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Previous: NEW JERSEY TAX FREE PORTFOLIO, N-30D, 1995-10-02 |
Next: PRICE T ROWE TAX FREE INSURED INTERMEDIATE BOND FUND INC, N-30D, 1995-10-02 |
<PAGE> 1
The Eaton Vance Municipals Trust
For the Portfolios:
Connecticut Tax Free Fund
New Jersey Tax Free Fund
Pennsylvania Tax Free Fund
[LOGO]
Semi-Annual Shareholder Report
July 31, 1995
Investment Adviser of State Tax Free Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator of EV Traditional State Tax Free Fund
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
Transfer Agent
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
<PAGE> 2
CONNECTICUT TAX FREE PORTFOLIO
PORTFOLIO OF INVESTMENTS - JULY 31, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 10.8%
Baa BBB $1,000 Connecticut HEFA, University
of Hartford, 6.75%, 7/1/12 $ 975,350
Baa BBB 5,500 Connecticut HEFA, University
of Hartford, 6.80%, 7/1/22 5,302,660
NR BBB- 6,175 Connecticut HEFA, Quinnipiac
College, 6.00%, 7/1/23 5,497,294
NR BBB- 1,000 Connecticut HEFA, Sacred
Heart University, 6.80%,
7/1/12 1,045,400
NR A- 1,000 Connecticut HEFA, Sacred
Heart University, 5.80%,
7/1/23 842,940
NR A 1,125 Connecticut HEFA, Taft
School, 5.40%, 7/1/20 1,011,476
Aaa AAA 6,000 Connecticut HEFA, Yale
University, 5.929%, 6/10/30 5,929,680
------------
$ 20,604,800
------------
ESCROWED TO MATURITY - 2.4%
NR AA- $ 650 State of Connecticut Govern-
ment Obligation Bonds,
6.875%, 7/15/10 $ 729,775
NR AAA 800 Connecticut Special Tax
Obligation Bonds, Transportation
Infrastructure Purposes, 6.75%,
6/1/11 906,304
A1 AA- 645 Connecticut Special Tax
Obligation Bonds, Transportation
Infrastructure Purposes, 6.50%,
7/1/09 706,475
A1 AA- 300 Amity RSD No. 5 Bonds,
6.80%, 6/15/08 326,166
Baa BBB 1,630 City of Stratford, Government
Obligation Bonds, 7.30%,
3/1/12 1,869,561
------------
$ 4,538,281
------------
GENERAL OBLIGATION - 6.1%
Aa1 NR $ 350 City of Avon, 4.60%,
1/15/07 $ 327,159
Aa NR 525 Town of Guilford, 4.75%,
11/15/10 476,017
Aa NR 525 Town of Guilford, 4.75%,
11/15/11 471,466
A AA- 2,000 City of Bridgeport, 6.125%,
3/1/05 2,073,380
Aa AA- 1,750 State of Connecticut, Capital
Appreciation Bonds, 0%,
11/1/09 781,515
AA AA- 1,000 State of Connecticut, 5.50%,
3/15/10 983,190
AA AA- 500 State of Connecticut, 5.50%,
3/15/11 491,235
Aa AA 1,270 City of Danbury, 4.50%,
2/1/14 1,062,634
Aa1 NR 650 City of Farmington, 5.70%,
1/15/11 657,306
NR BBB 500 Government of Guam, 5.40%,
11/15/18 431,735
Aa1 AA+ 925 City of Norwalk Maritime
Center Project Bonds, 6.05%,
2/1/09 952,574
Baa1 A 2,000 Puerto Rico PBA Bonds, 5.50%,
7/1/21 1,832,480
NR NR 1,000 Virgin Islands PFA Revenue
Bonds, 7.25%, 10/1/18 1,031,550
------------
$ 11,572,241
------------
HEALTH CARE (NON-
HOSPITAL) - 12.5%
A1 AA- $ 600 Connecticut HEFA,
Nursing Home Program
(NHP) (Noble Horizons),
6.00%, 11/1/22 $ 586,554
A1 AA- 1,000 Connecticut HEFA, NHP
(Jewish Home-Fairfield),
6.25%, 11/1/20 1,008,720
A1 AA- 655 Connecticut HEFA, NHP
(St. Camillus), 6.25%, 11/1/18 661,766
A1 AA- 3,250 Connecticut HEFA, NHP (St.
Joseph's Manor) 6.25%,
11/1/16 3,283,573
A1 AA- 1,365 Connecticut HEFA, NHP
(Sharon Healthcare) 6.25%,
11/1/14 1,385,762
Aa3 NR 9,000 Connecticut Development
Authority Health Care Bonds
(Duncaster), 6.75%, 9/1/15 9,301,230
A1 AA- 720 Connecticut HEFA, NHP
(Highland View), 7.00%,
11/1/07 787,975
A1 AA- 335 Connecticut HEFA, NHP
(Wadsworth Glen), 7.00%,
11/1/07 366,627
A1 AA- 2,000 Connecticut HEFA, NHP
(Wadsworth Glen), 7.50%,
11/1/16 2,210,800
A1 AA- 3,000 Connecticut HEFA, NHP
(Windsor), 7.125%, 11/1/14 3,254,820
</TABLE>
16
<PAGE> 3
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE (NON-
HOSPITAL) - (continued)
NR A- 1,000 Puerto Rico I. M. E. (Dr. Pila
Hospital), (FHA)
7.85%, 8/1/28 1,078,190
------------
$ 23,926,017
------------
HOSPITALS - 6.0%
NR A- $3,770 Connecticut HEFA, William
W. Backus Hospital, 6.375%,
7/1/22 $ 3,748,096
Baa1 NR 9,150 Connecticut HEFA, Griffin
Hospital, 5.75%, 7/1/23 7,814,009
------------
$ 11,562,105
------------
HOUSING - 8.2%
Aa AA $ 100 Connecticut HFA Mortgage
Revenue Bonds (MRB),
7.40%, 11/15/99 $ 102,965
Aa AA 1,400 Connecticut HFA, MRB,
7.20%, 11/15/01 1,473,556
Aa AA 200 Connecticut HFA, MRB,
7.00%, 11/15/09 207,336
Aa AA 6,200 Connecticut HFA, MRB,
6.70%, 11/15/12 6,336,524
Aa AA 250 Connecticut HFA, MRB,
6.55%, 11/15/13 252,910
Aa AA 1,000 Connecticut HFA, MRB,
5.85%, 11/15/16 955,420
Aa AA 120 Connecticut HFA, MRB,
7.625%, 11/15/17 123,988
Aa AA 1,700 Connecticut HFA, MRB,
6.35%, 5/15/17 1,674,177
Aa AA 2,500 Connecticut HFA, MRB,
6.60%, 11/15/23 2,511,700
Aa AA 2,000 Connecticut HFA, MRB,
6.75%, 11/15/23 2,030,000
------------
$ 15,668,576
------------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL
REVENUES - 3.0%
Aaa AAA $1,000 Connecticut Development
Authority (Pfizer Inc.),
6.55%, 2/15/13 $ 1,071,700
Aa AA- 2,000 Connecticut Development
Authority (Economic Develop-
ment Projects), Revenue Bonds,
6.00%, 11/15/08 2,066,960
A1 A+ 2,000 Connecticut Development
Authority (New England
Power Company Project),
7.25%, 10/15/15 2,142,580
Baa1 A 500 Puerto Rico Port Authority
(American Airlines), 6.30%,
6/1/23 485,275
------------
$ 5,766,515
-----------
INSURED AIRPORTS - 4.9%
Aaa AAA $8,200 State of Connecticut Airport
Revenue Bonds, Bradley
International Airport, (FGIC),
7.65%, 10/1/12 $ 9,315,364
------------
INSURED COLLEGE AND
UNIVERSITY - 3.9%
Aaa AAA $ 725 Connecticut HEFA, Fairfield
University (MBIA), 5.00%,
7/1/18 $ 636,129
Aaa AAA 1,200 Connecticut HEFA, Connecticut
College (MBIA), 6.625%,
7/1/11 1,272,948
Aaa AAA 2,000 Connecticut HEFA, Trinity
College (MBIA), 6.00%,
7/1/22 2,003,960
Aaa AAA 1,555 Connecticut HEFA, Choate
Rosemary College (MBIA),
6.80%, 7/1/15 (1) 1,683,661
Aaa AAA 750 Connecticut HEFA, Loomis
Chafee (MBIA), 6.00%,
7/1/15 760,793
Aaa AAA 1,000 Connecticut HEFA, Loomis
Chafee (MBIA), 6.00%,
7/1/25 1,005,850
------------
$ 7,363,341
------------
INSURED MISCELLANEOUS - 0.8%
Aaa AAA $1,750 Connecticut Municipal
Electric Energy Cooperative
Bonds (MBIA), 5.00%,
1/1/18 $ 1,549,520
------------
INSURED GENERAL
OBLIGATIONS - 4.3%
Aaa AAA $1,220 Town of Bethel, (MBIA),
6.50%, 2/15/09 $ 1,340,243
Aaa AAA 2,000 City of Waterbury, Tax
Revenue Bonds (FGIC),
5.375%, 4/15/08 1,984,380
Aaa AAA 740 Town of Stratford, (MBIA),
6.60%, 3/1/11 800,924
Aaa AAA 1,000 City of New Britain, (MBIA),
6.00%, 3/1/12 1,026,430
Aaa AAA 1,000 Town of Plainfield, (MBIA),
6.375%, 8/1/11 1,045,430
</TABLE>
17
<PAGE> 4
CONNECTICUT TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED GENERAL
OBLIGATIONS - (continued)
Aaa AAA 2,120 Puerto Rico Public Improve-
ment Bonds (MBIA), 5.25%,
7/1/18 1,955,446
------------
$ 8,152,853
------------
INSURED HEALTHCARE - 1.3%
A1 AA- $1,735 Connecticut HEFA, NHP
(St. Joseph's Living Center),
(AMBAC), 5.10%, 11/1/19 $ 1,528,604
A1 AA- 1,030 Connecticut HEFA, NHP
(St. Joseph's Learning Center)
(AMBAC), 5.00%,
11/1/09 951,699
------------
$ 2,480,303
------------
INSURED HOSPITAL - 10.0%
Aaa AAA $1,000 Connecticut HEFA, Bridgeport
Hospital (MBIA), 6.625%,
7/1/18 $ 1,051,740
Aaa AAA 6,750 Connecticut HEFA, St. Francis
Hospital (FGIC), 5.00%,
7/1/23 5,808,172
Aaa AAA 1,500 Connecticut HEFA, Lawrence
and Memorial Hospital
(MBIA),5.00%, 7/1/13 1,345,740
Aaa AAA 5,750 Connecticut HEFA, Lawrence
and Memorial Hospital
(MBIA), 5.00%, 7/1/22 4,959,203
Aaa AAA 1,000 Connecticut HEFA, Hospital
of St. Raphael (AMBAC),
6.50%,
7/1/11 1,080,700
Aaa AAA 1,500 Connecticut HEFA, Hospital of
St. Raphael (AMBAC), 6.625%,
7/1/14 1,575,585
Aaa AAA 2,000 Connecticut HEFA, Yale-New
Haven Hospital (MBIA), 6.50%,
7/1/12 2,093,380
Aaa AAA 1,200 Connecticut HEFA, Yale-New
Haven Hospital (MBIA), 7.10%,
7/1/25 1,297,800
------------
$ 19,212,320
------------
INSURED SOLID WASTE - 0.7%
Aaa AAA $1,275 Connecticut Resources Recovery
Authority Mid-Connecticut
System Bonds (MBIA), 7.30%,
10/15/12 $ 1,343,161
------------
INSURED SPECIAL TAX - 0.7%
AAA $1,500 State of Connecticut Special
Tax Obligation Bonds (STOB)
(FGIC), 5.00%, 10/1/13 $ 1,342,950
------------
INSURED WATER
AND SEWER - 3.3%
Aaa AAA $1,750 Connecticut Development
Authority Water Facilities Bonds,
Connecticut Water Company
(AMBAC), (AMT), 5.875%,
9/1/22 $ 1,689,048
Aaa AAA 1,150 Connecticut Development
Authority Water Facilities
Bonds, Connecticut Water
Company (AMBAC),(AMT),
5.75%, 7/1/28 1,086,853
Aaa AAA 3,460 South Central Connecticut,
Regional Water Authority
Bonds (FGIC), 5.75%,
8/1/12 3,445,122
------------
$ 6,221,023
------------
SOLID WASTE - 8.1%
A NR $2,500 Bristol Resource Recovery
Facility Operating Committee,
(Ogden Martin Systems),
6.50%, 7/1/14 $ 2,570,800
A2 A+ 1,000 Connecticut Resources
Recovery Authority (American
REF-FUEL Company),
(AMT), 8.10%, 11/15/15 1,104,660
A2 A+ 450 Connecticut Resources
Recovery Authority (American
REF-FUEL Company),
(AMT), 8.00%, 11/15/15 495,760
A2 A+ 4,250 Connecticut Resources
Recovery Authority (American
REF-FUEL Company),
(AMT), 6.45%, 11/15/22 4,252,805
NR A 7,970 Eastern Connecticut Resource
Recovery Authority, (Wheela-
brator Lisbon), 5.50%,
1/1/20 7,000,609
------------
$ 15,424,634
------------
SPECIAL TAX - 2.7%
A1 AA- $1,000 State of Connecticut STOB,
4.40%, 10/1/04 $ 948,510
A1 AA- 1,000 State of Connecticut STOB,
5.40%, 9/1/10 968,880
A1 AA- 3,180 State of Connecticut STOB,
6.125%, 9/1/12 3,273,460
------------
$ 5,190,850
------------
</TABLE>
18
<PAGE> 5
CONNECTICUT TAX FREE PORTFOLIO (continued)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - (continued)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
STUDENT LOANS - 1.4%
A1 NR $ 455 Connecticut Higher Education
Supplemental Loan Authority
(CHESLA) Revenue Bonds
(AMT), 7.375%, 11/15/05 $ 477,313
A1 NR 1,350 CHESLA Revenue Bonds
(AMT), 6.20%, 11/15/09 1,355,279
A1 NR 910 CHESLA Revenue Bonds
(AMT), 7.50%, 11/15/10 960,141
------------
$ 2,792,733
------------
TRANSPORTATION - 2.4%
Baa1 A $4,465 Puerto Rico Highway and
Transportation Authority
Bonds, 5.50%, 7/1/15 $ 4,172,900
Baa1 A 500 Puerto Rico Highway and
Transportation Authority
Bonds, 5.50%, 7/1/15 467,290
------------
$ 4,640,190
------------
UTILITY - 4.3%
NR BBB $1,100 Guam Power Authority
Revenue Bonds, 6.625%,
10/1/14 $ 1,115,015
NR BBB 3,625 Guam Power Authority
Revenue Bonds, 6.30%,
10/1/22 3,532,671
NR NR 3,500 Virgin Islands Water and
Power Authority, Electric
Revenue System Bonds,
7.40%, 7/1/11 3,646,055
------------
$ 8,293,741
------------
WATER & SEWER
REVENUE - 2.2%
Aa AA $1,250 State of Connecticut Clean
Water Fund Revenue Bonds,
6.00%, 10/1/12 $ 1,286,438
Aa AA 1,000 State of Connecticut Clean
Water Fund Revenue Bonds,
5.80%, 6/1/16 996,310
NR A+ 2,225 Connecticut Development
Authority Water Facilities,
(Stamford Water Company),
5.30%, 9/1/28 2,010,243
------------
$ 4,292,991
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST, $192,808,845) $191,254,509
============
</TABLE>
(1) Security has been segregated to cover margin requirements for open financial
futures contracts.
The Portfolio primarily invests in debt securities issued by Connecticut
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at July 31, 1995, 30.4% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 0.6% to 14.2% of total investments.
See notes to financial statements
19
<PAGE> 6
NEW JERSEY TAX FREE PORTFOLIO
PORTFOLIO OF INVESTMENTS - JULY 31, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION- 5.0%
NR NR $15,750 New Jersey Economic
Development Authority,
Vineland Cogeneration
Limited Partnership, (AMT),
7.875%, 6/1/19 $ 16,904,475
NR BB+ 3,370 New Jersey Economic Devel-
opment Authority, Trigen-
Trenton Project, (AMT),
6.10%, 12/1/04 3,346,039
------------
$ 20,250,514
------------
EDUCATION- 3.5%
Baa1 BBB $ 2,480 New Jersey Educational
Facilities Authority, Seton
Hall University, 7.00%,
7/1/21 $ 2,618,235
Aa1 AA+ 1,000 New Jersey Educational
Facilities Authority,
Princeton Theological
Seminary, 6.375%, 7/1/22 1,034,580
NR NR 8,800 New Jersey State Higher
Education Assistance Authority,
(AMT), 0%, 7/1/20 3,042,952
NR BBB- 1,760 Puerto Rico Industrial, Tourist,
Educational, Medical and
Environmental Authority,
Polytechnic University, 5.70%,
8/1/13 1,620,626
NR BBB- 1,310 Puerto Rico Industrial, Tourist,
Educational, Medical and
Environmental Authority,
Polytechnic University,
5.50%, 8/1/24 1,139,988
R BBB- 1,000 Puerto Rico Industrial, Tourist,
Educational, Medical and
Environmental Authority,
Polytechnic University,
6.50%, 8/1/24 999,990
A1 AA 2,500 Rutgers, The State University
of New Jersey, 6.85%, 5/1/21 2,658,400
A AA 1,000 University of Medicine and
Dentistry of New Jersey,
7.20%, 12/1/19 1,089,280
------------
$ 14,204,051
------------
ESCROWED - 0.8%
Aaa AAA $ 870 The City of Newark, New
Jersey, (AMBAC), 7.375%,
10/1/07 $ 985,440
NR NR 2,000 County of Passaic, New
Jersey, 6.70%, 9/1/13 2,207,360
------------
$ 3,192,800
------------
GENERAL OBLIGATIONS - 13.3%
NR BBB $ 9,745 Government of Guam,
5.40%, 11/15/18 $ 8,414,515
NR A+ 5,000 The Hudson County
Improvement Authority,
6.625%, 8/1/25 5,235,950
Aa1 NR 3,000 Mercer County Improvement
Authority Solid Waste, 0%,
4/1/10 1,299,240
Baa1 A 1,990 Commonwealth of Puerto
Rico, 6.45%, 7/1/17 2,083,530
Baa1 A 5,000 Commonwealth of Puerto
Rico, 6.50%, 7/1/23 5,234,400
Baa BBB 5,645 The Commonwealth of
Puerto Rico Aqueduct
and Sewer Authority, 7.875%,
07/1/17 6,253,305
Baa1 A 3,250 Puerto Rico Public
Buildings Authority, Public
Education and Health
Facilities, 5.75%, 7/1/15 3,119,675
Baa1 A 5,125 Puerto Rico Public Buildings
Authority, Public Education
and Health Facilities, 5.50%,
7/1/21 4,695,730
Baa1 A 2,075 Puerto Rico Public
Buildings Authority, Public
Education and Health
Facilities, 5.75%, 7/1/16 1,977,932
NR NR 14,850 Virgin Islands Public Finance
Authority, 7.25%, 10/1/18 15,318,517
------------
$ 53,632,794
------------
HEALTH CARE (NON-
HOSPITAL) - 3.0%
NR BBB $ 615 New Jersey Economic
Development Authority
Cadbury Corporation, 7.50%,
7/1/21 $ 593,875
NR BBB 300 New Jersey Economic
Development Authority
Cadbury Corporation,
8.70%, 7/1/07 319,896
</TABLE>
20
<PAGE> 7
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HEALTH CARE (NON-
HOSPITAL) - (continued)
NR NR 1,400 New Jersey Economic
Development Authority,
Claremont Health System,
9.10%, 9/1/22 1,465,632
NR NR 2,500 New Jersey Economic
Development Authority
Victoria Health Corporation,
7.65%, 1/1/14 2,372,700
NR NR 4,000 New Jersey Economic
Development Authority
Keswick Pines Project,
8.75%, 1/1/24 3,991,120
NR NR 3,630 New Jersey Economic
Development Authority
Forsgate Project, 8.625%
6/1/25 3,410,857
------------
$ 12,154,080
------------
HOSPITALS - 6.6%
Aa AAA $10,790 New Jersey Health Care
Facilities Financing Authority,
Barnert Hospital, (FHA),
6.80%, 8/1/19 $ 11,298,209
A A- 2,300 New Jersey Health Care
Facilities Financing Authority,
Atlantic City Medical Center,
6.80%, 7/1/11 2,417,300
Baa1 NR 3,100 New Jersey Health Care
Facilities Financing Authority,
Deborah Heart and Lung
Center, 6.30%, 7/1/23 3,047,796
Baa NR 2,000 New Jersey Health Care
Facilities Financing Authority,
Southern Ocean County
Hospital, 6.25%, 7/1/23 1,842,100
A A- 9,659 New Jersey Health Care
Facilities Financing Authority,
Chilton Memorial Hospital,
5.00%, 7/1/13 8,175,866
------------
$ 26,781,271
------------
HOUSING - 4.4%
Aa AA $ 1,250 New Jersey Building
Authority, 7.20%,
6/15/13 $ 1,357,438
Aa AA- 2,591 New Jersey Building
Authority, Garden State
Savings, 0%, 6/15/10 1,105,813
NR AAA 3,700 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
7.00%, 5/1/30 3,832,793
NR AAA 2,000 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
6.95%, 5/1/13 2,084,940
NR AA+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/12 1,040,920
NR AA+ 1,975 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/11 2,055,817
NR AA+ 1,250 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.25%, 11/1/22 1,287,025
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.10%, 5/1/22 1,029,330
NR A+ 3,715 New Jersey Housing and
Mortgage Finance Agency,
6.60%, 11/1/14 3,773,511
Aaa AAA 300 Puerto Rico Housing
Finance Corporation
Mortgage Revenue(GNMA),
6.85%, 10/15/23 310,209
------------
$ 17,877,796
------------
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL - 5.0%
NR NR $ 2,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation,
7.875%, 6/1/22 $ 2,238,020
NR NR 4,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation
6.875%, 12/1/22 4,168,480
Aa1 NR 3,000 New Jersey Economic
Development Authority,
Garden State Paper Company,
(AMT), 7.125%, 4/1/22 3,124,320
NR NR 2,000 New Jersey Economic
Development Authority,
The Seeing Eye, Inc., 7.30%,
4/1/11 2,123,560
NR BBB 1,160 New Jersey Economic
Development Authority
National Association of
Accountants, Inc. 7.65%,
7/1/09 1,241,583
NR AA- 3,300 New Jersey Economic
Development Authority, Oak
Grove Associates, 6.125%,
12/1/06 3,401,937
</TABLE>
21
<PAGE> 8
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL - (continued)
Baa1 A- 2,135 New Jersey Economic
Development Authority
GATX Terminals Corporation,
7.30%, 9/1/19 2,349,098
Aa3 AA- 1,300 Puerto Rico Industrial,
Medical and Environmental
Pollution Control
Authority, Motorola, Inc.,
6.75%, 1/1/14 1,375,712
------------
$ 20,022,710
------------
INSURED EDUCATION - 0.5%
Aaa AAA $ 2,000 New Jersey State Educational
Facilities Authority Seton Hall
University, (BIGI), 6.85%,
7/1/19 $ 2,106,540
------------
INSURED HOSPITALS - 1.4%
Aaa AAA $ 1,310 New Jersey Health Care
Facilities Financing Authority,
Hackensack Medical Center,
(FGIC), 6.625%, 7/1/17 $ 1,372,631
Aaa AAA 2,000 New Jersey Health Care
Facilities Financing Authority,
Hackensack Medical Center,
(FGIC), 6.25%, 7/1/21 2,033,380
Aa AA- 480 New Jersey Health Care
Facilities Financing Authority,
Cathedral Health Services,
(MBIA), 7.25%, 2/15/10 522,144
Aa AA- 1,570 New Jersey Health Care
Facilities Financing Authority,
Cathedral Health Services,
(MBIA), 7.25%, 2/15/21 1,700,059
------------
$ 5,628,214
------------
INSURED HOUSING - 1.3%
Aaa AAA $ 1,410 New Jersey Housing and
Mortgage Finance Agency,
(MBIA), 7.375%, 10/1/17 $ 1,468,007
Aaa AAA 1,760 New Jersey Housing and
Mortgage Finance Agency,
(AMT), (MBIA), 7.70%,
10/1/29 1,847,402
Aaa AAA 1,745 Pennsauken Township
Housing Finance
Corporation,(MBIA),
8.00%, 4/1/11 1,836,665
------------
$ 5,152,074
------------
INSURED LEASE REVENUE - 5.8%
Aaa AAA $ 3,900 County of Atlantic, New
Jersey, Public Facilities
Lease Agreement,(FGIC),
6.00%, 3/1/13 $ 4,011,072
Aaa AAA 1,750 County of Hudson, New
Jersey Correctional Facility,
(MBIA), 6.50%,
12/1/11 1,842,925
Aaa AAA 6,240 County of Hudson, New
Jersey Correctional Facility,
(MBIA), 6.60%,
12/1/21 6,537,648
Aaa AAA 2,500 County of Hudson, New
Jersey Improvement Authority,
Secondary Yield Curve
Notes, (FGIC), Variable,
12/1/25 (1) 2,507,900
Aaa AAA 1,800 County of Middlesex, New
Jersey Certificates of
Participation, (MBIA),
6.125%, 2/15/19 1,835,622
Aaa AAA 5,000 New Jersey Builders
(AMBAC), 5%,
6/15/13 4,506,800
Aaa AAA 2,225 University of Medicine and
Dentistry Certificates of
Participation, (MBIA), 6.75%,
12/1/09 2,359,590
------------
$ 23,601,557
------------
INSURED SOLID WASTE - 0.5%
Aaa AAA $ 2,000 The Mercer County
Improvement Authority,
Solid Waste Revenue, (AMT),
(FGIC), 6.70%, 04/1/13 $ 2,118,200
------------
INSURED SPECIAL TAX - 0.8%
Aaa AAA $ 3,375 New Jersey Economic
Development Authority,
Market Transition Facility,
(MBIA), 5.875%, 7/1/11 $ 3,386,914
------------
INSURED TRANSPORTATION - 4.1%
Aaa AAA $ 2,000 The Delaware River and
Bay Authority, (MBIA),
4.75%, 1/1/24 $ 1,660,900
Aaa AAA 5,000 New Jersey Turnpike
Authority ORITESO, (MBIA),
Variable, 1/1/16 (1) 5,744,000
Aaa AAA 8,450 New Jersey Turnpike
Authority (MBIA), 6.50%,
1/1/16 9,162,335
------------
$ 16,567,235
------------
</TABLE>
22
<PAGE> 9
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUTED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED UTILITIES - 3.9%
Aaa AAA $ 2,750 New Jersey Economic
Development Authority,
New Jersey American Water
Co., (AMT), (FGIC), 6.875%,
11/1/34 $ 2,912,058
Aaa AAA 13,500 Salem County, Public Service
Electric and Gas, (MBIA),
5.55%, 11/1/33 12,629,790
------------
$ 15,541,848
------------
INSURED WATER & SEWER - 5.0%
Aaa AAA $ 6,500 Landis New Jersey Sewerage
Authority, Linked OCARSO,
(FGIC), 5.65% , 9/19/19 $ 6,248,970
Aaa AAA 2,500 Middlesex County Utilities
Authority, Sewer Revenue
(MBIA), Variable,
8/15/10 (1) 2,645,425
Aaa AAA 2,000 Township of Monroe, New
Jersey Municipal Utilities
Authority (MBIA), 5.50%,
2/1/17 1,882,380
Aaa AAA 1,250 New Jersey Economic
Development Authority,
Middlesex Water Company,
(AMBAC), 5.20%, 10/1/22 1,107,550
Aaa AAA 1,650 New Jersey Economic
Development Authority,
Hackensack Water Company,
(MBIA), 5.80%, 3/1/24 1,607,248
Aaa AAA 1,270 Passaic Valley Water
Commissioners, (FGIC),
5.00%, 12/15/22 1,100,214
Aaa AAA 6,130 West New York, New Jersey
Municipal Utilities Authority,
(FGIC), 5.125%,
12/15/17 5,480,772
------------
$ 20,072,559
------------
LEASE/CERTIFICATE
OF PARTICIPATION - 3.7%
Baa1 A- $ 720 County of Atlantic, New
Jersey Public Facilities Lease
Agreement, 8.875%,
1/15/14 $ 929,902
Baa1 A- 785 County of Atlantic, New
Jersey Public Facilities Lease
Agreement, 8.875%,
1/15/15 1,015,043
A1 NR 1,000 Township of Bedminster,
New Jersey Board of
Education, 7.125%,
9/1/10 1,092,370
Aa AA- 1,000 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/14 1,000,510
Aa AA- 2,000 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/15 2,001,020
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/16 1,500,465
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/17 1,500,465
Aa AA- 5,420 New Jersey Building
Authority, 5.00%,
6/15/16 4,785,210
NR A+ 1,000 New Jersey Economic
Development Authority,
Performing Arts Center Site
Acquisition, 6.75%, 6/15/12 1,049,580
------------
$ 14,874,565
------------
MISCELLANEOUS - 4.0%
A1 A+ $ 1,650 New Jersey Economic
Development Authority
Economic Recovery Fund
0%, 9/15/09 $ 727,089
A1 A+ 5,500 New Jersey Economic
Development Authority
Economic Recovery Fund
0%, 3/15/13 1,911,525
NR NR 7,600 New Jersey Sports and
Exposition Authority,
Monmouth Park, 8.00%,
1/1/25 8,251,167
Aa NR 6,000 New Jersey Sports and
Exposition Authority,
5.20%, 1/1/20 5,318,580
------------
$ 16,208,361
------------
SOLID WASTE - 6.8%
Baa NR $ 3,655 The Atlantic County Utilities
Authority, Solid Waste Revenue,
7.125%, 3/1/16 $ 3,641,001
Ba BBB+ 6,125 Pollution Control Financing
Authority of Camden
County, (AMT), 7.50%,
12/1/09 6,237,639
Ba NR 5,975 Mercer County Improvement
Authority, Solid Waste
System Revenue (AMT),
0%, 4/1/14 1,548,003
</TABLE>
23
<PAGE> 10
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SOLID WASTE - (continued)
Ba NR 6,000 Mercer County Improvement
Authority, Solid Waste System
Revenue (AMT), 0%, 4/1/15 1,445,940
Ba NR 3,000 Mercer County Improvement
Authority, Solid Waste System
Revenue (AMT), 0%, 4/1/16 672,510
Ba NR 1,500 Passaic County Utilities
Authority Solid Waste System
Revenue, 7.00%, 11/15/07 1,485,795
NR A- 11,930 Union County, New Jersey
Utilities Authority, Solid Waste
Revenue, (AMT), 7.20%,
6/15/14 12,411,376
------------
$ 27,442,264
------------
SPECIAL TAX - 0.2%
Baa1 BBB+ $ 550 Puerto Rico Infrastructure
Financing Authority, 7.90%,
7/1/07 $ 607,574
------------
TRANSPORTATION - 15.1%
NR BBB $ 1,250 Guam Airport Authority,
(AMT), 6.60%, 10/1/10 $ 1,263,675
NR BBB 1,400 Guam Airport Authority,
6.50%, 10/1/23 1,390,886
NR BBB 2,000 Guam Airport Authority
(AMT), 6.70%, 10/1/23 1,999,740
A1 AA- 3,705 The Port Authority of New
York and New Jersey, 5.25%,
7/15/14 3,396,706
A1 AA- 9,500 The Port Authority of New
York and New Jersey,
7.35%, 10/1/27 (2) 10,438,315
A1 AA- 2,645 The Port Authority of New
York and New Jersey, 6.75%,
8/1/26 2,792,194
A1 AA- 5,000 The Port Authority of New
York and New Jersey, (AMT),
6.25%, 1/15/27 4,999,750
A1 AA- 9,000 The Port Authority of New
York and New Jersey, 6.125%,
6/1/94 8,962,560
A1 AA- 5,000 The Port Authority of New
York and New Jersey,
5.375%, 3/1/28 4,561,400
Baa1 BB 5,100 The Port Authority of
New York and New Jersey,
Delta Air Lines Inc., 6.95%,
6/1/08 5,356,428
Baa1 A 2,135 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/12 2,216,963
Baa1 A 3,000 Puerto Rico Highway and
Transportation Authority,
5.25%, 7/1/21 2,638,110
Baa1 A 4,100 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 4,243,131
Baa3 BB+ 5,550 Puerto Rico Port Authority,
American Airlines, (AMT),
6.30%, 6/1/23 5,386,553
NR A+ 1,115 South Jersey Port Corpora-
tion, New Jersey Marine
Terminal, 6.875%, 1/1/20 1,147,224
------------
$ 60,793,635
------------
UTILITY - 2.8%
NR BBB $ 100 Guam Power Authority,
5.25%, 10/1/13 $ 88,727
NR BBB 1,500 Guam Power Authority,
5.25%, 10/1/23 1,267,485
NR BBB 2,000 Guam Power Authority,
6.75%, 10/1/24 2,031,080
A3 BBB+ 625 New Jersey Economic
Development Authority,
Elizabethtown Gas Co.,
(AMT), 6.75%, 10/1/21 632,337
A2 A 1,455 New Jersey Economic
Development Authority,
Natural Gas Facilities,
(AMT), 7.05%, 3/1/16 1,542,387
Baa1 A- 460 Puerto Rico Electric
Power Authority,
7.125%, 7/1/14 498,801
NR NR 5,105 Virgin Islands Water and
Power Authority, Electric
System Revenue, 7.40%,
7/1/11 5,318,032
------------
$ 11,378,849
------------
WATER & SEWER - 2.5%
A1 AA- $ 2,000 Gloucester County Utilites
Authority, 6.50%, 1/1/21 $ 2,062,600
A3 A 3,250 New Jersey Economic
Development Authority,
Elizabethtown Water
Revenue, (AMT), 6.70%,
8/1/21 3,394,853
Aa AA 1,400 New Jersey Wastewater
Treatment Trust,
7.25%, 5/15/08 1,511,230
Aa AA 1,000 New Jersey Wastewater
Treatment Trust, 6.875%,
6/15/09 1,090,310
</TABLE>
24
<PAGE> 11
NEW JERSEY FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
WATER & SEWER - (continued)
Aa AA 250 New Jersey Wastewater
Treatment Trust, 7.00%,
6/15/10 273,342
Aa AA 1,000 New Jersey Wastewater
Treatment Trust, 6.00%
7/1/10 1,022,020
A1 AA 500 The Somerset Raritan
Valley Sewerage Authority
6.75%, 7/1/10 534,655
------------
$ 9,889,010
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST, $389,842,758) $403,485,415
============
</TABLE>
(1) The above designated securites have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements for open financial
futures contracts.
The Portfolio primarily invests in debt securities issued by New Jersey
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at July 31, 1995, 27.9% 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 by financial
institution ranged from 0.1% to 14.5% of total investments.
See notes to financial statements.
25
<PAGE> 12
PENNSYLVANIA TAX FREE PORTFOLIO
PORTFOLIO OF INVESTMENTS - JULY 31, 1995
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
COGENERATION - 5.3%
NR NR $12,000 Pennsylvania Economic
Development Authority,
Northampton Generating
Project, (AMT), 6.50%,
1/1/13 $11,599,320
NR BBB- 9,000 Pennsylvania Economic
Development Authority,
Colver Project,(AMT),
7.125%, 12/1/15 9,437,490
NR BBB- 5,000 Pennsylvania Economic
Development Authority,
Colver Project, (AMT),
7.15%, 12/1/18 5,212,250
-----------
$26,249,060
-----------
EDUCATION -5.3%
NR BBB $ 4,865 Erie Higher Education
Building Authority, Mercy-
hurst College, 5.75%,
3/15/20 $ 4,370,132
Baa1 NR 1,500 Latrobe, Saint Vincent
College, 6.75%, 5/1/24
1,535,460
NR AAA 2,000 Lehigh County, Allentown
College of St. Francis, 6.75%,
12/15/12 2,129,440
Aa AA 3,700 Pennsylvania, University
of Pennsylvania, 6.625%,
1/1/17 3,733,041
NR A- 4,225 Scranton-Lackawanna,
Pennsylvania University,
University of Scranton,
6.40%, 3/1/07 4,368,185
NR AA 9,700 Swarthmore Borough,
Swathmore College, 6.00%,
9/15/20 9,649,366
-----------
$25,785,624
-----------
ESCROWED - 6.5%
Aaa AAA $ 5,600 Berks County, GO, (FGIC),
Variable, 11/15/20(1) $ 6,412,000
Aaa A- 1,750 Chester County, HEFA,
Bryn Mawr Hospitals, 6.75%,
7/1/14 1,990,468
Aaa AAA 3,195 Derry Township School
District, GO, (AMBAC),
6.20%, 9/1/08 3,430,951
Aaa AAA 2,000 Doylestown Hospital
Authority, Doylestown
Hospital, (AMBAC), 6.90%,
7/1/19 2,219,120
Aaa AAA 1,405 Lycoming County, GO,
(FGIC), 6.40%, 8/15/11 1,540,765
Aaa AAA 945 Lycoming County, GO,
(FGIC), 6.40%, 8/15/11 1,036,315
NR A- 1,000 Pennsylvania, HEFA, Elizabeth
College, 7.25%, 6/15/11 1,150,140
NR A- 6,900 Pennsylvania IDA, Economic
Development, 7.00%, 1/1/11 7,853,649
NR A- 5,155 Philadelphia, Hospital and
Higher Education Facility
Authority, Presbyterian
Medical Center, 6.50%,
12/1/11 5,646,684
Aaa AAA 500 York County Hospital
Authority, York Hospital,
(AMBAC), 7.00%, 7/1/21 565,985
-----------
$31,846,077
-----------
GENERAL OBLIGATIONS - 4.8%
NR A $ 4,725 Chester Upland School
District, 6.375%, 9/1/12 $ 4,828,383
NR A 3,000 Chester Upland School
Distict, 6.375%, 9/1/21 3,038,070
A1 AA- 465 Commonwealth of Penn-
sylvania, 6.75%, 1/1/07 498,182
A1 AA- 500 Commonwealth of Penn-
sylvania, 6.75%, 1/1/08 534,465
A1 AA- 5,435 Commonwealth of Penn-
sylvania, 6.50%,
11/1/09 5,729,251
A1 AA- 2,000 Commonwealth of Penn-
sylvania, 6.375%,
9/15/12 2,074,740
NR A 3,000 Dauphin County,
6.90%, 6/2/26 3,166,320
A1 A+ 2,050 Lower Providence Township
Sewer Authority Guaranteed,
6.75%, 5/01/22 2,142,066
NR A 1,950 McKeesport Area School
District, 5.00%, 4/1/13 1,741,194
-----------
$23,752,671
-----------
HOSPITALS - 22.6%
NR AAA $ 2,470 Allegheny County, IDA, Presby-
terian Medical Center, 6.75%,
2/1/26 $ 2,548,842
NR A- 4,000 Butler County IDA, Sherwood
Oaks, 5.75%, 6/1/16 3,588,520
NR AA- 12,000 Chester County, HEFA, (Main
Line Health System), 5.50%,
5/15/15 11,139,000
</TABLE>
26
<PAGE> 13
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOSPITALS - continued
Baa BBB 2,000 Dauphin County Hospital
Authority, Community General
Osteopathic Hospital, 7.375%,
6/1/16 2,085,880
NR A- 10,250 Delaware County, Riddle
Memorial Hospital, 6.50%,
1/1/22 9,813,863
NR NR 4,755 Hazelton Luzerne County,
Saint Joseph Medical Center,
8.375%, 7/1/12 4,892,895
Baa1 NR 2,670 Indiana County Hospital
Authority, Indiana Hospital,
7.125%, 7/1/23 2,689,838
NR BBB+ 3,500 Lebanon County, Good
Samaritan Hospital, 6.00%,
11/15/18 3,148,285
Baa1 A 3,250 Lehigh County, Muhlenberg
Hospital, 6.60%, 7/15/22 3,233,620
NR BBB- 5,405 McKean County Hospital
Authority, Bradford Hospital,
6.10%, 10/1/20 4,591,115
NR BBB+ 2,615 Montgomery County, Potts-
town Medical Center, 6.875%,
11/15/20 2,597,558
A1 A+ 500 PA Hospital and Higher
Education Facility Authority,
Allegheny General Hospital,
7.25%, 9/1/17 536,535
A BBB+ 8,500 PA Hospital and Higher
Education Facility Authority,
Albert Einstein Medical Center,
7.625%, 4/1/11 9,054,965
Baa1 BBB+ 12,800 PA Hospital and Higher
Education Facility Authority,
Graduate Health System,
6.625%, 7/01/21 12,228,480
Aa AA 4,500 PA Hospital and Higher
Education Facility Authority,
Children's Hospital, 5.50%,
2/15/22 4,125,060
Baa1 A- 10,515 PA Hospital and Higher
Education Facility Authority,
Temple University Hospital,
6.625%, 11/15/23 10,517,418
Aa AA 10,200 PA Hospital and Higher
Education Facility Authority,
Children's Hospital, 5.00%,
2/15/21 8,745,276
Aa NR 4,750 Pottsville, Hospital Authority,
Daughters of Charity, 5.00%,
8/15/12 4,238,093
Baa NR 4,115 Somerset County, Hospital
Authority, Somerset County,
Somerset Community Hospital
Project, 6.750%, 3/1/11 3,950,359
A NR 7,000 Washington County, Hospital
Authority, Monongahela Valley
Hospital, 6.75%, 12/1/08 7,324,310
------------
$111,049,912
------------
HOUSING -12.3%
NR AAA $ 1,000 Bucks County, Mortgage
Revenue Bonds, Warminster
Heights Project, Section 8-A,
6.80%, 8/1/12 $ 1,029,520
NR NR 2,680 Chester County, IDA, 8.05%,
1/1/24 2,688,120
A1 A+ 3,000 Pennsylvania HFA MF, 7.60%,
7/1/13 3,210,330
Aaa NR 3,000 Philadelphia Redevelopment
Authority, MF, 6.95%,
5/15/24 3,102,450
Aaa NR 2,175 Allegheny County Residential
Finance Authority, SMFR,
(GNMA), 7.15%, 6/1/17 2,212,410
Aa AA 5,700 Pennsylvania HFA SFMR,
(AMT), 6.75%, 4/1/16 5,816,451
Aa AA 3,730 Pennsylvania HFA SFMR,
6.90%, 4/1/17 3,834,627
Aa AA 4,000 Pennsylvania HFA SFMR,
6.85%, 4/1/16 4,099,080
Aa AA 300 Pennsylvania HFA SFMR,
7.40%, 10/1/09 313,026
Aa AA 770 Pennsylvania HFA SFMR,
7.20%, 10/1/11 809,124
Aa AA 695 Pennsylvania HFA SFMR,
7.375%, 10/1/16 720,048
Aa AA 1,000 Pennsylvania HFA SFMR,
(AMT), Variable, 10/1/23(1) 1,059,990
Aa AA 5,500 Pennsylvania HFA SFMR,
(AMT), 6.85%, 4/1/25 5,637,280
Aa AA 8,350 Pennsylvania HFA SFMR,
(AMT), 7.50%, 10/1/25 8,868,034
Aa AA 10,000 Pennsylvania HFA SFMR,
(AMT), 6.65%, 10/01/21 10,177,400
A1 A 4,235 Urban Redevelopment Authority
of Pittsburgh Mortgage Revenue
Bonds, (AMT), 7.10%,
4/1/24 4,259,563
A1 A 265 Urban Redevelopment Authority
of Pittsburgh, 7.45%, 4/1/10 278,663
A1 A 1,000 Urban Redevelopment Authority
of Pittsburgh Mortgage Revenue
Bonds, 7.125%, 4/1/15 1,040,790
</TABLE>
27
<PAGE> 14
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOUSING - continued
A1 A 1,055 Urban Redevelopment Authority
of Pittsburgh Mortgage Revenue
Bonds, (AMT), 7.40%,
4/1/24 1,096,630
-----------
$60,253,536
-----------
INDUSTRIAL DEVELOPMENT
AUTHORITY - 8.7%
A3 A $ 6,950 Butler County IDA, Witco
Corporation Project, 5.85%,
12/1/23 $ 6,573,449
NR BBB 1,005 Clearfield County IDA,
Kmart Corporation, 6.80%,
5/15/07 1,030,095
NR A+ 4,000 Franklin County IDA,
Corning Incorporated, 6.25%,
8/1/05 4,206,280
NR AAA 8,750 Mercer County IDA, Hillcrest
Nursing Center, 0%,
1/15/13 2,475,375
A2 A 12,000 New Morgan IDA, New
Morgan Landfill, (AMT),
6.50%, 4/1/19 12,155,040
Baa2 BBB- 5,000 Pennsylvania, IDA, Macmil-
liam Project, (AMT), 7.60%,
12/1/20 5,385,950
Baa1 BBB+ 4,450 Pennsylvania, IDA, Sun
Company Project, (AMT),
7.60%, 12/1/24 4,807,868
A2 A 6,025 Washington County IDA, West
Penn Power, 6.05%, 4/1/14 5,964,630
-----------
$42,598,687
-----------
INSURED AIRPORTS - 1.2%
Aaa AAA $ 6,000 Philadelphia Airport, (AMBAC),
(AMT), 6.00%, 6/15/15 $ 5,903,760
-----------
INSURED EDUCATION - 1.1%
Aaa AAA $ 2,500 Pennsylvania Higher Education
Assistance Agency Student Loan
Revenue Bonds, (AMBAC),
(AMT), 7.15%, 9/1/21 $ 2,639,200
Aaa AAA 1,500 Pennsylvania Higher Education
Assistance Agency Student
Loan Revenue Bonds, (AMBAC),
(AMT), Variable, 3/1/22 (1) 1,441,965
Aaa AAA 700 Pennsylvania Higher Education
Assistance Agency Student Loan
Revenue Bonds, (AMBAC),
(AMT), Variable, 9/1/26(1) 744,744
Aaa AAA 800 Pennsylvania Higher Education
Assistance Agency Student Loan
Revenue Bonds, (AMBAC),
(AMT), 6.40%, 3/1/22 808,712
-----------
$ 5,634,621
-----------
INSURED GENERAL
OBLIGATION - 3.0%
Aaa AAA $ 1,750 Deer Lakes School District,
(MBIA), 6.45%, 1/15/19 $ 1,792,210
Aaa AAA 2,170 Elizabeth Forward School
District, (MBIA), 0%,
9/1/20 454,701
Aaa AAA 2,170 Elizabeth Forward School
District, (MBIA), 0%, 9/1/21 427,230
Aaa AAA 2,170 Elizabeth Forward School
District, (MBIA), 0%, 9/1/22 401,407
Aaa AAA 2,170 Elizabeth Forward School
District, (MBIA), 0%, 9/1/23 377,168
Aaa AAA 4,345 Elizabeth Forward School
District, (MBIA), 0%, 9/1/24 709,582
Aaa AAA 1,460 Haverford School District,,
(FGIC), 6.125%, 6/1/14 1,477,199
Aaa AAA 4,500 Keystone Oaks School District,
(AMBAC), Variable,
9/1/16 (1) 4,348,170
Aaa AAA 1,430 Mars Area School District,
(MBIA), 0%, 3/1/14 474,245
Aaa AAA 655 Rochester Area School District,
(AMBAC), 0%, 5/1/10 278,703
Aaa AAA 2,795 Venango County, (AMBAC),
6.30%, 12/1/19 2,850,453
Aaa AAA 1,000 West Allegheny County School
District, (AMBAC), 6.60%,
2/1/09 1,034,210
-----------
$14,625,278
-----------
INSURED HOSPITAL - 7.1%
Aaa AAA $ 1,170 Allegheny County, Children's
Hospital of Pittsburgh, (MBIA),
6.75%, 7/1/08 $ 1,234,175
Aaa AAA 3,750 Allegheny County, Magee-
Womens Hospital, (FGIC), 0%,
10/1/15 1,114,425
Aaa AAA 1,400 Armstrong County Saint Francis
Health Care, (AMBAC), 6.25%,
6/1/13 1,430,296
Aaa AAA 2,500 Armstrong County Saint Francis
Health Care, (AMBAC), 6.00%,
8/15/08 2,557,425
Aaa AAA 4,400 Bucks County, IDA, Grand View
Hospital, (AMBAC), 5.25%,
7/1/21 3,889,864
</TABLE>
28
<PAGE> 15
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITAL - continued
Aaa AAA 775 Carbon County, Gnaden Memorial
Hospital, (AMBAC), 7.00%,
11/15/14 825,243
Aaa AAA 750 Erie County Hospital Authority,
Harlot Medical Center,
(AMBAC), 7.10%, 2/15/10 811,313
Aaa AAA 230 Lehigh County Health East,
Incorporated, (MBIA), 7.00%,
7/1/15 244,801
Aaa AAA 5,000 Lehigh County, St. Luke's
Hospital, (AMBAC), 6.25%,
7/1/22 5,091,850
Aaa AAA 1,000 Montgomery County, Abington
Memorial Hospital, (AMBAC),
Variable, 6/1/11(1) 1,111,250
Aaa AAA 5,000 Philadelphia Hospital and Higher
Education, Pennsylvania Hospital,
(FGIC), Variable, 2/15/12 (1) 4,368,500
Aaa AAA 3,500 Sayre Health Care Facilities
Authority, Guthrie Healthcare
System, (AMBAC), 6.00%,
3/1/21 3,490,690
Aaa AAA 1,500 Scranton-Lackawanna, Mercy
Health Systems, (MBIA),
6.90%, 1/1/23 1,577,370
Aaa AAA 7,500 Washington County, Shadyside
Hospital, (AMBAC), 5.75%,
12/15/14 7,277,924
------------
$ 35,025,126
------------
INSURED LEASE - 4.1%
Aaa AAA $4,595 Harrisburg Authority, Dauphin
County, Lease Revenue, (CGIC),
6.25%, 6/1/10 $ 4,904,335
Aaa AAA 3,000 Northumberland County,
Lease Revenue, (MBIA), 0%,
10/15/12 1,109,040
Aaa AAA 5,600 Philadelphia Muni Authority
Lease Revenue, (FGIC),
5.625%, 11/15/18 5,317,592
Aaa AAA 10,000 Commonwealth of Pennsylvania,
Lease Revenue, (AMBAC),
5.00%, 7/1/15 8,751,600
------------
$ 20,082,567
------------
INSURED UTILITIES - 3.9%
Aaa AAA $4,000 Beaver County IDA, Ohio
Edison Company, (FGIC),
7.00%, 6/1/21 $ 4,270,880
Aaa AAA 10,000 Beaver County IDA, Ohio
Edison Company, (FGIC),
7.05%, 10/1/20 10,708,500
Aaa AAA 3,800 Puerto Rico Electric Power
Authority, (FSA), Variable,
7/1/02 (1) 4,116,578
------------
$ 19,095,958
------------
INSURED WATER & SEWER - 6.2%
Aaa AAA $2,750 Allegheny County, Sewer
Revenue, (FGIC), 0%,
12/1/08 $ 1,296,845
Aaa AAA 9,000 Bethlehem Authority, Northampton
and Lehigh Counties, Water
Revenue Bonds, (MBIA),
4.875%,11/15/14 7,805,070
Aaa AAA 2,500 City of Philadelphia, Water
and Wastewater, (FGIC),
Variable, 6/15/12(1) 2,350,000
Aaa AAA 9,000 City of Philadelphia, Water
and Wastewater, (CGIC),
5.50%, 6/15/15 8,441,280
Aaa AAA 2,460 City of Philadelphia, Water
and Wastewater, (CGIC), 5.00%,
6/15/16 2,145,440
Aaa AAA 8,920 City of Philadelphia, Water and
Wastewater, (MBIA), 5.60%,
8/1/18 8,435,555
------------
$ 30,474,190
------------
MISCELLANEOUS - 3.8%
NR AA $870 Pennsylvania Infrastructure
Investment Authority, Pennvest,
6.80%, 9/1/10 $ 922,487
NR A 16,950 Pennsylvania Finance Authority,
Beaver County, 6.60%,
11/1/09 17,744,277
------------
$ 18,666,764
------------
NURSING HOMES - 1.3%
NR NR $3,500 Montgomery County IDA,
Geriatric Health Care Institute,
8.375%, 7/1/23 $ 3,493,910
NR NR 1,460 Westmoreland County IDA,
Highland Health System,
9.25%, 6/1/22 1,517,860
NR NR 1,190 Philadelphia Hospital and
Higher Education Facilities
Authority, Philadelphia
Protestant, 8.625%, 7/1/21 1,200,995
------------
$ 6,212,765
------------
</TABLE>
29
<PAGE> 16
PENNSYLVANIA TAX FREE PORTFOLIO (CONTINUED)
- --------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
- ------------------- AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
SPECIAL TAX REVENUE - 0.1%
Baa1 BBB+ $500 Puerto Rico Special Tax
Revenue, 7.50%, 7/1/09 $ 535,485
------------
TRANSPORTATION - 0.3%
Baa1 A $1,500 Puerto Rico Commonwealth
Highway, 5.50%, 7/1/13 $ 1,415,115
------------
UTILITIES - 2.2%
Baa3 BB+ $500 Beaver County, IDA, Ohio
Edison Company, 7.75%,
9/1/24 $ 524,550
Baa1 BBB+ 3,250 Delaware County, IDA,
Philadelphia Electric Company,
7.375%, 4/1/21 3,462,745
Baa1 BBB+ 4,070 Montgomery County, IDA,
Philadelphia Electric Company,
(AMT), 7.60%, 4/1/21 4,337,358
Baa1 A- 3,370 Puerto Rico Electric Power
Authority Power Revenue,
0%, 7/1/17 863,866
NR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,562,595
------------
$ 10,751,114
------------
WATER & SEWER
REVENUE - 0.2%
Baa1 A $1,000 Puerto Rico Aqueduct and
Sewer Authority, 7.90%,
7/1/07 $ 1,109,020
------------
TOTAL TAX-EXEMPT INVESTMENTS
(IDENTIFIED COST, $477,086,127) $491,067,330
============
</TABLE>
(1) The above designated securities have been issued as inverse floater bonds.
The Portfolio primarily invests in debt securities issued by Pennsylvania
municipalities. The ability of the issuers of debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at July 31, 1995, 30.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 0.8% to 12.5% of total investments.
See notes to financial statements
30
<PAGE> 17
TAX FREE PORTFOLIOS
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
- --------------------------------------------------------------------------------
July 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------
<S> <C> <C> <C>
ASSETS:
Investments -
Identified cost $192,808,845 $389,842,758 $477,086,127
Unrealized appreciation (depreciation) (1,554,336) 13,642,657 13,981,203
------------ ------------ ------------
Total investments, at value (Note 1A) $191,254,509 $403,485,415 $491,067,330
Cash 1,592,566 1,075,446 4,181,885
Receivable for investments sold - 3,861,470 30,000
Interest receivable 2,509,768 5,337,412 6,962,611
Deferred organization expenses (Note 1D) 6,823 11,270 13,558
------------ ------------ ------------
Total assets $195,363,666 $413,771,013 $502,255,384
------------ ------------ ------------
LIABILITIES:
Payable for investments purchased $ - $ 2,654,715 $ -
Payable for daily variation margin on open
financial futures contracts (Note 1E) 77,031 66,406 -
Payable to affiliates -
Trustees' fees 919 1,406 1,713
Custodian fees 3,823 5,883 -
Accrued expenses 6,104 4,181 3,367
------------ ------------ ------------
Total liabilities $ 87,877 $ 2,732,591 $ 5,080
------------ ------------ ------------
NET ASSETS applicable to investors' interest in Portfolio $195,275,789 $411,038,422 $502,250,304
============ ============ ============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $196,718,666 $397,350,461 $488,269,101
Unrealized appreciation (depreciation) of investments and
financial futures contracts (computed
on the basis of identified cost) (1,442,877) 13,687,961 13,981,203
------------ ------------ ------------
Total $195,275,789 $411,038,422 $502,250,304
============ ============ ============
</TABLE>
See notes to financial statements
31
<PAGE> 18
STATEMENTS OF OPERATIONS
- --------------------------------------------------------------------------------
Year Ended July 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------
<S> <C> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income $12,024,017 $ 26,778,322 $ 33,140,571
----------- ------------ ------------
Expenses -
Investment adviser fee (Note 2) $ 835,605 $ 1,944,340 $ 2,416,419
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 17,185 14,740 20,013
Custodian fees (Note 2) 48,135 91,170 -
Interest expense (Note 5) 55,056 38,870 11,820
Legal and accounting services 27,771 35,317 38,577
Bond Pricing 15,577 18,054 15,974
Amortization of organization expenses (Note 1D) 2,620 4,464 5,278
Printing and postage 552 - -
Registration costs 125 125 125
Miscellaneous 15,780 8,434 8,815
----------- ------------ ------------
Total expenses $ 1,018,406 $ 2,155,514 $ 2,517,021
----------- ------------ ------------
Net investment income $11,005,611 $ 24,622,808 $ 30,623,550
----------- ------------ ------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss -
Investment transactions (identified cost basis) $(2,556,284) $(13,015,045) $(13,832,451)
Financial futures contracts (2,778,750) (4,759,465) (6,462,533)
----------- ------------ ------------
Net realized loss on investments $(5,335,034) $(17,774,510) $(20,294,984)
----------- ------------ ------------
Change in unrealized appreciation -
Investments $ 3,995,907 $ 15,570,319 $ 16,678,284
Financial futures contracts 537,717 1,061,635 2,323,941
----------- ------------ ------------
Net unrealized appreciation of investments $ 4,533,624 $ 16,631,954 $ 19,002,225
----------- ------------ ------------
Net realized and unrealized loss on investments $ (801,410) $ (1,142,556) $ (1,292,759)
----------- ------------ ------------
Net increase in net assets from operations $10,204,201 $ 23,480,252 $ 29,330,791
=========== ============ ============
</TABLE>
See notes to financial statements
32
<PAGE> 19
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended July 31, 1995
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 11,005,611 $ 24,622,808 $ 30,623,550
Net realized loss on investment transactions (5,335,034) (17,774,510) (20,294,984)
Change in unrealized appreciation of investments 4,533,624 16,631,954 19,002,225
------------ ------------ -------------
Net increase in net assets from operations $ 10,204,201 $ 23,480,252 $ 29,330,791
------------ ------------ -------------
Capital transactions -
Contributions $ 25,911,862 $ 43,487,001 $ 38,709,755
Withdrawals (32,878,239) (79,782,847) (102,576,381)
------------ ------------ -------------
Decrease in net assets resulting from capital transactions $ (6,966,377) $(36,295,846) $ (63,866,626)
------------ ------------ -------------
Total increase (decrease) in net assets $ 3,237,824 $(12,815,594) $ (34,535,835)
NET ASSETS:
At beginning of year 192,037,965 423,854,016 536,786,139
------------ ------------ -------------
At end of year $195,275,789 $411,038,422 $ 502,250,304
============ ============ =============
</TABLE>
See notes to financial statements
33
<PAGE> 20
STATEMENTS OF CHANGES IN NET ASSETS
- --------------------------------------------------------------------------------
Year Ended July 31, 1994*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 8,098,918 $ 19,598,942 $ 25,052,308
Net realized gain (loss) on investment transactions 610,531 1,931,832 (1,606,336)
Change in unrealized depreciation of investments (15,885,963) (34,629,145) (41,094,537)
------------ ------------ ------------
Net decrease in net assets from operations $ (7,176,514) $(13,098,371) $(17,648,565)
------------ ------------ ------------
Capital transactions -
Contributions $ 55,286,988 $ 95,610,275 $113,666,177
Withdrawals (15,920,869) (52,334,675) (56,232,111)
------------ ------------ ------------
Increase in net assets resulting from capital transactions $ 39,366,119 $ 43,275,600 $ 57,434,066
------------ ------------ ------------
Total increase in net assets $ 32,189,605 $ 30,177,229 $ 39,785,501
Net Assets:
At beginning of period 159,848,360 393,676,787 497,000,638
------------ ------------ ------------
At end of period $192,037,965 $423,854,016 $536,786,139
============ ============ ============
</TABLE>
* For the ten months ended July 31, 1994 (Note 7).
- --------------------------------------------------------------------------------
Year Ended September 30, 1993*
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
----------- ----------- ------------
<S> <C> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 4,491,010 $ 12,599,045 $ 16,036,467
Net realized gain (loss) on investment transactions (369,709) 108,306 2,426,891
Change in unrealized appreciation of investments 8,422,527 20,473,018 21,996,791
------------ ------------ ------------
Net increase in net assets from operations $ 12,543,828 $ 33,180,369 $ 40,460,149
------------ ------------ ------------
Capital transactions -
Contributions $187,818,789 $409,889,770 $536,041,409
Withdrawals (40,614,277) (49,493,372) (79,600,940)
------------ ------------ ------------
Increase in net assets resulting from capital transactions $147,204,512 $360,396,398 $456,440,469
------------ ------------ ------------
Total increase in net assets $159,748,340 $393,576,767 $496,900,618
NET ASSETS:
At beginning of period 100,020 100,020 100,020
------------ ------------ ------------
At end of period $159,848,360 $393,676,787 $497,000,638
============ ============ ============
</TABLE>
* For the period from the start of business, February 1, 1993, to September 30,
1993.
See notes to financial statements
34
<PAGE> 21
SUPPLEMENTARY DATA
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
YEAR ENDED
-----------------------------------------------------------
JULY 31, 1995 JULY 31, 1994* SEPT. 30, 1993**
----------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS):
Net expenses 0.53% 0.47%+ 0.46%+
Net investment income 5.77% 5.40%+ 5.45%+
PORTFOLIO TURNOVER 29% 10% 10%
NET ASSETS, end of period (000 omitted) $195,276 $192,038 $159,848
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
YEAR ENDED
-----------------------------------------------------------
JULY 31, 1995 JULY 31, 1994* SEPT. 30, 1993**
-----------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS):
Net expenses 0.52% 0.50%+ 0.50%+
Net investment income 5.96% 5.62%+ 5.67%+
PORTFOLIO TURNOVER 54% 25% 12%
NET ASSETS, end of period (000 omitted) $411,038 $423,854 $393,677
</TABLE>
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
YEAR ENDED
-----------------------------------------------------------
JULY 31, 1995 JULY 31, 1994* SEPT. 30, 1993**
-----------------------------------------------------------
<S> <C> <C> <C>
RATIOS (AS A PERCENTAGE OF AVERAGE DAILY NET ASSETS):
Net expenses 0.49% 0.48%+ 0.50%+
Net investment income 6.02% 5.66%+ 5.71%+
PORTFOLIO TURNOVER 44% 21% 17%
NET ASSETS, end of period (000 omitted) $502,250 $536,786 $497,001
</TABLE>
+ Annualized.
* For the ten months ended July 31, 1994 (Note 7).
** For the period from the start of business, February 1, 1993, to September 30,
1993.
See notes to financial statements
35
<PAGE> 22
NOTES TO FINANCIAL STATEMENTS
(1) SIGNIFICANT ACCOUNTING POLICIES
Connecticut Tax Free Portfolio ("Connecticut Portfolio"), New Jersey Tax Free
Portfolio ("New Jersey Portfolio") and Pennsylvania Tax Free Portfolio
("Pennsylvania Portfolio"), collectively the Portfolios, are registered under
the Investment Company Act of 1940 as non-diversified, open-end management
investment companies which were organized as trusts under the laws of the State
of New York on May 1, 1992. The Declarations of Trust permit the Trustees to
issue interests in the Portfolios. The following is a summary of significant
accounting policies of the Portfolios. The policies are in conformity with
generally accepted accounting principles.
A. INVESTMENT VALUATIONS - Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on commodity
exchanges are valued at closing settlement prices. Short-term obligations,
maturing in sixty days or less, are valued at amortized cost, which approximates
value. Investments for which valuations or market quotations are unavailable are
valued at fair value using methods determined in good faith by or at the
direction of the Trustees.
B. INCOME - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C. 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, deductions 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 beginning on the date each Portfolio commenced operations.
E. FINANCIAL FUTURES CONTRACTS - Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio ("margin maintenance") each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for book
purposes as unrealized gains or losses by a Portfolio. A Portfolio's investment
in financial futures contracts is designed only to hedge against anticipated
future changes in interest rates. Should interest rates move unexpectedly, a
Portfolio may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS - The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record when-issued
securities on trade date and maintain security positions such that sufficient
liquid assets will be available to make payment for the securities purchased.
Securities purchased on a when-issued or delayed delivery basis are
marked-to-market daily and begin earning interest on settlement date.
G. OTHER - Investment transactions are accounted for on a trade date basis.
36
<PAGE> 23
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a percentage
of gross income (i.e., income other than gains from the sale of securities).
For the year ended July 31, 1995 each Portfolio paid advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
- --------- ------ ---------------
<S> <C> <C>
Connecticut $ 835,605 0.44%
New Jersey 1,944,340 0.47%
Pennsylvania 2,416,419 0.48%
</TABLE>
* 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. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, 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. Certain of the officers and Trustees of the
Portfolios are officers and directors/trustees of the above organizations.
Trustees of the Portfolio that are not affiliated with the Investment Adviser
may elect to defer receipt of all or a percentage of their annual fees in
accordance with the terms of the Trustees Deferred Compensation Plan. For the
year ended July 31, 1995, no significant amounts have been deferred.
37
<PAGE> 24
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, for the year ended July 31, 1995, were as follows:
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO
--------------------- -------------------- ----------------------
<S> <C> <C> <C>
Purchases $55,774,738 $219,433,205 $220,102,046
Sales 58,525,219 237,114,073 264,136,096
</TABLE>
- --------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation (depreciation) in value of the investments
owned by each Portfolio at July 31, 1995, as computed on a federal income tax
basis, are as follows:
<TABLE>
<CAPTION>
CONNECTICUT NEW JERSEY PENNSYLVANIA
PORTFOLIO PORTFOLIO PORTFOLIO
------------ ---------- ------------
<S> <C> <C> <C>
Aggregate Cost $192,808,845 $389,842,758 $477,086,127
------------ ------------ ------------
Gross unrealized appreciation $ 3,281,263 $ 15,128,046 $ 17,966,732
Gross unrealized depreciation 4,835,599 1,485,389 3,985,529
------------ ------------ ------------
Net unrealized appreciation (depreciation) $ (1,554,336) $ 13,642,657 $ 13,981,203
============ ============ ============
</TABLE>
- --------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Portfolios participate with other Portfolios and Funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. Each Portfolio may temporarily borrow up to 5% of its
total assets to satisfy redemption requests or settle securities transactions.
Interest is charged to each Portfolio or Fund based on its borrowings at an
amount above either the bank's adjusted certificate of deposit rate, a variable
adjusted certificate of deposit rate, or a federal funds effective rate. In
addition, a fee computed at an annual rate of 1/4 of 1% on the $20 million
committed facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. The New Jersey Portfolio and Pennsylvania Portfolio
did not have any significant borrowings or allocated fees during the period. For
the Connecticut Portfolio, the average daily loan balance for the year ended
July 31, 1995 was $1,583,254 and the average interest rate was 7.27%. The
maximum borrowings outstanding at any point during the year was $6,997,000.
38
<PAGE> 25
(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 written
options and futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment 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 July 31, 1995 is
as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS NET UNREALIZED
PORTFOLIO EXPIRATION DATE CONTRACTS POSITION APPRECIATION
- --------- ----------------- --------- -------- --------------
<S> <C> <C> <C>
Connecticut 9/95 145 U.S. Treasury Bonds Short $111,459
New Jersey 9/95 125 U.S. Treasury Bonds Short $ 45,304
</TABLE>
At July 31, 1995 the Connecticut and New Jersey Portfolios had sufficient cash
and/or securities to cover margin requirements on open futures contracts. The
Pennsylvania Portfolio did not have any open obligations under these financial
statements at July 31, 1995.
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(7) CHANGE IN FISCAL YEAR
The Portfolios changed their fiscal year end from September 30, to July 31,
effective July 31, 1994.
39
<PAGE> 26
Investment Management
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FUNDS OFFICERS INDEPENDENT TRUSTEES
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
JAMES B. HAWKES
Vice President, Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
ROBERT B. MACINTOSH Banking, Harvard University Graduate
Vice President School of Business Administration
JAMES L. O'CONNOR NORTON H. REAMER
Treasurer President and Director, United Asset
Management Corporation
THOMAS OTIS
Secretary
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PORTFOLIOS OFFICERS INDEPENDENT TRUSTEES
THOMAS J. FETTER DONALD R. DWIGHT
President and Portfolio President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
JAMES B. HAWKES
Vice President, Trustee SAMUEL L. HAYES, III
Jacob H. Schiff Professor of Investment
ROBERT B. MACINTOSH Banking, Harvard University Graduate
Vice President and School of Business Administration
Portfolio Manager of
New Jersey Tax Free NORTON H. REAMER
Portfolio President and Director, United Asset
Management Corporation
DAVID C. REILLY
Portfolio Manager of JOHN L. THORNDIKE
Pennsylvania Tax Free Director, Fiduciary Trust Company
Portfolio
JACK L. TREYNOR
NICOLE ANDERES Investment Adviser and Consultant
Portfolio Manager of
Connecticut Tax Free
Portfolio
JAMES L. O'CONNOR
Treasurer
THOMAS OTIS
Secretary
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