<PAGE>
Arizona Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Assisted Living -- 1.7%
- --------------------------------------------------------------------------------
NR NR $ 1,800 Arizona Health Facilities
Authority, (Mesa Project),
7.625%, 1/1/26 $ 1,860,444
- --------------------------------------------------------------------------------
$ 1,860,444
- --------------------------------------------------------------------------------
Education -- 7.0%
- --------------------------------------------------------------------------------
Aa2 NR $ 2,000 Arizona Educational Loan
Marketing Corp., (AMT), 6.25%,
6/1/06 $ 2,205,820
NR NR 2,000 Arizona Educational Loan
Marketing Corp., (AMT), 6.30%,
12/1/08 2,145,280
A NR 1,500 Arizona Student Loan
Acquisition Authority, (AMT),
7.625%, 5/1/10 1,682,400
A1 AA 1,250 University of Arizona,
6.25%, 6/1/11 1,370,363
- --------------------------------------------------------------------------------
$ 7,403,863
- --------------------------------------------------------------------------------
Electric Utilities -- 15.2%
- --------------------------------------------------------------------------------
A A+ $ 1,000 Commonwealth of Puerto Rico,
Telephone Authority, Variable
Rate, 1/1/20/(1)/ $ 1,128,750
Ba2 BB+ 3,500 Maricopa County, AZ, Pollution
Control, 6.375%, 8/15/23 3,737,895
Baa1 A- 5,300 Navajo County, AZ, Pollution
Control, 5.875%, 8/15/28 5,498,961
B2 B 1,000 Pima County, AZ, IDA, (Tucson
Electric Power Co.),
6.00%, 9/1/29 1,029,480
Baa1 BBB+ 370 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 391,138
Aa2 AA 3,500 Salt River Project Agricultural
Improvement and Power District,
5.00%, 1/1/20 3,472,245
Aa2 AA 820 Salt River Project Agricultural
Improvement and Power District,
6.25%, 1/1/27 882,935
- --------------------------------------------------------------------------------
$ 16,141,404
- --------------------------------------------------------------------------------
Escrowed/Prerefunded -- 17.4%
- --------------------------------------------------------------------------------
Aaa AA $ 1,000 Arizona Transportation Board
Highway, 6.50%, 7/1/11 $ 1,113,550
NR AAA 1,000 Glendale, AZ, Industrial
Development Authority, 7.125%,
7/1/20 1,188,940
NR NR 2,250 Maricopa County, AZ, IDA,
(Greenery Apartments), 6.625%,
7/1/26 2,643,593
NR NR 3,000 Maricopa County, AZ, IDA,
Multi-family, 6.625%, 1/1/27 3,528,690
NR NR 1,250 Maricopa County, AZ, IDA, Place
Five and The Greenery Projects,
8.625%, 1/1/11 1,652,450
Aaa AAA 7,500 Maricopa County, AZ, Single
Family Mortgage, 0.00%, 2/1/16 3,031,800
Aaa AAA 1,750 Phoenix, AZ, Civic Improvement
Excise Tax, (MBIA),
6.60%, 7/1/08 2,007,705
Aaa AAA 5,000 Phoenix, AZ, Industrial
Development Authority, IDA,
Single Family, 0.00%, 12/1/14 2,182,450
NR AA 1,000 Phoenix, AZ, Street and Highway
User, 6.25%, 7/1/11 1,096,920
- --------------------------------------------------------------------------------
$ 18,446,098
- --------------------------------------------------------------------------------
General Obligations -- 6.0%
- --------------------------------------------------------------------------------
Baa1 A $ 1,125 Commonwealth of Puerto Rico,
0.00%, 7/1/17 $ 427,106
Aa1 AA+ 2,000 Phoenix, AZ, 5.25%, 7/1/20 2,030,840
Aa1 AA+ 1,500 Phoenix, AZ, 6.375%, 7/1/13 1,652,685
NR A 2,000 Tatum Ranch, AZ,
6.875%, 7/1/16 2,206,780
- --------------------------------------------------------------------------------
$ 6,317,411
- --------------------------------------------------------------------------------
Hospitals -- 4.6%
- --------------------------------------------------------------------------------
NR BBB $ 1,130 Arizona Health Facilities,
(Phoenix Memorial Hospital),
8.125%, 6/1/12 $ 1,244,175
NR BBB 1,250 Arizona Health Facilities,
(Phoenix Memorial Hospital),
8.20%, 6/1/21/(2)/ 1,379,150
Baa1 BBB- 1,000 Maricopa County, AZ, (Sun
Health Corporation), 8.125%,
4/1/12 1,169,830
NR NR 905 Winslow, AZ, Industrial
Development Authority, (Winslow
Memorial Hospital), 9.50%,
6/1/22 1,049,592
- --------------------------------------------------------------------------------
$ 4,842,747
- --------------------------------------------------------------------------------
Housing -- 5.0%
- --------------------------------------------------------------------------------
NR A $ 2,000 Maricopa County, AZ, IDA,
(Laguna Point Apartments),
6.75%, 7/1/19 $ 2,174,720
NR NR 1,000 Maricopa County, AZ, IDA,
Multifamily, (National Health
Facilities II Project), Series
B, 6.375%, 1/1/19 998,790
See notes to financial statements
36
<PAGE>
Arizona Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Housing (continued)
- --------------------------------------------------------------------------------
NR AA $ 1,000 Phoenix, AZ, (Woodstone and
Silver Springs Apartments),
Multi-family Housing, (Asset
Guaranty), 6.25%, 4/1/23 $ 1,042,650
NR AAA 1,000 Tempe, AZ, Industrial
Development Authority,
(Quadrangle Village
Apartments), 6.25%, 6/1/26 1,044,680
- --------------------------------------------------------------------------------
$ 5,260,840
- --------------------------------------------------------------------------------
Industrial Development Revenue/Pollution Control Revenue -- 9.2%
- --------------------------------------------------------------------------------
A1 NR $ 1,000 Casa Grande, AZ, Pollution
Control, (Frito Lay, Inc.),
6.60%, 12/1/10 $ 1,105,910
NR BBB- 2,000 Coconino County, AZ, Pollution
Control, (Nevada Power
Co.-Series B), (AMT), 5.80%,
11/1/32 2,068,100
Baa2 BBB 3,000 Gila County, AZ, Industrial
Development Authority, (Asarco,
Inc.), 5.55%, 1/1/27 3,069,510
A2 A 1,000 Greenlee County, AZ, Pollution
Control, (Phelps Dodge Corp.),
5.45%, 6/1/09 1,052,930
Ba1 BB+ 500 Maricopa County, AZ, Pollution
Control, (Public Service Co.),
5.75%, 11/1/22 518,780
Baa3 BBB- 1,750 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.25%, 6/1/26 1,903,773
- --------------------------------------------------------------------------------
$ 9,719,003
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 2.9%
- --------------------------------------------------------------------------------
Aaa AAA $ 2,715 Pima County, AZ, (Irvington
Power), (FGIC), 7.25%, 7/15/10 $ 3,059,669
- --------------------------------------------------------------------------------
$ 3,059,669
- --------------------------------------------------------------------------------
Insured-General Obligations -- 4.8%
- --------------------------------------------------------------------------------
NR AAA $ 1,500 Commonwealth of Puerto Rico
"RIBS", (AMBAC), Variable
Rate, 7/1/15/(1)/ $ 1,758,750
Aaa AAA 1,000 Commonwealth of Puerto Rico,
Variable Rate,
(FSA), 7/1/20/(1)/ 1,138,750
Aaa AAA 1,000 Maricopa County, AZ, Alhambra
School District, (AMBAC),
5.125%, 7/1/13 1,026,430
Aaa AAA 1,000 Puerto Rico (FSA), Variable
Rate, 7/1/22/(1)/ 1,151,250
- --------------------------------------------------------------------------------
$ 5,075,180
- --------------------------------------------------------------------------------
Insured-Hospitals -- 13.0%
- --------------------------------------------------------------------------------
Aaa AAA $ 2,000 Maricopa County, AZ, Hospital
District No. 1, (FGIC),
6.125%, 6/1/15 $ 2,169,360
Aaa AAA 2,000 Maricopa County, AZ, Samaritan
Health, (MBIA), 7.00%, 12/1/16 2,538,440
Aaa AAA 2,000 Mohave County, AZ, (Kingman
Regional Medical Center),
(FGIC), 6.50%, 6/1/15 2,187,200
Aaa AAA 1,000 Pima County, AZ, (Carondelet
Health Care Corp.), (MBIA),
5.25%, 7/1/12 1,065,740
Aaa AAA 1,000 Pima County, AZ, (Carondolet
Health Care Corp.), (MBIA),
5.25%, 7/1/11 1,069,170
Aaa AAA 1,500 Pima County, AZ, (Tucson
Medical Center), (MBIA), 5.00%,
4/1/15 1,502,895
Aaa AAA 1,500 Pima County, AZ, (Tucson
Medical Center), (MBIA),
6.375%, 4/1/12 1,638,450
Aaa AAA 1,500 Scottsdale, AZ, Industrial
Development Authority, (AMBAC),
6.125%, 9/1/17 1,653,270
- --------------------------------------------------------------------------------
$ 13,824,525
- --------------------------------------------------------------------------------
Insured-Housing -- 2.5%
- --------------------------------------------------------------------------------
Aaa AAA $ 2,500 Maricopa County, AZ, IDA,
Multifamily, (National Health
Facilities II Project), (FSA),
5.50%, 1/1/24 $ 2,649,900
- --------------------------------------------------------------------------------
$ 2,649,900
- --------------------------------------------------------------------------------
Insured-Water and Sewer -- 1.0%
- --------------------------------------------------------------------------------
Aaa AAA $ 1,000 Chandler, AZ, Water and Sewer,
(FGIC), 6.25%, 7/1/13 $ 1,095,530
- --------------------------------------------------------------------------------
$ 1,095,530
- --------------------------------------------------------------------------------
Special Tax Revenue -- 1.1%
- --------------------------------------------------------------------------------
NR NR $ 1,000 Virgin Islands Public Finance
Authority, 7.25%, 10/1/18 $ 1,125,850
- --------------------------------------------------------------------------------
$ 1,125,850
- --------------------------------------------------------------------------------
Transportation -- 3.1%
- --------------------------------------------------------------------------------
NR BBB $ 3,000 Guam Airport Authority, (AMT),
6.70%, 10/1/23 $ 3,303,540
- --------------------------------------------------------------------------------
$ 3,303,540
- --------------------------------------------------------------------------------
See notes to financial statements
37
<PAGE>
Arizona Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Water and Sewer -- 5.5%
- --------------------------------------------------------------------------------
Aa1 AA+ $ 2,000 Arizona Wastewater Management
Authority, 6.80%, 7/1/11 $ 2,240,960
A1 AA- 1,000 Central Arizona Water
Conservation District, 5.50%,
11/1/09 1,100,510
Aa3 A 1,500 Phoenix, AZ, (Civic Improvement
Corp.), 4.75%, 7/1/23 1,417,455
A1 A+ 1,000 Tuscon, AZ, Water Systems,
6.50%, 7/1/16 1,083,520
- --------------------------------------------------------------------------------
$ 5,842,445
- --------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $94,998,980) $105,968,449
- --------------------------------------------------------------------------------
AMT-Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio primarily invests in debt securities issued by Arizona
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 26.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institution ranged from 1.0% to 9.4% of total investments.
/(1)/ Security has been issued as an inverse floater bond.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
38
<PAGE>
Colorado Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Electric Utilities -- 1.4%
- --------------------------------------------------------------------------------
NR BBB $ 500 Guam Power Authority,
6.625%, 10/1/14 $ 557,280
- --------------------------------------------------------------------------------
$ 557,280
- --------------------------------------------------------------------------------
Escrowed / Prerefunded -- 15.2%
- --------------------------------------------------------------------------------
NR AAA $4,000 Colorado Health Facilities
Authority, (Liberty Heights),
(FSA), 0.00%, 7/15/24 $ 1,007,440
Aa2 NR 1,000 Colorado Housing and Finance
Authority, Retirement Housing,
(Liberty Heights Project),
(AMT), 7.55%, 11/1/27 1,134,690
Aaa NR 3,000 Dawson Ridge, Metropolitan
District #1, Douglas
County, CO, 0.00%, 10/1/22 835,410
Aaa NR 5,500 Dawson Ridge, Metropolitan
District Number 1, Douglas
County, CO, Escrowed to
Maturity, 0.00%, 10/1/22 1,531,585
Aaa BBB 160 Denver, CO, City And County
Airport Revenue, (AMT),
Prerefunded to 11/15/01,
7.00%, 11/15/25 176,571
Aaa BBB 85 Denver, CO, City And County
Airport Revenue, (AMT),
Prerefunded to 11/15/04,
7.50%, 11/15/23 102,503
Aaa BBB 1,185 Denver, CO, City And County
Airport Revenue, Prerefunded
to 11/15/02, (AMT), 6.75%,
11/15/22 1,289,399
- --------------------------------------------------------------------------------
$ 6,077,598
- --------------------------------------------------------------------------------
General Obligations -- 2.6%
- --------------------------------------------------------------------------------
Baa1 A $1,000 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/36 $ 1,063,420
- --------------------------------------------------------------------------------
$ 1,063,420
- --------------------------------------------------------------------------------
Hospitals -- 23.1%
- --------------------------------------------------------------------------------
NR NR $ 900 Colorado Health Facilities
Authority, (Cleo Wallace
Center), 7.00%, 8/1/15 $ 946,035
NR BBB- 650 Colorado Health Facilities
Authority, (National Jewish
Center For Immunology and
Respiratory Medicine),
6.875%, 2/15/12 690,833
Baa1 NR $2,000 Colorado Health Facilities
Authority, (Parkview Memorial
Hospital), 6.125%, 9/1/25 $ 2,130,400
Baa BBB 2,050 Colorado Health Facilities
Authority, (Rocky Mountain
Adventist Healthcare),
6.625%, 2/1/13 2,211,765
NR NR 600 Colorado Health Facilities
Authority, (Steamboat Springs
Health), 5.00%, 9/15/03 606,264
NR NR 500 Colorado Health Facilities
Authority, (Steamboat Springs
Health), 5.30%, 9/15/09 501,045
NR BBB 2,000 Colorado Health Facilities
Authority, (Vail Valley Medical
Center), 6.60%, 1/15/20 2,154,440
- --------------------------------------------------------------------------------
$ 9,240,782
- --------------------------------------------------------------------------------
Housing -- 14.8%
- --------------------------------------------------------------------------------
NR AAA $1,000 City of Lakewood,
Multifamily Housing, FHA
Insured Mortgage Loan,
(AMT), 6.65%, 10/1/25 $ 1,076,710
Aa AA 500 Colorado Housing and
Finance Authority,
Multifamily Mortgage
Revenue, MFMR, (AMT),
6.40%, 10/1/27 534,650
Aa2 NR 1,350 Colorado Housing and
Finance Authority, Single
Family Access Program,
7.90%, 12/1/24 1,516,860
Aa2 NR 710 Colorado Housing and
Finance Authority, Single
Family Access Program,
8.00%, 12/1/24 807,767
Aa2 NR 530 Colorado Housing and
Finance Authority, Single
Family Housing, (AMT),
7.65%, 12/1/25 600,140
NR AAA 1,000 Denver, CO, Multifamily
Housing, (Lofts Project),
(AMT), 6.15%, 12/1/16 1,052,670
NR NR 340 Lake Creek Affordable
Housing Corp., Multifamily,
8.00%, 12/1/23 359,094
- --------------------------------------------------------------------------------
$ 5,947,891
- --------------------------------------------------------------------------------
Industrial Development Revenue/Pollution
Control Revenue -- 6.5%
- --------------------------------------------------------------------------------
A2 NR $1,250 Puerto Rico Industrial,
Medical and Environmental
Pollution Control Facility
Finance Authority,
(American Home Products),
5.10%, 12/1/18 $ 1,243,563
See notes to financial statements
39
<PAGE>
Colorado Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Industrial Development Revenue/
Pollution Control Revenue (continued)
- --------------------------------------------------------------------------
Baa3 BBB- $1,250 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.25%, 6/1/26 $ 1,359,838
- --------------------------------------------------------------------------
$ 2,603,401
- --------------------------------------------------------------------------
Insured-Electric Utilities -- 2.2%
- --------------------------------------------------------------------------
Aaa AAA $ 500 Commonwealth of Puerto
Rico, Telephone Authority,
(MBIA), Variable Rate,
1/16/15/(1)/ $ 541,875
Aaa AAA 300 Puerto Rico Electric Power
Authority, "STRIPES",
(FSA), Variable
Rate, 7/1/03/(1)/ 347,625
- --------------------------------------------------------------------------
$ 889,500
- --------------------------------------------------------------------------
Insured-General Obligations -- 11.2%
- --------------------------------------------------------------------------
Aaa AAA $1,000 Douglas and Elbert
Counties, Douglas County
School District, (MBIA),
6.40%, 12/15/11 $ 1,141,190
Aaa AAA 1,750 Eagle, Garfield and Routt
Counties, School District
No. RE 50J, (FGIC), 6.30%,
12/1/12 1,963,693
Aaa AAA 1,160 Highlands Ranch
Metropolitan District No.
2, (FSA), 6.50%, 6/15/10/(2)/ 1,378,846
- --------------------------------------------------------------------------
$ 4,483,729
- --------------------------------------------------------------------------
Insured-Housing -- 2.7%
- --------------------------------------------------------------------------
Aaa AAA $1,000 City of Thornton, SCA
Realty MFMR, (FSA), 7.10%,
1/1/30 $ 1,096,730
- --------------------------------------------------------------------------
$ 1,096,730
- --------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.7%
- --------------------------------------------------------------------------
Aaa AAA $1,000 City of Broomfield Sales
and Use Tax, (AMBAC),
6.30%, 12/1/14 $ 1,090,060
- --------------------------------------------------------------------------
$ 1,090,060
- --------------------------------------------------------------------------
Insured-Transportation -- 2.0%
- --------------------------------------------------------------------------
Aaa AAA $ 750 Denver, CO, (Denver
International Airport),
(AMT), (MBIA),
5.75%, 11/15/15 $ 794,805
- --------------------------------------------------------------------------
$ 794,805
- --------------------------------------------------------------------------
Transportation -- 12.9%
- --------------------------------------------------------------------------
Baa3 BB+ $2,000 Denver, CO, (United
Airlines), (AMT), 6.875%,
10/1/32 $ 2,193,499
Aaa BBB 315 Denver, CO, City and County
Airport Revenue, (AMT),
6.75%, 11/15/22 356,659
Baa1 BBB 590 Denver, CO, City And County
Airport Revenue, (AMT),
7.00%, 11/15/25 637,849
Baa1 BBB 415 Denver, CO, City and County
Airport Revenue, (AMT),
7.50%, 11/15/23 480,275
NR NR 500 Eagle County, CO, (Eagle
County Airport Terminal
Project), (AMT), 7.50%,
5/1/21 546,820
NR BBB 750 Guam Airport Authority,
(AMT), 6.60%, 10/1/10 825,353
NR BBB 100 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 110,118
- --------------------------------------------------------------------------
$ 5,150,573
- --------------------------------------------------------------------------
Water and Sewer -- 2.7%
- --------------------------------------------------------------------------
NR NR $1,000 Cottonwood Water and
Sanitation District, 7.75%,
12/1/20 $ 1,070,840
- --------------------------------------------------------------------------
$ 1,070,840
- --------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100%
(identified cost $35,691,544) $40,066,609
- --------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Colorado
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 23.3% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 2.7% to 9.6% of total investments.
/(1)/ Security has been issued as an inverse floater bond.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
40
<PAGE>
Connecticut Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education -- 9.3%
- --------------------------------------------------------------------------------------
NR BBB- $4,775 Connecticut Health and Education
Facilities Authority, (Quinnipiac
College), 6.00%, 7/1/23 $ 4,895,235
Baa3 BBB- 1,000 Connecticut HEFA, (Sacred Heart
University), 5.80%, 7/1/23 1,007,130
Ba2 BBB- 5,500 Connecticut HEFA, (University of
Hartford), 6.80%, 7/1/22 5,890,225
Aaa AAA 3,400 Connecticut HEFA, (Yale University),
Variable Rate, 6/10/30/(1)/ 3,901,500
- --------------------------------------------------------------------------------------
$ 15,694,090
- --------------------------------------------------------------------------------------
Electric Utilities -- 5.2%
- --------------------------------------------------------------------------------------
NR BBB $1,100 Guam Power Authority,
6.625%, 10/1/14 $ 1,226,016
NR BBB 3,625 Guam Power Authority Revenue Bonds,
6.30%, 10/1/22 3,868,528
NR NR 3,365 Virgin Islands Water and Power
Authority, 7.40%, 7/1/11 3,696,049
- --------------------------------------------------------------------------------------
$ 8,790,593
- --------------------------------------------------------------------------------------
Escrowed/Prerefunded -- 1.5%
- --------------------------------------------------------------------------------------
NR A $1,000 Connecticut HEFA, (Sacred Heart
University), 6.80%, 7/1/12 $ 1,125,710
A1 AAA 645 Connecticut Special Tax Obligation
Bonds, (STOB), Transportation
Infrastructure Purposes,
6.50%, 7/1/09 682,204
NR AA- 650 State of Connecticut, General
Obligations Bonds,
6.875%, 7/15/10 707,285
- --------------------------------------------------------------------------------------
$ 2,515,199
- --------------------------------------------------------------------------------------
General Obligations -- 2.5%
- --------------------------------------------------------------------------------------
Aa2 AA $1,270 City of Danbury, 4.50%, 2/1/14 $ 1,237,475
Baa1 A 1,065 Commonwealth of Puerto Rico, Public
Improvement, 0.00%, 7/1/15 454,393
NR BBB 500 Government of Guam,
5.40%, 11/15/18 507,255
Aa3 AA- 1,000 State of Connecticut,
5.40%, 11/1/16 1,045,630
Aa3 AA- $1,750 State of Connecticut, Capital
Appreciation Bonds,
0.00%, 11/1/09 $ 1,026,025
- --------------------------------------------------------------------------------------
$ 4,270,778
- --------------------------------------------------------------------------------------
Hospitals -- 9.0%
- --------------------------------------------------------------------------------------
Baa2 NR $5,400 Connecticut HEFA, (Griffin Hospital),
5.75%, 7/1/23 $ 5,495,094
NR NR 2,000 Connecticut HEFA, (New Britan Memorial
Hospital), 7.75%, 7/1/22 2,320,820
NR A+ 1,100 Connecticut HEFA, (William W. Backus
Hospital), 6.00%, 7/1/12 1,169,344
NR A+ 5,780 Connecticut HEFA, (William W. Backus
Hospital), 6.375%, 7/1/22 6,148,706
- --------------------------------------------------------------------------------------
$ 15,133,964
- --------------------------------------------------------------------------------------
Housing -- 12.5%
- --------------------------------------------------------------------------------------
Aa AA $3,000 Connecticut HFA, MRB,
6.20%, 5/15/14 $ 3,170,550
Aa2 AA 1,695 Connecticut HFA, MRB,
6.35%, 5/15/17 1,814,175
Aa2 AA 210 Connecticut HFA, MRB,
6.55%, 11/15/13 224,597
Aa2 AA 2,515 Connecticut HFA, MRB,
6.60%, 11/15/23 2,690,648
Aa2 AA 5,315 Connecticut HFA, MRB,
6.70%, 11/15/12 5,715,485
Aa2 AA 1,705 Connecticut HFA, MRB,
6.75%, 11/15/23 1,827,283
Aa2 AA 200 Connecticut HFA, MRB,
7.00%, 11/15/09 214,514
Aa AA 15 Connecticut HFA, MRB,
7.625%, 11/15/17 15,343
Aa2 AA 4,735 Connecticut HFA, MRB, (AMT), 6.20%,
11/15/22 5,030,653
Aa2 AA 210 Connecticut HFA, MRB, (AMT), 6.90%,
5/15/20 224,916
Aa NR 100 Connecticut HFA, MRB, (AMT), 7.40%,
11/15/99 102,417
- --------------------------------------------------------------------------------------
$ 21,030,581
- --------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
41
<PAGE>
Connecticut Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------------
<S> <C> <C>
Industrial Development Revenue/Pollution Control Revenue -- 3.3%
- --------------------------------------------------------------------------------------
Aaa AAA $1,000 Connecticut Development Authority PCR,
(Pfizer Inc.), 6.55%, 2/15/13 $ 1,101,990
NR NR 3,065 Connecticut Development Authority,
Airport Facility, (Signature Flight),
(AMT), 6.625%, 12/1/14 3,283,535
A3 A- 1,100 Sprague, CT, Environmental Improvement
Revenue, (International Paper Co.),
(AMT), 5.70%, 10/1/21 1,140,458
- --------------------------------------------------------------------------------------
$ 5,525,983
- --------------------------------------------------------------------------------------
Insured-Education -- 3.4%
- --------------------------------------------------------------------------------------
Aaa AAA $4,000 Connecticut HEFA, (Choate Rosemary
College), (MBIA),
5.00%, 7/1/27 $ 3,939,240
Aaa AAA 1,555 Connecticut HEFA, (Choate Rosemary
College), (MBIA),
6.80%, 7/1/15/(2)/ 1,792,371
- --------------------------------------------------------------------------------------
$ 5,731,611
- --------------------------------------------------------------------------------------
Insured-General Obligations -- 1.3%
- --------------------------------------------------------------------------------------
Aaa AAA $1,000 City of New Britain, (MBIA),
6.00%, 3/1/12 $ 1,139,450
Aaa AAA 1,000 Puerto Rico Commonwealth, (MBIA),
5.375%, 7/1/25 1,024,830
- --------------------------------------------------------------------------------------
$ 2,164,280
- --------------------------------------------------------------------------------------
Insured-Hospitals -- 8.6%
- --------------------------------------------------------------------------------------
Aaa AAA $1,000 Connecticut HEFA, (Bridgeport
Hospital), (MBIA),
6.625%, 7/1/18 $ 1,100,270
Aaa AAA 1,000 Connecticut HEFA, (Danbury Hospital),
(AMBAC), 5.375%, 7/1/17 1,019,600
Aaa AAA 1,000 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC),
6.50%, 7/1/11 1,191,410
Aaa AAA 1,500 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC),
6.625%, 7/1/14 1,627,665
Aaa AAA 2,350 Connecticut HEFA, (Lawrence and
Memorial Hospital), (MBIA),
5.00%, 7/1/22 2,298,042
Aaa NR 2,900 Connecticut HEFA, (Middlesex Hospital),
(MBIA), 5.125%, 7/1/27 2,884,601
Aaa AAA 2,000 Connecticut HEFA, (Veterans Memorial
Medical Center), (MBIA), 5.375%, 7/1/15 2,076,720
Aaa AAA $2,000 Connecticut HEFA, (Yale-New Haven
Hospital), (MBIA), 6.50%, 7/1/12 $ 2,190,620
- --------------------------------------------------------------------------------------
$ 14,388,928
- --------------------------------------------------------------------------------------
Insured-Housing -- 0.2%
- --------------------------------------------------------------------------------------
NR AA $ 305 Puerto Rico Housing Finance Corp.,
(AMBAC), 7.50%, 10/1/11 $ 317,850
- --------------------------------------------------------------------------------------
$ 317,850
- --------------------------------------------------------------------------------------
Insured-Transportation -- 5.8%
- --------------------------------------------------------------------------------------
Aaa AAA $8,200 State of Connecticut, Airport Revenue
Bonds, (Bradley International), (FGIC),
7.65%, 10/1/12 $ 9,719,951
- --------------------------------------------------------------------------------------
$ 9,719,951
- --------------------------------------------------------------------------------------
Nursing Homes -- 14.6%
- --------------------------------------------------------------------------------------
NR NR $1,240 Connecticut Development Authority,
(Baptist Homes), 9.00%, 9/1/22 $ 1,410,202
A2 NR 9,000 Connecticut Development Authority,
Health Care Bonds, (Duncaster), 6.75%,
9/1/15 9,785,249
A1 AA- 720 Connecticut HEFA, (NHP), (Highland
View), (AMT), 7.00%, 11/1/07 833,954
A1 AA- 1,305 Connecticut HEFA, (NHP), (Sharon
Healthcare), 6.25%, 11/1/14 1,443,043
A1 AA- 655 Connecticut HEFA, (NHP), (St.
Camillus), 6.25%, 11/1/18 718,280
A1 AA- 3,250 Connecticut HEFA, (NHP), (St. Joseph's
Manor), 6.25%, 11/1/16 3,593,785
A1 AA- 335 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.00%, 11/1/07 388,020
A1 AA- 2,000 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.50%, 11/1/16 2,361,340
A1 AA- 3,000 Connecticut HEFA, (NHP), (Windsor),
7.125%, 11/1/14 3,486,900
A1 AA- 500 Connecticut HEFA, (NHP), (Windsor),
7.125%, 11/1/24 579,565
- --------------------------------------------------------------------------------------
$ 24,600,338
- --------------------------------------------------------------------------------------
Solid Waste -- 10.6%
- --------------------------------------------------------------------------------------
A NR $2,500 Bristol Resource Recovery Facility
Operating Committee, (Ogden Martin
Systems), 6.50%, 7/1/14 $ 2,758,550
</TABLE>
See notes to financial statements
42
<PAGE>
Connecticut Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- -----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Solid Waste (continued)
- -----------------------------------------------------------------------------------------
A2 A $ 4,250 Connecticut Resources Recovery
Authority, (American REF-FUEL Co.),
(AMT), 6.45%, 11/15/22 $ 4,564,713
Baa1 AA- 450 Connecticut Resources Recovery
Authority, (American REF-FUEL Co.),
(AMT), 8.00%, 11/15/15 475,452
A2 A 1,000 Connecticut Resources Recovery
Authority, (American REF-FUEL Co.),
(AMT), 8.10%, 11/15/15 1,059,250
NR A- 8,970 Eastern Connecticut Resource Recovery
Authority, (Wheelabrator Lisbon),
(AMT), 5.50%, 1/1/20 8,924,342
- -----------------------------------------------------------------------------------------
$ 17,782,307
- -----------------------------------------------------------------------------------------
Special Tax Revenue -- 7.4%
- -----------------------------------------------------------------------------------------
Baa1 A $ 500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 $ 537,905
Baa1 A 4,465 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 4,803,492
A1 AA- 3,180 State of Connecticut, (STOB), 6.125%,
9/1/12 3,650,735
A1 AA- 2,000 State of Connecticut, (STOB), 6.50%,
10/1/12 2,375,960
NR NR 1,000 Virgin Islands Public Finance
Authority, 7.25%, 10/1/18 1,125,850
- -----------------------------------------------------------------------------------------
$ 12,493,942
- -----------------------------------------------------------------------------------------
Student Loans -- 2.6%
- -----------------------------------------------------------------------------------------
A1 NR $ 1,220 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 6.20%, 11/15/09 $ 1,306,876
A1 NR 400 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 7.375%, 11/15/05 415,156
A1 NR 2,505 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 7.50%, 11/15/10 2,604,323
- -----------------------------------------------------------------------------------------
$ 4,326,355
- -----------------------------------------------------------------------------------------
Transportation -- 1.3%
- -----------------------------------------------------------------------------------------
NR BBB $ 2,000 Guam Airport Authority, (AMT), 6.70%,
10/1/23 $ 2,202,360
- -----------------------------------------------------------------------------------------
$ 2,202,360
- -----------------------------------------------------------------------------------------
Water and Sewer -- 0.9%
- -----------------------------------------------------------------------------------------
Aaa AAA $ 1,250 State of Connecticut Clean Water Fund
Revenue Bonds, 6.00%, 10/1/12 $ 1,430,788
- -----------------------------------------------------------------------------------------
$ 1,430,788
- -----------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100%
(identified cost $156,324,927) $ 168,119,898
- -----------------------------------------------------------------------------------------
</TABLE>
AMT -- Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Connecticut
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 19.3% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 2.3% to 11.1% of total investments.
/(1)/ Security has been issued as an inverse floater bond.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
43
<PAGE>
Michigan Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited) Principal
- ------------------- Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Education -- 0.7%
- --------------------------------------------------------------------------------
Aa2 NR $1,000 Oakland County, MI,
(Cranbrook Educational
Community Project), 5.00%,
11/1/17 $ 996,190
- --------------------------------------------------------------------------------
$ 996,190
- --------------------------------------------------------------------------------
Electric Utilities -- 2.9%
- --------------------------------------------------------------------------------
NR BBB $1,000 Guam Power Authority,
6.625%, 10/1/14 $ 1,114,560
Baa1 BBB+ 500 Michigan South Central
Power Agency Supply
System, 6.75%, 11/1/10 540,545
Baa1 BBB 1,780 Monroe County, MI, PCR,
(Detroit Edison Project),
(AMT), 7.75%, 12/1/19 1,928,078
Baa1 BBB+ 365 Puerto Rico Electric Power
Authority, 7.125%, 7/1/14 385,955
- --------------------------------------------------------------------------------
$ 3,969,138
- --------------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.9%
- --------------------------------------------------------------------------------
NR NR $2,550 Clintondale, MI, Community
Schools, 6.75%, 5/1/24 $ 2,890,017
Aaa AAA 1,000 Lake Orion, MI, School
District General
Obligations, (AMBAC),
7.00%, 5/1/20 1,178,410
Aaa AAA 450 Michigan HFA, (Detroit
Medical Center Obligated
Group), 7.50%, 8/15/11 509,580
Aaa AAA 4,130 Michigan HFA, (MidMichigan
Obligated Group),
6.625%, 6/1/10 4,382,012
NR NR 1,770 Michigan Strategic
Environmental Research
Institute, 6.375%, 8/15/12 1,942,681
- --------------------------------------------------------------------------------
$ 10,902,700
- --------------------------------------------------------------------------------
General Obligations -- 6.1%
- --------------------------------------------------------------------------------
Aa2 AA+ $ 500 Avondale School District,
MI, School Building and
Site, 6.75%, 5/1/14 $ 541,600
Baa1 A 500 Commonwealth of Puerto
Rico, Public Improvement,
0.00%, 7/1/16 201,335
Baa1 A 700 Commonwealth of Puerto
Rico, Public Improvement,
0.00%, 7/1/18 251,818
Baa2 BBB+ 5,295 Detroit, MI, 6.35%, 4/1/14 5,734,007
Aaa BBB+ $ 500 Detroit, MI, 6.70%, 4/1/10 $ 577,515
Aa2 AA+ 1,000 Mattawan, MI, Consolidated
Schools, 6.40%, 5/1/09 1,099,900
- --------------------------------------------------------------------------------
$ 8,406,175
- --------------------------------------------------------------------------------
Hospitals -- 12.9%
- --------------------------------------------------------------------------------
NR BBB $2,000 Michigan HFA, (Central
Michigan Community
Hospital), 6.25%, 10/1/27 $ 2,123,820
A2 A 2,975 Michigan HFA, (Detroit
Medical Center Obligated
Group), 5.50%, 8/15/23 3,017,424
A2 A 4,000 Michigan HFA, (Detroit
Medical Center Obligated
Group), 6.25%, 8/15/13 4,294,120
Aa AA 250 Michigan HFA, (Henry Ford
Continuing Care Corp.),
6.75%, 7/1/11 272,510
A1 NR 9,000 Michigan HFA, (McLaren
Obligated Group), 4.50%,
10/15/21 8,135,189
- --------------------------------------------------------------------------------
$ 17,843,063
- --------------------------------------------------------------------------------
Housing -- 1.3%
- --------------------------------------------------------------------------------
NR AA- $ 740 Michigan HDA Rental
Housing, (AMT), 7.15%,
4/1/10 $ 793,628
NR AA+ 1,000 Michigan HDA, SFMR, (AMT),
6.20%, 12/1/27 1,054,810
- --------------------------------------------------------------------------------
$ 1,848,438
- --------------------------------------------------------------------------------
Industrial Development Revenue / Pollution
Control Revenue -- 12.4%
- --------------------------------------------------------------------------------
Baa1 BBB $2,000 Dickinson, MI, PCR,
(Champion International),
5.85%, 10/1/18 $ 2,104,980
NR BB- 1,000 Michigan State Strategic
Fund, (Credon Paper),
(AMT), 6.50%, 8/1/21 1,029,140
A3 A 5,970 Michigan Strategic Fund,
(General Motors Corp.),
6.20%, 9/1/20 6,448,256
NR BB- 110 Michigan Strategic Fund,
(KMart Corp.), 6.80%,
12/15/07 116,410
NR NR 3,000 Michigan Strategic Fund,
(S.D. Warren Co.), (AMT),
7.375%, 1/15/22 3,338,550
Baa3 BBB- 2,750 Puerto Rico Port
Authority, (American
Airlines), (AMT), 6.25%,
6/1/26 2,991,643
Baa3 BBB- 490 Puerto Rico Port
Authority, (American
Airlines), (AMT), 6.30%,
6/1/23 524,261
See notes to financial statements
44
<PAGE>
Michigan Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited) Principal
- ------------------- Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Industrial Development Revenue /
Pollution Control Revenue (continued)
- --------------------------------------------------------------------------------
NR BB- $ 530 Richmond, MI, EDC, (Kmart
Corp.), 6.625%, 1/1/07 $ 565,309
- --------------------------------------------------------------------------------
$ 17,118,549
- --------------------------------------------------------------------------------
Insured-Colleges and Universities -- 5.3%
- --------------------------------------------------------------------------------
Aaa AAA $2,870 Eastern Michigan University,
(FGIC), 5.50%, 6/1/27 $ 2,993,611
Aaa AAA 2,750 Ferris State University,
MI, (MBIA), 5.25%, 10/1/20 2,770,735
Aaa AAA 1,000 Michigan State University-Grand
Valley, (MBIA), 5.25%, 10/1/17 1,016,270
Aaa AAA 500 Western Michigan University,
(AMBAC), 6.50%, 7/15/21 544,295
- --------------------------------------------------------------------------------
$ 7,324,911
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.9%
- --------------------------------------------------------------------------------
Aaa AAA $ 300 Michigan Strategic Fund,
(Detroit Edison Co.),
(FGIC), 6.95%, 5/1/11 $ 369,651
Aaa AAA 4,000 Michigan Strategic Fund,
(Detroit Edison Co.),
(FGIC), 6.95%, 9/1/21 4,394,799
Aaa AAA 550 Monroe County, MI, PCR,
(Detroit Edison Co.), (FGIC),
(AMT), 7.65%, 9/1/20 602,899
- --------------------------------------------------------------------------------
$ 5,367,349
- --------------------------------------------------------------------------------
Insured-General Obligations -- 14.3%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Detroit, MI, (FGIC),
5.50%, 4/1/16 $ 518,490
Aaa AAA 1,000 Grand Ledge, MI, School District,
(MBIA), 5.375%, 5/1/24 1,021,480
Aaa AAA 2,000 Holland, MI, School District,
(AMBAC), 0.00%, 5/1/17 764,200
Aaa AAA 2,000 Kalamazoo, MI, Public Library,
(MBIA), 5.40%, 5/1/14 2,143,560
Aaa AAA 2,000 Lincoln Park, MI, School District,
(FGIC), 5.00%, 5/1/20 1,970,800
Aaa AAA 1,500 Lincoln Park, MI, School District,
(FGIC), 5.90%, 5/1/26 1,612,860
Aaa AAA 1,750 Livonia, MI, School District,
(FGIC), 5.125%, 5/1/22 1,746,238
Aaa AAA 2,610 Okemos, MI, Public Schools,
(MBIA), 0.00%, 5/1/16 1,057,755
Aaa AAA 4,740 South Redford, MI, School District,
(FGIC), 5.50%, 5/1/22 4,920,593
Aaa AAA 2,750 Ypsilanti, MI, School District,
(FGIC), 5.375%, 5/1/26 2,811,105
Aaa AAA 1,150 Zeeland, MI, Public Schools,
(MBIA), 5.25%, 5/1/24 1,159,971
- --------------------------------------------------------------------------------
$ 19,727,052
- --------------------------------------------------------------------------------
Insured-Hospitals -- 4.6%
- --------------------------------------------------------------------------------
Aaa AAA $2,500 Jackson, MI, HFA, (W.A.
Foote Memorial), (FGIC),
4.75%, 6/1/15 $ 2,413,875
Aaa AAA 3,500 Kent, MI, HFA,
(Butterworth Health
System), (MBIA),
6.125%, 1/15/16 3,852,170
- --------------------------------------------------------------------------------
$ 6,266,045
- --------------------------------------------------------------------------------
Insured-Housing -- 2.0%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Michigan HDA, (Parkway
Meadows Project), (FSA),
6.85%, 10/15/18 $ 537,710
Aaa AAA 2,075 Michigan HDA, SFMR, (AMBAC),
(AMT), 6.05%, 12/1/27 2,180,867
- --------------------------------------------------------------------------------
$ 2,718,577
- --------------------------------------------------------------------------------
Insured-Life Care -- 1.7%
- --------------------------------------------------------------------------------
Aaa AAA $2,250 Michigan State HFA,
(Midmichigan Obligation
Group-Series A), (FSA),
5.375%, 6/1/27 $ 2,292,278
- --------------------------------------------------------------------------------
$ 2,292,278
- --------------------------------------------------------------------------------
Insured-Water and Sewer -- 8.6%
- --------------------------------------------------------------------------------
Aaa AAA $ 400 Clinton Township, MI, Water
and Sewage System, (AMBAC),
4.75%, 7/1/11 $ 401,292
Aaa AAA 400 Clinton Township, MI, Water
and Sewage System, (AMBAC),
4.75%, 7/1/12 398,332
Aaa AAA 7,680 Detroit City, MI, Water
Supply System, (FGIC),
4.75%, 7/1/19 7,322,265
Aaa AAA 3,425 Detroit City, MI, Water
Supply System, (FGIC),
6.25%, 7/1/12 3,746,368
- --------------------------------------------------------------------------------
$ 11,868,257
- --------------------------------------------------------------------------------
Life Care -- 1.9%
- --------------------------------------------------------------------------------
NR BBB $1,500 Kalamazoo Michigan Economic
Development, 6.25%, 5/15/27 $ 1,596,795
See notes to financial statements
45
<PAGE>
Michigan Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Life Care (continued)
- --------------------------------------------------------------------------
NR NR $1,000 Michigan HFA,(Presbyterian
Village), 6.50%, 1/1/25 $ 1,079,580
- --------------------------------------------------------------------------
$ 2,676,375
- --------------------------------------------------------------------------
Miscellaneous -- 1.2%
- --------------------------------------------------------------------------
NR NR $1,500 Pittsfield Township, MI,
EDC, (Arbor Hospice
Project), 7.875%, 8/15/27 $ 1,583,640
- --------------------------------------------------------------------------
$ 1,583,640
- --------------------------------------------------------------------------
Pooled Loans -- 4.6%
- --------------------------------------------------------------------------
NR A $1,825 Michigan Muni Bond
Authority Local Government
Loan, 6.75%, 5/1/12 $ 2,042,504
NR A 590 Michigan Municipal Bond
Authority Local Government
Loan, 6.90%, 5/1/21 650,918
Aa2 AA+ 2,550 Michigan Municipal Bond
Authority Local Government
Loan-Qualified School,
6.50%, 5/1/07 2,850,186
Aa2 AA+ 760 Michigan Municipal Parking
Bond Authority, 6.50%,
11/1/08 845,971
- --------------------------------------------------------------------------
$ 6,389,579
- --------------------------------------------------------------------------
Solid Waste -- 0.8%
- --------------------------------------------------------------------------
Ba1 BBB- $1,000 Central Wayne County, MI,
Sanitation Authority,
6.50%, 7/1/07 $ 1,083,400
- --------------------------------------------------------------------------
$ 1,083,400
- --------------------------------------------------------------------------
Special Tax Revenue -- 6.9%
- --------------------------------------------------------------------------
NR BBB+ $ 250 Battle Creek, MI, Downtown
Development Authority Tax
Increment, 7.60%, 5/1/16 $ 299,003
NR BBB+ 1,315 Battle Creek, MI, Downtown
Development Authority Tax
Increment, 7.65%, 5/1/22 1,576,330
NR A 4,300 Detroit, MI, (Convention
Facility Cobo Hall
Expansion Project), 5.25%,
9/30/12/(1)/ 4,349,708
NR A- 3,050 Detroit, MI, Downtown Tax
Increment, 0.00%, 7/1/16 1,118,710
NR A- 2,000 Detroit, MI, Downtown Tax
Increment, 0.00%, 7/1/20 583,600
A3 A 1,500 Detroit, MI, Local
Development Finance
Authority, 5.375%, 5/1/21 1,523,295
- --------------------------------------------------------------------------
$ 9,450,646
- --------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100%
(identified cost $124,442,329) $ 137,832,362
- --------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Michigan
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 41.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institution ranged from 2.1% to 26.0%.
/(1)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
46
<PAGE>
Minnesota Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Assisted Living -- 1.7%
- --------------------------------------------------------------------------
NR NR $ 1,000 St. Paul, MN, Housing and
Redevelopment, (Elder Care
Institute, Inc.), 8.75%,
11/1/24 $ 1,171,910
- --------------------------------------------------------------------------
$ 1,171,910
- --------------------------------------------------------------------------
Education -- 6.3%
- --------------------------------------------------------------------------
A2 NR $ 1,000 Hopkins, MN, (Blake
School), 5.50%, 9/1/24 $ 1,023,890
Baa2 NR 500 Minnesota Higher Education
Facilities Authority, (St.
Mary's College), 6.15%,
10/1/23 523,000
A3 NR 100 Minnesota State Higher
Education Facilities
Authority, (St. Olaf
College), 6.25%, 4/1/10 100,244
A3 NR 500 Minnesota State Higher
Education Facilities, (St.
John's University), 5.40%,
10/1/22 511,300
A2 NR 1,100 Minnesota State Higher
Education Facilities,
(University of St.
Thomas), 5.40%, 4/1/22 1,123,848
A2 NR 1,000 Minnesota State Higher
Education Facilities,
(University of St.
Thomas), 5.40%, 4/1/23 1,020,320
- --------------------------------------------------------------------------
$ 4,302,602
- --------------------------------------------------------------------------
Electric Utilities -- 2.5%
- --------------------------------------------------------------------------
Baa1 A $ 1,130 Bass Brook, MN, Pollution
Control Revenue,
(Minnesota Power and
Light), 6.00%, 7/1/22 $ 1,182,443
A2 A 500 Northern Municipal Power
Agency, Minnesota Electric,
7.25%, 1/1/16 523,960
- --------------------------------------------------------------------------
$ 1,706,403
- --------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.3%
- --------------------------------------------------------------------------
Aaa AAA $ 150 Minnesota Public
Facilities Authority,
Pollution Control,
Prerefunded to 3/1/01,
6.70%, 3/1/13 $ 164,504
Aaa AAA 100 Minnesota Public
Facilities Authority,
Pollution Control,
Prerefunded to 3/1/99,
7.00%, 3/1/09 105,504
Aaa AAA 1,700 State of Minnesota,
Prerefunded to 8/1/02,
Variable
Rate, 8/1/11/(1)/ 1,995,375
- --------------------------------------------------------------------------
$ 2,265,383
- --------------------------------------------------------------------------
General Obligations -- 7.9%
- --------------------------------------------------------------------------
Aa2 NR $ 2,500 Lakeville, MN, Independent
School District, 5.125%,
2/1/22 $ 2,504,850
Aaa AAA 200 Minneapolis and St. Paul,
MN, Airports Commission,
(AMT),
6.60%, 1/1/09 215,972
Aaa AAA 300 Minneapolis and St. Paul,
MN, Airports Commission,
(AMT),
6.60%, 1/1/10 323,958
A1 AA- 200 St. Cloud, MN, Variable
Rate, 8/1/13/(1)/ 227,750
Aaa AAA 1,000 State of Minnesota,
5.40%, 8/1/13 1,034,570
Aaa AAA 1,000 State of Minnesota,
(Duluth Airport), (AMT),
6.25%, 8/1/14 1,095,070
- --------------------------------------------------------------------------
$ 5,402,170
- --------------------------------------------------------------------------
Hospitals -- 15.0%
- --------------------------------------------------------------------------
A A- $ 1,250 Minneapolis and St. Paul,
MN, Housing and
Redevelopment Authority,
(Group Health Plan, Inc.),
6.75%, 12/1/13 $ 1,380,713
A A- 250 Minneapolis and St. Paul,
MN, Housing and
Redevelopment Authority,
(Group Health Plan, Inc.),
6.90%, 10/15/22 276,715
NR BBB+ 2,120 Red Wing, MN, Health Care
Facilities, (River Region
Obligation Group), 6.50%,
9/1/22 2,294,582
NR AA+ 2,200 Rochester, MN, Health Care
Facilities, (Mayo Clinic),
(AMT), Variable
Rate, 11/15/15/(1)/ 2,579,500
Baa3 BBB 1,000 St. Paul, MN, Housing and
Redevelopment Authority,
(Healtheast), 6.625%,
11/1/17 1,078,630
Baa3 BBB 2,500 St. Paul, MN, Housing and
Redevelopment Authority,
(Healtheast), 6.625%,
11/1/17 2,696,574
- --------------------------------------------------------------------------
$10,306,714
- --------------------------------------------------------------------------
Housing -- 23.9%
- --------------------------------------------------------------------------
NR AAA $ 300 Coon Rapids, MN,
Multifamily Housing,
(Browns Meadow), (FHA),
(AMT), 6.85%, 8/1/33 $ 317,757
NR AAA 1,395 Dakota County, MN, Housing
and Redevelopment
Authority, (GNMA), 7.375%,
12/1/29/(2)/ 1,537,095
See notes to financial statements
47
<PAGE>
Minnesota Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------
Housing (continued)
- ---------------------------------------------------------------------------
Aaa NR $ 500 Eagan, MN, Multifamily
Revenue, (Woodridge
Apartments), (GNMA),
5.95%, 2/1/32 $ 519,225
NR AAA 500 Eden Prairie, MN,
Multifamily Housing,
(Edendale
Apartments-Series A),
5.60%, 12/1/32 512,140
Aaa NR 500 Little Canada, MN,
Facilities Revenue,
(Cedars Lakeside) (GNMA),
5.90%, 8/1/20 522,645
Aaa NR 500 Little Canada, MN,
Facilities Revenue,
(Cedars Lakeside) (GNMA),
5.95%, 2/1/32 520,485
Aa NR 1,200 Maplewood, MN, Multifamily
Housing, (Beaver Creek),
(FHA), 6.50%, 9/1/24 1,273,596
NR AAA 85 Minneapolis and St. Paul,
MN, Housing Finance Board,
SFM, (GNMA), (AMT), 7.30%,
8/1/31 89,992
Aa2 AA+ 400 Minnesota State Housing
Finance Agency, SFM,
6.95%, 7/1/16 430,312
Aa2 AA+ 3,975 Minnesota State Housing
Finance Agency, SFM,
(AMT), 6.50%, 1/1/26/(3)/ 4,203,323
Aa2 AA+ 1,000 Minnesota State Housing
Finance Agency, SFM,
(AMT), 6.75%, 7/1/12 1,060,080
Aa2 AA+ 650 Minnesota State Housing
Finance Agency, SFM,
(AMT), 6.75%, 1/1/26 690,183
Aa2 AA+ 1,235 Minnesota State Housing
Finance Agency, SFM,
(AMT), 6.85%, 1/1/24 1,311,484
Aa2 AA+ 380 Minnesota State Housing
Finance Agency, SFM,
(AMT), 7.05%, 7/1/22 399,099
Aa NR 1,250 St. Louis Park, MN,
Multifamily Revenue,
(Knollwood Apartments),
(FHA), 6.25%, 12/1/28 1,310,700
Aaa NR 1,685 St. Paul, MN, Housing and
Redevelopment Authority,
Multifamily Housing,
(Cliffe Apartments),
(GNMA), 6.00%, 1/1/31 1,747,362
- ---------------------------------------------------------------------------
$16,445,478
- ---------------------------------------------------------------------------
Industrial Development Revenue/Pollution
Control Revenue -- 7.7%
- ---------------------------------------------------------------------------
NR A- $ 1,000 Cloquet, MN, Pollution
Control Revenue, (Potlach
Corp.), 5.90%, 10/1/26 $ 1,062,500
NR A- $ 750 Minneapolis, MN, Community
Development Agency,
6.00%, 6/1/11 $ 778,800
NR A- 100 Minneapolis, MN, Community
Development Agency,
7.35%, 12/1/09 106,395
NR A- 1,250 Minneapolis, MN, Community
Development Agency,
7.40%, 12/1/21 1,328,513
NR A- 1,605 Minneapolis, MN, Community
Development Agency, (AMT),
6.80%, 12/1/24 1,743,672
NR A- 300 Minneapolis, MN, Community
Development Agency,
(Firemans Ins.), 6.40%,
12/1/04 310,899
- ---------------------------------------------------------------------------
$ 5,330,779
- ---------------------------------------------------------------------------
Insured-Electric Utilities -- 15.1%
- ---------------------------------------------------------------------------
Aaa AAA $ 1,050 Northern Municipal Power
Agency, (AMBAC), 5.30%,
1/1/21 $ 1,070,423
Aaa AAA 300 Northern Municipal Power
Agency, (AMBAC), 6.00%,
1/1/19 305,379
Aaa AAA 700 Northern Municipal Power
Agency, (FSA), 5.40%,
1/1/16/(4)/ 719,110
Aaa AAA 3,000 Southern Minnesota
Municipal Power Agency,
(MBIA), 0.00%, 10/1/21 945,900
Aaa AAA 10,000 Southern Minnesota
Municipal Power Agency,
(MBIA), 0.00%, 1/1/25 2,572,300
Aaa AAA 9,880 Southern Minnesota
Municipal Power Agency,
(MBIA), 0.00%, 1/1/26 2,408,546
Aaa AAA 4,800 Southern Minnesota
Municipal Power Agency,
(MBIA), 0.00%, 1/1/27 1,112,160
Aaa AAA 450 Southern Minnesota
Municipal Power Agency,
(MBIA), 5.00%, 1/1/12 454,698
Aaa AAA 300 Southern Minnesota
Municipal Power Agency,
(MBIA), (AMT), Variable
Rate, 1/1/18/(1)/ 323,250
Aaa AAA 510 Western Minnesota
Municipal Power Agency,
(MBIA), 5.50%, 1/1/15 510,209
- ---------------------------------------------------------------------------
$10,421,975
- ---------------------------------------------------------------------------
See notes to financial statements
48
<PAGE>
Minnesota Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- ---------------------------------------------------------------------------
Insured-General Obligations -- 2.2%
- ---------------------------------------------------------------------------
Aaa AAA $ 1,330 St. Francis, MN,
Independent School
District No. 15, (FGIC),
6.35%, 2/1/12 $ 1,510,268
- ---------------------------------------------------------------------------
$ 1,510,268
- ---------------------------------------------------------------------------
Insured-Hospitals -- 3.5%
- ---------------------------------------------------------------------------
Aaa AAA $ 100 Minneapolis and St. Paul,
MN, Health Care Systems,
(Health One), (MBIA),
7.40%, 8/15/11 $ 109,461
Aaa AAA 250 Minneapolis, MN, Hospital
Revenue, (Fairview
Hospital), (MBIA),
6.50%, 1/1/11 272,823
Aaa AAA 450 Minnesota Agricultural and
Economic Development,
(Fairview Hospital),
(MBIA), 5.75%, 11/15/26 481,829
Aaa AAA 450 Plymouth, MN, Health
Facilities, (Westhealth),
(CGIC), 6.25%, 6/1/16 497,646
Aaa AAA 1,000 St. Louis Park, MN, Health
Care Facilities, (AMBAC),
Variable Rate, 7/1/13/(1)/ 1,036,250
- ---------------------------------------------------------------------------
$ 2,398,009
- ---------------------------------------------------------------------------
Insured-Housing -- 2.4%
- ---------------------------------------------------------------------------
Aaa AAA $ 1,500 SCA MFMR Receipts,
Burnsville, MN, (FSA),
7.10%, 1/1/30 $ 1,645,095
- ---------------------------------------------------------------------------
$ 1,645,095
- ---------------------------------------------------------------------------
Insured-Special Tax Revenue -- 4.5%
- ---------------------------------------------------------------------------
Aaa AAA $ 3,000 St. Paul, MN, Housing and
Redevelopment Authority,
(Civic Center), (MBIA),
5.45%, 11/1/13 $ 3,116,129
- ---------------------------------------------------------------------------
$ 3,116,129
- ---------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 3.3%
- ---------------------------------------------------------------------------
Baa1 NR $ 350 Cambridge, MN, Economic
Development Authority,
6.25%, 2/1/14 $ 364,151
Aa2 AA 1,770 Hennepin County, MN,
6.80%, 5/1/17/(2)/ 1,925,087
- ---------------------------------------------------------------------------
$ 2,289,238
- ---------------------------------------------------------------------------
Solid Waste -- 0.7%
- ---------------------------------------------------------------------------
Aa3 A-1+ $ 450 Anoka County, MN, Solid
Waste Disposal, National
Rural Utility, (AMT),
6.95%, 12/1/08 $ 484,038
- ---------------------------------------------------------------------------
$ 484,038
- ---------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $62,345,476) $68,796,191
- ---------------------------------------------------------------------------
AMT -- Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Minnesota
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 27.7% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 2.0% to 18.0% of total investments.
/(1)/ Security has been issued as an inverse floater bond.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
/(3)/ Security has been segregated to cover when-issued securities.
/(4)/ When-issued security.
See notes to financial statements
49
<PAGE>
New Jersey Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Assisted Living -- 2.9%
- --------------------------------------------------------------------------
A2 A+ $ 1,455 New Jersey EDA, 7.05%,
3/1/16 $ 1,488,130
NR NR 3,750 New Jersey EDA, (Chelsea
at East Brunswick
Project), (AMT),
8.25%, 10/1/20 4,181,213
NR NR 3,630 New Jersey EDA, (Forsgate
Project), (AMT),
8.625%, 6/1/25 4,176,678
- --------------------------------------------------------------------------
$ 9,846,021
- --------------------------------------------------------------------------
Cogeneration -- 4.2%
- --------------------------------------------------------------------------
NR BB+ $12,750 New Jersey EDA, (Vineland
Cogeneration), (AMT),
7.875%, 6/1/19 $ 14,078,294
- --------------------------------------------------------------------------
$ 14,078,294
- --------------------------------------------------------------------------
Education -- 2.9%
- --------------------------------------------------------------------------
Baa1 BBB+ $ 2,480 New Jersey Education
Facilities Authority,
(Seton Hall Univ.),
7.00%, 7/1/21 $ 2,677,507
NR NR 8,800 New Jersey Higher
Educational Student Loan
Bonds, (AMT), 0.00%,
7/1/10 3,416,512
Aaa AAA 1,000 New Jersey State
Educational Facilities
Authority, (Princeton
Theological), 5.00%,
7/1/22 1,002,550
A1 AAA 2,500 Rutgers, The State
University of New Jersey,
6.85%, 5/1/21 2,758,800
- --------------------------------------------------------------------------
$ 9,855,369
- --------------------------------------------------------------------------
Electric Utilities -- 3.8%
- --------------------------------------------------------------------------
NR BBB $ 100 Guam Power Authority,
5.25%, 10/1/13 $ 100,494
NR BBB 750 Guam Power Authority,
5.25%, 10/1/23 747,848
NR BBB 3,000 Guam Power Authority,
6.75%, 10/1/24 3,364,830
Baa1 BBB+ 6,500 Puerto Rico Electric
Power Authority, 0.00%,
7/1/17 2,463,045
Baa1 BBB+ 2,000 Puerto Rico Electric
Power Authority, 0.00%,
7/1/17 752,140
NR NR 4,905 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 5,387,554
- --------------------------------------------------------------------------
$ 12,815,911
- --------------------------------------------------------------------------
Escrowed/Prerefunded -- 3.0%
- --------------------------------------------------------------------------
Aaa A+ $ 1,000 New Jersey EDA,
Performing Arts Center,
Prerefunded to 6/15/01,
6.75%, 6/15/12 $ 1,104,630
Aaa AAA 1,155 New Jersey Educational
Facilities Authority,
(Seton Hall University),
Prerefunded to 7/1/99,
6.85%, 7/1/19 1,226,864
Aa2 AAA 1,205 New Jersey Health Care
Facilities Financing
Authority, (Barnert
Hospital), Prerefunded to
8/1/01, 6.80%, 8/1/19 1,321,005
Aaa AA 1,040 New Jersey Wastewater
Treatment Trust,
Prerefunded to 5/15/98,
7.25%, 5/15/08 1,071,470
NR AA 920 New Jersey Wastewater
Treatment Trust,
Prerefunded to 6/15/00,
6.875%, 6/15/09 998,789
NR AA 230 New Jersey Wastewater
Treatment Trust,
Prerefunded to 6/15/00,
7.00%, 6/15/10 250,288
Aaa AAA 870 Newark, NJ, (AMBAC),
Prerefunded to 10/1/99,
7.375%, 10/1/07 937,164
NR NR 2,000 Passaic County, NJ,
Prerefunded to 9/1/99,
6.70%, 9/1/13 2,126,320
A3 AA- 1,000 University of Medicine
and Dentistry,
Prerefunded to 12/1/99,
7.20%, 12/1/19 1,078,770
- --------------------------------------------------------------------------
$ 10,115,300
- --------------------------------------------------------------------------
General Obligations -- 4.2%
- --------------------------------------------------------------------------
Baa1 A $ 1,400 Commonwealth of Puerto
Rico, Public Improvement,
0.00%, 7/1/18 $ 503,636
NR BBB 9,745 Government of Guam,
5.40%, 11/15/18 9,886,399
Aa2 NR 3,000 Mercer County Improvement
Authority, 0.00%, 4/1/10 1,710,570
NR BBB 400 Puerto Rico (Guaynabo
Municipal Government
Center Lease), 5.625%,
7/1/22 410,608
NR A+ 1,500 The Hudson County
Improvement Authority,
6.625%, 8/1/25 1,634,550
- --------------------------------------------------------------------------
$ 14,145,763
- --------------------------------------------------------------------------
Hospitals -- 12.7%
- --------------------------------------------------------------------------
Baa2 NR $ 5,250 Camden County, NJ,
Improvement Authority
Revenue, (Cooper Health
System), 6.00%, 2/15/27 $ 5,502,578
See notes to financial statements
50
<PAGE>
New Jersey Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Hospitals (continued)
- --------------------------------------------------------------------------------
A3 A- $ 2,300 New Jersey Health Care
Facilities Financing
Authority, (Atlantic City
Medical Center), 6.80%,
7/1/11 $ 2,543,639
Baa2 NR 5,875 New Jersey Health Care
Facilities Financing
Authority, (Deborah Heart
and Lung Center),
6.30%, 7/1/23 6,259,695
Baa1 NR 4,000 New Jersey Health Care
Facilities Financing
Authority, (Southern
Ocean County Hospital),
6.25%, 7/1/23 4,266,320
Aa2 AAA 9,585 New Jersey Health Care
Facilities Financing
Authority, (St.
Elizabeth's Hospital),
6.80%, 8/1/19 10,326,111
Baa1 A- 2,500 New Jersey Health Care
Facilities, (Capital
Health Systems),
5.25%, 7/1/17 2,493,850
Baa1 A- 1,250 New Jersey Health Care
Facilities, (Capital
Health Systems), 5.125%,
7/1/12 1,244,900
Baa2 BBB 5,400 New Jersey Health Care
Facilities, (Capital
Health Systems),
6.00%, 7/1/27 5,684,958
Baa1 A- 1,750 New Jersey Health Care
Facilities, (Capital
Health Systems),
5.25%, 7/1/27 1,734,373
NR BBB+ 2,720 New Jersey Health Care
Facilities, (Holy Name
Hospital), 6.00%, 7/1/25 2,863,534
- --------------------------------------------------------------------------------
$ 42,919,958
- --------------------------------------------------------------------------------
Housing -- 2.6%
- --------------------------------------------------------------------------------
NR AAA $ 2,000 New Jersey Housing and
Mortgage Finance Agency,
(Presidential Plaza),
(FHA), 6.95%, 5/1/13 $ 2,175,020
NR AAA 3,700 New Jersey Housing and
Mortgage Finance Agency,
(Presidential Plaza),
(FHA), 7.00%, 5/1/30 4,030,077
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.10%, 5/1/22 1,066,670
NR A+ 1,250 New Jersey Housing
Finance Agency, 7.25%,
11/1/22 1,321,338
Aaa AAA 190 Puerto Rico Housing
Finance Corp., Single
Family Mortgage Revenue,
(GNMA), 6.85%, 10/15/23 202,284
- --------------------------------------------------------------------------------
$ 8,795,389
- --------------------------------------------------------------------------------
Industrial Development Revenue/Pollution
Control Revenue -- 7.6%
- --------------------------------------------------------------------------------
NR NR $ 4,000 Middlesex County
Pollution Control
Financing Authority,
(Amerada Hess Corp.),
6.875%, 12/1/22 $ 4,389,840
NR NR 2,000 Middlesex County
Pollution Control
Financing Authority,
(Amerada Hess Corp.),
7.875%, 6/1/22 2,321,180
NR NR 5,640 New Jersey EDA, (777
Pattison Ave., Inc.),
8.95%, 12/15/18 6,323,681
Aa1 NR 3,000 New Jersey EDA, (Garden
State Paper Co.), 7.125%,
4/1/22 3,325,350
Baa1 BBB+ 2,135 New Jersey EDA, (GATX
Terminals Corp.), 7.30%,
9/1/19 2,444,831
NR NR 1,500 New Jersey EDA, (Holt
Hauling and Warehousing
System, Inc.), 7.90%,
3/1/27 1,701,960
NR NR 1,160 New Jersey EDA, (National
Association of Accountants),
7.65%, 7/1/09 1,247,731
NR NR 2,000 New Jersey EDA, (The
Seeing Eye, Inc.), 7.30%,
4/1/11 2,137,420
NR BBB- 1,725 New Jersey EDA, (Trigen
Trenton), (AMT), 6.20%,
12/1/07 1,830,501
- --------------------------------------------------------------------------------
$ 25,722,494
- --------------------------------------------------------------------------------
Insured-Education -- 0.3%
- --------------------------------------------------------------------------------
Aaa AAA $ 845 New Jersey Educational
Facilities Authority,
(Seton Hall University),
(BIGI), 6.85%, 7/1/19 $ 894,821
- --------------------------------------------------------------------------------
$ 894,821
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 0.4%
- --------------------------------------------------------------------------------
Aaa AAA $ 1,150 New Jersey EDA, New
Jersey American Water
Co., (AMT) (FGIC),
6.875%, 11/1/34 $ 1,312,150
- --------------------------------------------------------------------------------
$ 1,312,150
- --------------------------------------------------------------------------------
Insured-General Obligations -- 1.2%
- --------------------------------------------------------------------------------
Aaa AAA $ 3,815 Middletown Township, NJ,
Board of Education,
(MBIA), 5.80%, 8/1/23 $ 4,047,486
- --------------------------------------------------------------------------------
$ 4,047,486
- --------------------------------------------------------------------------------
See notes to financial statements
51
<PAGE>
New Jersey Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Insured-Hospitals -- 3.7%
- --------------------------------------------------------------------------
Aaa AAA $ 3,750 New Jersey EDA, (Clara
Mass Health Systems),
(FSA), 5.00%, 7/1/25 $ 3,683,925
Aaa NR 4,250 New Jersey EDA,
(Hillcrest Health
Services), (AMBAC),
0.00%, 1/1/19 1,497,190
Aaa NR 3,000 New Jersey EDA,
(Hillcrest Health
Services), (AMBAC),
0.00%, 1/1/21 956,520
Aaa NR 10,620 New Jersey EDA, (St.
Barnabas Project),
(MBIA), 0.00%, 7/1/26 2,558,889
Aaa AAA 1,570 New Jersey Health Care
Facilities Financing
Authority, (Cathedral
Health Services) (MBIA),
7.25%, 2/15/21 1,727,330
Aaa AAA 2,000 New Jersey Health Care
Facilities Financing
Authority, (Hackensack
Medical Center) (FGIC),
6.25%, 7/1/21 2,121,400
- --------------------------------------------------------------------------
$ 12,545,254
- --------------------------------------------------------------------------
Insured-Housing -- 0.8%
- --------------------------------------------------------------------------
Aaa AAA $ 1,070 New Jersey Housing and
Mortgage Finance Agency,
(AMT) (MBIA), 7.70%,
10/1/29 $ 1,122,120
Aaa AAA 1,620 Pennsauken Township,
Housing Finance Corp.,
(MBIA), 8.00%, 4/1/11 1,689,692
- --------------------------------------------------------------------------
$ 2,811,812
- --------------------------------------------------------------------------
Insured-Lease Revenue/Certificates of
Participation -- 4.0%
- --------------------------------------------------------------------------
Aaa AAA $ 3,900 County of Atlantic, NJ,
Public Facilities Lease
Agreement, (FGIC), 6.00%,
3/1/13 $ 4,447,872
Aaa AAA 1,750 Hudson County, NJ,
Correctional Facility,
(MBIA), 6.50%, 12/1/11 1,917,423
Aaa AAA 2,500 Hudson County, NJ,
Improvement Authority,
Secondary Yield Curve
Notes, (FGIC) Variable
Rate, 12/1/25/(1)/ 2,915,625
Aaa AAA 1,800 Middlesex County, NJ,
Certificates of
Participation, (MBIA),
6.125%, 2/15/19 1,961,262
Aaa AAA 2,020 University of Medicine
and Dentistry,
Certificates of
Participation, (MBIA),
6.75%, 12/1/09 2,150,654
- --------------------------------------------------------------------------
$ 13,392,836
- --------------------------------------------------------------------------
Insured-Transportation -- 5.0%
- --------------------------------------------------------------------------
NR AAA $ 5,000 New Jersey Turnpike
Authority, "RITES"
(MBIA), Variable
Rate, 1/1/16/(1)/ $ 6,931,250
Aaa AAA 7,450 New Jersey Turnpike
Authority, (MBIA), 6.50%,
1/1/16 8,915,266
Aaa AAA 1,000 New Jersey Turnpike
Authority, (MBIA), 6.50%,
1/1/16 1,196,680
- --------------------------------------------------------------------------
$ 17,043,196
- --------------------------------------------------------------------------
Insured-Water and Sewer -- 1.2%
- --------------------------------------------------------------------------
Aaa NR $ 1,000 Bayonne, NJ, Municipal
Utilities Authority Water
System, (MBIA), 5.00%,
1/1/17 $ 993,910
Aaa AAA 2,500 Middlesex County
Utilities Authority,
(MBIA), Variable
Rate, 8/15/10/(1)/ 2,924,950
- --------------------------------------------------------------------------
$ 3,918,860
- --------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 3.9%
- --------------------------------------------------------------------------
Baa1 A- $ 720 County of Atlantic, NJ,
Public Facilities Lease
Agreement, 8.875%, 1/15/14 $ 1,008,922
Baa1 A- 785 County of Atlantic, NJ,
Public Facilities Lease
Agreement, 8.875%, 1/15/15 1,106,897
Aa AA- 2,000 Mercer County Improvement
Authority, (Richard J.
Hughes Justice), 6.05%,
1/1/15 2,002,980
Aa AA- 1,500 Mercer County Improvement
Authority, (Richard J.
Hughes Justice), 6.05%,
1/1/16 1,502,235
Aa AA- 1,500 Mercer County Improvement
Authority, (Richard J.
Hughes Justice), 6.05%,
1/1/17 1,502,235
Aa2 AA- 2,591 New Jersey Building
Authority, (Garden State
Savings Bonds), 0.00%,
6/15/10 1,463,423
A1 A+ 5,500 New Jersey EDA, Economic
Recovery Fund, 0.00%,
3/15/13 2,602,105
A1 A+ 1,650 New Jersey EDA, State
Contract, 0.00%, 9/15/09 965,861
See notes to financial statements
52
<PAGE>
New Jersey Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation (continued)
- --------------------------------------------------------------------------
A1 NR $ 1,000 Township of Bedminster,
NJ, Board of Education,
7.125%, 9/1/10 $ 1,104,140
- --------------------------------------------------------------------------
$ 13,258,798
- --------------------------------------------------------------------------
Life Care -- 2.3%
- --------------------------------------------------------------------------
NR NR $ 615 New Jersey EDA, (Cadbury
Corp.), 7.50%, 7/1/21 $ 656,685
NR NR 2,000 New Jersey EDA, (Cadbury
Corp.), 8.00%, 7/1/15 2,169,260
NR NR 300 New Jersey EDA, (Cadbury
Corp.), 8.70%, 7/1/07 329,340
NR NR 4,000 New Jersey EDA, (Keswick
Pines Project), 8.75%,
1/1/24 4,632,120
- --------------------------------------------------------------------------
$ 7,787,405
- --------------------------------------------------------------------------
Nursing Homes -- 1.3%
- --------------------------------------------------------------------------
NR NR $ 1,400 New Jersey EDA,
(Claremont Health System,
Inc.), 9.10%, 9/1/22 $ 1,603,364
NR NR 2,500 New Jersey EDA, (Victoria
Health Corp.), 7.65%,
1/1/14 2,741,825
- --------------------------------------------------------------------------
$ 4,345,189
- --------------------------------------------------------------------------
Solid Waste -- 0.5%
- --------------------------------------------------------------------------
NR BB $ 1,750 Union County, NJ,
Utilities Authority,
(AMT), 7.20%, 6/15/14 $ 1,761,848
- --------------------------------------------------------------------------
$ 1,761,848
- --------------------------------------------------------------------------
Special Tax Revenue -- 11.3%
- --------------------------------------------------------------------------
NR NR $ 7,600 New Jersey Sports and
Exposition Authority,
(Monmouth Park Project),
8.00%, 1/1/25/(2)/ $ 8,699,948
Baa1 A 6,100 Puerto Rico Highway and
Transportation Authority,
5.00%, 7/1/36 6,079,077
Baa1 A 7,825 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/36 8,321,262
NR NR 13,350 Virgin Islands Public
Finance Authority, 7.25%,
10/1/18 15,030,097
- --------------------------------------------------------------------------
$ 38,130,384
- --------------------------------------------------------------------------
Transportation -- 18.0%
- --------------------------------------------------------------------------
NR BBB $ 1,400 Guam Airport Authority,
6.50%, 10/1/23 $ 1,537,452
NR BBB 2,000 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 2,202,360
Aa3 A+ 3,500 New Jersey Turnpike
Authority, 5.00%, 6/15/17 3,491,180
A1 AA- 19,000 Port Authority of New
York and New Jersey,
6.125%, 6/1/24 22,108,969
A1 AA- 4,750 Port Authority of New
York and New Jersey,
(AMT), 6.25%, 1/15/27 5,033,100
Baa3 BBB- 5,100 Port Authority of New
York and New Jersey,
(Delta Airlines), 6.95%,
6/1/08 5,611,479
NR NR 5,000 Port Authority of New
York and New Jersey,
(KIAC), 6.75%, 10/1/19 5,585,550
Baa3 BBB- 2,250 Puerto Rico Port
Authority, (American
Airlines), (AMT), 6.25%,
6/1/26 2,447,708
Baa3 BBB- 5,550 Puerto Rico Port
Authority, (American
Airlines), (AMT), 6.30%,
6/1/23 5,938,056
NR BBB 1,520 South Jersey
Transportation Authority,
6.15%, 1/1/22 1,628,209
A1 AA- 5,000 The Port Authority of New
York and New Jersey,
5.375%, 3/1/28 5,314,200
- --------------------------------------------------------------------------
$ 60,898,263
- --------------------------------------------------------------------------
Water and Sewer -- 2.2%
- --------------------------------------------------------------------------
A1 AA- $ 2,000 Gloucester County
Utilities Authority,
6.50%, 1/1/21 $ 2,154,500
A3 A 4,500 New Jersey EDA,
Elizabethtown Water
Revenue, (AMT),
6.70%, 8/1/21 4,841,325
Aa2 AA 80 New Jersey Wastewater
Treatment Trust, 6.875%,
6/15/09 87,167
Aa2 AA 20 New Jersey Wastewater
Treatment Trust, 7.00%,
6/15/10 21,848
Aa3 AA 360 New Jersey Wastewater
Treatment Trust, 7.25%,
5/15/08 370,742
- --------------------------------------------------------------------------
$ 7,475,582
- --------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $302,127,280) $337,918,383
- --------------------------------------------------------------------------
See notes to financial statements
53
<PAGE>
New Jersey Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 16.8% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institution ranged from 0.6% to 11.1% of total investments.
/(1)/ Security has been issued as an inverse floater bond.
/(2)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
54
<PAGE>
Pennsylvania Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Assisted Living -- 3.8%
- --------------------------------------------------------------------------
NR NR $ 2,680 Chester, PA, IDA, (Senior
Life Choice of Paoli, L.P.),
8.05%, 1/1/24 $ 2,977,748
NR NR 5,000 Chester, PA, Industrial
Development Authority, IDA,
(Senior Life Choice
of Kimberton) (AMT),
8.50%, 9/1/25 5,724,000
NR NR 5,000 Delaware, PA, IDA,
(Senior Quarters Project)
(AMT), 8.625%, 9/1/25 5,744,750
- --------------------------------------------------------------------------
$ 14,446,498
- --------------------------------------------------------------------------
Cogeneration -- 3.3%
- --------------------------------------------------------------------------
NR NR $12,000 Pennsylvania Economic
Development Authority,
EDA, (Northampton
Generation Project)
(AMT), 6.50%, 1/1/13 $ 12,680,159
- --------------------------------------------------------------------------
$ 12,680,159
- --------------------------------------------------------------------------
Colleges and Universities -- 3.4%
- --------------------------------------------------------------------------
NR AAA $ 2,000 Lehigh, PA, (Allentown
College of St. Francis),
6.75%, 12/15/12 $ 2,180,080
NR BBB- 1,100 Lehigh, PA, (Cedar Crest
College), 6.70%, 4/1/26 1,201,464
NR BBB- 3,000 Pennsylvania HEFA,
(Gwynedd-Mercy College),
5.60%, 11/1/22/(1)/ 3,014,160
NR BBB+ 2,000 Pennsylvania Higher
Educational Facilities
Authority, HEFA,
5.90%, 1/1/27 2,089,980
NR A- 4,225 Scranton-Lackawanna, PA,
(University of Scranton),
6.40%, 3/1/07 4,553,959
- --------------------------------------------------------------------------
$ 13,039,643
- --------------------------------------------------------------------------
Electric Utilities -- 2.6%
- --------------------------------------------------------------------------
Baa3 BB- $ 500 Beaver, PA, IDA, (Ohio
Edison Co.), 7.75%, 9/1/24 $ 528,460
Baa1 BBB+ 3,250 Delaware, PA, IDA,
(Philadelphia Electric
Co.), 7.375%, 4/1/21 3,552,803
Baa2 BBB+ 4,070 Montgomery, PA, IDA,
(Philadelphia Electric
Co.) (AMT), 7.60%, 4/1/21 4,442,690
NR NR 1,445 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,587,159
- --------------------------------------------------------------------------
$ 10,111,112
- --------------------------------------------------------------------------
Escrowed/Prerefunded -- 8.0%
- --------------------------------------------------------------------------
Aaa AAA $ 5,600 Berks, PA, General
Obligations, (FGIC),
Variable
Rate, 11/10/20/(2)/ $ 6,846,000
NR A 2,000 Chester Upland, PA,
School District, 6.375%,
9/1/21 2,187,940
Aaa NR 1,750 Chester, PA, HEFA, (Bryn
Mar Hospitals), 6.75%,
7/1/14 1,968,313
NR NR 4,475 Hazelton Luzerne, PA
(Saint Joseph Medical
Center), 8.375%, 7/1/12 5,367,002
NR A- 1,000 Pennsylvania HEFA,
(Elizabeth College),
7.25%, 6/15/11 1,117,570
Baa2 NR 4,115 Somerset, PA, (Community
Hospital Project), 6.75%,
3/1/11 4,523,661
Aaa AAA 4,845 Westmoreland, PA,
Municipal Authority,
(FGIC), 0.00%, 8/15/19 1,616,873
Aaa AAA 5,400 Westmoreland, PA,
Municipal Authority,
(FGIC), 0.00%, 8/15/20 1,666,170
Aaa AAA 5,880 Westmoreland, PA,
Municipal Authority,
(FGIC), 0.00%, 8/15/20 1,864,783
NR NR 2,750 Wilkins Area, PA, IDA,
(Fairview Extended Care),
10.25%, 1/1/21 3,285,700
Aaa AAA 500 York, PA, Hospital
Authority, (AMBAC),
7.00%, 7/1/21 549,615
- --------------------------------------------------------------------------
$ 30,993,627
- --------------------------------------------------------------------------
General Obligations -- 1.9%
- --------------------------------------------------------------------------
Baa1 A $ 1,000 Commonwealth of Puerto
Rico, 4.50%, 7/1/23 $ 916,350
NR A 3,000 Dauphin, PA, 6.90%, 6/1/26 3,198,060
A1 A+ 2,050 Lower Providence
Township, PA, Sewer
Authority, 6.75%, 5/1/22 2,261,130
Aa3 AAA 465 Pennsylvania, 6.75%, 1/1/07 506,571
Aa3 AAA 500 Pennsylvania, 6.75%, 1/1/08 544,700
- --------------------------------------------------------------------------
$ 7,426,811
- --------------------------------------------------------------------------
See notes to financial statements
55
<PAGE>
Pennsylvania Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited) Principal
- ------------------- Amount
Standard (000's
Moody's & Poor's ommitted) Security Value
- --------------------------------------------------------------------------------
Hospitals -- 15.2%
- --------------------------------------------------------------------------------
A3 NR $ 5,330 Allegheny County, PA,
Hospital Development
Authority, HDA,
5.75%, 5/15/27 $ 5,535,951
NR AAA 2,330 Allegheny, PA, Industrial
Development Authority,
(Presbyterian Medical Center),
6.75%, 2/1/26 2,570,293
Baa BBB 2,000 Dauphin, PA, (Community General
Osteopathic Hospital),
7.375%, 6/1/16 2,198,760
NR BBB 1,150 Horizon Hospital Systems
Authority, PA, 6.35%, 5/15/26 1,237,630
A NR 2,670 Indiana, PA, (Indiana Hospital),
7.125%, 7/1/23 2,953,207
A3 A 3,250 Lehigh, PA, (Muhlenberg Hospital),
6.60%, 7/15/22 3,511,658
NR BBB- 3,500 McKean, PA, (Bradford Hospital),
6.00%, 10/1/13 3,626,385
A3 A- 2,550 Monroeville, PA, (Forbes Health
System), 6.25%, 10/1/15 2,741,199
Baa2 NR 1,375 Montgomery, PA, (Montgomery
Hospital Medical Center),
6.60%, 7/1/10 1,491,724
NR BBB+ 2,615 Montgomery, PA, (Pottstown
Medical Center),
6.875%, 11/15/20 2,825,560
A BBB+ 8,500 Pennsylvania Hospital and Higher
Education, (Albert Einstein Medical
Center), 7.625%, 4/1/11 8,966,395
A3 A 500 Pennsylvania Hospital and Higher
Education, (Allegheny General
Hospital), 7.25%, 9/1/17 554,445
B2 BB 7,115 Pennsylvania Hospital and Higher
Education, (Graduate Health
System), 7.25%, 7/1/18 7,239,584
B2 BB 5,625 Philadelphia, PA, (Graduate Health
System), 6.625%, 7/1/21 5,575,050
A3 NR 7,000 Washington, PA, (Monongahela
Valley Hospital),
6.75%, 12/1/08 7,658,630
- --------------------------------------------------------------------------------
$ 58,686,471
- --------------------------------------------------------------------------------
Housing -- 6.1%
- --------------------------------------------------------------------------------
Aaa NR $ 1,950 Allegheny, PA, SFMR, (GNMA),
7.15%, 6/1/17 $ 2,046,272
NR AAA 2,885 Allegheny, PA, SFMR, (Ladies
Grand Army) (FHA),
6.35%, 10/1/36 3,115,079
Aa2 AA+ 2,000 Pennsylvania HFA, SFMR, (AMT),
6.15%, 10/1/27 2,103,820
Aa AA+ 8,350 Pennsylvania HFA, SFMR, (AMT),
7.50%, 10/1/25 9,127,217
Aa2 AA 1,000 Pennsylvania Housing and Finance
Authority, HFA, (AMT), Variable
Rate, 10/1/23/(2)/ 1,147,500
A1 AAA 1,000 Urban Redevelopment Authority
of Pittsburgh Mortgage,
7.125%, 4/1/15 1,053,540
Aa2 AAA 265 Urban Redevelopment Authority
of Pittsburgh Mortgage,
7.45%, 4/1/10 281,173
Aa2 AAA 3,385 Urban Redevelopment Authority
of Pittsburgh Mortgage, (AMT),
7.10%, 4/1/24 3,665,041
A1 AAA 1,055 Urban Redevelopment Authority
of Pittsburgh Mortgage, (AMT),
7.40%, 4/1/24 1,116,306
- --------------------------------------------------------------------------------
$ 23,655,948
- --------------------------------------------------------------------------------
Industrial Development Revenue/Pollution
Control Revenue -- 17.9%
- --------------------------------------------------------------------------------
A3 BBB+ $ 6,450 Butler, PA, (Witco Corp.),
5.85%, 12/1/23 $ 6,724,899
NR BB- 1,005 Clearfield, PA, (Kmart Corp.),
6.80%, 5/15/07 1,073,320
NR A 4,000 Franklin, PA, (Corning Inc.),
6.25%, 8/1/05 4,515,640
A2 A 12,000 New Morgan, PA, (New Morgan
Landfill) (AMT),
6.50%, 4/1/19/(3)/ 13,094,639
NR BBB- 9,000 Pennsylvania EDA, (Colver) (AMT),
7.125%, 12/1/15 10,073,249
NR BBB- 5,000 Pennsylvania EDA, (Colver) (AMT),
7.15%, 12/1/18 5,603,300
Baa2 BBB- 5,000 Pennsylvania, IDA, (MacMillan
Bloedel Project) (AMT),
7.60%, 12/1/20 5,546,700
Baa3 BBB 4,450 Pennsylvania, IDA, (Sun Company
Project), (AMT),
7.60%, 12/1/24 5,225,680
NR NR 6,500 Philadelphia, PA, (Refrigerated
Enterprises), (AMT),
9.05%, 12/1/19 7,367,100
Baa3 BBB- 5,000 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.25%, 6/1/26 5,439,350
Baa3 BBB- 2,800 Puerto Rico Port Authority,
(American Airlines), (AMT),
6.30%, 6/1/23 2,995,776
See notes to financial statements
56
<PAGE>
Pennsylvania Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Industrial Development Revenue/
Pollution Control Revenue (continued)
- --------------------------------------------------------------------------
NR BB- $ 1,105 Shamokin, PA, (Kmart
Corp.), 6.70%, 7/1/07 $ 1,177,256
- --------------------------------------------------------------------------
$ 68,836,909
- --------------------------------------------------------------------------
Insured-Education -- 2.5%
- --------------------------------------------------------------------------
Aaa AAA $ 250 Pennsylvania HEFA,
(AMBAC), 5.625%, 6/15/19 $ 260,148
Aaa AAA 2,000 Pennsylvania HEFA,
(MBIA), 5.75%, 5/1/22 2,140,180
Aaa AAA 2,500 Pennsylvania Higher
Education Student Loan,
(AMBAC), (AMT), 7.15%,
9/1/21 2,670,475
Aaa AAA 1,500 Pennsylvania Higher
Education Student Loan,
(AMBAC), (AMT), Variable
Rate, 3/1/22/(2)/ 1,689,375
Aaa AAA 700 Pennsylvania Higher
Education Student Loan,
(AMBAC), (AMT), Variable
Rate, 9/1/26/(2)/ 817,250
Aaa AAA 2,000 University of Pittsburg,
(FGIC), 5.125%, 6/1/22 1,995,720
- --------------------------------------------------------------------------
$ 9,573,148
- --------------------------------------------------------------------------
Insured-Electric Utilities -- 5.3%
- --------------------------------------------------------------------------
Aaa AAA $ 4,000 Beaver, PA, IDA, (Ohio
Edison Co.) (FGIC),
7.00%, 6/1/21 $ 4,380,440
Aaa AAA 10,000 Beaver, PA, IDA, (Ohio
Edison Co.) (FGIC),
7.05%, 10/1/20 11,630,799
Aaa AAA 3,800 Puerto Rico Electric
Power Authority,
"STRIPES", (FSA),
Variable Rate, 7/1/02/(2)/ 4,298,750
- --------------------------------------------------------------------------
$ 20,309,989
- --------------------------------------------------------------------------
Insured-General Obligations -- 7.7%
- --------------------------------------------------------------------------
Aaa AAA $ 2,170 Elizabeth Forward, PA,
School District, (MBIA),
0.00%, 9/1/20 $ 686,653
Aaa AAA 2,170 Elizabeth Forward, PA,
School District, (MBIA),
0.00%, 9/1/21 652,389
Aaa AAA 2,170 Elizabeth Forward, PA,
School District, (MBIA),
0.00%, 9/1/22 619,687
Aaa AAA 2,170 Elizabeth Forward, PA,
School District, (MBIA),
0.00%, 9/1/23 588,591
Aaa AAA 2,500 Erie, PA, School
District, (MBIA), 0.00%,
5/1/19 846,675
Aaa AAA 2,625 Erie, PA, School
District, (MBIA), 0.00%,
5/1/20 844,856
Aaa AAA 2,625 Erie, PA, School
District, (MBIA), 0.00%,
5/1/21 802,699
Aaa AAA 3,625 Erie, PA, School
District, (MBIA), 0.00%,
5/1/22 1,052,918
Aaa AAA 5,000 Hampton Township, PA,
School District, (FGIC),
5.00%, 9/1/27 4,916,350
Aaa NR 2,365 Harrisburg, PA, (AMBAC),
0.00%, 3/15/17 899,339
Aaa AAA 5,175 Hazelton, PA, School
District, (FGIC), 0.00%,
3/1/21 1,596,332
Aaa NR 1,000 Hopewell, PA, School
District, (FSA), 0.00%,
9/1/22 285,570
Aaa AAA 7,500 Keystone Oaks, PA, School
District, (AMBAC),
Variable Rate, 9/1/16/(2)/ 8,812,500
Aaa AAA 1,430 Mars Area, PA, School
District, (MBIA), 0.00%,
3/1/14 649,191
Aaa AAA 1,900 Philadelphia, PA, (MBIA),
5.00%, 5/15/15 1,899,867
Aaa AAA 3,200 Philadelphia, PA, (MBIA),
5.00%, 5/15/20 3,153,248
Aaa AAA 655 Rochester Area, PA,
School District, (AMBAC),
0.00%, 5/1/10 371,595
Aaa AAA 1,000 Venango, PA, (AMBAC),
6.30%, 12/1/19 1,085,970
- --------------------------------------------------------------------------
$ 29,764,430
- --------------------------------------------------------------------------
Insured-Hospitals -- 5.9%
- --------------------------------------------------------------------------
Aaa AAA $ 2,000 Allegheny County, PA,
HDA, (MBIA), 5.625%,
4/1/27 $ 2,098,840
Aaa AAA 3,750 Allegheny, PA,
(Magee-Womens Hospital),
(FGIC), 0.00%, 10/1/15 1,561,575
Aaa AAA 1,170 Allegheny, PA,
(Children's Hospital of
Pittsburgh), (MBIA),
6.75%, 7/1/08 1,242,610
Aaa AAA 1,400 Armstrong, PA, (Saint
Francis Health Care),
(AMBAC), 6.25%, 6/1/13 1,523,732
Aaa AAA 2,500 Armstrong, PA, (Saint
Francis Health Care),
(AMBAC), 6.00%, 8/15/08 2,695,775
Aaa AAA 775 Carbon, PA, (Gnaden
Memorial Hospital),
(AMBAC), 7.00%, 11/15/14 842,975
See notes to financial statements
57
<PAGE>
Pennsylvania Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Insured-Hospitals (continued)
- --------------------------------------------------------------------------
Aaa AAA $ 750 Erie County, PA, Hospital
Authority, (Hamot Health
System), (AMBAC), 7.10%,
2/15/10 $ 819,960
Aaa AAA 1,000 Montgomery, PA, (Abington
Memorial Hospital),
(AMBAC), Variable Rate,
6/1/11/(2)/ 1,176,250
Aaa AAA 1,000 Northeastern, PA,
Hospital And Education
Authority, (Wyoming
Valley Health Care),
(AMBAC), 5.25%, 1/1/26 1,004,080
Aaa AAA 5,000 Philadelphia, PA,
Hospital and Higher
Education Authority,
(FGIC), Variable Rate,
2/15/12/(2)/ 5,337,500
Aaa AAA 2,550 Washington, PA,
(Shadyside Hospital),
(AMBAC), 5.75%, 12/15/14 2,739,516
Aaa AAA 1,500 Wayne County, PA,
Hospital And Health
Facilities Authority,
(MBIA), 5.25%, 7/1/24 1,505,685
- --------------------------------------------------------------------------
$ 22,548,498
- --------------------------------------------------------------------------
Insured-Industrial Development
Revenue -- 0.3%
- --------------------------------------------------------------------------
Aaa AAA $ 1,000 Delaware, PA,
(Philadelphia Water),
(AMT), (FGIC),
6.35%, 8/15/25 $ 1,108,380
- --------------------------------------------------------------------------
$ 1,108,380
- --------------------------------------------------------------------------
Insured-Lease Revenue/Certificates of
Participation -- 2.6%
- --------------------------------------------------------------------------
Aaa AAA $10,000 Commonwealth of
Pennsylvania, (AMBAC),
5.00%, 7/1/15/(4)/ $ 9,936,399
- --------------------------------------------------------------------------
$ 9,936,399
- --------------------------------------------------------------------------
Insured-Life Care -- 0.4%
- --------------------------------------------------------------------------
Aaa AAA $ 1,500 Montgomery County, PA,
Higher Education And
Health Authority, (Holy
Redeemer Health),
(AMBAC), 5.25%, 10/1/27 $ 1,506,390
- --------------------------------------------------------------------------
$ 1,506,390
- --------------------------------------------------------------------------
Insured-Transportation -- 1.3%
- --------------------------------------------------------------------------
Aaa AAA $ 3,000 Allegheny County Port
Authority, Airport
Revenue, (Pittsburgh
International Airport),
(MBIA), 5.00%, 1/1/19 $ 2,965,350
Aaa AAA 2,000 Allegheny County Port
Authority, Airport
Revenue, (Pittsburgh
International Airport),
(MBIA), (AMT), 5.25%,
1/1/16 2,021,460
- --------------------------------------------------------------------------
$ 4,986,810
- --------------------------------------------------------------------------
Insured-Water and Sewer -- 1.6%
- --------------------------------------------------------------------------
Aaa AAA $ 2,500 Philadelphia, PA, Water
and Wastewater, (CGIC),
Variable Rate, 6/15/12/(2)/ $ 2,765,625
Aaa AAA 3,490 Pittsburgh, PA, Water and
Sewer Authority, (FGIC),
4.75%, 9/1/16 3,380,938
- --------------------------------------------------------------------------
$ 6,146,563
- --------------------------------------------------------------------------
Life Care -- 3.0%
- --------------------------------------------------------------------------
NR NR $ 4,050 Delaware, PA, (White
Horse Village), 7.50%,
7/1/18 $ 4,376,673
NR BBB+ 3,620 Delaware, PA, HFA,
5.75%, 12/15/22 4,023,666
Baa2 BBB+ 3,060 Hazleton, PA, HFA,
(Hazelton General
Hospital), 5.50%, 7/1/27 3,066,273
- --------------------------------------------------------------------------
$ 11,466,612
- --------------------------------------------------------------------------
Nursing Homes -- 2.1%
- --------------------------------------------------------------------------
NR NR $ 3,500 Montgomery, PA, IDA,
(Advancement of Geriatric
Health Care Institute),
8.375%, 7/1/23 $ 3,798,375
NR NR 1,100 Philadelphia, PA, (The
Philadelphia Protestant
Home Project),
6.50%, 7/1/27 1,146,299
NR NR 1,190 Philadelphia, PA, (The
Philadelphia Protestant
Home Project), 8.625%,
7/1/21 1,380,210
NR NR 1,460 Westmoreland, PA,
(Highland Health Systems,
Inc.), 9.25%, 6/1/22 1,679,482
- --------------------------------------------------------------------------
$ 8,004,366
- --------------------------------------------------------------------------
See notes to financial statements
58
<PAGE>
Pennsylvania Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------
Pooled Loans -- 5.1%
- --------------------------------------------------------------------------
NR AA- $16,950 Pennsylvania Finance
Authority, Beaver County,
6.60%, 11/1/09/(3)/ $ 18,860,264
NR AA+ 870 Pennsylvania
Infrastructure Investment
Authority, (Pennvest),
6.80%, 9/1/10 965,848
- --------------------------------------------------------------------------
$ 19,826,112
- --------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $347,367,015) $385,054,875
- --------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 30.9% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institution ranged from 1.2% to 13.4%.
/(1)/ When-issued security.
/(2)/ Security has been issued as an inverse floater bond.
/(3)/ Security has been segregated to cover when-issued securities.
/(4)/ Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
See notes to financial statements
59
<PAGE>
Texas Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited)
Tax-Exempt Investments -- 100.0%
Ratings (Unaudited) Principal
- ------------------- Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Assisted Living -- 2.8%
- --------------------------------------------------------------------------------
NR NR $ 500 Bell County, TX, Health
Facilities, (Care
Institute, Inc.),
9.00%, 11/1/24 $ 582,355
- --------------------------------------------------------------------------------
$ 582,355
- --------------------------------------------------------------------------------
Education -- 1.2%
- --------------------------------------------------------------------------------
A NR $ 240 Brazos, TX, Higher
Education Authority, (AMT),
6.50%, 6/1/04 $ 255,638
- --------------------------------------------------------------------------------
$ 255,638
- --------------------------------------------------------------------------------
Electric Utilities -- 2.4%
- --------------------------------------------------------------------------------
NR BBB $ 500 Guam Power Authority,
5.25%, 10/1/23 $ 498,565
- --------------------------------------------------------------------------------
$ 498,565
- --------------------------------------------------------------------------------
Escrowed/Prerefunded -- 3.7%
- --------------------------------------------------------------------------------
NR NR $ 200 Bexar County, TX, Health
Facilities, (St. Luke's
Lutheran), 7.00%, 5/1/21 $ 252,474
Aaa NR 100 Ector County, TX, Hospital
District, 7.30%, 4/15/12 114,036
Aaa AAA 200 Montgomery County, TX,
Hospital District, (FSA),
6.625%, 4/1/17 222,904
Aaa AAA 150 Texas National Research Lab
Super Collider, 6.95%,
12/1/12 180,405
- --------------------------------------------------------------------------------
$ 769,819
- --------------------------------------------------------------------------------
General Obligations -- 12.5%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Bastrop, TX, Independent
School District U.T.G.O.,
(PSF), 0.00%, 2/15/13 $ 479,970
Aaa AAA 1,000 Cypress-Fairbanks, TX,
Independent School
District, 0.00%, 2/15/15 428,160
NR NR 500 Leander, TX, 6.75%, 8/15/16 544,370
Aa2 AA 690 Texas Veterans' Housing
Assistance U.T., (AMT),
6.70%, 12/1/24 739,673
Aa2 AA 360 Texas Veterans' Housing
Assistance U.T., (AMT),
6.80%, 12/1/23 388,490
- --------------------------------------------------------------------------------
$ 2,580,663
- --------------------------------------------------------------------------------
Hospitals -- 11.1%
- --------------------------------------------------------------------------------
NR BBB+ $ 500 Denison, TX, Hospital
Authority, (Texoma Medical
Center), 7.10%, 8/15/24 $ 561,615
A3 NR 100 Harris County, TX, Hospital
District, (Memorial),
7.125%, 6/1/15 114,498
Aa NR 975 Port Arthur, TX, Health
Facilities, (FHA), 6.50%,
8/1/24 1,055,321
A2 NR 500 Tarrant County, TX,
Methodist Health System,
6.00%, 9/1/24 550,560
- --------------------------------------------------------------------------------
$ 2,281,994
- --------------------------------------------------------------------------------
Housing -- 18.8%
- --------------------------------------------------------------------------------
NR AAA $ 80 Bexar County, TX, HFC,
8.10%, 3/1/24 $ 85,207
NR AAA 500 Dallas, TX, HFC, (GNMA),
7.95%, 12/1/23 531,925
NR AAA 150 North Central, TX, HFC,
(GNMA), 7.875%, 10/1/22 159,081
NR AAA 1,000 Texas Department of Housing
And Community Affairs,
Multifamily, (Meadow Ridge
Apartments Project), (AMT),
5.55%, 8/1/30 1,010,790
NR A 500 Texas Department of Housing
and Community Affairs, NHP
Foundation-Asmara Project,
6.40%, 1/1/27 537,355
NR A 750 Travis County, TX, HFC
Multifamily, (Travis
Station Apartments),
6.75%, 4/1/19 796,260
NR AAA 695 Travis County, TX, HFC,
(GNMA) (FNMA), 7.05%,
12/1/25 745,151
- --------------------------------------------------------------------------------
$ 3,865,769
- --------------------------------------------------------------------------------
Industrial Development Revenue Pollution
Control Revenue -- 12.9%
- --------------------------------------------------------------------------------
Baa1 BBB $ 450 Gulf Coast, TX, Waste
Disposal Authority,
(Champion International),
(AMT), 7.25%, 4/1/17 $ 494,429
A2 A+ 1,000 Port Corpus Christi, TX,
(Hoechst Celanese Corp.),
(AMT), 6.875%, 4/1/17 1,089,720
NR A 1,000 Trinity River Authority,
TX, (PCR), (AMT), 6.20%,
3/1/20 1,072,790
- --------------------------------------------------------------------------------
$ 2,656,939
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 12.4%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Austin, TX, Combined
Utility, (AMBAC), 6.75%,
11/15/12/(1)/ $ 1,184,759
See notes to financial statements
60
<PAGE>
Texas Municipals Portfolio as of January 31, 1998
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000's
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Austin, TX, Utility System,
(FGIC), 6.25%, 5/15/16/(2)/ $ 1,111,160
Aaa AAA 500 Lower Colorado River
Authority Junior Lien, TX,
(FGIC), 0.00%, 1/1/12 255,915
- --------------------------------------------------------------------------------
$ 2,551,834
- --------------------------------------------------------------------------------
Insured-Hospitals -- 10.9%
- --------------------------------------------------------------------------------
Aaa AAA $ 500 Harris County, TX, HFC,
(Hermann Hospital), (MBIA),
6.375%, 10/1/24 $ 555,255
Aaa AAA 600 Tarrant County, TX, HFC,
(Health Resources
Systems-Series A), (MBIA),
5.25%, 2/15/22 602,646
Aaa AAA 1,000 Tyler County, TX, HFC,
(Mother Frances Hospital),
(FGIC), 6.50%, 7/1/22 1,097,420
- --------------------------------------------------------------------------------
$ 2,255,321
- --------------------------------------------------------------------------------
Lease Revenue/Certificates of Participation -- 1.3%
- --------------------------------------------------------------------------------
NR BBB- $ 250 Rio Grande, TX, Independent
School District Lease,
6.75%, 7/15/10 $ 274,820
- --------------------------------------------------------------------------------
$ 274,820
- --------------------------------------------------------------------------------
Transportation -- 10.0%
- --------------------------------------------------------------------------------
NR NR $ 250 Abia Dev. Corp., TX,
(Austin Cargoport), 9.25%,
10/1/21 $ 286,423
505 Alliance Airport Authority,
(American Airlines), (AMT),
7.50%, 12/1/29 551,935
Baa2 BBB- 225 Dallas-Fort Worth, TX,
Airport, (American
Airlines), (AMT),
7.50%, 11/1/25 245,455
Baa3 BB+ 100 Dallas-Fort Worth, TX,
Airport, (Delta Airlines),
(AMT), 7.125%, 11/1/26 107,959
NR BBB 755 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 831,391
Aa2 AA 25 Harris County, TX, Toll
Road Subordinate Lien,
6.75%, 8/1/14 27,532
- --------------------------------------------------------------------------------
$ 2,050,695
- --------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $18,794,709) $20,624,412
- --------------------------------------------------------------------------------
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
HFC - Housing Finance Corporation
The Portfolio invests primarily in debt securities issued by Texas
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at January 31, 1998, 24.4% 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 institution ranged from 1.1% to 12.0% of total investments.
/(1)/ When-issued security.
/(2)/ Security has been segregated to cover when-issued securities.
See notes to financial statements
61
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited)
Statements of Assets and Liabilities
As of January 31, 1998
<TABLE>
<CAPTION>
Arizona Colorado Connecticut Michigan
Portfolio Portfolio Portfolio Portfolio
- -------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
- -------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $ 94,998,980 $ 35,691,544 $ 156,324,927 $ 124,442,329
Unrealized appreciation 10,969,469 4,375,065 11,794,971 13,390,033
- -------------------------------------------------------------------------------------------------------------------------
Investments, at value (Note 1A) $105,968,449 $ 40,066,609 $ 168,119,898 $ 137,832,362
- -------------------------------------------------------------------------------------------------------------------------
Cash $ 1,168,292 $ 839 $ 508,016 $ 143
Receivable for investments sold -- 65,857 493,052 2,860,103
Interest receivable 1,066,587 521,300 2,002,975 1,985,246
Deferred organization expenses (Note 1D) -- -- 260 258
- -------------------------------------------------------------------------------------------------------------------------
Total assets $108,203,328 $ 40,654,605 $ 171,124,201 $ 142,678,112
- -------------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------------
Demand note payable (Note 5) $ -- $ 43,000 $ -- $ 1,934,000
Payable for daily variation margin on open
financial futures contracts (Note 1E and 6) 23,640 8,344 35,044 33,571
Payable to affiliate for Trustees' fees (Note 2) 700 173 1,200 696
Accrued expenses 8,707 6,192 22,033 14,352
- -------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 33,047 $ 57,709 $ 58,277 $ 1,982,619
- -------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors' interest in
Portfolio $108,170,281 $ 40,596,896 $ 171,065,924 $ 140,695,493
- -------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $ 97,285,800 $ 36,247,077 $ 159,376,987 $ 127,413,738
Net unrealized appreciation of investments
(computed on the basis of identified cost) 10,884,481 4,349,819 11,688,937 13,281,755
- -------------------------------------------------------------------------------------------------------------------------
Total $108,170,281 $ 40,596,896 $ 171,065,924 $ 140,695,493
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
62
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Assets and Liabilities
As of January 31, 1998
<TABLE>
<CAPTION>
Minnesota New Jersey Pennsylvania Texas
Portfolio Portfolio Portfolio Portfolio
- ---------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assets
- ---------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $62,345,476 $ 302,127,280 $ 347,367,015 $ 18,794,709
Unrealized appreciation 6,450,715 35,791,103 37,687,860 1,829,703
- ---------------------------------------------------------------------------------------------------------------------------
Investment at value (Note 1A) $68,796,191 $ 337,918,383 $ 385,054,875 $ 20,624,412
- ---------------------------------------------------------------------------------------------------------------------------
Cash $ 265,805 $ 190,248 $ 220 $ 20,386
Receivable for investments sold 5,000 -- 2,031,671 5,059
Interest receivable 824,232 4,201,651 4,862,744 312,954
Deferred organization expenses (Note 1D) -- 94 342 --
- ---------------------------------------------------------------------------------------------------------------------------
Total assets $69,891,228 $ 342,310,376 $ 391,949,852 $ 20,962,811
- ---------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities (Note 1G) $ 688,793 $ -- $ 3,015,867 $ 1,046,570
Demand note payable (Note 5) -- -- 3,174,000 --
Payable for daily variation margin on open
financial futures contracts (Note 1E and 6) 12,187 60,937 94,788 --
Payable to affiliate for Trustees' fees (Note 2) 713 1,826 1,384 14
Accrued expenses 7,759 21,001 45 1,125
- ---------------------------------------------------------------------------------------------------------------------------
Total liabilities $ 709,452 $ 83,764 $ 6,286,084 $ 1,047,709
- ---------------------------------------------------------------------------------------------------------------------------
Net Assets applicable to investors' interest in
Portfolio $69,181,776 $ 342,226,612 $ 385,663,768 $ 19,915,102
- ---------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions and
withdrawals $62,777,179 $ 306,666,097 $ 348,277,096 $ 18,085,399
Net unrealized appreciation of investments
(computed on the basis of identified cost) 6,404,597 35,560,515 37,386,672 1,829,703
- ---------------------------------------------------------------------------------------------------------------------------
Total $69,181,776 $ 342,226,612 $ 385,663,768 $ 19,915,102
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
63
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
<TABLE>
<CAPTION>
For the Six Months Ended January 31, 1998
Arizona Portfolio Colorado Portfolio Connecticut Portfolio Michigan Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest income $3,163,520 $1,216,849 $4,964,851 $4,166,524
- ------------------------------------------------------------------------------------------------------------------------------------
Total income $3,163,520 $1,216,849 $4,964,851 $4,166,524
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 208,913 $ 49,739 $ 358,484 $ 293,955
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 5,767 909 6,664 4,827
Custodian fee (Note 1I) 32,210 14,458 43,516 43,142
Legal and accounting services 22,209 17,554 23,029 21,981
Amortization of organization expenses (Note 1D) 887 229 1,314 1,250
Miscellaneous 3,840 2,878 10,513 11,334
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 273,826 $ 85,767 $ 443,520 $ 376,489
- ------------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1I) $ 9,748 $ -- $ -- $ 13,204
- ------------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 9,748 $ -- $ -- $ 13,204
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 264,078 $ 85,767 $ 443,520 $ 363,285
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $2,899,442 $1,131,082 $4,521,331 $3,803,239
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $2,250,315 $ 274,318 $ 429,388 $1,934,999
Financial futures contracts (746,662) (359,805) (801,288) (1,119,453)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) on investment transactions $1,503,653 $ (85,487) $ (371,900) $ 815,546
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 268,054 $ 464,800 $2,224,565 $ 343,050
Financial futures contracts 543,285 197,690 454,683 894,687
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments $ 811,339 $ 662,490 $2,679,248 $1,237,737
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $2,314,992 $ 577,003 $2,307,348 $2,053,283
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $5,214,434 $1,708,085 $6,828,679 $5,856,522
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
64
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Operations
For the Six Months Ended January 31, 1998
<TABLE>
<CAPTION>
Minnesota Portfolio New Jersey Portfolio Pennsylvania Portfolio Texas Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B)
- ------------------------------------------------------------------------------------------------------------------------------------
Interest income $2,035,076 $10,487,608 $12,036,112 $609,322
- ------------------------------------------------------------------------------------------------------------------------------------
Total income $2,035,076 $10,487,608 $12,036,112 $609,322
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee (Note 2) $ 116,762 $ 780,245 $ 896,650 $ 16,686
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 3,811 9,789 8,647 125
Custodian fee (Note 1I) 19,882 53,949 67,209 6,944
Legal and accounting services 20,654 35,609 34,137 15,100
Amortization of organization expenses (Note 1D) 309 2,236 2,646 209
Miscellaneous 5,918 19,917 44,919 3,334
- ------------------------------------------------------------------------------------------------------------------------------------
Total expenses $ 167,336 $ 901,745 $ 1,054,208 $ 42,398
- ------------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1I) $ 3,690 $ -- $ 67,209 $ 2,290
- ------------------------------------------------------------------------------------------------------------------------------------
Total expense reductions $ 3,690 $ -- $ 67,209 $ 2,290
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses $ 163,646 $ 901,745 $ 986,999 $ 40,108
- ------------------------------------------------------------------------------------------------------------------------------------
Net investment income $1,871,430 $ 9,585,863 $11,049,113 $569,214
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $1,185,730 $ 2,879,125 $ 2,825,095 $285,123
Financial futures contracts (654,921) (1,542,911) (2,824,759) (91,792)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain on investment transactions $ 530,809 $ 1,336,214 $ 336 $193,331
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ (86,668) $ 2,924,910 $ 2,616,205 $ 323
Financial futures contracts 423,538 817,002 2,277,866 81,068
- ------------------------------------------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation)
of investments $ 336,870 $ 3,741,912 $ 4,894,071 $ 81,391
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 867,679 $ 5,078,126 $ 4,894,407 $274,722
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $2,739,109 $14,663,989 $15,943,520 $843,936
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
65
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended January 31, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets Arizona Portfolio Colorado Portfolio Connecticut Portfolio Michigan Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 2,899,442 $ 1,131,082 $ 4,521,331 $ 3,803,239
Net realized gain (loss) on 1,503,653 (85,487) (371,900) 815,546
investment transactions
Net change in unrealized
appreciation (depreciation) 811,339 662,490 2,679,248 1,237,737
of investments
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 5,214,434 $ 1,708,085 $ 6,828,679 $ 5,856,522
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,625,822 $ 2,024,449 $ 3,499,677 $ 2,168,583
Withdrawals (13,141,768) (5,760,082) (14,240,022) (17,553,258)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital
transactions $ (9,515,946) $ (3,735,633) $ (10,740,345) $ (15,384,675)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (4,301,512) $ (2,027,548) $ (3,911,666) $ (9,528,153)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 112,471,793 $ 42,624,444 $ 174,977,590 $ 150,223,646
- ------------------------------------------------------------------------------------------------------------------------------------
At end of period $ 108,170,281 $ 40,596,896 $ 171,065,924 $ 140,695,493
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
66
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statements of Changes in Net Assets
For the Six Months Ended January 31, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets Minnesota Portfolio New Jersey Portfolio Pennsylvania Portfolio Texas Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 1,871,430 $ 9,585,863 $ 11,049,113 $ 569,214
Net realized gain on investment transactions 530,809 1,336,214 336 193,331
Net change in unrealized appreciation
(depreciation) of investments 336,870 3,741,912 4,894,071 81,391
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 2,739,109 $ 14,663,989 $ 15,943,520 $ 843,936
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,231,474 $ 11,118,150 $ 10,389,079 $ 487,593
Withdrawals (6,462,481) (36,327,597) (42,889,571) (3,092,568)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from
capital transactions $ (4,231,007) $(25,209,447) $(32,500,492) $ (2,604,975)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (1,491,898) $(10,545,458) $(16,556,972) $ (1,761,039)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 70,673,674 $352,772,070 $402,220,740 $ 21,676,141
- ------------------------------------------------------------------------------------------------------------------------------------
At end of period $ 69,181,776 $342,226,612 $385,663,768 $ 19,915,102
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
67
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended July 31, 1997
<TABLE>
<CAPTION>
Arizona Colorado Connecticut Michigan
Increase (Decrease) in Net Assets Portfolio Portfolio Portfolio Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 6,682,773 $ 2,539,687 $ 9,925,507 $ 8,798,336
Net realized gain on investment transactions 799,157 446,628 472,294 36,033
Net change in unrealized appreciation
(depreciation) of investments 4,938,530 2,095,673 7,068,431 6,476,859
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 12,420,460 $ 5,081,988 $ 17,466,232 $ 15,311,228
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,001,783 $ 4,009,912 $ 9,762,822 $ 3,699,109
Withdrawals (36,811,997) (11,883,030) (39,868,349) (42,251,299)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital
transactions $ (29,810,214) $ (7,873,118) $ (30,105,527) $ (38,552,190)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (17,389,754) $ (2,791,130) $ (12,639,295) $ (23,240,962)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 129,861,547 $ 45,415,574 $ 187,616,885 $ 173,464,608
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 112,471,793 $ 42,624,444 $ 174,977,590 $ 150,223,646
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
68
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended July 31, 1997
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets Minnesota Portfolio New Jersey Portfolio Pennsylvania Portfolio Texas Portfolio
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
From operations --
Net investment income $ 4,112,897 $ 21,484,047 $ 25,120,444 $ 1,316,730
Net realized gain (loss) on investment
transactions 28,621 1,984,468 (1,113,620) (11,999)
Net change in unrealized appreciation
(depreciation) of investments 2,786,157 14,203,930 18,755,709 1,114,403
- ------------------------------------------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 6,927,675 $ 37,672,445 $ 42,762,533 $ 2,419,134
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,877,845 $ 20,443,481 $ 19,109,521 $ 1,759,693
Withdrawals (17,221,919) (91,588,197) (107,833,175) (6,869,522)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets from capital
transactions $(12,344,074) $ (71,144,716) $ (88,723,654) $ (5,109,829)
- ------------------------------------------------------------------------------------------------------------------------------------
Net decrease in net assets $ (5,416,399) $ (33,472,271) $ (45,961,121) $ (2,690,695)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 76,090,073 $ 386,244,341 $ 448,181,861 $ 24,366,836
- ------------------------------------------------------------------------------------------------------------------------------------
At end of year $ 70,673,674 $ 352,772,070 $ 402,220,740 $ 21,676,141
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
69
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Arizona Portfolio
-------------------------------------------------------------------------------
Year Ended
-------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ------------------------------------------------ ------------
(Unaudited) 1997 1996 1995 1994* 1993**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses /(1)/ 0.50%+ 0.50% 0.51% 0.52% 0.46%+ 0.42%+
Expenses after custodian fee reduction 0.49%+ 0.49% 0.50% -- -- --
Net investment income 5.34%+ 5.56% 5.53% 5.81% 5.43%+ 5.46%+
Portfolio Turnover 14% 10% 18% 22% 23% 107%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $108,170 $112,472 $129,862 $144,521 $154,068 $133,539
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
70
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Colorado Portfolio
-----------------------------------------------------------------------------
Year Ended
------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ------------------------------------------- --------------
(Unaudited) 1997 1996 1995 1994* 1993**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:++
- ------------------------------------------------------------------------------------------------------------------------------------
Net expenses/(1)/ 0.42%+ 0.40% 0.40% 0.25% 0.02%+ 0.06%+
Net expenses after custodian fee reduction 0.42%+ 0.36% 0.36% -- -- --
Net investment income 5.51%+ 5.86% 5.75% 6.05% 5.73%+ 5.60%+
Portfolio Turnover 9% 14% 53% 52% 23% 10%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $40,597 $42,624 $45,416 $46,077 $44,399 $24,346
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
++ The operating expenses of the Portfolio may reflect a reduction of the
Investment Adviser fee, an allocation of expenses to the Investment Adviser,
or both. Had such action not been taken, the ratios would have been as
follows:
<TABLE>
<S> <C> <C> <C> <C>
Expenses /(1)/ 0.42% 0.40% 0.35%+ 0.35%+
Expenses after custodian fee reduction 0.38% -- -- --
Net investment income 5.73% 5.90% 5.40%+ 5.31%+
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
71
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Connecticut Portfolio
----------------------------------------------------------------------------------
Year Ended
----------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ------------------------------------------------ --------------
(Unaudited) 1997 1996 1995 1994* 1993**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses/(1)/ 0.51%+ 0.53% 0.52% 0.53% 0.47%+ 0.46%+
Expenses after custodian fee reduction 0.51%+ 0.53% 0.50% -- -- --
Net investment income 5.24%+ 5.50% 5.49% 5.77% 5.40%+ 5.45%+
Portfolio Turnover 4% 11% 23% 29% 10% 10%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $171,066 $174,978 $187,617 $195,276 $192,038 $159,848
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
72
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Michigan Portfolio
--------------------------------------------------------------------------------
Year Ended
--------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ---------------------------------------------- --------------
(Unaudited) 1997 1996 1995 1994* 1993**
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses/(1)/ 0.52%+ 0.52% 0.54% 0.48% 0.47%+ 0.44%+
Expenses after custodian fee reduction 0.50%+ 0.50% 0.52% -- -- --
Net investment income 5.23%+ 5.45% 5.50% 5.85% 5.48%+ 5.46%+
Portfolio Turnover 13% 16% 49% 54% 45% 20%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $140,695 $150,224 $173,465 $191,263 $204,032 $187,665
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
73
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Minnesota Portfolio
-----------------------------------------------------------------------------------
Year Ended
------------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ---------------------------------------------------- -----------
(Unaudited) 1997 1996 1995 1994* 1993**
- ----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:
- ----------------------------------------------------------------------------------------------------------------------------------
Expenses/(1)/ 0.48%+ 0.47% 0.48% 0.47% 0.45%+ 0.40%+
Expenses after custodian fee reduction 0.47%+ 0.44% 0.46% -- -- --
Net investment income 5.39%+ 5.71% 5.69% 5.83% 5.50%+ 5.58%+
Portfolio Turnover 12% 22% 45% 76% 20% 10%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $69,182 $70,674 $76,090 $82,968 $84,005 $67,019
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
74
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
New Jersey Portfolio
---------------------------------------------------------------------------------
Year Ended
----------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ------------------------------------------------- -------------
(Unaudited) 1997 1996 1995 1994* 1993**
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets:
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Expenses/(1)/ 0.52%+ 0.54% 0.53% 0.52% 0.50%+ 0.50%+
Expenses after custodian fee reduction 0.52%+ 0.52% 0.52% -- -- --
Net investment income 5.55%+ 5.84% 5.82% 5.96% 5.62%+ 5.67%+
Portfolio Turnover 9% 24% 39% 54% 25% 12%
- ------------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $342,227 $352,772 $386,244 $411,038 $423,854 $393,677
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to
September 30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
75
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Pennsylvania Portfolio
---------------------------------------------------------------------------------
Year Ended
---------------------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 ------------------------------------------------- ------------
(Unaudited) 1997 1996 1995 1994* 1993**
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:
- -----------------------------------------------------------------------------------------------------------------------------------
Expenses/(1)/ 0.53%+ 0.55% 0.54% 0.49% 0.48%+ 0.50%+
Expenses after custodian fee reduction 0.50%+ 0.51% 0.50% -- -- --
Net investment income 5.63%+ 5.96% 5.90% 6.02% 5.66%+ 5.71%+
Portfolio Turnover 8% 17% 30% 44% 21% 17%
- -----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $385,664 $402,221 $448,182 $502,250 $536,786 $497,001
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
76
<PAGE>
EV Municipals Portfolios as of January 31, 1998
FINANCIAL STATEMENTS CONT'D
Supplementary Data
<TABLE>
<CAPTION>
Texas Portfolio
-----------------------------------------------------------------------
Year Ended
----------------------------------------------------
Six Months Ended July 31, Sept. 30,
January 31, 1998 --------------------------------------- ----------
(Unaudited) 1997 1996 1995 1994* 1993**
- ----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Ratios to average daily net assets:++
- ----------------------------------------------------------------------------------------------------------------------
Expenses/(1)/ 0.41%+ 0.37% 0.32% 0.08% 0.00%+ 0.03%+
Net expenses, after custodian fee reduction 0.39%+ 0.35% 0.27% -- -- --
Net investment income 5.54%+ 5.79% 5.81% 6.20% 5.69%+ 5.82%+
Portfolio Turnover 12% 17% 39% 49% 27% 8%
- ----------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's omitted) $19,915 $21,676 $24,367 $28,227 $27,589 $16,029
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
++ The operating expenses of the Portfolio may reflect a reduction of the
Investment Adviser fee, an allocation of expenses to the Investment Adviser,
or both. Had such action not been taken, the ratios would have been as
follows:
<TABLE>
<S> <C> <C> <C> <C>
Expenses/(1)/ 0.42% 0.35% 0.37%+ 0.42%+
Expenses, after custodian fee reduction 0.37% -- -- --
Net investment income 5.71% 5.93% 5.32%+ 5.43%+
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993 to September
30, 1993.
/(1)/ The expense ratios for the year ended July 31, 1996 and thereafter have
been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require each Portfolio to increase its expense ratio
by the effect of any expense offset arrangements with its service
providers. The expense ratios for each of the periods ended July 31, 1995
have not been adjusted to reflect this change.
See notes to financial statements
77
<PAGE>
EV Municipals Portfolio as of January 31, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
----------------------------------------------------------------------------
Arizona Municipals Portfolio (Arizona Portfolio), Colorado Municipals
Portfolio (Colorado Portfolio), Connecticut Municipals Portfolio
(Connecticut Portfolio), Michigan Municipals Portfolio (Michigan Portfolio),
Minnesota Municipals Portfolio (Minnesota Portfolio), New Jersey Municipals
Portfolio (New Jersey Portfolio), Pennsylvania Municipals Portfolio
(Pennsylvania Portfolio) and Texas Municipals Portfolio (Texas Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940 as non-diversified open-end management investment companies which
were organized as trusts under the laws of the State of New York on May 1,
1992. The Declarations of Trust permit the Trustees to issue interests in
the Portfolios. The following is a summary of significant accounting
policies of the Portfolios. The policies are in conformity with generally
accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis
of valuations furnished by a pricing service. Taxable obligations, if any,
for which price quotations are readily available are normally valued at the
mean between the latest bid and asked prices. Futures contracts and options
on futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on financial futures contracts
are normally valued at the mean between the latest bid and asked prices.
Short-term obligations, maturing in sixty days or less, are valued at
amortized cost, which approximates value. Investments for which valuations
or market quotations are unavailable are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Income Taxes -- The Portfolios are treated as partnerships for federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income under
the Internal Revenue Code, will retain its status as income exempt from
federal income tax when allocated to each Portfolio's investors. The portion
of such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item for investors.
D Deferred Organization Expenses -- Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
F Options on Financial Futures Contracts -- Upon the purchase of a put
option on a financial futures contract by a Portfolio, the premium paid is
recorded as an investment, the value of which is marked-to-market daily.
When a purchased option expires, a Portfolio will realize a loss in the
amount of the cost of the option. When a Portfolio enters into a closing
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 a Portfolio exercises a put option,
settlement is made in cash. The risk associated with purchasing options is
limited to the premium originally paid.
G When-issued and Delayed Delivery Transactions -- The Portfolios may engage
in when-issued or delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
78
<PAGE>
EV Municipals Portfolio as of January 31, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
H Other -- Investment transactions are accounted for on a trade date basis.
I Expense Reduction -- Investors Bank & Trust Company (IBT) serves as
custodian of the Portfolios. Pursuant to the custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant
credit balances used to reduce each Portfolio's custodian fees are reported
as a reduction of operating expenses in the Statement of Operations.
J Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
K Interim Financial Information -- The interim financial statements relating
to January 31, 1998 and for the six-month period then ended have not been
audited by independent certified public accountants, but in the opinion of
the Portfolio's management, reflect all adjustments, consisting only of
normal recurring adjustments necessary for the fair presentation of the
financial statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
----------------------------------------------------------------------------
The investment adviser fee is earned by Boston Management and Research
(BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as
compensation for management and investment advisory services rendered to
each Portfolio. The fee is based upon a percentage of average daily net
assets plus a percentage of gross income (i.e., income other than gains from
the sale of securities). For the six-months ended January 31, 1998, each
Portfolio paid advisory fees as follows:
Portfolio Amount Effective Rate*
----------------------------------------------------------------------------
Arizona $ 208,913 0.38%
Colorado 49,739 0.24%
Connecticut 358,484 0.42%
Michigan 293,955 0.40%
Minnesota 116,762 0.34%
New Jersey 780,245 0.45%
Pennsylvania 896,650 0.45%
Texas 16,686 0.16%
* Advisory fees paid as a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or
BMR's organization, officers and Trustees receive remuneration for their
services to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation
Plan. For the six-months ended January 31, 1998, no significant amounts have
been deferred.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations.
3 Investments
----------------------------------------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the six-months ended
January 31, 1998 were as follows:
Arizona Portfolio
----------------------------------------------------------------------------
Purchases $15,331,699
Sales 23,039,900
Colorado Portfolio
----------------------------------------------------------------------------
Purchases $ 3,800,814
Sales 6,649,944
Connecticut Portfolio
----------------------------------------------------------------------------
Purchases $ 6,245,786
Sales 12,263,136
Michigan Portfolio
----------------------------------------------------------------------------
Purchases $18,914,301
Sales 29,911,810
Minnesota Portfolio
----------------------------------------------------------------------------
Purchases $ 8,163,983
Sales 10,242,400
New Jersey Portfolio
----------------------------------------------------------------------------
Purchases $30,873,234
Sales 48,228,544
Pennsylvania Portfolio
----------------------------------------------------------------------------
Purchases $32,871,204
Sales 48,427,852
Texas Portfolio
----------------------------------------------------------------------------
Purchases $ 2,510,105
Sales 4,215,121
79
<PAGE>
EV Municipals Portfolio as of January 31, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
4 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at January 31, 1998, as computed on a
federal income tax basis, are as follows:
Arizona Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 94,998,980
------------------------------------------------------------------------------
Gross unrealized appreciation $ 10,985,391
Gross unrealized depreciation (15,902)
------------------------------------------------------------------------------
Net unrealized appreciation $ 10,969,469
------------------------------------------------------------------------------
Colorado Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 35,691,544
------------------------------------------------------------------------------
Gross unrealized appreciation $ 4,375,065
Gross unrealized depreciation --
------------------------------------------------------------------------------
Net unrealized appreciation $ 4,375,065
------------------------------------------------------------------------------
Connecticut Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 156,324,927
------------------------------------------------------------------------------
Gross unrealized appreciation $ 11,801,349
Gross unrealized depreciation (6,378)
------------------------------------------------------------------------------
Net unrealized appreciation $ 11,794,971
------------------------------------------------------------------------------
Michigan Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 124,442,329
------------------------------------------------------------------------------
Gross unrealized appreciation $ 13,409,371
Gross unrealized depreciation (19,338)
------------------------------------------------------------------------------
Net unrealized appreciation $ 13,390,033
------------------------------------------------------------------------------
Minnesota Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 62,345,476
------------------------------------------------------------------------------
Gross unrealized appreciation $ 6,450,715
Gross unrealized depreciation --
------------------------------------------------------------------------------
Net unrealized appreciation $ 6,450,715
------------------------------------------------------------------------------
New Jersey Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 302,127,280
------------------------------------------------------------------------------
Gross unrealized appreciation $ 35,839,533
Gross unrealized depreciation (48,430)
------------------------------------------------------------------------------
Net unrealized appreciation $ 35,791,103
------------------------------------------------------------------------------
Pennsylvania Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 347,367,015
------------------------------------------------------------------------------
Gross unrealized appreciation $ 37,700,567
Gross unrealized depreciation (12,707)
------------------------------------------------------------------------------
Net unrealized appreciation $ 37,687,860
------------------------------------------------------------------------------
Texas Portfolio
------------------------------------------------------------------------------
Aggregate Cost $ 18,794,709
------------------------------------------------------------------------------
Gross unrealized appreciation $ 1,830,832
Gross unrealized depreciation (10,345)
------------------------------------------------------------------------------
Net unrealized appreciation $ 1,829,703
------------------------------------------------------------------------------
5 Line of Credit
------------------------------------------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and their affiliates in a committed $100 million unsecured line of credit
agreement with a group of banks. Borrowings will be made by the portfolios or
funds solely to facilitate the handling of unusual and/or unanticipated short-
term cash requirements. Interest is charged to each portfolio or fund based on
its borrowings at an amount above either the Eurodollar rate or federal funds
rate. In addition, a fee computed at an annual rate of 0.10% on the daily
unused portion of the facility is allocated among the participating portfolios
and funds at the end of each quarter. At January 31, 1998, the Colorado
Portfolio, Michigan Portfolio and Pennsylvania Portfolio had balances
outstanding pursuant to this line of credit of $43,000, $1,934,000, and
$3,174,000, respectively. The Portfolios did not have any significant
borrowings or allocated fees during the six-months ended January 31, 1998.
80
<PAGE>
EV Municipals Portfolio as of January 31, 1998
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
6 Financial Instruments
------------------------------------------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance sheet
risk in the normal course of their investing activities to assist in managing
exposure to various market risks. These financial instruments include futures
contracts and may involve, to a varying degree, elements of risk in excess of
the amounts recognized for financial statement purposes. The notional or
contractual amounts of these instruments represent the investment a Portfolio
has in particular classes of financial instruments and does not necessarily
represent the amounts potentially subject to risk. The measurement of the
risks associated with these instruments is meaningful only when all related
and offsetting transactions are considered.
A summary of obligations under these financial instruments at January 31,
1998, is as follows:
Futures
Contracts
Expiration Net Unrealized
Portfolio Date Contracts Position Depreciation
------------------------------------------------------------------------------
Arizona 3/98 53 U.S. Treasury Bonds Short $ 84,988
------------------------------------------------------------------------------
Colorado 3/98 15 U.S. Treasury Bonds Short 25,246
------------------------------------------------------------------------------
Connecticut 3/98 63 U.S. Treasury Bonds Short 106,034
------------------------------------------------------------------------------
Michigan 3/98 68 U.S. Treasury Bonds Short 108,278
------------------------------------------------------------------------------
Minnesota 3/98 30 U.S. Treasury Bonds Short 46,118
------------------------------------------------------------------------------
New Jersey 3/98 150 U.S. Treasury Bonds Short 230,588
------------------------------------------------------------------------------
Pennsylvania 3/98 192 U.S. Treasury Bonds Short 301,188
------------------------------------------------------------------------------
At January 31, 1998, the Portfolios had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
81
<PAGE>
EV Municipals Portfolios as of January 31, 1998
Municipals Portfolios
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President of Arizona, Colorado, Connecticut, Michigan, Minnesota, New
Jersey, Pennsylvania and Texas Municipals Portfolios and Portfolio Manager of
Minnesota and New Jersey Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio Manager of Arizona Municipals Portfolio
William H. Ahearn, Jr.
Vice President and Portfolio Manager of Colorado and Connecticut Municipals
Portfolios
Thomas M. Metzold
Vice President and Portfolio Manager of Texas Municipals Portfolio
Timothy T. Browse
Vice President and Portfolio Manager of Michigan and Pennsylvania Municipals
Portfolios
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University Graduate
School of Business Administration
Norton H. Reamer
President and Director, United Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
82
