ------------------------------------------------------------------------
At beginning of year $ 89,691,055 $ 71,529,448
- ------------------------------------------------------------------------
AT END OF YEAR $ 89,244,226 $ 89,691,055
- ------------------------------------------------------------------------
Accumulated undistributed
net investement income
included in net assets
- ------------------------------------------------------------------------
AT END OF YEAR $ 95,580 $ 173,262
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS A
------------------------------------------------
YEAR ENDED MARCH 31,
------------------------------------------------
2000(1) 1999 1998 1997(2)
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.490 $10.580 $10.070 $10.030
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.516 $ 0.519 $ 0.527 $ 0.393
Net realized and unrealized
gain (loss) (0.692) (0.090) 0.488 0.033(3)
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.176) $ 0.429 $ 1.015 $ 0.426
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.524) $(0.519) $(0.505) $(0.386)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.790 $10.490 $10.580 $10.070
- ----------------------------------------------------------------------------------
TOTAL RETURN(4) (1.68)% 3.89% 10.50% 4.06%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $75,081 $73,048 $59,992 $37,072
Ratios (As a percentage of
average daily net assets):
Expenses(5) 1.03% 0.98% 0.99% 0.99%(5)
Expenses after custodian
fee reduction(5) 1.01% 0.97% 0.98% 0.97%(5)
Net investment income 5.14% 4.96% 5.16% 5.14%(5)
Portfolio Turnover of the
Portfolio 27% 26% 41% 68%
- ----------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, June 27, 1996, to March 31,
1997.
(3) The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
(4) 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 the Portfolio's allocated expenses.
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS B
-------------------------------------------------------------
YEAR ENDED MARCH 31,
-------------------------------------------------------------
2000(1) 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.490 $10.580 $10.070 $10.170 $ 10.130
- -----------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------
Net investment income $ 0.438 $ 0.412 $ 0.454 $ 0.428 $ 0.413
Net realized and unrealized
gain (loss) (0.693) (0.066) 0.488 (0.098) 0.040
- -----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.255) $ 0.346 $ 0.942 $ 0.330 $ 0.453
- -----------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------
From net investment income $(0.438) $(0.436) $(0.432) $(0.430) $ (0.413)
In excess of net investment
income (0.007) -- -- -- --
- -----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.445) $(0.436) $(0.432) $(0.430) $ (0.413)
- -----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.790 $10.490 $10.580 $10.070 $ 10.170
- -----------------------------------------------------------------------------------------------
TOTAL RETURN(2) (2.46)% 3.29% 9.52% 3.30% 4.51%
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 6,452 $ 5,450 $11,538 $48,692 $112,027
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.81% 1.73% 1.73% 1.69% 1.64%
Expenses after custodian
fee reduction(3) 1.79% 1.72% 1.72% 1.67% 1.63%
Net investment income 4.36% 4.23% 4.42% 4.37% 4.04%
Portfolio Turnover of the
Portfolio 27% 26% 41% 68% 68%
- -----------------------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CLASS C
----------------------
YEAR ENDED MARCH 31,
----------------------
2000(1) 1999
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $ 9.820 $ 9.920
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.401 $ 0.407
Net realized and unrealized
loss (0.651) (0.089)
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.250) $ 0.318
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $(0.400) $(0.411)
In excess of net investment
income (0.010) (0.007)
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.410) $(0.418)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.160 $ 9.820
- --------------------------------------------------------
TOTAL RETURN(2) (2.57)% 3.24%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $ 7,712 $11,193
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.90% 1.81%
Expenses after custodian
fee reduction(3) 1.88% 1.80%
Net investment income 4.26% 4.10%
Portfolio Turnover of the
Portfolio 27% 26%
- --------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
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, Class B 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 March
31, 2000). The performance of the Fund is directly affected by the
performance of the Portfolio. The financial statements of the Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolio is discussed
in Note 1A of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro-rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, 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
March 31, 2000, the Fund, for federal income tax purposes, had a capital loss
carryover of $5,823,610 which will reduce the taxable income arising from
future net realized gain on investments, if any, to the extent permitted by
the Internal Revenue Code and thus will reduce the amount of distributions to
shareholders which would otherwise be necessary to relieve the Fund of any
liability for federal income tax. Such capital loss carryover will expire on
March 31, 2002 ($637,442), March 31, 2003 ($2,468,748), March 31, 2004
($1,216,547), March 31, 2005 ($1,120,027), March 31, 2006 ($320,446), and
March 31, 2007 ($60,400). 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 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 income 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 total expenses in the Statement of Operations.
11
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
F Other -- Investment transactions are accounted for on a trade-date basis.
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, 2001 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>
YEAR ENDED MARCH 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 635,898 698,813
Issued to shareholders electing to
receive payments of distributions in
Fund shares 146,371 111,504
Redemptions (1,617,034) (1,312,375)
Exchange to Class A shares 58,758 573,363
Issued to Eaton Vance Connecticut
Limited Maturity Municipals and
Michigan Limited Maturity Municipals
Funds Shareholders 1,484,659 --
Issued to EV Traditional National
Limited Maturity Municipals
Fund Shareholders -- 1,224,418
------------------------------------------------------------------
NET INCREASE 708,652 1,295,723
------------------------------------------------------------------
<CAPTION>
YEAR ENDED MARCH 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 271,966 221,173
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,126 17,715
Redemptions (242,935) (236,471)
Exchange to Class A shares (58,758) (573,363)
Issued to Eaton Vance Connecticut
Limited Maturity Municipals and
Michigan Limited Maturity Municipals
Funds Shareholders 157,318 --
------------------------------------------------------------------
NET INCREASE (DECREASE) 139,717 (570,946)
------------------------------------------------------------------
<CAPTION>
YEAR ENDED MARCH 31,
------------------------
CLASS C 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 375,439 993,040
Issued to shareholders electing to
receive payments of distributions in
Fund shares 29,243 29,613
Redemptions (702,642) (661,276)
Issued to EV Classic National Limited
Maturity Municipals Fund Shareholders -- 778,824
------------------------------------------------------------------
NET INCREASE (DECREASE) (297,960) 1,140,201
------------------------------------------------------------------
</TABLE>
12
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS 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 $3,489 from the Fund as its
portion of the sales charge on sales of Class A shares for the year ended
March 31, 2000.
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 in effect a distribution plan for Class B shares (Class B Plan)
and for Class C shares (Class C Plan) pursuant to Rule 12b-1 under the
Investment Company Act of 1940 and a service plan for Class A shares
(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 year ended March 31,
2000, the Fund paid or accrued $43,918 and $75,102 for Class B and Class C
shares, respectively, to EVD, representing 0.75% of the average daily net
assets for Class B and Class C shares. At March 31, 2000, the amount of
Uncovered Distribution Charges of EVD calculated under the Plan was
approximately $1,040,000 and $4,924,000 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 initially
implemented the Plans by authorizing the Fund to make quarterly payments of
service fees to EVD and investment dealers in amounts equal to 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 the service fee payments equal to 0.15% per annum of the Trust'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 permits 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 will
be 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. Service fee payments for the year ended March 31, 2000
amounted to $93,077, $8,880, and $25,034 for Class A, Class B, and Class C
shares, respectively.
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. EVD received approximately $481,000 and $7,000
of CDSC paid by shareholders for Class B shares and Class C shares,
respectively, for the year ended March 31, 2000.
13
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the
year ended March 31, 2000, aggregated $29,354,170 and $28,345,239,
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.
Prior to the opening of business on November 1, 1999, the Fund acquired the
net assets of Eaton Vance Connecticut Limited Maturity Municipals and Eaton
Vance Michigan Limited Maturity Municipals Funds pursuant to an Agreement and
Plan of Reorganization dated November 1, 1999. In accordance with the
agreement, the Fund issued 635,443 Class A and 105,507 Class B shares having
a total aggregate value of $7,327,990 for Eaton Vance Connecticut Limited
Maturity Municipals Fund net assets and 849,216 Class A and 51,811 Class B
shares having a total aggregate value of $8,911,155 for Eaton Vance Michigan
Limited Maturity Municipals Fund net assets. As a result, the Fund issued
0.968 shares of Class A and Class B for each share of Class A and Class B of
Eaton Vance Connecticut Limited Maturity Municipals Fund and 0.940 shares of
Class A and Class B for each share of Class A and Class B of Eaton Vance
Michigan Limited Maturity Municipals Fund. The transaction was structured for
tax purposes to qualify as a tax free reorganization under the Internal
Revenue Code. The Eaton Vance Connecticut Limited Maturity Municipals and
Eaton Vance Michigan Limited Maturity Municipals Funds' net assets at the
date of the transaction were $7,327,990 and $8,911,155, including $90,062 and
$101,045 of unrealized appreciation, respectively. Directly after the merger,
the combined net assets of the Eaton Vance National Limited Maturity
Municipals Fund were $97,445,012 with a net asset value of $9.89, $9.89 and
$9.25 for Class A, Class B and Class C, respectively.
14
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE INVESTMENT TRUST:
- ---------------------------------------------
We have audited the accompanying statement of assets and liabilities of Eaton
Vance National Limited Maturity Municipals Fund (one of the series constituting
the Eaton Vance Investment Trust) as of March 31, 2000, the related statement of
operations for the year then ended, the statements of changes in net assets for
the years ended March 31, 2000 and 1999 and the financial highlights for each of
the years in the five-year period ended March 31, 2000. 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 auditing standards generally accepted
in the United States of America. 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 Eaton Vance National
Limited Maturity Municipals Fund at March 31, 2000, the results of its
operations, the changes in its net assets and its financial highlights for the
respective stated periods in conformity with accounting principles generally
accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 28, 2000
15
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.8%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Assisted Living -- 1.0%
- ------------------------------------------------------------------------
$ 915 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.00%, 10/1/07 $ 939,833
- ------------------------------------------------------------------------
$ 939,833
- ------------------------------------------------------------------------
Cogeneration -- 8.0%
- ------------------------------------------------------------------------
$ 250 Eastern Connecticut Resources Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.00%, 1/1/03 $ 239,700
955 New Jersey EDA, (Trigen-Trenton), (AMT),
6.10%, 12/1/05 960,090
1,250 New Jersey EDA, (Vineland Cogeneration),
(AMT), 7.875%, 6/1/19 1,292,625
500 Palm Beach County, FL, (Okeelanta
Power), (AMT), 6.85%, 2/15/21(1) 271,250
500 Palm Beach County, FL, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 266,250
1,800 Pennsylvania EDA, (Resource Recovery-
Northampton), 6.75%, 1/1/07 1,837,512
2,000 Pennsylvania EDA, (Resource
Recovery-Colver), (AMT), 7.05%, 12/1/10 2,065,800
56 Robbins, IL, Resource Recovery, (AMT),
0.00%, 10/15/09 26,303
28 Robbins, IL, Resource Recovery, (AMT),
7.25%, 10/15/09 26,768
121 Robbins, IL, Resource Recovery, (AMT),
7.25%, 10/15/24 113,321
180 Robbins, IL, Resource Recovery, (AMT),
8.375%, 10/15/16(1) 80,859
70 Robbins, IL, Resource Recovery, (AMT),
8.375%, 10/15/16(1) 31,641
- ------------------------------------------------------------------------
$ 7,212,119
- ------------------------------------------------------------------------
Education -- 7.3%
- ------------------------------------------------------------------------
$1,900 Arizona Educational Loan Marketing
Corp., (AMT), 6.25%, 6/1/06 $ 1,999,332
1,000 Arizona Student Loan Acquisition
Authority, (AMT), 7.625%, 5/1/10 1,073,080
1,000 Arkansas State Student Loan Authority,
(AMT), 6.25%, 6/1/10 1,026,340
200 Connecticut HEFA, (Quinnipiac College),
6.00%, 7/1/13 198,088
140 Connecticut HEFA, (Sacred Heart
University), 6.00%, 7/1/08 149,355
1,000 New Hampshire HEFA, (Colby-Sawyer
College), 7.20%, 6/1/12 1,038,120
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Education (continued)
- ------------------------------------------------------------------------
$1,700 University of Illinois, 0.00%, 4/1/15 $ 722,143
1,000 University of Illinois, 0.00%, 4/1/16 398,110
- ------------------------------------------------------------------------
$ 6,604,568
- ------------------------------------------------------------------------
Electric Utilities -- 1.1%
- ------------------------------------------------------------------------
$1,000 North Carolina Municipal Power Agency,
(Catawba Electric Revenue),
6.375%, 1/1/13 $ 1,022,910
- ------------------------------------------------------------------------
$ 1,022,910
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.1%
- ------------------------------------------------------------------------
$ 460 Connecticut HEFA, (New Britain
Hospital), Prerefunded to 7/1/02,
7.50%, 7/1/06 $ 483,570
300 Connecticut HEFA, (Quinnipiac College),
Prerefunded to 07/01/03, 6.00%, 7/1/13 315,321
850 Florence, KY, Housing Facilities,
(Bluegrass Housing), Escrowed to
Maturity, 7.25%, 5/1/07 905,148
1,500 Grand Ledge, MI, Public School District,
(MBIA), Prerefunded to 5/1/04,
7.875%, 5/1/11 1,690,245
4,185 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/25 795,359
3,500 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity, 6.45%, 1/1/17(2) 3,687,250
895 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity, 7.876%, 1/1/11 1,010,706
874 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
Escrowed to Maturity, 7.125%, 7/15/02 899,842
3,000 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20(2) 2,774,490
500 Michigan Municipal Bond Authority,
Escrowed to Maturity, 7.00%, 10/1/02 526,830
630 Richardson, TX, Hospital Authority
(Baylor/Richardson Medical Center),
Prerefunded to 12/01/03, 6.50%, 12/1/12 671,435
1,255 Saint Tammany, LA, Public Trust Finance
Authority, (Christwood), Escrowed to
Maturity, 8.75%, 11/15/05 1,397,844
250 South Central Connecticut Regional Water
Authority, (AMBAC), Prerefunded to
8/1/01, 6.50%, 8/1/07 261,342
- ------------------------------------------------------------------------
$15,419,382
- ------------------------------------------------------------------------
General Obligations -- 7.6%
- ------------------------------------------------------------------------
$ 190 Connecticut State, 0.00%, 11/15/10 $ 108,441
150 Connecticut State, 5.125%, 8/15/11 150,313
100 Danbury, CT, 5.00%, 8/1/17 93,761
495 Detroit, MI, 6.40%, 4/1/05 519,062
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
General Obligations (continued)
- ------------------------------------------------------------------------
$2,000 Detroit, MI, 6.50%, 4/1/02 $ 2,056,620
265 New Fairfield, CT, 4.90%, 8/1/13 258,648
750 New York City, NY, 0.00%, 8/1/07 509,407
750 Ohio State, 0.00%, 8/1/08 486,975
115 Puerto Rico, 0.00%, 7/1/08 75,356
1,000 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/15 937,460
750 Wisconsin State, (AMT), 5.10%, 5/1/15 703,177
910 Youngstown, OH, County School District,
6.40%, 7/1/00 912,038
- ------------------------------------------------------------------------
$ 6,811,258
- ------------------------------------------------------------------------
Health Care-Miscellaneous -- 0.6%
- ------------------------------------------------------------------------
$ 590 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 6.00%, 12/1/36 $ 542,249
- ------------------------------------------------------------------------
$ 542,249
- ------------------------------------------------------------------------
Hospital -- 7.3%
- ------------------------------------------------------------------------
$1,700 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.00%, 9/15/03 $ 1,668,312
350 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.70%, 9/15/23 287,882
125 Connecticut HEFA, (Griffin Hospital),
6.00%, 7/1/13 115,622
500 Cuyahoga County, OH, Hospital Authority,
(Cleveland Health Clinic),
5.25%, 1/1/12 488,610
750 Forsyth County, GA, Hospital Authority,
(Georgia Baptist Health Care System),
6.00%, 10/1/08 696,210
100 Mecosta County, MI, (Michigan General
Hospital), 5.75%, 5/15/09 93,501
100 Michigan Hospital Finance Authority,
(Community Hospital), 6.00%, 10/1/05 100,898
100 Michigan Hospital Finance Authority,
(Community Hospital), 6.10%, 10/1/06 101,094
225 Michigan Hospital Finance Authority,
(Community Hospital), 6.20%, 10/1/07 227,929
1,000 Michigan Hospital Finance Authority,
(Gratiot Community Hospital),
6.10%, 10/1/07 985,210
500 New Hampshire HEFA, (Littleton Hospital
Association), 5.45%, 5/1/08 448,460
1,010 Richardson, TX, Hospital Authority
(Baylor/Richardson Medical Center),
6.50%, 12/1/12 975,711
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Hospital (continued)
- ------------------------------------------------------------------------
$ 465 San Gorgonio, CA, Memorial Health Care
District, 5.60%, 5/1/11 $ 412,818
- ------------------------------------------------------------------------
$ 6,602,257
- ------------------------------------------------------------------------
Housing -- 3.9%
- ------------------------------------------------------------------------
$1,005 Illinois Development Finance Authority,
Elderly Housing, (Mattoon Tower),
(Section 8), 6.35%, 7/1/10 $ 1,012,889
660 Illinois Development Finance Authority,
Elderly Housing, (Rome Meadows),
6.40%, 2/1/03 662,633
1,145 Illinois Development Finance Authority,
Elderly Housing, (Rome Meadows),
6.65%, 2/1/06 1,148,698
715 Sandaval County, NM, Multifamily,
6.00%, 5/1/32 688,409
- ------------------------------------------------------------------------
$ 3,512,629
- ------------------------------------------------------------------------
Industrial Development Revenue -- 12.0%
- ------------------------------------------------------------------------
$ 635 Austin, TX (Cargoport Development LLC)
(AMT), 7.50%, 10/1/07 $ 637,413
450 Austin, TX, (Cargoport Development LLC),
(AMT), 8.30%, 10/1/21 465,260
1,000 Clark County, NV, (Nevada Power Co.),
(AMT), 5.90%, 10/1/30 876,800
1,000 Columbus, NC, (International Paper Co.),
5.80%, 12/1/16 937,010
625 Connecticut Development Authority,
(Frito Lay), 6.375%, 7/1/04 632,256
900 Eagle County, CO, Airport Terminal
Corp., (American Airlines), (AMT),
6.75%, 5/1/06 903,753
900 Iowa Finance Authority, (Southbridge
Mall), 6.375%, 12/1/13 880,263
500 Jones County, MS, (International Paper
Co.), 5.80%, 10/1/21 458,685
495 Kimball, NE, EDA, (Clean Harbors),
10.75%, 9/1/26 511,201
315 Los Angeles, CA, Regional Airport
Improvement Corporate Lease, (TransWorld
Airlines), 6.125%, 5/15/00 314,836
1,100 Michigan State Strategic Fund, (Crown
Paper), 6.25%, 8/1/12 825,165
500 Missouri Development Finance Authority,
Solid Waste Disposal, (Proctor and
Gamble Paper Products), (AMT),
5.20%, 3/15/29 447,175
1,000 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 1,001,250
750 Ohio Solid Waste Revenue, (Republic
Engineered Steels), (AMT),
9.00%, 6/1/21 247,778
500 Peru, IL, (Freightways Corp.),
5.25%, 11/1/03 480,815
1,050 Santa Fe, NM, (Crow Hobbs),
8.25%, 9/1/05 1,042,640
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$ 100 Sprague, CT, Environmental Improvement,
(International Paper Co.), (AMT),
5.70%, 10/1/21 $ 91,126
- ------------------------------------------------------------------------
$10,753,426
- ------------------------------------------------------------------------
Insured-Education -- 1.1%
- ------------------------------------------------------------------------
$ 200 Connecticut HEFA, (Choate Rosemary
Hall), (MBIA), 5.00%, 7/1/14 $ 191,622
620 Golden West Schools Financing Authority,
CA, (MBIA), 5.80%, 2/1/16 656,654
500 Southern Illinois University, Housing
and Auxiliary Facilities, (MBIA),
0.00%, 4/1/17 187,920
- ------------------------------------------------------------------------
$ 1,036,196
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 3.0%
- ------------------------------------------------------------------------
$ 500 Monroe County, MI, (The Detroit Edison
Co.), (AMBAC), (AMT), 6.35%, 12/1/04 $ 523,615
1,500 North Carolina Municipal Power Agency,
(Catawba Electric Revenue), (MBIA),
6.00%, 1/1/11 1,588,215
400 Piedmont Municipal Power Agency, SC,
(Electric Revenue), (MBIA),
5.00%, 1/1/15 371,716
250 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 217,055
- ------------------------------------------------------------------------
$ 2,700,601
- ------------------------------------------------------------------------
Insured-General Obligations -- 3.6%
- ------------------------------------------------------------------------
$ 250 Bradford, CT, (FGIC), 5.40%, 2/15/14 $ 250,445
400 Bridgeport, CT, (AMBAC), 6.00%, 9/1/06 422,268
250 Fowlerville, MI, Community Schools
District, (FSA), 4.50%, 5/1/15 219,788
500 Hartland, MI, School District, (FGIC),
5.125%, 5/1/17 471,295
500 Old Saybrook, CT, (AMBAC),
4.10%, 8/15/01 497,465
100 Parchment, MI, School District, (MBIA),
5.00%, 5/1/25 90,282
1,225 Paw Paw, MI, Public School District,
(FGIC), 5.00%, 5/1/21(2) 1,111,430
250 Portage, MI, Public Schools, (FSA),
4.50%, 5/1/14 222,210
- ------------------------------------------------------------------------
$ 3,285,183
- ------------------------------------------------------------------------
Insured-Hospital -- 2.2%
- ------------------------------------------------------------------------
$ 300 Connecticut HEFA, (Middlesex Health
Services), (MBIA), 5.125%, 7/1/17 $ 279,162
250 Connecticut HEFA, (Stamford Hospital),
(MBIA), 6.50%, 7/1/06 260,953
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Hospital (continued)
- ------------------------------------------------------------------------
$2,000 El Paso County, TX, Hospital District,
(MBIA), 0.00%, 8/15/06 $ 1,433,060
- ------------------------------------------------------------------------
$ 1,973,175
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.8%
- ------------------------------------------------------------------------
$ 500 George L. Smith, (Georgia World Congress
Center-Domed Stadium), (MBIA), (AMT),
6.00%, 7/1/06(3) $ 523,370
150 Woodstock, CT, Special Obligation Bonds,
(AMBAC), 7.00%, 3/1/07 154,823
- ------------------------------------------------------------------------
$ 678,193
- ------------------------------------------------------------------------
Insured-Transportation -- 4.3%
- ------------------------------------------------------------------------
$ 500 Cleveland, OH Airport, (FSA), (AMT),
5.50%, 1/1/07 $ 508,830
600 Connecticut Airport, (Bradley
International Airport), (FGIC),
7.40%, 10/1/04 652,110
2,500 E-470 Public Highway Authority, CO,
(MBIA), 0.00%, 9/1/17 915,800
1,000 Metropolitan Transportation Authority,
NY, Commuter Facility Revenue, (AMBAC),
5.00%, 7/1/20 902,560
500 Metropolitan Transportation Authority,
NY, Transportation Facility Revenue,
(MBIA), 5.00%, 7/1/17 464,695
500 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 207,370
200 Wayne Charter County, MI, Airport,
(Detroit Metropolitan Wayne County),
(MBIA), (AMT), 5.25%, 12/1/13 194,010
- ------------------------------------------------------------------------
$ 3,845,375
- ------------------------------------------------------------------------
Miscellaneous -- 1.7%
- ------------------------------------------------------------------------
$ 890 Barona, CA, (Band of Mission Indians),
8.25%, 1/1/20 $ 873,847
150 Pittsfield Township, MI, EDC, (Arbor
Hospice), 7.875%, 8/15/27 144,534
500 San Juan, NM, Pueblo Development
Authority, 7.097%, 10/15/06 477,725
- ------------------------------------------------------------------------
$ 1,496,106
- ------------------------------------------------------------------------
Nursing Home -- 5.3%
- ------------------------------------------------------------------------
$1,105 Arizona HFA, Assisted Living Facilites,
(mesa/care Institute, Inc.),
7.625%, 1/1/06 $ 1,071,706
500 Citrus County, FL, IDA, (Beverly
Enterprises), 5.00%, 4/1/03 483,685
945 Clovis, NM, IDR, (Retirement Ranches,
Inc.), 7.75%, 4/1/19 956,491
510 Fairfield, OH, EDA, (Beverly
Enterprises), 8.50%, 1/1/03 523,775
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Nursing Home (continued)
- ------------------------------------------------------------------------
$1,285 Massachusetts IFA, (Age Institute of
Massachusetts), 7.60%, 11/1/05 $ 1,292,389
395 Michigan Hospital Finance Authority,
(Presbyterian Villages), 6.20%, 1/1/06 397,453
- ------------------------------------------------------------------------
$ 4,725,499
- ------------------------------------------------------------------------
Senior Living / Life Care -- 5.2%
- ------------------------------------------------------------------------
$ 785 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 $ 683,939
2,000 Illinois HFA, (Lutheran Social
Services), 6.125%, 8/15/10 1,885,600
300 Kalamazoo, MI, (Friendship Village),
6.125%, 5/15/17 269,742
500 Kansas City, MO, IDR, (Kingswood Manor),
5.80%, 11/15/17 421,235
250 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 210,483
500 North Miami, FL, Health Facilities
Authority, (Imperial Club),
6.75%, 1/1/33 432,890
305 Okaloosa County, FL, Retirement Rental
Housing, (Encore Retirement Partners),
5.25%, 2/1/04 282,659
500 Wisconsin HEFA, (Wisconsin Illinois
Senior Housing), 7.00%, 8/1/29 468,760
- ------------------------------------------------------------------------
$ 4,655,308
- ------------------------------------------------------------------------
Special Tax Revenue -- 4.1%
- ------------------------------------------------------------------------
$ 500 Battle Creek, MI, Downtown Development
Authority, 6.65%, 5/1/02 $ 515,195
2,000 Detroit, MI, Downtown Development
Authority Tax Increment, 0.00%, 7/1/21 540,840
250 Frederick County, MD, Urbana Community
Development Authority, 6.625%, 7/1/25 236,250
500 Heritage Palms Community Development
District, FL, Capital Improvements,
6.25%, 11/1/04 497,905
1,000 Laredo, TX, 4.50%, 2/15/17 857,850
525 Longleaf, FL, Community Development
District, 6.20%, 5/1/09 495,999
500 Michigan Building Authority,
6.10%, 10/1/01 511,080
- ------------------------------------------------------------------------
$ 3,655,119
- ------------------------------------------------------------------------
Transportation -- 1.4%
- ------------------------------------------------------------------------
$ 240 Memphis-Shelby County, TN, Airport
Authority, 6.12%, 12/1/16 $ 222,166
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Transportation (continued)
- ------------------------------------------------------------------------
$1,000 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 $ 1,018,960
- ------------------------------------------------------------------------
$ 1,241,126
- ------------------------------------------------------------------------
Water and Sewer -- 0.2%
- ------------------------------------------------------------------------
$ 150 Connecticut Clean Water Fund,
4.875%, 5/1/09 $ 149,016
- ------------------------------------------------------------------------
$ 149,016
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.8%
(identified cost $90,103,698) $88,861,528
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.2% $ 1,075,025
- ------------------------------------------------------------------------
Net Assets -- 100.0% $89,936,553
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
At March 31, 2000, the concentration of the Portfolio's investments in the
various states, determined as a percentage of net assets, is as follows:
<TABLE>
<S> <C>
Michigan 13.7%
Others, representing less than 10% individually 85.1%
</TABLE>
The Portfolio invests primarily in debt securities issued by municipali-
ties. 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, 2000, 17.4% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions
and financial guaranty assurance agencies. The aggregate percentage insured
by financial institutions ranged from 1.3% to 10.0% of total investments.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF MARCH 31, 2000
<S> <C>
Assets
- -----------------------------------------------------
Investments, at value
(identified cost, $90,103,698) $88,861,528
Cash 766,661
Receivable for investments sold 65,000
Interest receivable 1,629,862
Prepaid expenses 18,061
- -----------------------------------------------------
TOTAL ASSETS $91,341,112
- -----------------------------------------------------
Liabilities
- -----------------------------------------------------
Payable for investments purchased $ 857,910
Payable for daily variation margin on
open financial futures contracts 11,000
Payable for when-issued securities 522,390
Accrued expenses 13,259
- -----------------------------------------------------
TOTAL LIABILITIES $ 1,404,559
- -----------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $89,936,553
- -----------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------
Net proceeds from capital contributions
and withdrawals $91,211,855
Net unrealized depreciation (computed on
the basis of identified cost) (1,275,302)
- -----------------------------------------------------
TOTAL $89,936,553
- -----------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE YEAR ENDED
MARCH 31, 2000
<S> <C>
Investment Income
- -----------------------------------------------------
Interest $ 5,444,661
- -----------------------------------------------------
TOTAL INVESTMENT INCOME $ 5,444,661
- -----------------------------------------------------
Expenses
- -----------------------------------------------------
Investment adviser fee $ 429,856
Trustees fees and expenses 9,451
Custodian fee 59,908
Legal and accounting services 30,776
Amortization of prepaid expenses 26,739
Miscellaneous 22,024
- -----------------------------------------------------
TOTAL EXPENSES $ 578,754
- -----------------------------------------------------
Deduct --
Reduction of custodian fee $ 14,375
- -----------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 14,375
- -----------------------------------------------------
NET EXPENSES $ 564,379
- -----------------------------------------------------
NET INVESTMENT INCOME $ 4,880,282
- -----------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (125,180)
Financial futures contracts 114,174
- -----------------------------------------------------
NET REALIZED LOSS $ (11,006)
- -----------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(5,874,916)
Financial futures contracts (33,132)
- -----------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(5,908,048)
- -----------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(5,919,054)
- -----------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,038,772)
- -----------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
INCREASE (DECREASE) YEAR ENDED YEAR ENDED
IN NET ASSETS MARCH 31, 2000 MARCH 31, 1999
<S> <C> <C>
- ------------------------------------------------------------------------
From operations --
Net investment income $ 4,880,282 $ 4,830,146
Net realized gain (loss) (11,006) 372,695
Net change in unrealized
appreciation (depreciation) (5,908,048) (1,182,416)
- ------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (1,038,772) $ 4,020,425
- ------------------------------------------------------------------------
Capital transactions --
Net assets contributed by Connecticut
and Michigan Limited Maturity
Municipals Funds $ 16,239,145 $ --
Contributions 13,115,025 26,384,868
Withdrawals (28,345,239) (33,566,159)
- ------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ 1,008,931 $ (7,181,291)
- ------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (29,841) $ (3,160,866)
- ------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------
At beginning of year $ 89,966,394 $ 93,127,260
- ------------------------------------------------------------------------
AT END OF YEAR $ 89,936,553 $ 89,966,394
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
YEAR ENDED MARCH 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.65% 0.61% 0.60% 0.60% 0.57%
Expenses after custodian
fee reduction 0.63% 0.60% 0.59% 0.58% 0.56%
Net investment income 5.49% 5.32% 5.53% 5.45% 5.08%
Portfolio Turnover 27% 26% 41% 68% 68%
- -----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $89,937 $89,966 $93,127 $102,504 $134,776
- -----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS
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 accretion of 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
balance the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
total expenses in the Statement of Operations.
H Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
23
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
I Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
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 year ended March 31, 2000, the fee was equivalent to
0.48% of the Portfolio's average net assets for such period and amounted to
$429,856. 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 year ended March 31, 2000, 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 $150 million unsecured line of credit agreement
with a group of banks. Borrowings may be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. The National
Limited Maturity Municipals Portfolio did not have any significant borrowings
or allocated fees during the year ended March 31, 2000.
4 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $29,054,227 and $23,894,787 respectively,
for the year ended March 31, 2000.
5 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned at March 31, 2000, as computed on a federal income tax
basis, were as follows:
<TABLE>
<S> <C>
AGGREGATE COST $90,103,698
-----------------------------------------------------
Gross unrealized appreciation $ 1,759,928
Gross unrealized depreciation (3,002,098)
-----------------------------------------------------
NET UNREALIZED DEPRECIATION $(1,242,170)
-----------------------------------------------------
</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.
A summary of obligations under these financial instruments as of March 31,
2000, is as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS
-----------------------------------------------------------------------------------
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C>
-----------------------------------------------------------------------------------
6/00 22 US Treasury Bond Short $(33,132)
</TABLE>
7 Transfer of Net Assets
- -------------------------------------------
Prior to the opening of business on November 1, 1999, Eaton Vance Connecticut
Limited Maturity Municipals and Eaton Vance Michigan Limited Maturity
Municipals Funds, pursuant to an Agreement and Plan of Reorganization dated
November 1, 1999, contributed securities with a market value of $7,443,241
and $8,864,366, including $88,630 and $97,151 of unrealized appreciation
respectively. The transaction was structured for tax purposes to qualify as a
"tax free" reorganization under the Internal Revenue Code.
24
<PAGE>
NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS
OF NATIONAL LIMITED MATURITY MUNICIPALS PORTFOLIO:
- ---------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of National Limited Maturity Municipals Portfolio
as of March 31, 2000, the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended March 31,
2000 and 1999 and the supplementary data for each of the years in the five-year
period ended March 31, 2000. These financial statements and supplementary data
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and supplementary data based on
our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. 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 held as of March 31, 2000 by correspondence with the custodian and
brokers; where replies were not received, alternative procedures were performed.
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 National Limited Maturity
Municipals Portfolio at March 31, 2000, the results of its operations, the
changes in its net assets and its supplementary data for the respective stated
periods in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
April 28, 2000
25
<PAGE>
EATON VANCE NATIONAL LIMITED MATURITY MUNICIPALS FUND AS OF MARCH 31, 2000
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 Planners
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 Planners
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
26
<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
PFPC, INC.
Attention: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
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.
- --------------------------------------------------------------------------------
439-5/00 LNASRC-5/00
