EXHIBIT (17)(b)(ii)
IMPORTANT NOTICES REGARDING PRIVACY, DELIVERY OF SHAREHOLDER DOCUMENTS, PORTFOLIO HOLDINGS AND PROXY VOTING
Privacy. The Eaton Vance organization is committed to ensuring your financial privacy. Each of the financial institutions identified below has in effect the following policy (Privacy Policy) with respect to nonpublic personal information about its customers:
Only such information received from you, through application forms or otherwise, and information about your Eaton Vance fund transactions will be collected. This may include information such as name, address, social security number, tax status, account balances and transactions. | ||
None of such information about you (or former customers) will be disclosed to anyone, except as permitted by law (which includes disclosure to employees necessary to service your account). In the normal course of servicing a customer’s account, Eaton Vance may share information with unaffiliated third parties that perform various required services such as transfer agents, custodians and broker/dealers. | ||
Policies and procedures (including physical, electronic and procedural safeguards) are in place that are designed to protect the confidentiality of such information. | ||
We reserve the right to change our Privacy Policy at any time upon proper notification to you. Customers may want to review our Privacy Policy periodically for changes by accessing the link on our homepage: www.eatonvance.com. | ||
Our pledge of privacy applies to the following entities within the Eaton Vance organization: the Eaton Vance Family of Funds, Eaton Vance Management, Eaton Vance Investment Counsel, Boston Management and Research, and Eaton Vance Distributors, Inc.
In addition, our Privacy Policy applies only to those Eaton Vance customers who are individuals and who have a direct relationship with us. If a customer’s account (i.e., fund shares) is held in the name of a third-party financial adviser/broker-dealer, it is likely that only such adviser’s privacy policies apply to the customer. This notice supersedes all previously issued privacy disclosures.
For more information about Eaton Vance’s Privacy Policy, please call 1-800-262-1122.
Delivery of Shareholder Documents. The Securities and Exchange Commission (the “SEC”) permits funds to deliver only one copy of shareholder documents, including prospectuses, proxy statements and shareholder reports, to fund investors with multiple accounts at the same residential or post office box address. This practice is often called “householding” and it helps eliminate duplicate mailings to shareholders.
Eaton Vance, or your financial adviser, may household the mailing of your documents indefinitely unless you instruct Eaton Vance, or your financial adviser, otherwise.
If you would prefer that your Eaton Vance documents not be householded, please contact Eaton Vance at 1-800-262-1122, or contact your financial adviser.
Your instructions that householding not apply to delivery of your Eaton Vance documents will be effective within 30 days of receipt by Eaton Vance or your financial adviser.
Portfolio Holdings. Each Eaton Vance Fund and its underlying Portfolio(s) (if applicable) will file a schedule of portfolio holdings on Form N-Q with the SEC for the first and third quarters of each fiscal year. The Form N-Q will be available on the Eaton Vance website at www.eatonvance.com, by calling Eaton Vance at 1-800-262-1122 or in the EDGAR database on the SEC’s website at www.sec.gov. Form N-Q may also be reviewed and copied at the SEC’s public reference room in Washington, D.C. (call 1-800-732-0330 for information on the operation of the public reference room).
Proxy Voting. From time to time, funds are required to vote proxies related to the securities held by the funds. The Eaton Vance Funds or their underlying Portfolios (if applicable) vote proxies according to a set of policies and procedures approved by the Funds’ and Portfolios’ Boards. You may obtain a description of these policies and procedures and information on how the Funds or Portfolios voted proxies relating to portfolio securities during the most recent 12 month period ended June 30, without charge, upon request, by calling 1-800-262-1122. This description is also available on the SEC’s website at www.sec.gov.
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| t a b l e o f c o n t e n t s |
| Management’s Discussion of Fund Performance | 2 | |
| Performance Information and Portfolio Composition | ||
| AMT-Free | 3 | |
| National | 5 | . |
| Fund Expenses | 7 | . |
| Financial Statements | 9 | |
| Board of Trustees’ Annual Approval | ||
| of the Investment Advisory Agreement | 43 | |
| Management and Organization | 49 |
1
Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 201
management’s discussion of fund performance
Economic and Market Conditions
During the year ending March 31, 2010, the U .S . economy and the capital markets remained relatively stable, despite continued high unemployment and concerns over the U .S . budget . After contracting slightly in the second quarter of 2009, the U .S . economy grew at annualized rates of 2 .2% and 5 .7% in the third and fourth quarters of 2009, respectively, and an estimated 3 .2% in the first quarter of 2010, according to the U .S . Department of Commerce .
During the 12-month period, the municipal bond market continued to post solid positive performance, driven by demand from investors seeking tax-free income . The Funds’ primary benchmark, the Barclays Capital 7-Year Municipal Bond Index (the Index)—an unmanaged index of intermediate-maturity municipal obligations—gained 6 .49% for the period .1 The appetite for municipal bonds continued to be buoyed by provisions in the American Recovery and Reinvestment Act of 2009 aimed at supporting the municipal market . The new Build America Bond program gave municipal issuers broader access to the taxable debt markets, providing the potential for lower net borrowing costs and reducing the supply of traditional tax-exempt bonds . The federal stimulus program also provided direct cash subsidies to municipalities that were facing record budget deficits . The result of these events was a rally in the latter half of 2009 for the sector as yields fell and prices rose across the yield curve . In the first three months of 2010, the market has been relatively unchanged .
Management Discussion
During the year ending March 31, 2010, the Funds’ Class A shares at net asset value outperformed the Index and their Lipper peer group averages .1 Management’s relative value approach worked well during this period, as bonds that we felt were oversold were acquired during the market’s low points and performed well when the market recovered . In addition, the Funds were diversified across the yield curve, providing exposure to the longer-maturity bonds within the intermediate-maturity spectrum . These longer bonds outperformed as investors found short-term yields unacceptable and moved into the intermediate sector; as a result, the Funds’ exposure to these securities contributed to their outperformance . Finally, management’s investment down the credit spectrum and higher allocations to revenue bonds also contributed positively to the Funds’ relative perfor mance .
As we move ahead, we recognize that many state and local governments face significant budget deficits that are driven primarily by a steep decline in tax revenues . We will continue to monitor any new developments as state and local officials formulate solutions to address these fiscal problems . As in all environments, we maintain our long-term perspective on the markets against the backdrop of relatively short periods of market volatility. We will continue to actively manage the Funds with the same income-focused, relative value approach we have always employed . We believe that this approach, which is based on credit research and decades of experience in the municipal market, will serve municipal investors well over the long term .
Effective December 1, 2009, each Fund changed its name from Eaton Vance [AMT-Free/National] Limited Maturity Municipals Fund to Eaton Vance [AMT-Free/ National] Limited Maturity Municipal Income Fund .
1 It is not possible to invest directly in an Index or a Lipper classification. The Index’s total return does not reflect expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. The Lipper total returns are the average total returns, at net asset value, of the funds that are in the same Lipper Classification as the Funds.
Fund shares are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are
subject to investment risks, including possible loss of principal invested.
The views expressed throughout this report are those of the portfolio managers and are current only through the end of the period of the report as stated on the cover. These views are subject to change at any time based upon market or other conditions, and the investment adviser disclaims any responsibility to update such views. These views may not be relied on as investment advice and, because investment decisions for a fund are based on many factors, may not be relied on as an indication of trading intent on behalf of any Eaton Vance fund. Portfolio information provided in the report may not be representative of the Funds’ current or future investments and may change due to active management.
2
| EatonVanceAMT-FreeLimitedMaturityMunicipalIncomeFund as of March 31, 2010 |
| performance information |
The line graph and table set forth below provide information about the Fund’s performance. The line graph compares the performance of Class B of the Fund with that of the Barclays Capital 7-Year Municipal Bond Index, an unmanaged market index of intermediate-maturity municipal obligations. The lines on the graph represent the total returns of a hypothetical investment of $10,000 in each of Class B and in the Barclays Capital 7-Year Municipal Bond Index. The table includes the total returns of each Class of the Fund at net asset value and maximum public offering price. The performance presented below does not reflect the deduction of taxes, if any, that a shareholder would pay on distributions or redemptions of Fund shares.
| performance1 | Class A | Class B | Class C |
| Share Class Symbol | EXFLX | ELFLX | EZFLX |
| Average Annual Total Returns (at net asset value) | |||
| One Year | 8.58% | 7.90% | 7.74% |
| Five Years | 3.22 | 2.46 | 2.47 |
| 10 Years | 4.27 | 3.51 | 3.49 |
| Life of Fund† | 4.06 | 3.61 | 3.08 |
| SEC Average Annual Total Returns (including sales charge or applicable CDSC) | |||
| One Year | 6.11% | 4.90% | 6.74% |
| Five Years | 2.75 | 2.46 | 2.47 |
| 10 Years | 4.04 | 3.51 | 3.49 |
| Life of Fund† | 3.89 | 3.61 | 3.08 |
†Inception dates: Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93
| total annual | |||
| operating expenses2 | Class A | Class B | Class C |
| Expense Ratio | 0.98% | 1.73% | 1.74% |
| distribution rates/Yields | Class A | Class B | Class C |
| Distribution Rate3 | 3.36% | 2.63% | 2.63% |
| Taxable-Equivalent Distribution Rate3,4 | 5.17 | 4.05 | 4.05 |
| SEC 30-day Yield5 | 2.67 | 1.96 | 1.98 |
| Taxable-Equivalent SEC 30-day Yield4,5 | 4.11 | 3.02 | 3.05 |
| Index Performance6 (Average Annual Total Returns) | |||
| Barclays Capital 7-Year Municipal Bond Index | |||
| One Year | 6.49% | ||
| Five Years | 5.05 | ||
| 10 Years | 5.55 | ||
| Lipper Averages7 (Average Annual Total Returns) | |||
| Lipper Intermediate Municipal Debt Funds Classification | |||
| One Year | 8.34% | ||
| Five Years | 3.78 | ||
| 10 Years | 4.51 | ||
portfolio manager: craig r. brandon, cfa
Comparison of Change in Value of a $10,000 Investment in Eaton Vance AMT-Free Limited Maturity Municipal Income Fund Class B vs. Barclays Capital 7-Year Municipal Bond Index*
*Source: Lipper, Inc. Class B of the Fund commenced investment operations on 5/29/92.
A $10,000 hypothetical investment at net asset value in Class A and Class C on 3/31/00 would have been valued at $15,201 ($14,863 at the maximum offering price) and $14,098, respectively, on 3/31/10. It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. Bond values decline as interest rates rise. For performance as of the most recent month end, please refer to www.eatonvance.com.
1 Average Annual Total Returns do not include the 2.25% maximum sales charge for Class A shares or the applicable contingent deferred sales charges (CDSC) for Class B and Class C shares. If sales charges were deducted, the returns would be lower. SEC Average Annual Total Returns for Class A reflect the maximum 2.25% sales charge. SEC Average Annual Total Returns for Class B reflect the applicable CDSC based on the following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th year. SEC Average Annual Total Returns for Class C reflect a 1% CDSC for the first year. 2 Source: Prospectus dated 8/1/09. 3 The Fund's distribution rate represents actual distributions paid to shareholders and is calculated by dividing the last dist ribution per share (annualized) by the net asset value. 4 Taxable-equivalent figures assume a maximum 35.00% federal income tax rate. A lower tax rate would result in lower tax-equivalent figures. 5 The Fund's SEC yield is calculated by dividing the net investment income per share for the 30-day period by the offering price at the end of the period and annualizing the result. 6 It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. 7 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Intermediate Municipal Debt Funds Classification contained 160, 126 and 75 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only.
3
EatonVanceAMT-FreeLimitedMaturityMunicipalIncomeFund as of March 31, 2010
portfolio composition
| Rating Distribution1 |
| By total investments |
1 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied.
| Fund Statistics | |
| • Number of Issues: | 88 |
| • Average Maturity: | 13.2 years |
| • Average Effective Maturity: | 8.3 years |
| • Average Call Protection: | 8.0 years |
| • Average Dollar Price: | $107.66 |
4
| EatonVanceNationalLimitedMaturityMunicipalIncomeFund as of March 31, 2010 |
| performance information |
The line graph and table set forth below provide information about the Fund’s performance. The line graph compares the performance of Class B of the Fund with that of the Barclays Capital 7-Year Municipal Bond Index, an unmanaged market index of intermediate-maturity municipal obligations. The lines on the graph represent the total returns of a hypothetical investment of $10,000 in each of Class B and in the Barclays Capital 7-Year Municipal Bond Index. The table includes the total returns of each Class of the Fund at net asset value and maximum public offering price. The performance presented below does not reflect the deduction of taxes, if any, that a shareholder would pay on Fund distributions or redemptions of Fund shares.
| performance1 | Class A | Class B | Class C | Class I |
| Share Class Symbol | EXNAX | ELNAX | EZNAX | EINAX |
| Average Annual Total Returns (at net asset value) | ||||
| One Year | 13.22% | 12.50% | 12.39% | N.A. |
| Five Years | 3.65 | 2.87 | 2.86 | N.A. |
| 10 Years | 4.64 | 3.85 | 3.85 | N.A. |
| Life of Fund† | 4.56 | 4.02 | 3.43 | 0.17%†† |
| SEC Average Annual Total Returns (including sales charge or applicable CDSC) | ||||
| One Year | 10.70% | 9.50% | 11.39% | N.A. |
| Five Years | 3.17 | 2.87 | 2.86 | N.A. |
| 10 Years | 4.40 | 3.85 | 3.85 | N.A. |
| Life of Fund† | 4.39 | 4.02 | 3.43 | 0.17%†† |
Inception dates: Class A: 6/27/96; Class B: 5/22/92; Class C: 12/8/93; Class I: 10/1/09
Performance is cumulative since inception of share class.
| total annual | ||||
| operating expenses2 | Class A | Class B | Class C | Class I |
| Expense Ratio | 0.74% | 1.49% | 1.49% | 0.59% |
| distribution rates/Yields | Class A | Class B | Class C | Class I |
| Distribution Rate3 | 3.95% | 3.18% | 3.18% | 4.10% |
| Taxable-Equivalent Distribution Rate3,4 | 6.08 | 4.89 | 4.89 | 6.31 |
| SEC 30-day Yield5 | 3.06 | 2.37 | 2.38 | 3.29 |
| Taxable-Equivalent SEC 30-day Yield4,5 | 4.71 | 3.65 | 3.66 | 5.06 |
| Index Performance6 (Average Annual Total Returns) | ||||
| Barclays Capital 7-Year Municipal Bond Index | ||||
| One Year | 6.49% | |||
| Five Years | 5.05 | |||
| 10 Years | 5.55 | |||
| Lipper Averages7 (Average Annual Total Returns) | ||||
| Lipper Intermediate Municipal Debt Funds Classification | ||||
| One Year | 8.34% | |||
| Five Years | 3.78 | |||
| 10 Years | 4.51 | |||
portfolio manager: William H. ahern, Jr., cfa
Comparison of Change in Value of a $10,000 Investment in Eaton Vance National Limited Maturity Municipal Income Fund Class B vs. Barclays Capital 7-Year Municipal Bond Index*
*Source: Lipper, Inc. Class B of the Fund commenced investment operations on 5/22/92.
A $10,000 hypothetical investment at net asset value in Class A and Class C on 3/31/00 and Class I on 10/1/09 (commencement of operations) would have been valued at $15,743 ($15,382 at the maximum offering price), $14,594, and $10,017, respectively, on 3/31/10. It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index.
Past performance is no guarantee of future results. Returns are historical and are calculated by determining the percentage change in net asset value or offering price (as applicable) with all distributions reinvested. Investment return and principal value will fluctuate so that shares, when redeemed, may be worth more or less than their original cost. Performance is for the stated time period only; due to market volatility, the Fund’s current performance may be lower or higher than the quoted return. Fund performance during certain periods reflects the strong bond market performance and/or the strong performance of bonds held during those periods. This performance is not typical and may not be repeated. Bond values decline as interest rates rise. For performance as of the most recent month end, please refer to www.eatonvance.com.
1 Average Annual Total Returns do not include the 2.25% maximum sales charge for Class A shares or the applicable contingent deferred sales charges (CDSC) for Class B and Class C shares. If sales charges were deducted, the returns would be lower. SEC Average Annual Total Returns for Class A reflect the maximum 2.25% sales charge. SEC Average Annual Total Returns for Class B reflect the applicable CDSC based on the following schedule: 3% - 1st year; 2.5% - 2nd year; 2% - 3rd year; 1% - 4th year. SEC Average Annual Total Returns for Class C reflect a 1% CDSC for the first year. Class I shares are offered at net asset value. 2 Source: Prospectus dated 8/1/09, as supplemented. Includes interest expense of 0.02% relating to the Fund’s liability with respect to floating rate notes held by third parties in conjunction with residual interest bond transactions by the Fund. The Fund also records offsetting interest income in an amount equal to this expense relating to the municipal obligations underlying such transactions, and as a result net asset value and performance have not been affected by this expense. 3 The Fund's distribution rate represents actual distributions paid to shareholders and is calculated by dividing the last distribution per share (annualized) by the net asset value. 4 Taxable-equivalent figures assume a maximum 35.00% federal income tax rate. A lower tax rate would result in lower tax-equivalent figures. 5 The Fund's SEC yield is calculated by dividing the net investment income per share for the 30-day period by the offering price at the end of the p eriod and annualizing the result. 6 It is not possible to invest directly in an Index. The Index’s total return does not reflect the expenses that would have been incurred if an investor individually purchased or sold the securities represented in the Index. Index performance is available as of month end only. 7 The Lipper Averages are the average annual total returns, at net asset value, of the funds that are in the same Lipper Classification as the Fund. It is not possible to invest in a Lipper Classification. Lipper Classifications may include insured and uninsured funds, as well as leveraged and unleveraged funds. The Lipper Intermediate Municipal Debt Funds Classification contained 160, 126 and 75 funds for the 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only.
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EatonVanceNationalLimitedMaturityMunicipalIncomeFund as of March 31, 2010
portfolio composition
| Rating Distribution*1 |
| By total investments |
*The rating distribution presented above includes the ratings of securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1I to the Fund's financial statements. Absent such securities, the Fund's rating distribution as of 3/31/10 is as follows:
| AAA | 19.1% | B | 0.9% |
| AA | 23.7% | CCC | 0.2% |
| A | 32.0% | Not Rated | 7.0% |
| BBB | 17.1% |
| Fund Statistics2 | |
| • Number of Issues: | 248 |
| • Average Maturity: | 11.4 years |
| • Average Effective Maturity: | 8.2 years |
| • Average Call Protection: | 7.0 years |
| • Average Dollar Price: | $103.55 |
| • RIB Leverage3 : | 0.8% |
1 Ratings are based on Moody’s, S&P or Fitch, as applicable. Credit ratings are based largely on the rating agency’s investment analysis at the time of rating and the rating assigned to any particular security is not necessarily a reflection of the issuer’s current financial condition. The rating assigned to a security by a rating agency does not necessarily reflect its assessment of the volatility of a security’s market value or of the liquidity of an investment in the security. If securities are rated differently by the rating agencies, the higher rating is applied.
2 Fund holdings information excludes securities held by special purpose vehicles in which the Fund holds a residual interest. See Note 1I to the Fund’s financial statements.
3The Fund employs residual interest bond (RIB) financing. The leverage created by RIB investments provides an opportunity for increased income but, at the same time, creates special risks (including the likelihood of greater volatility of net asset value).
See Note 1I to the financial statements for more information on RIB investments. RIB leverage represents the amount of RIB Floating Rate Notes outstanding at 3/31/10 as a percentage of the Fund’s net assets plus Floating Rate Notes.
6
Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010
FUN D EXP ENSES
Example: As a shareholder of a Fund, you incur two types of costs: (1) transaction costs, including sales charges (loads) on purchases and redemption fees (if applicable); and (2) ongoing costs, including management fees; distribution or service fees; and other Fund expenses. This Example is intended to help you understand your ongoing costs (in dollars) of investing in a Fund and to compare these costs with the ongoing costs of investing in other mutual funds. The Example is based on an investment of $1,000 invested at the beginning of the period and held for the entire period (October 1, 2009 – March 31, 2010).
Actual Expenses: The first section of each table below provides information about actual account values and actual expenses. You may use the information in this section, together with the amount you invested, to estimate the expenses that you paid over the period. Simply divide your account value by $1,000 (for example, an $8,600 account value divided by $1,000 = 8.6), then multiply the result by the number in the first section under the heading entitled “Expenses Paid During Period” to estimate the expenses you paid on your account during this period.
Hypothetical Example for Comparison Purposes: The second section of each table below provides information about hypothetical account values and hypothetical expenses based on the actual Fund expense ratio and an assumed rate of return of 5% per year (before expenses), which is not the actual return of the Fund. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses you paid for the period. You may use this information to compare the ongoing costs of investing in your Fund and other funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other funds.
Please note that the expenses shown in each table are meant to highlight your ongoing costs only and do not reflect any transactional costs, such as sales charges (loads) or redemption fees (if applicable). Therefore, the second section of each table is useful in comparing ongoing costs only, and will not help you determine the relative total costs of owning different funds. In addition, if these transactional costs were included, your costs would be higher.
| Eaton Vance AMT-Free Limited Maturity Municipal Income Fund | |||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period* | |
| (10/1/09) | (3/31/10) | (10/1/09 – 3/31/10) | |
| Actual | |||
| Class A | $1,000.00 | $989.80 | $4.17 |
| Class B | $1,000.00 | $987.30 | $7.83 |
| Class C | $1,000.00 | $986.80 | $7.88 |
| Hypothetical | |||
| (5% return per year before expenses) | |||
| Class A | $1,000.00 | $1,020.70 | $4.23 |
| Class B | $1,000.00 | $1,017.10 | $7.95 |
| Class C | $1,000.00 | $1,017.00 | $8.00 |
| * | Expenses are equal to the Fund’s annualized expense ratio of 0.84% for Class A shares, 1.58% for Class B shares and 1.59% for Class C shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on September 30, 2009. |
7
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| FUN D EXP ENSES CO N T ’ D |
| Eaton Vance National Limited Maturity Municipal Income Fund | |||
| Beginning Account Value | Ending Account Value | Expenses Paid During Period* | |
| (10/1/09) | (3/31/10) | (10/1/09 – 3/31/10) | |
| Actual | |||
| Class A | $1,000.00 | $1,002.60 | $3.59 |
| Class B | $1,000.00 | $998.90 | $7.33 |
| Class C | $1,000.00 | $998.90 | $7.33 |
| Class I | $1,000.00 | $1,001.70 | $2.94 |
| Hypothetical | |||
| (5% return per year before expenses) | |||
| Class A | $1,000.00 | $1,021.30 | $3.63 |
| Class B | $1,000.00 | $1,017.60 | $7.39 |
| Class C | $1,000.00 | $1,017.60 | $7.39 |
| Class I | $1,000.00 | $1,022.00 | $2.97 |
| * | Class I commenced operations on October 1, 2009. Expenses are equal to the Fund’s annualized expense ratio of 0.72% for Class A shares, 1.47% for Class B shares, 1.47% for Class C shares and 0.59% for Class I shares, multiplied by the average account value over the period, multiplied by 182/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on September 30, 2009. |
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Eaton Vance AMT-Free Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS
| Tax - Exe mpt Inve stme nts — 95 . 6% | ||
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Bond Bank — 1.5% | ||
| $1,000 | Idaho Board Bank Authority, 5.00%, 9/15/22 | $ 1,110,580 |
| $ 1,110,580 | ||
| Education — 15.2% | ||
| $1,000 | Connecticut Health and Educational Facilities Authority, | |
| (Yale University), 5.00%, 7/1/42 | $ 1,046,590 | |
| 500 | Delaware County, PA, (Villanova University), | |
| 5.00%, 12/1/20 | 547,415 | |
| 280 | Indiana University, IN, 5.00%, 8/1/20 | 308,988 |
| 1,500 | Massachusetts Health and Educational Facilities | |
| Authority, (Harvard University), 5.50%, 11/15/36 | 1,669,005 | |
| 1,500 | Massachusetts Health and Educational Facilities | |
| Authority, (Massachusetts Institute of Technology), | ||
| 5.00%, 7/1/38 | 1,581,435 | |
| 500 | Massachusetts Health and Educational Facilities | |
| Authority, (Massachusetts Institute of Technology), | ||
| 5.50%, 7/1/22 | 612,630 | |
| 1,000 | Missouri Health and Educational Facilities Authority, | |
| (Washington University), 5.25%, 3/15/18 | 1,168,270 | |
| 1,000 | New York Dormitory Authority, (State University | |
| Educational Facilities), 5.25% to 5/15/12 | ||
| (Put Date), 11/15/23 | 1,078,590 | |
| 150 | Purdue University, IN, 5.00%, 7/1/21 | 167,424 |
| 450 | Purdue University, IN, 5.00%, 7/1/22 | 506,660 |
| 1,000 | University of Houston, TX, 5.00%, 2/15/21 | 1,102,770 |
| 1,000 | University of Pittsburgh, PA, 5.25%, 9/15/23 | 1,137,330 |
| $10,927,107 | ||
| Electric Utilities — 9.9% | ||
| $ 670 | California Department of Water Resource Power | |
| Supply, 5.00%, 5/1/22 | $ 726,454 | |
| 1,000 | Connecticut State Development Authority, | |
| (United Illuminating Co.), 5.75% to 2/1/12 (Put | ||
| Date), 6/1/26 | 1,049,730 | |
| 1,000 | Energy Northwest Electric Revenue, WA, | |
| (Columbia Station), 5.00%, 7/1/24(1) | 1,073,340 | |
| 500 | Maricopa County, AZ, Pollution Control Corp, (Arizona | |
| Public Service Co.), 6.00% to 5/1/14 (Put Date), | ||
| 5/1/29 | 525,275 | |
| 800 | Massachusetts Development Finance Agency, | |
| (Dominion Energy Brayton), 5.75% to 5/1/19 (Put | ||
| Date), 12/1/42 | 852,352 | |
| 1,000 | Municipal Electric Authority of Georgia, | |
| 5.25%, 1/1/21 | 1,114,770 | |
| 500 | Puerto Rico Electric Power Authority, 5.00%, 7/1/23 | 509,705 |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Electric Utilities (continued) | ||
| $1,000 | Seattle, WA, Municipal Light and Power Revenue, | |
| 5.25%, 4/1/20 | $ 1,126,710 | |
| 135 | Titus County, TX, Fresh Water Supply District, | |
| 4.50%, 7/1/11 | 139,278 | |
| $ 7,117,614 | ||
| General Obligations — 7.3% | ||
| $ 150 | Henrico County, VA, (Public Improvements), | |
| 5.00%, 12/1/20 | $ 171,485 | |
| 2,000 | Salem-Keizer, OR, School District No. 24J, | |
| 0.00%, 6/15/17 | 1,550,980 | |
| 1,100 | Three Village, NY, Central School District, | |
| 4.00%, 5/1/21 | 1,139,248 | |
| 1,500 | Virginia, 5.00%, 6/1/28 | 1,653,420 |
| 645 | Will, Grundy, Etc. Counties, IL, Community College | |
| District No. 525, 5.50%, 6/1/18 | 747,026 | |
| $ 5,262,159 | ||
| Hospital — 8.8% | ||
| $1,000 | California Health Facilities Financing Authority, | |
| (Catholic Healthcare), 5.125%, 7/1/22 | $ 1,032,740 | |
| 1,000 | California Statewide Communities Development | |
| Authority, (Kaiser Permanente), 5.00%, 4/1/19 | 1,063,300 | |
| 1,000 | Fairfax County, VA, Industrial Development Authority, | |
| (Inova Health System Hospitals), 5.00%, 5/15/25 | 1,048,470 | |
| 1,000 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Health), 5.00%, 11/15/20 | 1,026,040 | |
| 275 | Kent, MI, Hospital Finance Authority, (Spectrum | |
| Health), 5.50% to 1/15/15 (Put Date), 1/15/47 | 306,325 | |
| 1,365 | Massachusetts Health and Educational Facilities | |
| Authority, (Baystate Medical Center), 5.00% to | ||
| 7/1/15 (Put Date), 7/1/39 | 1,475,947 | |
| 200 | Washington, CA, Township Health Care District, | |
| 5.125%, 7/1/17 | 208,526 | |
| 175 | Washington, CA, Township Health Care District, | |
| 5.25%, 7/1/18 | 182,114 | |
| $ 6,343,462 | ||
| Insured-Education — 3.1% | ||
| $1,000 | New York Dormitory Authority, (New York University), | |
| (AMBAC), 5.50%, 7/1/22 | $ 1,165,740 | |
| 1,000 | Texas University Systems Financing Revenue, (AGM), | |
| 5.00%, 3/15/21 | 1,070,220 | |
| $ 2,235,960 | ||
| S e e notes to financ ial statem e nts | ||||
| 9 | ||||
Eaton Vance AMT-Free Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Electric Utilities — 2.8% | ||
| $1,000 | Northern Municipal Power Agency, MN, (AGC), | |
| 5.00%, 1/1/21 | $ 1,070,830 | |
| 850 | South Carolina Public Service Authority, (AGM), | |
| 5.00%, 1/1/20 | 926,288 | |
| $ 1,997,118 | ||
| Insured-General Obligations — 4.0% | ||
| $1,000 | Massachusetts, (AMBAC), 5.50%, 12/1/23 | $ 1,185,870 |
| 500 | New York, NY, (AGM), 5.00%, 4/1/22 | 533,250 |
| 1,000 | Philadelphia, PA, (AGC), 5.50%, 7/15/16 | 1,128,150 |
| $ 2,847,270 | ||
| Insured-Other Revenue — 0.7% | ||
| $ 500 | Saint Johns County, FL, Industrial Development | |
| Authority, (Professional Golf Hall of Fame), (NPFG), | ||
| 5.00%, 9/1/20 | $ 503,370 | |
| $ 503,370 | ||
| Insured-Special Tax Revenue — 4.7% | ||
| $1,000 | Jefferson, LA, Sales Tax, (AGC), 5.00%, 12/1/21 | $ 1,073,000 |
| 700 | Mesa, AZ, Street and Highway Revenue, (AGM), | |
| 5.00%, 7/1/20 | 765,744 | |
| 1,000 | Puerto Rico Infrastructure Financing Authority, | |
| (AMBAC), 5.50%, 7/1/23 | 1,013,070 | |
| 500 | Tamarac, FL, Sales Tax, (FGIC), (NPFG), | |
| 5.00%, 4/1/18 | 530,815 | |
| $ 3,382,629 | ||
| Insured-Transportation — 2.2% | ||
| $1,000 | Idaho Housing and Finance Association, (Grant and | |
| Revenue Anticipation Bonds Federal Highway Trust | ||
| Fund), (AGC), 5.25%, 7/15/21 | $ 1,110,020 | |
| 420 | New Orleans, LA, Aviation Board Revenue, (AGC), | |
| 6.00%, 1/1/23 | 474,193 | |
| $ 1,584,213 | ||
| Insured-Water and Sewer — 5.0% | ||
| $1,000 | Bossier City, LA, Utilities Revenue, (BHAC), | |
| 5.00%, 10/1/21 | $ 1,093,840 | |
| 1,000 | Portland, OR, Sewer System Revenue, (AGM), | |
| 5.00%, 6/15/23 | 1,096,860 | |
| 1,000 | Sunrise, FL, Utilities Systems, (AMBAC), | |
| 5.50%, 10/1/18 | 1,098,270 | |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Water and Sewer (continued) | ||
| $ 250 | Tallahassee, FL, Consolidated Utility System, (FGIC), | |
| (NPFG), 5.50%, 10/1/19 | $ 286,200 | |
| $ 3,575,170 | ||
| Nursing Home — 0.2% | ||
| $ 125 | Orange County, FL, Health Facilities Authority, | |
| (Westminster Community Care Services), | ||
| 6.50%, 4/1/12 | $ 125,760 | |
| $ 125,760 | ||
| Other Revenue — 4.3% | ||
| $ 900 | Buckeye, OH, Tobacco Settlement Financing Authority, | |
| 5.125%, 6/1/24 | $ 833,580 | |
| 500 | Florida Board of Education, 5.00%, 7/1/19 | 555,880 |
| 1,000 | New York, NY, Transitional Finance Authority, | |
| 5.25%, 1/15/27 | 1,069,610 | |
| 530 | Virginia Public Building Authority, Public Facilities | |
| Revenue, 5.25%, 8/1/20 | 603,580 | |
| $ 3,062,650 | ||
| Pooled Loans — 2.3% | ||
| $1,500 | New Jersey Higher Education Assistance Authority, | |
| 5.00%, 6/1/16 | $ 1,619,610 | |
| $ 1,619,610 | ||
| Senior Living / Life Care — 0.8% | ||
| $ 275 | Massachusetts Development Finance Agency, | |
| (Carleton-Willard Village), 5.25%, 12/1/25 | $ 270,713 | |
| 590 | North Miami, FL, Health Care Facilities Authority, | |
| (Imperial Club), 6.125%, 1/1/42(2) | 327,332 | |
| $ 598,045 | ||
| Special Tax Revenue — 5.3% | ||
| $1,000 | Alabama Public School & College Authority, | |
| 5.00%, 5/1/19 | $ 1,114,180 | |
| 385 | Arbor Greene, FL, Community Development District, | |
| 5.00%, 5/1/19 | 387,218 | |
| 500 | California State Economic Recovery, 5.00%, 7/1/18 | 552,560 |
| 310 | Concorde Estates, FL, Community Development District, | |
| (Capital Improvements), 5.00%, 5/1/11(3) | 114,514 | |
| 75 | Covington Park, FL, Community Development District, | |
| (Capital Improvements), 5.00%, 5/1/21 | 74,933 | |
| 135 | Dupree Lakes, FL, Community Development District, | |
| 5.00%, 11/1/10 | 117,902 | |
| 230 | Dupree Lakes, FL, Community Development District, | |
| 5.00%, 5/1/12 | 169,073 | |
| S e e notes to financ ial statem e nts | ||||
| 10 | ||||
Eaton Vance AMT-Free Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Special Tax Revenue (continued) | ||
| $ 85 | Fish Hawk, FL, Community Development District II, | |
| 7.04%, 11/1/14 | $ 80,946 | |
| 60 | Longleaf, FL, Community Development District, | |
| 6.20%, 5/1/09(4) | 29,868 | |
| 500 | Mahoning County, OH, (Sales Tax), 5.60%, 12/1/11 | 523,190 |
| 170 | New River, FL, Community Development District, | |
| (Capital Improvements), 5.00%, 5/1/13 | 67,932 | |
| 255 | North Springs, FL, Improvement District, (Heron Bay), | |
| 7.00%, 5/1/19 | 255,122 | |
| 140 | North Springs, FL, Improvement District, (Heron Bay | |
| North Assessment Area), 5.00%, 5/1/14 | 119,365 | |
| 100 | Poinciana West, FL, West Community Development | |
| District, 5.875%, 5/1/22 | 90,053 | |
| 20 | Sterling Hill, FL, Community Development District, | |
| (Capital Improvements), 5.10%, 5/1/11(3) | 5,994 | |
| 110 | Sterling Hill, FL, Community Development District, | |
| (Capital Improvements), 5.50%, 11/1/10 | 95,678 | |
| $ 3,798,528 | ||
| Student Loan — 1.4% | ||
| $1,000 | Iowa Student Loan Liquidity Corp., 5.25%, 12/1/22 | $ 1,015,150 |
| $ 1,015,150 | ||
| Transportation — 11.1% | ||
| $1,000 | Charlotte, NC, Airport Revenue, 5.00%, 7/1/21 | $ 1,065,160 |
| 1,000 | Maryland State Transportation Authority, | |
| 5.00%, 7/1/20 | 1,129,840 | |
| 1,250 | North Texas Tollway Authority, (Dallas North Tollway | |
| System Revenue), 6.00%, 1/1/23 | 1,368,187 | |
| 1,000 | Ohio Major New Street Infrastructure Project Revenue, | |
| 5.75%, 6/15/19 | 1,164,880 | |
| 1,000 | Phoenix, AZ, Civic Improvements Corp., | |
| 5.00%, 7/1/21 | 1,063,840 | |
| 1,000 | Port Authority of New York and New Jersey, | |
| 5.00%, 7/15/23 | 1,092,690 | |
| 1,000 | Texas State Transportation Commission First Tier, | |
| 5.00%, 4/1/21 | 1,107,410 | |
| $ 7,992,007 | ||
| Water and Sewer — 5.0% | ||
| $ 750 | Austin, TX, Water and Wastewater System Revenue, | |
| 5.00%, 11/15/21 | $ 833,048 | |
| 1,000 | Fairfax County, VA, Water Revenue, 5.25%, 4/1/23 | 1,191,690 |
| 750 | Massachusetts Water Pollution Abatement Trusts, | |
| 5.00%, 8/1/21 | 848,962 | |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Water and Sewer (continued) | ||
| $ 670 | New York, NY, Municipal Water Finance Authority, | |
| 5.00%, 6/15/21 | $ 736,142 | |
| $ 3,609,842 | ||
| Total Tax-Exempt Investments — 95.6% | ||
| (identified cost $65,757,577) | $68,708,244 | |
| Short-Term Investments — 2.9% | ||
| Principal Amount | ||
| (000’s omitted) | Description | Value |
| $2,113 | State Street Bank and Trust Euro Time Deposit, | |
| 0.01%, 4/1/10 | $ 2,113,498 | |
| Total Short-Term Investments — 2.9% | ||
| (identified cost $2,113,498) | $ 2,113,498 | |
| Total Investments — 98.5% | ||
| (identified cost $67,871,075) | $70,821,742 | |
| Other Assets, Less Liabilities — 1.5% | $ 1,087,520 | |
| Net Assets — 100.0% | $71,909,262 | |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp. AMBAC - AMBAC Financial Group, Inc. BHAC - Berkshire Hathaway Assurance Corp. FGIC - Financial Guaranty Insurance Company NPFG - National Public Finance Guaranty Corp.
At March 31, 2010, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is as follows:
| Massachusetts | 11.8% |
| Others, representing less than 10% individually | 86.7% |
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2010, 22.8% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 1.1% to 6.9% of total investments.
| S e e notes to financ ial statem e nts | ||||
| 11 | ||||
| Eaton Vance AMT-Free Limited Maturity Municipal Income Fund as of March 31, 2010 |
| PORTFOLIO OF INVESTMENTS CO N T ’ D |
| (1) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
| (2) | Security is in default and making only partial interest payments. |
| (3) | Defaulted bond. |
| (4) | Defaulted matured bond. |
| S e e notes to financ ial statem e nts | ||||
| 12 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
| PORTFOLIO OF INVESTMENTS | |||
| Tax - Exe mpt Inve stme nts — | 100. 1% | ||
| Principal Amount | |||
| (000’s omitted) | Security | Value | |
| Cogeneration — 0.4% | |||
| $ 815 | Carbon County, PA, Industrial Development Authority, | ||
| (Panther Creek Partners), (AMT), 6.65%, 5/1/10 | $ 814,699 | ||
| 575 | Pennsylvania Economic Development Financing | ||
| Authority, (Resource Recovery-Colver), (AMT), | |||
| 5.125%, 12/1/15 | 538,792 | ||
| 1,105 | Western Generation Agency, OR, (Wauna | ||
| Cogeneration), (AMT), 5.00%, 1/1/12 | 1,110,558 | ||
| $ 2,464,049 | |||
| Education — 1.7% | |||
| $ 2,000 | Illinois Educational Facility Authority, (Art Institute of | ||
| Chicago), 4.45% to 3/1/15 (Put Date), 3/1/34 | $ 2,124,180 | ||
| 420 | Maryland Industrial Development Financing Authority, | ||
| (Our Lady of Good Counsel High School), | |||
| 5.50%, 5/1/20 | 405,182 | ||
| 250 | Maryland State Health and Higher Educational | ||
| Facilities Authority, (Washington Christian Academy), | |||
| 5.25%, 7/1/18 | 107,498 | ||
| 1,580 | Missouri State Health and Educational Facilities | ||
| Authority, (St. Louis University), 5.50%, 10/1/16 | 1,841,095 | ||
| 2,500 | New Jersey Educational Facilities Authority, | ||
| (University of Medicine and Dentistry of | |||
| New Jersey), 7.125%, 12/1/23 | 2,837,575 | ||
| 500 | Ohio Higher Educational Facilities Commission, | ||
| (John Carroll University), 5.00%, 11/15/13 | 550,125 | ||
| 250 | Ohio State University General Receipts, | ||
| 5.00%, 12/1/23 | 275,788 | ||
| 500 | Ohio State University General Receipts, | ||
| 5.25%, 12/1/17 | 554,765 | ||
| 1,700 | University of Illinois, 0.00%, 4/1/15 | 1,472,863 | |
| 1,000 | University of Illinois, 0.00%, 4/1/16 | 820,390 | |
| $ 10,989,461 | |||
| Electric Utilities — 9.7% | |||
| $ 6,705 | California Department of Water Resource Power | ||
| Supply, 5.00%, 5/1/22 | $ 7,269,963 | ||
| 2,000 | Chesterfield County, VA, Economic Development | ||
| Authority, (Virginia Electric and Power Co.), | |||
| 5.00%, 5/1/23 | 2,130,600 | ||
| 2,000 | Connecticut State Development Authority, Pollution | ||
| Control Revenue, (Connecticut Light and Power Co.), | |||
| (AMT), 5.25% to 4/1/10 (Put Date), 5/1/31 | 2,000,000 | ||
| 3,200 | Massachusetts Development Finance Agency, | ||
| (Dominion Energy Brayton), 5.75% to 5/1/19 | |||
| (Put Date), 12/1/42 | 3,409,408 | ||
| 3,000 | Michigan Strategic Fund Limited Obligation Revenue, | ||
| (Detroit Edison Co.), 5.625%, 7/1/20 | 3,188,280 | ||
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Electric Utilities (continued) | ||
| $ 2,000 | Municipal Electric Authority of Georgia, | |
| 5.25%, 1/1/21 | $ 2,229,540 | |
| 3,500 | Navajo County, AZ, Pollution Control Corp., | |
| 5.50% to 6/1/14 (Put Date), 6/1/34 | 3,675,735 | |
| 3,500 | Navajo County, AZ, Pollution Control Corp., | |
| 5.75% to 6/1/16 (Put Date), 6/1/34 | 3,648,470 | |
| 2,500 | New Hampshire Business Finance Authority Pollution | |
| Control, (Central Maine Power Co.), | ||
| 5.375%, 5/1/14 | 2,722,500 | |
| 3,000 | New Hampshire Business Finance Authority Pollution | |
| Control, (United Illuminating Co.), (AMT), | ||
| 7.125% to 2/1/12 (Put Date), 7/1/27 | 3,181,770 | |
| 3,050 | New York Energy Research and Development | |
| Authority Facility, (AMT), 4.70% to 10/1/12 | ||
| (Put Date), 6/1/36 | 3,053,172 | |
| 400 | Ohio Air Quality Development Authority, | |
| (First Energy), 5.625%, 6/1/18 | 421,332 | |
| 5,000 | Pennsylvania Economic Development Financing | |
| Authority, Pollution Control, (PPL Electric Utility | ||
| Corp.), 4.85% to 10/1/10 (Put Date), 10/1/23 | 5,053,400 | |
| 6,500 | Rapides Finance Authority, LA, (Cleco Power LLC), | |
| (AMT), 5.25% to 3/1/13 (Put Date), 11/1/37 | 6,873,620 | |
| 3,000 | Rapides Finance Authority, LA, (Cleco Power LLC), | |
| (AMT), 6.00% to 10/1/11 (Put Date), 10/1/38 | 3,144,120 | |
| 1,250 | Sam Rayburn, TX, Municipal Power Agency, Power | |
| Supply System, 6.00%, 10/1/16 | 1,314,388 | |
| 1,365 | Titus County, TX, Fresh Water Supply District, | |
| 4.50%, 7/1/11 | 1,408,257 | |
| 6,500 | Vernon, CA, Electric System Revenue, | |
| 5.125%, 8/1/21 | 6,747,650 | |
| 2,500 | Wake County, NC, Industrial Facilities and Pollution | |
| Control Financing Authority, (Carolina Power and | ||
| Light Co.), 5.375%, 2/1/17 | 2,651,025 | |
| $ 64,123,230 | ||
| Escrowed / Prerefunded — 2.6% | ||
| $ 45 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), Escrowed to Maturity, | ||
| 5.00%, 11/15/16 | $ 52,138 | |
| 65 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), Prerefunded to 11/15/16, | ||
| 5.125%, 11/15/20 | 75,805 | |
| 85 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), Prerefunded to 11/15/16, | ||
| 5.125%, 11/15/22 | 99,130 | |
| 3,000 | Massachusetts Turnpike Authority, Escrowed to | |
| Maturity, 5.00%, 1/1/20 | 3,477,690 | |
| 2,000 | Michigan Hospital Finance Authority, (Henry Ford | |
| Health System), Prerefunded to 3/1/13, | ||
| 5.50%, 3/1/14 | 2,234,080 | |
| S e e notes to financ ial statem e nts | ||||
| 13 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Escrowed / Prerefunded (continued) | ||
| $ 1,235 | New Jersey Educational Facilities Authority, (Steven’s | |
| Institute of Technology), Escrowed to Maturity, | ||
| 5.00%, 7/1/12 | $ 1,345,915 | |
| 250 | New York, NY, Prerefunded to 12/1/11, | |
| 5.625%, 12/1/13 | 270,560 | |
| 1,195 | North Carolina Eastern Municipal Power Agency, | |
| Escrowed to Maturity, 4.00%, 1/1/18 | 1,298,057 | |
| 2,000 | Orange County, FL, Health Facilities Authority, | |
| (Adventist Health System), Prerefunded to | ||
| 11/15/12, 5.25%, 11/15/18 | 2,205,880 | |
| 165 | Richland County, OH, Hospital Facilities, (Medcentral | |
| Health Systems), Prerefunded to 11/15/10, | ||
| 6.375%, 11/15/22 | 172,717 | |
| 5,000 | Triborough Bridge and Tunnel Authority, NY, Escrowed | |
| to Maturity, 5.50%, 1/1/17 | 5,760,400 | |
| $ 16,992,372 | ||
| General Obligations — 6.8% | ||
| $ 1,000 | Chemeketa, OR, Community College District, | |
| 5.50%, 6/15/22 | $ 1,142,750 | |
| 395 | Franklin County, OH, 5.00%, 12/1/12 | 437,143 |
| 500 | Hamilton, OH, School District, 6.15%, 12/1/15 | 598,740 |
| 10,000 | Maryland State and Local Facilities, 5.00%, 8/1/18 | 11,431,200 |
| 2,985 | Michigan, 6.00%, 11/1/22 | 3,375,587 |
| 7,000 | Michigan Municipal Bond Authority, | |
| 9.50%, 8/20/10 | 6,990,970 | |
| 785 | New York, NY, 5.625%, 12/1/13 | 846,662 |
| 15,320 | Salem-Keizer, OR, School District No. 24, | |
| 0.00%, 6/15/23 | 8,436,724 | |
| 10,000 | Wake County, NC, 5.00%, 2/1/16 | 11,509,900 |
| $ 44,769,676 | ||
| Health Care-Miscellaneous — 0.0% | ||
| $ 202 | Tax Revenue Exempt Securities Trust, Community | |
| Health Provider, (Pooled Loan Program Various States | ||
| Trust Certificates), 6.00%, 12/1/36(1) | $ 206,594 | |
| $ 206,594 | ||
| Hospital — 8.1% | ||
| $ 6,500 | California Health Facilities Financing Authority, | |
| (Catholic Healthcare), 5.125%, 7/1/22 | $ 6,712,810 | |
| 3,000 | Cuyahoga County, OH, (Cleveland Clinic Health | |
| System), 6.00%, 1/1/17 | 3,332,100 | |
| 6,000 | Dauphin County, PA, General Authority Health | |
| System, (Pinnacle Health System), 5.75%, 6/1/20 | 6,459,780 | |
| 2,500 | Henderson, NV, Health Care Facilities, (Catholic | |
| Healthcare West), 5.00%, 7/1/13 | 2,685,725 | |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Hospital (continued) | ||
| $ 1,205 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), 5.00%, 11/15/16 | $ 1,316,402 | |
| 1,860 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), 5.125%, 11/15/20 | 1,929,080 | |
| 2,835 | Highlands County, FL, Health Facilities Authority, | |
| (Adventist Bolingbrook), 5.125%, 11/15/22 | 2,910,836 | |
| 2,760 | Kent, MI, Hospital Finance Authority, (Spectrum | |
| Health), 5.50% to 1/15/15 (Put Date), 1/15/47 | 3,074,392 | |
| 1,000 | Lexington County, SC, (Health Services, Inc.), | |
| 5.00%, 11/1/15 | 1,094,710 | |
| 1,250 | Massachusetts Health and Educational Facilities | |
| Authority, (Partners Healthcare System), | ||
| 5.00%, 7/1/22 | 1,319,050 | |
| 7,470 | Michigan Hospital Finance Authority, (Ascension | |
| Health Care), 5.00% to 11/1/12 (Put Date), | ||
| 11/1/27(2) | 8,007,964 | |
| 1,000 | Michigan Hospital Finance Authority, (Memorial | |
| Healthcare Center), 5.875%, 11/15/21 | 1,001,830 | |
| 2,000 | Michigan Hospital Finance Authority, (Oakwood | |
| Obligations Group), 5.00%, 7/15/12 | 2,115,440 | |
| 1,750 | Michigan Hospital Finance Authority, (Oakwood | |
| Obligations Group), 5.00%, 7/15/13 | 1,862,893 | |
| 2,000 | New York Dormitory Authority, (NYU Hospital | |
| Center), 5.25%, 7/1/24 | 1,958,600 | |
| 955 | Orange County, FL, Health Facilities Authority, | |
| (Orlando Health, Inc.), 5.125%, 10/1/26 | 942,451 | |
| 970 | Orange County, FL, Health Facilities Authority, | |
| (Orlando Health, Inc.), 5.375%, 10/1/23 | 992,824 | |
| 85 | Richland County, OH, Hospital Facilities, (Medcentral | |
| Health Systems), 6.375%, 11/15/22 | 86,531 | |
| 2,000 | South Carolina Jobs Economic Development Authority, | |
| (Palmetto Health Alliance), 6.00%, 8/1/12 | 2,152,580 | |
| 1,000 | University of Kansas Hospital Authority, | |
| 5.00%, 9/1/16 | 1,095,140 | |
| 250 | University of Kansas Hospital Authority, | |
| 5.00%, 9/1/17 | 269,888 | |
| 1,750 | Washington Township, CA, Health Care District | |
| Revenue, 5.75%, 7/1/24 | 1,800,383 | |
| $ 53,121,409 | ||
| Housing — 0.5% | ||
| $ 2,500 | California Housing Finance Agency, (AMT), | |
| 4.75%, 8/1/21 | $ 2,291,775 | |
| 600 | Georgia Private Colleges and Universities Authority, | |
| Student Housing Revenue, (Mercer Housing Corp.), | ||
| 6.00%, 6/1/31 | 570,990 | |
| 165 | Ohio Housing Finance Agency, (AMT), | |
| 4.55%, 9/1/11 | 169,416 | |
| S e e notes to financ ial statem e nts | ||||
| 14 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Housing (continued) | ||
| $ 630 | Sandoval County, NM, MFMR, 6.00%, 5/1/32(1) | $ 517,085 |
| 95 | Texas Student Housing Corp., (University of North | |
| Texas), 9.375%, 7/1/49(3) | 57,000 | |
| $ 3,606,266 | ||
| Industrial Development Revenue — 10.0% | ||
| $ 385 | Austin, TX, (CargoPort Development LLC), (AMT), | |
| 8.30%, 10/1/21 | $ 372,730 | |
| 1,500 | Dallas-Fort Worth, TX, International Airport Facilities | |
| Improvements Corp., (AMT), 9.00% to 5/1/15 | ||
| (Put Date), 5/1/29 | 1,501,965 | |
| 1,905 | Denver, CO, City and County Special Facilities, | |
| (United Airlines), (AMT), 5.75%, 10/1/32 | 1,584,750 | |
| 2,110 | DeSoto Parish, LA, (International Paper Co.), (AMT), | |
| 5.00%, 11/1/18 | 2,076,409 | |
| 3,500 | Gilliam County, OR, Solid Waste Revenue, 6.00% to | |
| 5/3/10 (Put Date), 8/1/25 | 3,510,535 | |
| 2,000 | Gulf Coast, TX, Waste Disposal Authority, | |
| (Waste Management), (AMT), 4.55%, 4/1/12 | 2,060,920 | |
| 1,630 | Houston, TX, Industrial Development Corp., (AMT), | |
| 6.375%, 1/1/23 | 1,502,208 | |
| 9,990 | Liberty Development Corp., NY, (Goldman Sachs | |
| Group, Inc.), 5.50%, 10/1/37 | 10,486,103 | |
| 1,000 | Michigan Strategic Fund, (Waste Management, Inc.), | |
| (AMT), 4.50%, 12/1/13 | 1,037,580 | |
| 5,650 | Mission, TX, Economic Development Corp., (Allied | |
| Waste Industries), (AMT), 5.20%, 4/1/18 | 5,665,481 | |
| 1,425 | Mississippi Business Finance Corp., (Air Cargo), | |
| (AMT), 7.25%, 7/1/34 | 1,173,231 | |
| 1,440 | New Jersey Economic Development Authority, | |
| (Continental Airlines), (AMT), 6.25%, 9/15/19 | 1,382,458 | |
| 3,000 | New York, NY, Industrial Development Agency, | |
| (American Airlines, Inc. - JFK International Airport), | ||
| (AMT), 7.50%, 8/1/16 | 3,003,720 | |
| 2,750 | New York, NY, Industrial Development Agency, | |
| (Terminal One Group), (AMT), 5.50%, 1/1/14 | 2,953,555 | |
| 5,000 | New York, NY, Industrial Development Agency, | |
| (Terminal One Group), (AMT), 5.50%, 1/1/15 | 5,372,650 | |
| 1,950 | Ohio Water Development Authority, Solid Waste | |
| Disposal, (Allied Waste North America, Inc.), (AMT), | ||
| 5.15%, 7/15/15 | 1,967,843 | |
| 10,175 | St. John Baptist Parish, LA, (Marathon Oil Corp.), | |
| 5.125%, 6/1/37 | 9,595,636 | |
| 3,325 | Toledo-Lucas County, OH, Port Authority, (Cargill, | |
| Inc.), 4.50%, 12/1/15 | 3,524,267 | |
| 7,915 | Virgin Islands Public Finance Authority, | |
| (HOVENSA LLC), (AMT), 4.70%, 7/1/22 | 7,104,979 | |
| $ 65,877,020 | ||
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Education — 1.3% | ||
| $ 665 | Cleveland-Cuyahoga County, OH, Port Authority, | |
| (Euclid Avenue Housing Corp.), (AMBAC), | ||
| 5.00%, 8/1/21 | $ 638,919 | |
| 2,025 | New York Dormitory Authority, (Educational Housing | |
| Services), (AMBAC), 5.25%, 7/1/21 | 2,090,002 | |
| 5,150 | New York Dormitory Authority, (Rochester Institute of | |
| Technology), (AMBAC), 5.25%, 7/1/22 | 5,624,624 | |
| 500 | Southern Illinois University, Housing and Auxiliary | |
| Facilities, (NPFG), 0.00%, 4/1/17 | 369,270 | |
| $ 8,722,815 | ||
| Insured-Electric Utilities — 3.5% | ||
| $ 5,335 | California Pollution Control Financing Authority, | |
| (Pacific Gas and Electric Co.), Series B, (FGIC), | ||
| (AMT), 4.75%, 12/1/23 | $ 5,173,403 | |
| 750 | California Pollution Control Financing Authority, | |
| (Pacific Gas and Electric), (NPFG), (AMT), | ||
| 5.35%, 12/1/16 | 773,460 | |
| 8,000 | Hillsborough County, FL, Industrial Development | |
| Authority, Pollution Control Revenue, (Tampa Electric | ||
| Co.), (AMBAC), 5.00% to 3/15/12 (Put Date), | ||
| 12/1/34 | 8,394,320 | |
| 3,000 | Illinois Municipal Electric Agency Power Supply, | |
| (FGIC), (NPFG), 5.25%, 2/1/16 | 3,356,430 | |
| 4,225 | Long Island Power Authority, NY, (FGIC), (NPFG), | |
| 5.25%, 12/1/19 | 4,495,696 | |
| 1,000 | Puerto Rico Electric Power Authority, (XLCA), | |
| 5.375%, 7/1/18 | 1,086,960 | |
| $ 23,280,269 | ||
| Insured-Escrowed / Prerefunded — 2.2% | ||
| $ 425 | Metropolitan Transportation Authority, NY, Commuter | |
| Facilities, (AMBAC), Escrowed to Maturity, | ||
| 5.00%, 7/1/20 | $ 426,526 | |
| 1,000 | Metropolitan Transportation Authority, NY, Transit | |
| Facilities, (FGIC), Prerefunded to 10/1/15, | ||
| 4.50%, 4/1/18 | 1,136,290 | |
| 3,000 | Montgomery, AL, BMC Special Care Facilities | |
| Financing Authority, (Baptist Health Montgomery), | ||
| (NPFG), Prerefunded to 11/15/14, | ||
| 5.00%, 11/15/17 | 3,394,410 | |
| 2,000 | Montgomery, AL, BMC Special Care Facilities | |
| Financing Authority, (Baptist Health Montgomery), | ||
| (NPFG), Prerefunded to 11/15/14, | ||
| 5.00%, 11/15/18 | 2,262,940 | |
| 1,000 | Montgomery, AL, BMC Special Care Facilities | |
| Financing Authority, (Baptist Health Montgomery), | ||
| (NPFG), Prerefunded to 11/15/14, | ||
| 5.00%, 11/15/22 | 1,131,470 | |
| S e e notes to financ ial statem e nts | ||||
| 15 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Escrowed / Prerefunded (continued) | ||
| $ 5,000 | Montgomery, AL, BMC Special Care Facilities | |
| Financing Authority, (Baptist Health Montgomery), | ||
| (NPFG), Prerefunded to 11/15/14, | ||
| 5.00%, 11/15/24 | $ 5,657,350 | |
| 350 | Ohio Higher Educational Facilities Authority, (Xavier | |
| University), (CIFG), Prerefunded to 5/1/16, | ||
| 5.00%, 5/1/22 | 401,257 | |
| $ 14,410,243 | ||
| Insured-General Obligations — 7.6% | ||
| $ 200 | Amherst, OH, School District, (FGIC), (NPFG), | |
| 5.25%, 12/1/11 | $ 212,750 | |
| 250 | Athens, OH, City School District, (AGM), | |
| 5.25%, 12/1/10 | 258,640 | |
| 8,000 | Boston, MA, (NPFG), 0.125%, 3/1/22 | 5,114,960 |
| 265 | Clinton Massie, OH, Local School District, (AMBAC), | |
| 0.00%, 12/1/11 | 258,786 | |
| 225 | Finneytown, OH, Local School District, (FGIC), | |
| (NPFG), 6.15%, 12/1/11 | 243,558 | |
| 1,000 | Hilliard, OH, School District, (FGIC) (NPFG), | |
| 0.00%, 12/1/14 | 905,350 | |
| 500 | Hillsborough Township, NJ, School District, (AGM), | |
| 5.375%, 10/1/18 | 592,015 | |
| 5,000 | Jackson Township, NJ, School District, (Baptist | |
| Healthcare Systems), (NPFG), 5.25%, 6/15/23 | 5,954,350 | |
| 1,055 | Linn County, OR, Community School District No. 9, | |
| (Lebanon), (FGIC), (NPFG), 6.15%, 6/15/21 | 1,234,582 | |
| 625 | Linn County, OR, Community School District No. 9, | |
| (Lebanon), (FGIC), (NPFG), 6.15%, 6/15/22 | 733,944 | |
| 10,000 | Miami, FL, (Homeland Defense), (NPFG), | |
| 5.00%, 1/1/19 | 10,417,600 | |
| 5,580 | New Orleans, LA, (NPFG), 5.25%, 12/1/15 | 6,118,302 |
| 3,440 | Philadelphia, PA, (AGC), 5.25%, 7/15/15 | 3,857,237 |
| 175 | Scioto Valley and Ross County, OH, School District, | |
| (FGIC), (NPFG), 0.00%, 12/1/11 | 170,067 | |
| 2,300 | Springfield, OH, City School District, (AMBAC), | |
| 4.30%, 12/1/14 | 2,430,663 | |
| 1,000 | St. Louis, MO, Board of Education, (AGM), | |
| 0.00%, 4/1/16 | 847,490 | |
| 500 | Strongsville, OH, City School District, (NPFG), | |
| 5.375%, 12/1/12 | 557,275 | |
| 670 | Upper Arlington, OH, City School District, (AGM), | |
| 5.00%, 12/1/21 | 719,352 | |
| 10,000 | Washington, (AMBAC), 0.00%, 12/1/22 | 5,879,000 |
| 4,275 | West Virginia, (FGIC), (NPFG), 6.15%, 11/1/21 | 2,681,622 |
| 460 | Wyoming School District, (FGIC), (NPFG), | |
| 6.15%, 12/1/17 | 534,042 | |
| $ 49,721,585 | ||
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Hospital — 1.8% | ||
| $ 500 | Cuyahoga County, OH, (MetroHealth System), | |
| (NPFG), 5.50%, 2/15/12 | $ 532,590 | |
| 1,000 | Harris County, TX, Hospital District, (NPFG), | |
| 5.00%, 2/15/11 | 1,030,670 | |
| 1,000 | Harris County, TX, Hospital District, (NPFG), | |
| 5.00%, 2/15/12 | 1,056,490 | |
| 1,000 | Harris County, TX, Hospital District, (NPFG), | |
| 5.00%, 2/15/13 | 1,070,830 | |
| 500 | Harris County, TX, Hospital District, (NPFG), | |
| 5.00%, 2/15/14 | 540,180 | |
| 3,405 | Waco, TX, Health Facilities Development Corp., | |
| (Hillcrest Health System), (NPFG), 5.00%, 8/1/19 | 3,533,232 | |
| 3,745 | Waco, TX, Health Facilities Development Corp., | |
| (Hillcrest Health System), (NPFG), 5.00%, 8/1/20 | 3,857,987 | |
| $ 11,621,979 | ||
| Insured-Industrial Development Revenue — 0.1% | ||
| $ 500 | Akron, OH, Economic Development, (NPFG), | |
| 6.00%, 12/1/12 | $ 535,405 | |
| $ 535,405 | ||
| Insured-Lease Revenue / Certificates of | ||
| Participation — 0.7% | ||
| $ 2,000 | New York Dormitory Authority, (SUNY), (XLCA), | |
| 5.25% to 7/1/13 (Put Date), 7/1/32 | $ 2,218,820 | |
| 500 | Ohio Building Authority, (AGM), 5.50%, 10/1/11 | 535,905 |
| 2,100 | Texas Public Finance Authority, (NPFG), | |
| 0.00%, 2/1/12 | 2,038,638 | |
| $ 4,793,363 | ||
| Insured-Other Revenue — 2.0% | ||
| $10,285 | Citizens Property Insurance Corp., FL, (Senior | |
| Secured High Risk Account), (NPFG), | ||
| 5.00%, 3/1/13 | $ 10,856,537 | |
| 500 | Cleveland, OH, Parking Facilities, (AGM), | |
| 5.25%, 9/15/20 | 520,820 | |
| 1,000 | Louisiana Public Facility Authority, (Roman Catholic | |
| Church of New Orleans), (CIFG), 5.00%, 7/1/19 | 1,015,720 | |
| 1,000 | Missouri Development Finance Board Cultural Facility, | |
| (Nelson Gallery Foundation), (NPFG), | ||
| 5.25%, 12/1/14 | 1,075,160 | |
| $ 13,468,237 | ||
| S e e notes to financ ial statem e nts | ||||
| 16 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Pooled Loans — 2.9% | ||
| $ 5,000 | Louisiana Public Facility Authority, (Hurricane | |
| Recovery), (AMBAC), 5.00%, 6/1/19 | $ 5,284,050 | |
| 14,205 | Massachusetts Educational Financing Authority, | |
| (AMBAC), (AMT), 4.60%, 1/1/22 | 13,654,840 | |
| $ 18,938,890 | ||
| Insured-Special Tax Revenue — 5.8% | ||
| $ 3,000 | Arlington, TX, (Dallas Cowboys), (NPFG), | |
| 5.00%, 8/15/34 | $ 3,007,530 | |
| 5,000 | Denver, CO, City and County Excise Tax Revenue, | |
| (AGC), 6.00%, 9/1/23 | 5,620,550 | |
| 6,040 | Denver, CO, Convention Center, (XLCA), | |
| 5.25%, 12/1/22 | 5,844,244 | |
| 10,000 | Garden State Preservation Trust, NJ, Open Space and | |
| Farmland, (AGM), 5.25%, 11/1/20 | 11,768,800 | |
| 5,000 | Massachusetts, Special Obligation, (AGM), | |
| 5.50%, 6/1/21 | 6,001,050 | |
| 4,920 | Massachusetts, Special Obligation, Dedicated Tax | |
| Revenue, (FGIC), (NPFG), 6.15%, 1/1/29 | 5,571,900 | |
| 250 | Puerto Rico Infrastructure Financing Authority, (FGIC), | |
| 5.50%, 7/1/19 | 259,147 | |
| $ 38,073,221 | ||
| Insured-Student Loan — 1.2% | ||
| $ 7,500 | Maine Educational Loan Authority, (AGC), | |
| 5.625%, 12/1/27 | $ 7,796,025 | |
| $ 7,796,025 | ||
| Insured-Transportation — 6.2% | ||
| $ 2,295 | Chicago, IL, O’Hare International Airport, (NPFG), | |
| (AMT), 5.75%, 1/1/17 | $ 2,376,243 | |
| 250 | Cleveland, OH, Airport System, (AGM), | |
| 5.00%, 1/1/23 | 253,843 | |
| 1,000 | Denver, CO, City and County Airport, (AGM), (AMT), | |
| 5.00%, 11/15/11 | 1,060,370 | |
| 1,000 | Houston, TX, Airport System, (FGIC), (NPFG), | |
| (AMT), 5.50%, 7/1/12 | 1,062,890 | |
| 1,045 | Idaho Housing and Finance Association, (Grant and | |
| Revenue Anticipation Bonds Federal Highway Trust | ||
| Fund), (AGC), 5.25%, 7/15/21 | 1,159,971 | |
| 1,000 | Idaho Housing and Finance Association, (Grant and | |
| Revenue Anticipation Bonds Federal Highway Trust | ||
| Fund), (AGC), 5.25%, 7/15/25 | 1,089,230 | |
| 2,000 | Kenton County, KY, Airport, (Cincinnati/Northern | |
| Kentucky), (NPFG), (AMT), 5.625%, 3/1/13 | 2,124,880 | |
| 1,835 | Massachusetts Port Authority, (Delta Airlines), | |
| (AMBAC), (AMT), 5.50%, 1/1/15 | 1,738,607 | |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Insured-Transportation (continued) | ||
| $ 8,125 | Miami-Dade County, FL, Aviation, (NPFG), (AMT), | |
| 5.25%, 10/1/15 | $ 8,791,900 | |
| 1,000 | Miami-Dade County, FL, Aviation, (Miami | |
| International Airport), (FGIC), (NPFG), (AMT), | ||
| 5.50%, 10/1/13 | 1,064,210 | |
| 2,000 | Minneapolis and St. Paul, MN, Metropolitan Airport | |
| Commission, (FGIC), (NPFG), (AMT), | ||
| 5.25%, 1/1/11 | 2,059,340 | |
| 10,000 | New Jersey Transportation Trust Fund Authority, | |
| (AGC), 0.00%, 12/15/24 | 4,769,100 | |
| 5,000 | New Jersey Transportation Trust Fund Authority, | |
| (FGIC), (NPFG), 5.50%, 12/15/20 | 5,653,200 | |
| 1,040 | New Orleans, LA, Aviation Board Revenue, (AGC), | |
| 6.00%, 1/1/23 | 1,174,191 | |
| 1,750 | Ohio Turnpike Commission, (FGIC), (NPFG), | |
| 5.50%, 2/15/18 | 2,028,197 | |
| 1,000 | Port Seattle, WA, (NPFG), (AMT), 6.00%, 2/1/11 | 1,039,470 |
| 3,420 | St. Louis, MO, Lambert-St. Louis International Airport, | |
| (AGM), 5.00%, 7/1/20 | 3,576,226 | |
| $ 41,021,868 | ||
| Insured-Water and Sewer — 1.0% | ||
| $ 475 | Cleveland, OH, Waterworks, (AGM), | |
| 5.375%, 1/1/16 | $ 507,433 | |
| 3,125 | Kansas City, MO, Water Revenue, (BHAC), | |
| 5.00%, 12/1/23 | 3,414,500 | |
| 2,425 | Sunrise, FL, Utilities Systems, (AMBAC), | |
| 5.50%, 10/1/18 | 2,663,305 | |
| $ 6,585,238 | ||
| Lease Revenue / Certificates of Participation — 2.4% | ||
| $ 5,265 | Charleston, SC, Educational Excellence Finance Corp., | |
| (Charleston County School District Project), | ||
| 5.00%, 12/1/20 | $ 5,567,948 | |
| 2,240 | Lexington County, SC, One School Facilities Corp., | |
| 5.00%, 12/1/20 | 2,362,192 | |
| 1,945 | Lexington County, SC, One School Facilities Corp., | |
| 5.00%, 12/1/22 | 2,028,927 | |
| 3,385 | New Jersey Economic Development Authority, (School | |
| Facilities Construction), 5.50%, 9/1/19 | 3,844,581 | |
| 1,755 | Newberry, SC, (Newberry County School District | |
| Project), 5.25%, 12/1/24 | 1,740,697 | |
| $ 15,544,345 | ||
| Nursing Home — 0.3% | ||
| $ 2,365 | Connecticut State Development Authority, (Alzheimer’s | |
| Resource Center), 5.20%, 8/15/17 | $ 2,147,727 | |
| $ 2,147,727 | ||
| S e e notes to financ ial statem e nts | ||||
| 17 | ||||
Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010
PORTFOLIO OF INVESTMENTS CO N T ’ D
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Other Revenue — 3.7% | ||
| $ 1,000 | Arizona Health Facilities Authority, (Blood Systems, | |
| Inc.), 5.00%, 4/1/21 | $ 1,010,100 | |
| 4,470 | Buckeye, OH, Tobacco Settlement Financing Authority, | |
| 5.125%, 6/1/24 | 4,140,114 | |
| 1,220 | Central Falls, RI, Detention Facility Revenue, | |
| 7.25%, 7/15/35 | 1,053,250 | |
| 200 | Mohegan Tribe, CT, Gaming Authority, | |
| 5.375%, 1/1/11(1) | 195,984 | |
| 4,500 | Non-Profit Preferred Funding Trust, Various States, | |
| 4.47%, 9/15/37(1) | 3,484,035 | |
| 4,565 | Northern Tobacco Securitization Corp., AK, | |
| 4.625%, 6/1/23 | 4,509,353 | |
| 150 | Otero County, NM, Jail Project Revenue, | |
| 5.50%, 4/1/13 | 147,438 | |
| 700 | Otero County, NM, Jail Project Revenue, | |
| 5.75%, 4/1/18 | 630,805 | |
| 300 | Riversouth Authority, OH, (Lazarus Building | |
| Redevelopment), 5.75%, 12/1/27 | 276,534 | |
| 5,250 | Seminole Tribe, FL, 5.75%, 10/1/22(1) | 5,122,215 |
| 1,700 | Silicon Valley Tobacco Securitization Authority, CA, | |
| 0.00%, 6/1/36 | 173,281 | |
| 2,530 | Tennessee Energy Acquisition Corp., 5.25%, 9/1/17 | 2,654,932 |
| 970 | White Earth Band of Chippewa Indians, MN, | |
| 6.375%, 12/1/11(1) | 931,355 | |
| $ 24,329,396 | ||
| Pooled Loans — 0.7% | ||
| $ 220 | Cuyahoga County, OH, Port Authority, (Garfield | |
| Heights), 5.25%, 5/15/23 | $ 162,037 | |
| 1,120 | Idaho Board Bank Authority, 5.00%, 9/15/21 | 1,250,189 |
| 1,595 | Ohio Economic Development, (Ohio Enterprise Bond | |
| Fund), (AMT), 4.60%, 6/1/20 | 1,631,190 | |
| 1,040 | Ohio Economic Development, (Ohio Enterprise Bond | |
| Fund), (AMT), 5.25%, 12/1/15 | 1,096,493 | |
| 315 | Summit County, OH, Port Authority, (Twinsburg | |
| Township), 5.125%, 5/15/25 | 265,740 | |
| $ 4,405,649 | ||
| Senior Living / Life Care — 0.9% | ||
| $ 1,105 | Arizona Health Facilities Authority, (Care Institute, | |
| Inc. - Mesa), 7.625%, 1/1/49(4) | $ 738,162 | |
| 1,000 | California Statewide Communities Development | |
| Authority, (Senior Living-Presbyterian Homes), | ||
| 4.50%, 11/15/16 | 991,650 | |
| 200 | Maryland Health and Higher Educational Facilities | |
| Authority, (Edenwald), 4.85%, 1/1/13 | 200,546 | |
| 2,245 | Maryland Health and Higher Educational Facilities | |
| Authority, (King Farm Presbyterian Community), | ||
| 5.00%, 1/1/17 | 2,052,783 | |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Senior Living / Life Care (continued) | ||
| $ 625 | Massachusetts Development Finance Agency, | |
| (Volunteers of America), 5.00%, 11/1/17 | $ 583,363 | |
| 750 | New Jersey Economic Development Authority, | |
| (Seabrook Village, Inc.), 5.00%, 11/15/12 | 757,110 | |
| 495 | North Miami, FL, Health Care Facilities Authority, | |
| (Imperial Club), 6.125%, 1/1/42(5) | 274,626 | |
| 460 | St. Joseph County, IN, Holy Cross Village, | |
| 5.55%, 5/15/19 | 442,929 | |
| $ 6,041,169 | ||
| Solid Waste — 1.1% | ||
| $ 4,000 | Massachusetts Industrial Finance Agency, (Ogden | |
| Haverhill), (AMT), 5.50%, 12/1/13 | $ 3,830,560 | |
| 3,000 | Niagara County, NY, Industrial Development Agency, | |
| (American Ref-Fuel Co., LLC), (AMT), 5.55% to | ||
| 11/15/13 (Put Date), 11/15/24 | 3,089,190 | |
| $ 6,919,750 | ||
| Special Tax Revenue — 2.2% | ||
| $ 815 | Arbor Greene, FL, Community Development District, | |
| 5.00%, 5/1/19 | $ 819,694 | |
| 1,078 | Bridgeville, DE, (Heritage Shores Special | |
| Development District), 5.125%, 7/1/35 | 846,844 | |
| 265 | Concorde Estates, FL, Community Development | |
| District, (Capital Improvements), 5.00%, 5/1/11(3) | 97,891 | |
| 230 | Covington Park, FL, Community Development District, | |
| (Capital Improvements), 5.00%, 5/1/21 | 229,795 | |
| 2,000 | Detroit, MI, Downtown Development Authority Tax | |
| Increment, 0.00%, 7/1/21 | 1,036,360 | |
| 485 | Dupree Lakes, FL, Community Development District, | |
| 5.00%, 11/1/10 | 423,575 | |
| 1,955 | Dupree Lakes, FL, Community Development District, | |
| 5.00%, 5/1/12 | 1,437,121 | |
| 450 | Fish Hawk, FL, Community Development District II, | |
| 7.04%, 11/1/14 | 428,535 | |
| 250 | Frederick County, MD, Urbana Community | |
| Development Authority, 6.625%, 7/1/25 | 250,003 | |
| 45 | Longleaf, FL, Community Development District, | |
| 6.20%, 5/1/09(6) | 22,401 | |
| 4,000 | Mahoning County, OH, (Sales Tax), | |
| 5.00%, 12/1/10 | 4,081,120 | |
| 2,000 | Mahoning County, OH, (Sales Tax), | |
| 5.60%, 12/1/11 | 2,092,760 | |
| 1,130 | New River, FL, Community Development District, | |
| (Capital Improvements), 5.00%, 5/1/13 | 451,548 | |
| 830 | North Springs, FL, Improvement District, (Heron Bay | |
| North Assessment Area), 5.00%, 5/1/14 | 707,666 | |
| 1,265 | Poinciana West, FL, West Community Development | |
| District, 5.875%, 5/1/22 | 1,139,170 | |
| S e e notes to financ ial statem e nts | ||||
| 18 | ||||
| Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010 |
| PORTFOLIO OF INVESTMENTS CO N T ’ D |
| Principal Amount | ||
| (000’s omitted) | Security | Value |
| Special Tax Revenue (continued) | ||
| $ 275 | Sterling Hill, FL, Community Development District, | |
| (Capital Improvements), 5.10%, 5/1/11(3) | $ 82,418 | |
| 330 | Sterling Hill, FL, Community Development District, | |
| (Capital Improvements), 5.50%, 11/1/10 | 287,034 | |
| $ 14,433,935 | ||
| Transportation — 8.5% | ||
| $ 1,140 | Branson, MO, Regional Airport Transportation | |
| Development District, (Branson Airport, LLC), (AMT), | ||
| 6.00%, 7/1/25 | $ 827,594 | |
| 2,370 | Branson, MO, Regional Airport Transportation | |
| Development District, (Branson Airport, LLC), (AMT), | ||
| 6.00%, 7/1/37 | 1,556,308 | |
| 3,000 | Georgia State Road and Tollway Authority, (Federal | |
| Highway Grant Anticipation Revenue Bonds), | ||
| 5.00%, 6/1/21 | 3,319,890 | |
| 2,500 | Louisiana Offshore Terminal Authority, Deepwater Port | |
| Revenue, (Loop, LLC), 5.25%, 9/1/15 | 2,633,575 | |
| 10,000 | Maryland Transportation Authority, 5.00%, 3/1/18 | 11,331,400 |
| 5,000 | Metropolitan Washington, DC Airport Authority | |
| System, (AMT), 5.50%, 10/1/19 | 5,362,700 | |
| 7,500 | Metropolitan Washington, DC Area Transit Authority, | |
| (Gross Revenue), 5.25%, 7/1/21 | 8,421,900 | |
| 5,000 | New Jersey Transportation Trust Fund Authority, | |
| 5.25%, 12/15/21 | 5,515,350 | |
| 5,000 | North Texas Tollway Authority, (Dallas North Tollway | |
| System Revenue), 6.00%, 1/1/23 | 5,472,750 | |
| 250 | Ohio Major New Street Infrastructure Project | |
| Revenue, 5.75%, 6/15/19 | 291,220 | |
| 1,000 | Port Authority of New York and New Jersey, | |
| 5.375%, 3/1/28 | 1,126,740 | |
| 10,000 | Port Authority of New York and New Jersey, (AMT), | |
| 5.25%, 9/15/23 | 10,327,800 | |
| $ 56,187,227 | ||
| Water and Sewer — 4.2% | ||
| $ 400 | Cincinnati, OH, Water System, 4.50%, 12/1/21 | $ 425,224 |
| 5,000 | Fairfax County, VA, Water Authority, | |
| 5.00%, 4/1/18(7) | 5,662,600 | |
| 3,000 | Massachusetts Water Pollution Abatement Trust, | |
| 5.00%, 8/1/25 | 3,464,550 | |
| 500 | Ohio Water Development Authority, (Drinking Water), | |
| 5.50%, 12/1/14 | 557,035 | |
| 280 | Ohio Water Development Authority, Water Pollution | |
| Control, (Fresh Water Quality), 5.25%, 6/1/20 | 328,882 | |
| 10,000 | Virginia State Resources Authority, Clean Water | |
| Revenue, (Revolving Fund), 5.00%, 10/1/19 | 11,255,700 | |
| Principal Amount | |
| (000’s omitted) Security | Value |
| Water and Sewer (continued) | |
| $ 5,000 Virginia State Resources Authority, Clean Water | |
| Revenue, (Revolving Fund), 5.50%, 10/1/19 | $ 5,976,400 |
| $ 27,670,391 | |
| Total Tax-Exempt Investments — 100.1% | |
| (identified cost $640,189,922) | $658,798,804 |
| Other Assets, Less Liabilities — (0.1)% | $ (498,807) |
| Net Assets — 100.0% | $658,299,997 |
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
AGC - Assured Guaranty Corp.
AGM - Assured Guaranty Municipal Corp. AMBAC - AMBAC Financial Group, Inc.
AMT - Interest earned from these securities may be considered a tax preference item for purposes of the Federal Alternative Minimum Tax.
BHAC - Berkshire Hathaway Assurance Corp. CIFG - CIFG Assurance North America, Inc. FGIC - Financial Guaranty Insurance Company MFMR - Multi-Family Mortgage Revenue NPFG - National Public Finance Guaranty Corp. SUNY - State University of New York XLCA - XL Capital Assurance, Inc.
At March 31, 2010, the concentration of the Fund’s investments in the various states, determined as a percentage of net assets, is less than 10% individually.
The Fund invests primarily in debt securities issued by municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at March 31, 2010, 36.3% of total investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate percentage insured by an individual financial institution ranged from 0.2% to 17.8% of total investments.
| (1) | Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions and remain exempt from registration, normally to qualified institutional buyers. At March 31, 2010, the aggregate value of the securities is $10,457,268 or 1.6% of the Fund’s net assets applicable to common shares. |
| (2) | Security represents the underlying municipal bond of an inverse floater (see Note 1I). |
| (3) | Defaulted bond. |
| (4) | Security is in default with respect to scheduled principal payments. |
| S e e notes to financ ial statem e nts | ||||
| 19 | ||||
| Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010 |
| PORTFOLIO OF INVESTMENTS CO N T ’ D |
| (5) | Security is in default and making only partial interest payments. |
| (6) | Defaulted matured bond. |
| (7) | Security (or a portion thereof) has been pledged to cover margin requirements on open financial futures contracts. |
| S e e notes to financ ial statem e nts | ||||
| 20 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||
| FINANCIAL STATEMENTS | |||
| S t a t e m e n t s o f A s s e t s a n d L i a b i l i t i e s | |||
| As of March 31, 2010 | |||
| AMT-Free | National | ||
| Limited Fund | Limited Fund | ||
| Assets | |||
| Investments — | |||
| Identified cost | $67,871,075 | $640,189,922 | |
| Unrealized appreciation | 2,950,667 | 18,608,882 | |
| Investments, at value | $70,821,742 | $658,798,804 | |
| Cash | $ — | $ 18,856 | |
| Interest receivable | 941,777 | 9,428,591 | |
| Receivable for investments sold | 115,000 | 1,648,284 | |
| Receivable for Fund shares sold | 272,394 | 2,114,865 | |
| Total assets | $72,150,913 | $672,009,400 | |
| Liabilities | |||
| Payable for floating rate notes issued | $ — | $ 4,980,000 | |
| Demand note payable | — | 2,000,000 | |
| Payable for variation margin on open financial futures contracts | 21,875 | 292,500 | |
| Payable for Fund shares redeemed | 8,617 | 4,693,184 | |
| Distributions payable | 100,333 | 1,093,619 | |
| Payable to affiliates: | |||
| Investment adviser fee | 26,435 | 256,236 | |
| Distribution and service fees | 18,990 | 171,716 | |
| Interest expense and fees payable | — | 15,923 | |
| Accrued expenses | 65,401 | 206,225 | |
| Total liabilities | $ 241,651 | $ 13,709,403 | |
| Net Assets | $71,909,262 | $658,299,997 | |
| Sources of Net Assets | |||
| Paid-in capital | $71,116,170 | $672,624,957 | |
| Accumulated net realized loss | (2,065,439) | (32,890,084) | |
| Accumulated undistributed (distributions in excess of) net investment income | (59,078) | 93,007 | |
| Net unrealized appreciation | 2,917,609 | 18,472,117 | |
| Net Assets | $71,909,262 | $658,299,997 | |
| Class A Shares | |||
| Net Assets | $56,413,014 | $410,009,272 | |
| Shares Outstanding | 5,673,907 | 40,954,167 | |
| Net Asset Value and Redemption Price Per Share | |||
| (net assets shares of beneficial interest outstanding) | $ 9.94 | $ 10.01 | |
| Maximum Offering Price Per Share | |||
| (100 97.75 of net asset value per share) | $ 10.17 | $ 10.24 | |
| Class B Shares | |||
| Net Assets | $ 898,303 | $ 6,157,101 | |
| Shares Outstanding | 90,310 | 614,691 | |
| Net Asset Value and Offering Price Per Share* | |||
| (net assets shares of beneficial interest outstanding) | $ 9.95 | $ 10.02 | |
| Class C Shares | |||
| Net Assets | $14,597,945 | $143,883,338 | |
| Shares Outstanding | 1,554,384 | 15,320,871 | |
| Net Asset Value and Offering Price Per Share* | |||
| (net assets shares of beneficial interest outstanding) | $ 9.39 | $ 9.39 | |
| Class I Shares | |||
| Net Assets | $ — | $ 98,250,286 | |
| Shares Outstanding | — | 9,813,099 | |
| Net Asset Value, Offering Price and Redemption Price Per Share | |||
| (net assets shares of beneficial interest outstanding) | $ — | $ 10.01 | |
| On sales of $100,000 or more, the offering price of Class A shares is reduced. | |||
| * Redemption price per share is equal to the net asset value less any applicable contingent deferred sales charge. | |||
| S e e notes to financ ial statem e nts | |||
| 21 | |||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||
| FINANCIAL STATEMENTS CON T ’ D | |||
| S t a t e m e n t s o f O p e r a t i o n s | |||
| For the Year Ended March 31, 2010 | |||
| AMT-Free | National | ||
| Limited Fund | Limited Fund | ||
| Investment Income | |||
| Interest | $2,764,879 | $32,495,906 | |
| Total investment income | $2,764,879 | $32,495,906 | |
| Expenses | |||
| Investment adviser fee | $ 272,906 | $ 2,994,694 | |
| Distribution and service fees | |||
| Class A | 74,421 | 773,775 | |
| Class B | 8,348 | 58,724 | |
| Class C | 113,693 | 1,122,570 | |
| Trustees’ fees and expenses | 2,705 | 25,406 | |
| Custodian fee | 55,848 | 262,014 | |
| Transfer and dividend disbursing agent fees | 22,880 | 282,023 | |
| Legal and accounting services | 37,544 | 60,039 | |
| Printing and postage | 15,425 | 49,457 | |
| Registration fees | 48,414 | 105,499 | |
| Interest expense and fees | — | 41,803 | |
| Miscellaneous | 25,108 | 83,860 | |
| Total expenses | $ 677,292 | $ 5,859,864 | |
| Deduct — | |||
| Reduction of custodian fee | $ 410 | $ 1,344 | |
| Total expense reductions | $ 410 | $ 1,344 | |
| Net expenses | $ 676,882 | $ 5,858,520 | |
| Net investment income | $2,087,997 | $26,637,386 | |
| Realized and Unrealized Gain (Loss) | |||
| Net realized gain (loss) — | |||
| Investment transactions | $ 316,172 | $ (750,698) | |
| Financial futures contracts | 176,139 | 3,216,816 | |
| Net realized gain | $ 492,311 | $ 2,466,118 | |
| Change in unrealized appreciation (depreciation) — | |||
| Investments | $2,065,982 | $51,283,070 | |
| Financial futures contracts | 50,207 | 1,710,888 | |
| Net change in unrealized appreciation (depreciation) | $2,116,189 | $52,993,958 | |
| Net realized and unrealized gain | $2,608,500 | $55,460,076 | |
| Net increase in net assets from operations | $4,696,497 | $82,097,462 | |
| S e e notes to financ ial statem e nts | ||||
| 22 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 |
| FINANCIAL STATEMENTS CON T ’ D |
| S t a t e m e n t s o f C h a n g e s i n N e t A s s e t s | |||
| For the Year Ended March 31, 2010 | |||
| AMT-Free | National | ||
| Increase (Decrease) in Net Assets | Limited Fund | Limited Fund | |
| From operations — | |||
| Net investment income | $ 2,087,997 | $ 26,637,386 | |
| Net realized gain from investment transactions and financial futures contracts | 492,311 | 2,466,118 | |
| Net change in unrealized appreciation (depreciation) from investments and financial futures contracts | 2,116,189 | 52,993,958 | |
| Net increase in net assets from operations | $ 4,696,497 | $ 82,097,462 | |
| Distributions to shareholders — | |||
| From net investment income | |||
| Class A | $ (1,678,354) | $ (20,620,944) | |
| Class B | (24,587) | (211,965) | |
| Class C | (334,438) | (4,037,795) | |
| Class I | — | (1,439,461) | |
| Total distributions to shareholders | $ (2,037,379) | $ (26,310,165) | |
| Transactions in shares of beneficial interest — | |||
| Proceeds from sale of shares | |||
| Class A | $ 27,924,563 | $ 165,644,395 | |
| Class B | 565,003 | 2,595,590 | |
| Class C | 4,769,145 | 52,717,652 | |
| Class I | — | 106,438,150 | |
| Net asset value of shares issued to shareholders in payment of distributions declared | |||
| Class A | 1,067,682 | 14,061,172 | |
| Class B | 11,839 | 114,302 | |
| Class C | 205,988 | 2,062,896 | |
| Class I | — | 55,274 | |
| Cost of shares redeemed | |||
| Class A | (24,323,108) | (336,328,311) | |
| Class B | (193,066) | (1,402,380) | |
| Class C | (1,670,810) | (26,249,485) | |
| Class I | — | (8,582,650) | |
| Issued in connection with tax-free reorganization (See Note 12) | |||
| Class A | — | 18,406,510 | |
| Class B | — | 218,753 | |
| Class C | — | 868,318 | |
| Net asset value of shares exchanged | |||
| Class A | 496,946 | 2,046,981 | |
| Class B | (496,946) | (2,046,981) | |
| Net increase (decrease) in net assets from Fund share transactions | $ 8,357,236 | $ (9,379,814) | |
| Net increase in net assets | $ 11,016,354 | $ 46,407,483 | |
| Net Assets | |||
| At beginning of year | $ 60,892,908 | $ 611,892,514 | |
| At end of year | $ 71,909,262 | $ 658,299,997 | |
| Accumulated undistributed (distributions in excess of) | |||
| net investment income included in net assets | |||
| At end of year | $ (59,078) | $ 93,007 | |
| S e e notes to financ ial statem e nts | |||
| 23 | |||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 |
| FINANCIAL STATEMENTS CON T ’ D |
| S t a t e m e n t s o f C h a n g e s i n N e t A s s e t s | ||
| For the Year Ended March 31, 2009 | ||
| AMT-Free | National | |
| Increase (Decrease) in Net Assets | Limited Fund | Limited Fund |
| From operations — | ||
| Net investment income | $ 1,507,516 | $ 25,297,923 |
| Net realized loss from investment transactions and financial futures contracts | (1,592,052) | (21,755,755) |
| Net change in unrealized appreciation (depreciation) from investments and financial futures contracts | 799,172 | (28,379,788) |
| Net increase (decrease) in net assets from operations | $ 714,636 | $ (24,837,620) |
| Distributions to shareholders — | ||
| From net investment income | ||
| Class A | $ (1,371,482) | $ (21,507,938) |
| Class B | (34,887) | (187,841) |
| Class C | (285,120) | (3,418,273) |
| Total distributions to shareholders | $ (1,691,489) | $ (25,114,052) |
| Transactions in shares of beneficial interest — | ||
| Proceeds from sale of shares | ||
| Class A | $27,826,205 | $ 281,851,976 |
| Class B | 760,465 | 4,974,478 |
| Class C | 4,902,322 | 52,306,181 |
| Net asset value of shares issued to shareholders in payment of distributions declared | ||
| Class A | 806,358 | 13,822,720 |
| Class B | 19,831 | 95,728 |
| Class C | 139,227 | 1,505,087 |
| Cost of shares redeemed | ||
| Class A | (8,637,957) | (297,658,446) |
| Class B | (461,799) | (1,528,941) |
| Class C | (2,560,043) | (42,078,655) |
| Net asset value of shares exchanged | ||
| Class A | 583,287 | 3,559,715 |
| Class B | (583,287) | (3,559,715) |
| Net increase in net assets from Fund share transactions | $22,794,609 | $ 13,290,128 |
| Net increase (decrease) in net assets | $21,817,756 | $ (36,661,544) |
| Net Assets | ||
| At beginning of year | $39,075,152 | $ 648,554,058 |
| At end of year | $60,892,908 | $ 611,892,514 |
| Accumulated distributions in excess of | ||
| net investment income included in net assets | ||
| At end of year | $ (91,218) | $ (123,804) |
| S e e notes to financ ial statem e nts | ||||
| 24 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||
| FINANCIAL STATEMENTS CON T ’ D | |||||
| F i n a n c i a l H i g h l i g h t s | |||||
| AMT-Free Limited Fund — Class A | |||||
| Year Ended March 31, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Net asset value — Beginning of year | $ 9.470 | $ 9.890 | $10.280 | $10.230 | $10.230 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.343 | $ 0.343 | $ 0.388 | $ 0.394 | $ 0.385 |
| Net realized and unrealized gain (loss) | 0.462 | (0.377) | (0.382) | 0.041 | (0.005) |
| Total income (loss) from operations | $ 0.805 | $ (0.034) | $ 0.006 | $ 0.435 | $ 0.380 |
| Less Distributions | |||||
| From net investment income | $ (0.335) | $ (0.386) | $ (0.396) | $ (0.385) | $ (0.380) |
| Total distributions | $ (0.335) | $ (0.386) | $ (0.396) | $ (0.385) | $ (0.380) |
| Net asset value — End of year | $ 9.940 | $ 9.470 | $ 9.890 | $10.280 | $10.230 |
| Total Return(2) | 8.58% | (0.33)% | 0.05% | 4.32% | 3.76% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $56,413 | $49,188 | $29,297 | $33,440 | $36,064 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses before custodian fee reduction | 0.91% | 0.98% | 0.92% | 0.89% | 0.85% |
| Expenses after custodian fee reduction | 0.91% | 0.95% | 0.90% | 0.87% | 0.84% |
| Net investment income | 3.47% | 3.58% | 3.83% | 3.83% | 3.74% |
| Portfolio Turnover | 34% | 78% | 36% | 18% | 23% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| S e e notes to financ ial statem e nts | ||||
| 25 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||
| FINANCIAL STATEMENTS CON T ’ D | |||||
| F i n a n c i a l H i g h l i g h t s | |||||
| AMT-Free Limited Fund — Class B | |||||
| Year Ended March 31, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Net asset value — Beginning of year | $ 9.480 | $ 9.890 | $10.280 | $10.230 | $10.230 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.269 | $ 0.272 | $ 0.314 | $ 0.317 | $ 0.307 |
| Net realized and unrealized gain (loss) | 0.464 | (0.371) | (0.385) | 0.040 | (0.007) |
| Total income (loss) from operations | $ 0.733 | $(0.099) | $ (0.071) | $ 0.357 | $ 0.300 |
| Less Distributions | |||||
| From net investment income | $(0.263) | $(0.311) | $ (0.319) | $ (0.307) | $ (0.300) |
| Total distributions | $(0.263) | $(0.311) | $ (0.319) | $ (0.307) | $ (0.300) |
| Net asset value — End of year | $ 9.950 | $ 9.480 | $ 9.890 | $10.280 | $10.230 |
| Total Return(2) | 7.90% | (1.10)% | (0.71)% | 3.54% | 2.96% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $ 898 | $ 962 | $ 1,256 | $ 2,760 | $ 5,925 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses before custodian fee reduction | 1.66% | 1.73% | 1.67% | 1.64% | 1.60% |
| Expenses after custodian fee reduction | 1.66% | 1.71% | 1.65% | 1.62% | 1.59% |
| Net investment income | 2.72% | 2.82% | 3.09% | 3.08% | 2.98% |
| Portfolio Turnover | 34% | 78% | 36% | 18% | 23% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| S e e notes to financ ial statem e nts | ||||
| 26 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||
| FINANCIAL STATEMENTS CON T ’ D | |||||
| F i n a n c i a l H i g h l i g h t s | |||||
| AMT-Free Limited Fund — Class C | |||||
| Year Ended March 31, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Net asset value — Beginning of year | $ 8.950 | $ 9.340 | $ 9.700 | $ 9.660 | $ 9.650 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.253 | $ 0.256 | $ 0.295 | $ 0.299 | $ 0.291 |
| Net realized and unrealized gain (loss) | 0.435 | (0.352) | (0.354) | 0.031 | 0.004 |
| Total income (loss) from operations | $ 0.688 | $ (0.096) | $(0.059) | $ 0.330 | $ 0.295 |
| Less Distributions | |||||
| From net investment income | $ (0.248) | $ (0.294) | $(0.301) | $(0.290) | $ (0.285) |
| Total distributions | $ (0.248) | $ (0.294) | $(0.301) | $(0.290) | $ (0.285) |
| Net asset value — End of year | $ 9.390 | $ 8.950 | $ 9.340 | $ 9.700 | $ 9.660 |
| Total Return(2) | 7.74% | (1.02)% | (0.63)% | 3.46% | 3.07% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $14,598 | $10,743 | $ 8,522 | $ 9,612 | $13,466 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses before custodian fee reduction | 1.66% | 1.74% | 1.67% | 1.64% | 1.60% |
| Expenses after custodian fee reduction | 1.66% | 1.71% | 1.65% | 1.62% | 1.59% |
| Net investment income | 2.71% | 2.82% | 3.08% | 3.09% | 2.99% |
| Portfolio Turnover | 34% | 78% | 36% | 18% | 23% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| S e e notes to financ ial statem e nts | ||||
| 27 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||||
| FINANCIAL STATEMENTS CON T ’ D | |||||||
| F i n a n c i a l H i g h l i g h t s | |||||||
| National Limited Fund — Class A | |||||||
| Year Ended March 31, | |||||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |||
| Net asset value — Beginning of year | $ 9.200 | $ 9.930 | $ 10.420 | $ 10.290 | $ 10.210 | ||
| Income (Loss) From Operations | |||||||
| Net investment income(1) | $ 0.398 | $ 0.394 | $ 0.392 | $ 0.410 | $ 0.411 | ||
| Net realized and unrealized gain (loss) | 0.804 | (0.733) | (0.488) | 0.134 | 0.078 | ||
| Total income (loss) from operations | $ 1.202 | $ (0.339) | $ (0.096) | $ 0.544 | $ 0.489 | ||
| Less Distributions | |||||||
| From net investment income | $ (0.392) | $ (0.391) | $ (0.394) | $ (0.414) | $ (0.409) | ||
| Total distributions | $ (0.392) | $ (0.391) | $ (0.394) | $ (0.414) | $ (0.409) | ||
| Net asset value — End of year | $ 10.010 | $ 9.200 | $ 9.930 | $ 10.420 | $ 10.290 | ||
| Total Return(2) | 13.22% | (3.50)% | (0.94)% | 5.38% | 4.88% | ||
| Ratios/Supplemental Data | |||||||
| Net assets, end of year (000’s omitted) | $410,009 | $500,869 | $541,176 | $367,010 | $180,401 | ||
| Ratios (as a percentage of average daily net assets): | |||||||
| Expenses excluding interest and fees | 0.71% | 0.72% | 0.71% | 0.78% | 0.79% | ||
| Interest and fee expense(3) | 0.01% | 0.02% | 0.05% | 0.10% | — | ||
| Total expenses before custodian fee reduction | 0.72% | 0.74% | 0.76% | 0.88% | 0.79% | ||
| Expenses after custodian fee reduction excluding interest and fees | 0.71% | 0.71% | 0.70% | 0.76% | 0.78% | ||
| Net investment income | 4.05% | 4.12% | 3.84% | 3.95% | 3.99% | ||
| Portfolio Turnover | 14% | 33% | 39% | 38% | 48% | ||
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| (3) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1I). |
| S e e notes to financ ial statem e nts | ||||
| 28 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||
| FINANCIAL STATEMENTS CON T ’ D | |||||
| F i n a n c i a l H i g h l i g h t s | |||||
| National Limited Fund — Class B | |||||
| Year Ended March 31, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Net asset value — Beginning of year | $ 9.200 | $ 9.940 | $10.420 | $10.290 | $10.220 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.324 | $ 0.322 | $ 0.318 | $ 0.340 | $ 0.335 |
| Net realized and unrealized gain (loss) | 0.815 | (0.745) | (0.482) | 0.127 | 0.068 |
| Total income (loss) from operations | $ 1.139 | $(0.423) | $ (0.164) | $ 0.467 | $ 0.403 |
| Less Distributions | |||||
| From net investment income | $(0.319) | $(0.317) | $ (0.316) | $ (0.337) | $ (0.333) |
| Total distributions | $ (0.319) | $(0.317) | $ (0.316) | $ (0.337) | $ (0.333) |
| Net asset value — End of year | $10.020 | $ 9.200 | $ 9.940 | $10.420 | $10.290 |
| Total Return(2) | 12.50% | (4.34)% | (1.59)% | 4.60% | 3.99% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $ 6,157 | $ 6,130 | $ 6,512 | $11,435 | $20,610 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses excluding interest and fees | 1.46% | 1.47% | 1.46% | 1.53% | 1.54% |
| Interest and fee expense(3) | 0.01% | 0.02% | 0.05% | 0.10% | — |
| Total expenses before custodian fee reduction | 1.47% | 1.49% | 1.51% | 1.63% | 1.54% |
| Expenses after custodian fee reduction excluding interest and fees | 1.46% | 1.46% | 1.45% | 1.51% | 1.53% |
| Net investment income | 3.29% | 3.37% | 3.11% | 3.27% | 3.25% |
| Portfolio Turnover | 14% | 33% | 39% | 38% | 48% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| (3) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1I). |
| S e e notes to financ ial statem e nts | ||||
| 29 | ||||
| Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10 | |||||
| FINANCIAL STATEMENTS CON T ’ D | |||||
| F i n a n c i a l H i g h l i g h t s | |||||
| National Limited Fund — Class C | |||||
| Year Ended March 31, | |||||
| 2010 | 2009 | 2008 | 2007 | 2006 | |
| Net asset value — Beginning of year | $ 8.630 | $ 9.310 | $ 9.770 | $ 9.640 | $ 9.580 |
| Income (Loss) From Operations | |||||
| Net investment income(1) | $ 0.303 | $ 0.302 | $ 0.297 | $ 0.316 | $ 0.313 |
| Net realized and unrealized gain (loss) | 0.756 | (0.685) | (0.461) | 0.129 | 0.059 |
| Total income (loss) from operations | $ 1.059 | $ (0.383) | $ (0.164) | $ 0.445 | $ 0.372 |
| Less Distributions | |||||
| From net investment income | $ (0.299) | $ (0.297) | $ (0.296) | $ (0.315) | $ (0.312) |
| Total distributions | $ (0.299) | $ (0.297) | $ (0.296) | $ (0.315) | $ (0.312) |
| Net asset value — End of year | $ 9.390 | $ 8.630 | $ 9.310 | $ 9.770 | $ 9.640 |
| Total Return(2) | 12.39% | (4.20)% | (1.70)% | 4.68% | 3.93% |
| Ratios/Supplemental Data | |||||
| Net assets, end of year (000’s omitted) | $143,883 | $104,893 | $100,866 | $81,411 | $77,379 |
| Ratios (as a percentage of average daily net assets): | |||||
| Expenses excluding interest and fees | 1.46% | 1.47% | 1.46% | 1.53% | 1.54% |
| Interest and fee expense(3) | 0.01% | 0.02% | 0.05% | 0.10% | — |
| Total expenses before custodian fee reduction | 1.47% | 1.49% | 1.51% | 1.63% | 1.54% |
| Expenses after custodian fee reduction excluding interest and fees | 1.46% | 1.46% | 1.45% | 1.51% | 1.53% |
| Net investment income | 3.28% | 3.38% | 3.10% | 3.24% | 3.25% |
| Portfolio Turnover | 14% | 33% | 39% | 38% | 48% |
| (1) | Computed using average shares outstanding. |
| (2) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested and do not reflect the effect of sales charges. |
| (3) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1I). |
| S e e notes to financ ial statem e nts | ||||
| 30 | ||||
Eaton Vance Limited Maturity Municipal Income Funds as o f Mar c h 3 1, 20 10
FINANCIAL STATEMENTS CON T ’ D
| F i n a n c i a l H i g h l i g h t s | |
| National Limited Fund — Class | |
| Period Ended | |
| March 31, 2010(1) | |
| Net asset value — Beginning of period | $10.180 |
| Income (Loss) From Operations | |
| Net investment income(2) | $ 0.206 |
| Net realized and unrealized loss | (0.190) |
| Total income from operations | $ 0.016 |
| Less Distributions | |
| From net investment income | $ (0.186) |
| Total distributions | $ (0.186) |
| Net asset value — End of period | $10.010 |
| Total Return(3) | 0.17%(4) |
| Ratios/Supplemental Data | |
| Net assets, end of period (000’s omitted) | $98,250 |
| Ratios (as a percentage of average daily net assets): | |
| Expenses excluding interest and fees | 0.58%(5) |
| Interest and fee expense(6) | 0.01%(5) |
| Total expenses before custodian fee reduction | 0.59%(5) |
| Expenses after custodian fee reduction excluding interest and fees | 0.58%(5) |
| Net investment income | 4.11%(5) |
| Portfolio Turnover | 14%(7) |
| (1) | For the period from the commencement of operations, October 1, 2009, to March 31, 2010. |
| (2) | Computed using average shares outstanding. |
| (3) | Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. |
| (4) | Not annualized. |
| (5) | Annualized. |
| (6) | Interest and fee expense relates to the liability for floating rate notes issued in conjunction with inverse floater securities transactions (see Note 1I). |
| (7) | For the Fund’s year ended March 31, 2010. |
| S e e notes to financ ial statem e nts | ||||
| 31 | ||||
Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
Eaton Vance Investment Trust (the Trust) is a Massachusetts business trust registered under the Investment Company Act of 1940, as amended (the 1940 Act), as an open-end management investment company. The Trust presently consists of seven Funds, two of which, each diversified, are included in these financial statements. They include Eaton Vance AMT-Free Limited Maturity Municipal Income Fund (formerly, Eaton Vance AMT-Free Limited Maturity Municipals Fund) (AMT-Free Limited Fund) and Eaton Vance National Limited Maturity Municipal Income Fund (formerly, Eaton Vance National Limited Maturity Municipals Fund) (National Limited Fund), (each individually referred to as the Fund, and collectively, the Funds). The Funds seek to provide a high level of current income exempt from regular federal income tax and limited principal fluctuation. AMT-Free Limited Fund offers three classes of shares and National Limited Fund offers four classes of shares. Class A shares a re generally sold subject to a sales charge imposed at time of purchase. Class B and Class C shares are sold at net asset value and are generally subject to a contingent deferred sales charge (see Note 5). Class I shares are sold at net asset value and are not subject to a sales charge. Class B shares of each Fund held for the longer of (i) four years or (ii) the time at which the contingent deferred sales charge applicable to such shares expires will automatically convert to Class A shares as described in each Fund’s prospectus. Each class represents a pro-rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains and losses are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Net investment income, other than class-specific expenses, is allocated daily to each class of shares based upon the ratio of the value of each class’s paid shares to the total value of all paid shares. Each class of shares differs in its distribution plan and certain other class-specific expenses.
The following is a summary of significant accounting policies of the Funds. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation — Debt obligations
(including short-term obligations with a remaining maturity of more than sixty days) are generally valued on the basis of valuations furnished by third party pricing services, as derived from such services’ pricing models. Inputs to the models may include, but are not limited to, reported trades, executable bid and asked prices, broker/dealer quotations, prices or yields of securities with similar characteristics, benchmark curves or information pertaining to the issuer, as well as industry and economic events. The pricing services may use a matrix approach, which considers information regarding securities with similar characteristics
to determine the valuation for a security. Short-term obligations, maturing in sixty days or less, are generally valued at amortized cost, which approximates market value. Financial futures contracts are valued at the closing settlement price established by the board of trade or exchange on which they are traded. Interest rate swaps are normally valued using valuations provided by a third party pricing service. Such pricing service valuations are based on the present value of fixed and projected floating rate cash flows over the term of the swap contract. Future cash flows are discounted to their present value using swap curves provided by electronic data services or by broker/dealers. Investments for which valuations or market quotations are not readily available or are deemed unreliable are valued at fair value using methods determined in good faith by or at the direction of the Trustees of a Fund in a manner that most fairly reflects the security’s value, or the amount that the Fund might reasonably expect to receive for the security upon its current sale in the ordinary course. Each such determination is based on a consideration of all relevant factors, which are likely to vary from one pricing context to another. These factors may include, but are not limited to, the type of security, the existence of any contractual restrictions on the security’s disposition, the price and extent of public trading in similar securities of the issuer or of comparable entities, quotations or relevant information obtained from broker-dealers or other market participants, information obtained from the issuer, analysts, and/or the appropriate stock exchange (for exchange-traded securities), an analysis of the entity’s financial condition, and an evaluation of the forces that influence the issuer and the market(s) in which the security is purchased and sold.
B Investment Transactions and Related Income — Investment transactions for financial statement purposes are accounted for on a trade date basis. Realized gains and losses on investments sold are determined on the basis of identified cost. Interest income is recorded on the basis of interest accrued, adjusted for amortization of premium or accretion of discount.
C Federal Taxes — Each Fund’s policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year substantially all of its taxable, if any, and tax-exempt net investment income, and all or substantially all of its net realized capital gains. Accordingly, no provision for federal income or excise tax is necessary. Each Fund intends to satisfy conditions which will enable it to designate distributions from the interest income generated by its investments in municipal obligations, which are exempt from regular federal income tax when received by each Fund, as exempt-interest dividends. For National Limited Fund, the portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
32
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
At March 31, 2010, the following Funds, for federal income tax purposes, had capital loss carryforwards which will reduce the respective Fund’s taxable income arising from future net realized gains on investment transactions, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders, which would otherwise be necessary to relieve the Funds of any liability for federal income or excise tax. The amounts and expiration dates of the capital loss carryforwards are as follows:
| Fund | Amount | Expiration Date |
| AMT-Free Limited | $ 175,227 | March 31, 2011 |
| 995,128 | March 31, 2013 | |
| 25,590 | March 31, 2015 | |
| 647,289 | March 31, 2017 | |
| 233,087 | March 31, 2018 | |
| National Limited | $ 1,108,190 | March 31, 2011 |
| 1,138,387 | March 31, 2012 | |
| 1,431,742 | March 31, 2013 | |
| 37,955 | March 31, 2014 | |
| 789,428 | March 31, 2015 | |
| 6,504,810 | March 31, 2016 | |
| 10,431,480 | March 31, 2017 | |
| 11,980,924 | March 31, 2018 | |
Included in the amounts above for National Limited Fund is a capital loss carryforward of $827,909 as a result of the reorganization (see Note 12). Utilization of this capital loss carryforward may be limited in accordance with certain income tax regulations.
Additionally, at March 31, 2010, the AMT-Free Limited Fund and National Limited Fund had net capital losses of $48,800 and $66,267, respectively, attributable to security transactions incurred after October 31, 2009. These net capital losses are treated as arising on the first day of the Funds’ taxable year ending March 31, 2011.
As of March 31, 2010, the Funds had no uncertain tax positions that would require financial statement recognition, de-recognition, or disclosure. Each of the Funds’ federal tax returns filed in the 3-year period ended March 31, 2010 remains subject to examination by the Internal Revenue Service.
D Expenses — The majority of expenses of the Trust
are directly identifiable to an individual fund. Expenses which are not readily identifiable to a specific fund are allocated taking into consideration, among other things, the nature and type of expense and the relative size of the funds.
E Expense Reduction — State Street Bank and Trust Company (SSBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, SSBT receives a fee reduced by credits, which are determined
based on the average daily cash balance each Fund maintains with SSBT. All credit balances, if any, used to reduce each Fund’s custodian fees are reported as a reduction of expenses in the Statements of Operations.
F Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirement of capital infusions, or that are expected to result in the restructuring of, or a plan of reorganization for, an investment are recorded as realized losses. Ongoing expenditures to protect or enhance an investment are treated as operating expenses.
G Use of Estimates — The preparation of the financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expense during the reporting period. Actual results could differ from those estimates.
H Indemnifications — Under the Trust’s organizational documents, its officers and Trustees may be indemnified against certain liabilities and expenses arising out of the performance of their duties to the Funds. Under Massachusetts law, if certain conditions prevail, shareholders of a Massachusetts business trust, (such as the Trust) could be deemed to have personal liability for the obligations of the Trust. However, the Trust’s Declaration of Trust contains an express disclaimer of liability on the part of Fund shareholders and the By-laws provide that the Trust shall assume the defense on behalf of any Fund shareholders. Moreover, the By-laws also provide for indemnification out of Fund property of any shareholder held personally liable solely by reason of being or having been a shareholder for all loss or expense arising from such liability. Addition ally, in the normal course of business, each Fund enters into agreements with service providers that may contain indemnification clauses. Each Fund’s maximum exposure under these arrangements is unknown as this would involve future claims that may be made against each Fund that have not yet occurred.
I Floating Rate Notes Issued in Conjunction
with Securities Held — The Funds may invest in inverse floating rate securities, also referred to as residual interest bonds, whereby a Fund may sell a fixed rate bond to a broker for cash. At the same time, the Fund buys a residual interest in the assets and cash flows of a Special-Purpose Vehicle (the SPV), (which is generally organized as a trust), set up by the broker, often referred to as an inverse floating rate obligation (Inverse Floater). The broker deposits a fixed rate bond into the SPV with the same CUSIP number as the fixed rate bond sold to the
33
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
broker by the Fund, and which may have been, but is not required to be, the fixed rate bond purchased from the Fund (the Fixed Rate Bond). The SPV also issues floating rate notes (Floating Rate Notes) which are sold to third-parties. The Inverse Floater held by a Fund gives the Fund the right (1) to cause the holders of the Floating Rate Notes to tender their notes at par, and (2) to have the broker transfer the Fixed Rate Bond held by the SPV to the Fund, thereby terminating the SPV. Should the Fund exercise such right, it would pay the broker the par amount due on the Floating Rate Notes and exchange the Inverse Floater for the underlying Fixed Rate Bond. Pursuant to generally accepted accounting principles for transfers and servicing of financial assets and extinguishment of liabilities, the Funds account for the transaction described above as a secured borrowing by including the Fixed Rate Bond in their Portfolio of Investments and the Floating Rate Not es as a liability under the caption “Payable for floating rate notes issued” in their Statement of Assets and Liabilities. The Floating Rate Notes have interest rates that generally reset weekly and their holders have the option to tender their notes to the broker for redemption at par at each reset date. Interest expense related to the Funds’ liability with respect to Floating Rate Notes is recorded as incurred. The SPV may be terminated by the Fund, as noted above, or by the broker upon the occurrence of certain termination events as defined in the trust agreement, such as a downgrade in the credit quality of the underlying bond, bankruptcy of or payment failure by the issuer of the underlying bond, the inability to remarket Floating Rate Notes that have been tendered due to insufficient buyers in the market, or the failure by the SPV to obtain renewal of the liquidity agreement under which liquidity support is provided for the Floating Rate Notes up to one year.
At March 31, 2010, the amounts of the National Limited Fund’s Floating Rate Notes outstanding and related collateral were $4,980,000 and $8,007,964, respectively. The interest rate on the Floating Rate Notes outstanding at March 31, 2010 was 0.31%. For the year ended March 31, 2010, the National Limited Fund’s average Floating Rate Notes outstanding and the average interest rate including fees were $4,980,000 and 0.84%, respectively. For the year ended March 31, 2010, the AMT-Free Limited Fund had no transactions in inverse floaters.
The Funds may enter into shortfall and forbearance agreements with the broker by which a Fund agrees to reimburse the broker, in certain circumstances, for the difference between the liquidation value of the Fixed Rate Bond held by the SPV and the liquidation value of the Floating Rate Notes, as well as any shortfalls in interest cash flows. The Funds had no shortfalls as of March 31, 2010.
The Funds may also purchase Inverse Floaters from brokers in a secondary market transaction without first owning the underlying fixed rate bond. Such transactions
are not required to be treated as secured borrowings. Shortfall agreements, if any, related to Inverse Floaters purchased in a secondary market transaction are disclosed in the Portfolio of Investments. The Funds’ investment policies and restrictions expressly permit investments in Inverse Floaters. Inverse floating rate securities typically offer the potential for yields exceeding the yields available on fixed rate bonds with comparable credit quality and maturity. These securities tend to underperform the market for fixed rate bonds in a rising long-term interest rate environment, but tend to outperform the market for fixed rate bonds when long-term interest rates decline. The value and income of inverse floating rate securities are generally more volatile than that of a fixed rate bond. The Funds’ investment policies do not allow the Funds to borrow money except as permitted by the 1940 Act. Management believes that the Funds’ restrictions on borrowing money and issuing senior securities (other than as specifically permitted) do not apply to Floating Rate Notes issued by the SPV and included as a liability in the Funds’ Statement of Assets and Liabilities. As secured indebtedness issued by an SPV, Floating Rate Notes are distinct from the borrowings and senior securities to which the Funds’ restrictions apply. Inverse Floaters held by the Funds are securities exempt from registration under Rule 144A of the Securities Act of 1933.
J Financial Futures Contracts — The Funds may enter into financial futures contracts. The Funds’ investment in financial futures contracts is designed for hedging against changes in interest rates or as a substitute for the purchase of securities. Upon entering into a financial futures contract, a Fund is required to deposit with the broker, either in cash or securities, an amount equal to a certain percentage of the purchase price (initial margin). Subsequent payments, known as variation margin, are made or received by the Fund each business day, depending on the daily fluctuations in the value of the underlying security, and are recorded as unrealized gains or losses by the Fund. Gains (losses) are realized upon the expiration or closing of the financial futures contracts. Should market conditions change unexpectedly, the Fund may not achieve the anticipate d benefits of the financial futures contracts and may realize a loss. Futures contracts have minimal counterparty risk as they are exchange traded and the clearinghouse for the exchange is substituted as the counterparty, guaranteeing counterparty performance.
K When-Issued Securities and Delayed Delivery Transactions — The Funds may purchase or sell securities on a delayed delivery or when-issued basis. Payment and delivery may take place after the customary settlement period for that security. At the time the transaction is negotiated, the price of the security that will be delivered is fixed. The Funds maintain security positions for these commitments such that sufficient liquid assets will be available to make payments upon settlement. Securities
34
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
purchased on a delayed delivery or when-issued basis are marked-to-market daily and begin earning interest on settlement date. Losses may arise due to changes in the market value of the underlying securities or if the counterparty does not perform under the contract.
2 Distributions to Shareholders
The net investment income of each Fund is determined daily and substantially all of the net investment income so determined is declared as a dividend to shareholders of record at the time of declaration. Distributions are declared separately for each class of shares. Distributions are paid monthly. Distributions of realized capital gains (reduced by available capital loss carryforwards, if any), are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of a Fund at the net asset value as of the reinvestment date or, at the election of the shareholder, receive distributions in cash. The Funds distinguish between distributions on a tax basis and a financial reporting basis. Accounting principles generally accepted in the United States of America require that only distributions in excess of tax basis earnings and profits be reported in the financial statements as a return of capital. Perm anent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. For tax purposes, distributions from short-term capital gains are considered to be from ordinary income.
The tax character of distributions declared for the years ended March 31, 2010 and March 31, 2009 was as follows:
| Year Ended March 31, 2010 | ||
| AMT-Free | National | |
| Limited Fund | Limited Fund | |
| Distributions declared from: | ||
| Tax-exempt income | $2,036,131 | $26,225,992 |
| Ordinary income | $ 1,248 | $ 84,173 |
| Year Ended March 31, 2009 | ||
| AMT-Free | National | |
| Limited Fund | Limited Fund | |
| Distributions declared from: | ||
| Tax-exempt income | $1,605,571 | $25,086,973 |
| Ordinary income | $ 85,918 | $ 27,079 |
During the year ended March 31, 2010, the following amounts were reclassified due to expired capital loss carryforwards and differences between book and tax accounting, primarily for accretion of market discount:
| AMT-Free | National | |
| Limited Fund | Limited Fund | |
| Increase (decrease): | ||
| Paid-in capital | $ — | $(435,527) |
| Accumulated net realized gain (loss) | $ 18,478 | $ 545,937 |
| Accumulated undistributed (distributions in | ||
| excess of) net investment income | $(18,478) | $(110,410) |
These reclassifications had no effect on the net assets or net asset value per share of the Funds.
As of March 31, 2010, the components of distributable earnings (accumulated losses) and unrealized appreciation (depreciation) on a tax basis were as follows:
| AMT-Free | National | |
| Limited Fund | Limited Fund | |
| Undistributed tax-exempt income | $ 41,255 | $ 1,186,626 |
| Capital loss carryforward and post October losses | $(2,125,121) | $(33,489,183) |
| Net unrealized appreciation | $ 2,977,291 | $ 19,071,216 |
| Other temporary differences | $ (100,333) | $ (1,093,619) |
The differences between components of distributable earnings (accumulated losses) on a tax basis and the amounts reflected in the Statements of Assets and Liabilities are primarily due to futures contracts, the timing of recognizing distributions to shareholders, accretion of market discount and inverse floaters.
3 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a subsidiary of Eaton Vance Management (EVM), as compensation for management and investment advisory services rendered to each Fund. 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) as presented in the following table and is payable monthly.
| Annual | Daily | |
| Daily Net Assets | Asset Rate | Income Rate |
| Up to $500 million | 0.300% | 3.00% |
| $500 million up to $1 billion | 0.275 | 2.75 |
On average daily net assets of $1 billion or more, the rates are further reduced.
For the year ended March 31, 2010, investment adviser fees incurred by the Funds and the effective annual rates, as a percentage of average daily net assets, were as follows:
| Investment | Effective | |
| Fund | Adviser Fee | Annual Rate |
| AMT-Free Limited | $ 272,906 | 0.43% |
| National Limited | 2,994,694 | 0.44 |
35
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
EVM serves as administrator of each Fund, but receives no compensation. EVM serves as the sub-transfer agent of each Fund and receives from the transfer agent an aggregate fee based upon the actual expenses incurred by EVM in the performance of these services. Eaton Vance Distributors, Inc. (EVD), an affiliate of EVM and the Funds’ principal underwriter, received a portion of the sales charge on sales of Class A shares of the Funds. EVD also received distribution and service fees from Class A, Class B and Class C shares (see Note 4) and contingent deferred sales charges (see Note 5). Sub-transfer agent fees earned by EVM and Class A sales charges that the Funds were informed were received by EVD for the year ended March 31, 2010 were as follows:
| EVM’s Sub- | ||
| Transfer Agent | EVD’s Class A | |
| Fund | Fees | Sales Charges |
| AMT-Free Limited | $ 1,039 | $ 8,011 |
| National Limited | 12,431 | 37,341 |
Except for Trustees of the Funds who are not members of EVM’s or BMR’s organizations, officers and Trustees receive remuneration for their services to the Funds out of the investment adviser fee. Trustees of the Funds who are not affiliated with the investment adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the year ended March 31, 2010, no significant amounts have been deferred. Certain officers and Trustees of the Funds are officers of the above organizations.
4 Distribution Plans
Each Fund has in effect a distribution plan for Class A shares (Class A Plan) pursuant to Rule 12b-1 under the 1940 Act. The Class A Plan provides that each Fund will pay EVD a distribution and service fee not exceeding 0.25% per annum of its average daily net assets attributable to Class A shares for distribution services and facilities provided to each Fund by EVD, as well as for personal services and/or the maintenance of shareholder accounts. The Trustees approved distribution and service fee payments equal to 0.15% per annum of each Fund’s average daily net assets attributable to Class A shares. Distribution and service fees paid or accrued to EVD for the year ended March 31, 2010 for Class A shares amounted to the following:
| Class A | |
| Distribution and | |
| Fund | Service Fees |
| AMT-Free Limited | $ 74,421 |
| National Limited | 773,775 |
Each Fund also has in effect distribution plans for Class B shares (Class B Plan) and Class C shares (Class C Plan) pursuant to Rule 12b-1 under the 1940 Act. The Class B
and Class C Plans require each Fund to pay EVD amounts equal to 0.75% per annum of its average daily net assets attributable to Class B and Class C shares for providing ongoing distribution services and facilities to the respective Funds. Each Fund will automatically discontinue payments to EVD during any period in which there are no outstanding Uncovered Distribution Charges, which are equivalent to the sum of (i) 3% and 6.25% of the aggregate amount received by each Fund for Class B and Class C shares sold, respectively, plus (ii) interest calculated by applying the rate of 1% over the prevailing prime rate to the outstanding balance of Uncovered Distribution Charges of EVD of each respective class, reduced by the aggregate amount of contingent deferred sales charges (see Note 5) and amounts theretofore paid or payable to EVD by each respective class. For the year ended March 31, 2010, the Funds paid or accrued to EVD the following distribution fees, repr esenting 0.75% of the average daily net assets of each Fund’s Class B and Class C shares:
| Class B | Class C | |
| Distribution | Distribution | |
| Fund | Fees | Fees |
| AMT-Free Limited | $ 6,957 | $ 94,744 |
| National Limited | 48,936 | 935,475 |
At March 31, 2010, the amounts of Uncovered Distribution Charges of EVD calculated under the Class B and Class C Plans were approximately as follows:
| Fund | Class B | Class C |
| AMT-Free Limited | $1,073,000 | $10,497,000 |
| National Limited | 1,520,000 | 19,612,000 |
The Class B and Class C Plans also authorize the Funds to make payments of service fees to EVD, financial intermediaries and other persons in amounts not exceeding 0.25% per annum of the average daily net assets attributable to that class. The Trustees approved service fee payments equal to 0.15% per annum of each Fund’s average daily net assets attributable to Class B and Class C shares. Service fees paid or accrued are for personal services and/or the maintenance of shareholder accounts. They are separate and distinct from the Class B and Class C sales commissions and distribution fees and, as such, are not subject to automatic discontinuance when there are no outstanding Uncovered Distribution Charges of EVD. Service fees paid or accrued for the year ended March 31, 2010 amounted to the following:
| Class B | Class C | |
| Fund | Service Fees | Service Fees |
| AMT-Free Limited | $1,391 | $ 18,949 |
| National Limited | 9,788 | 187,095 |
36
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
5 Contingent Deferred Sales Charges
A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B shares made within four years of purchase and on redemptions of Class C shares made within one year of purchase. Class A shares may be subject to a 1% CDSC if redeemed within eighteen months of purchase (depending on the circumstances of purchase). Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on shares acquired by reinvestment of dividends or capital gain distributions. The CDSC for Class B shares is imposed at declining rates that begin at 3% in the case of redemptions in the first year after purchase, declining half a percentage point in the second and third year and one percentage point in the fourth year. Class C shares are subject to a 1% CDSC if redeemed within one year of purchase. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective em ployees or clients and may be waived under certain other limited conditions. CDSCs received on Class B and Class C redemptions are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under each Fund’s Class B and Class C Plans. CDSCs received on Class B and Class C redemptions when no Uncovered Distribution Charges exist are credited to each Fund. For the year ended March 31, 2010, the Funds were informed that EVD received approximately the following amounts of CDSCs paid by Class A, Class B and Class C shareholders:
| Fund | Class A | Class B | Class C |
| AMT-Free Limited | $ 6,000 | $ — | $ 10 |
| National Limited | 23,000 | 9,000 | 21,000 |
6 Purchases and Sales of Investments
Purchases and sales of investments, other than short-term obligations, for the year ended March 31, 2010 were as follows:
| Fund | Purchases | Sales |
| AMT-Free Limited | $27,247,773 | $ 20,481,658 |
| National Limited | 95,242,946 | 115,392,913 |
7 Shares of Beneficial Interest
Each Fund’s Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Funds) and classes. Transactions in Fund shares were as follows:
| AMT-Free Limited Fund | ||
| Year Ended March 31, | ||
| Class A | 2010 | 2009 |
| Sales | 2,832,449 | 2,992,848 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 108,254 | 84,122 |
| Redemptions | (2,511,246) | (907,639) |
| Exchange from Class B shares | 50,396 | 61,223 |
| Net increase | 479,853 | 2,230,554 |
| Year Ended March 31, | ||
| Class B | 2010 | 2009 |
| Sales | 57,555 | 81,336 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 1,198 | 2,052 |
| Redemptions | (19,599) | (47,714) |
| Exchange to Class A shares | (50,381) | (61,183) |
| Net decrease | (11,227) | (25,509) |
| Year Ended March 31, | ||
| Class C | 2010 | 2009 |
| Sales | 509,430 | 559,392 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 22,072 | 15,366 |
| Redemptions | (177,839) | (286,730) |
| Net increase | 353,663 | 288,028 |
| National Limited Fund | ||
| Year Ended March 31, | ||
| Class A | 2010 | 2009 |
| Sales | 16,870,444 | 29,829,409 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 1,429,534 | 1,444,865 |
| Redemptions | (33,829,037) | (31,669,859) |
| Issued in connection with tax-free reorganization | ||
| (see Note 12) | 1,811,451 | — |
| Exchange from Class B shares | 206,925 | 370,690 |
| Net decrease | (13,510,683) | (24,895) |
37
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
| National Limited Fund (continued) | ||
| Year Ended March 31, | ||
| Class B | 2010 | 2009 |
| Sales | 264,011 | 533,121 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 11,629 | 9,991 |
| Redemptions | (141,964) | (161,765) |
| Issued in connection with tax-free reorganization | ||
| (see Note 12) | 21,518 | — |
| Exchange to Class A shares | (206,739) | (370,340) |
| Net increase (decrease) | (51,545) | 11,007 |
| Year Ended March 31, | ||
| Class C | 2010 | 2009 |
| Sales | 5,683,415 | 5,916,492 |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 223,354 | 168,622 |
| Redemptions | (2,836,475) | (4,756,943) |
| Issued in connection with tax-free reorganization | ||
| (see Note 12) | 91,100 | — |
| Net increase | 3,161,394 | 1,328,171 |
| Period Ended | ||
| Class I | March 31, 2010(1) | |
| Sales | 10,662,477 | |
| Issued to shareholders electing to receive | ||
| payments of distributions in Fund shares | 5,468 | |
| Redemptions | (854,846) | |
| Net increase | 9,813,099 | |
(1)
Class I commenced operations on October 1, 2009.
8 Federal Income Tax Basis of Investments The cost and unrealized appreciation (depreciation) of investments of each Fund at March 31, 2010, as determined on a federal income tax basis, were as follows:
| AMT-Free Limited Fund | |
| Aggregate cost | $ 67,844,451 |
| Gross unrealized appreciation | $ 3,795,469 |
| Gross unrealized depreciation | (818,178) |
| Net unrealized appreciation | $ 2,977,291 |
| National Limited Fund | |
| Aggregate cost | $634,747,588 |
| Gross unrealized appreciation | $ 29,777,088 |
| Gross unrealized depreciation | (10,705,872) |
| Net unrealized appreciation | $ 19,071,216 |
9 Line of Credit
The Funds participate with other portfolios and funds managed by EVM and its affiliates in a $450 million unsecured line of credit agreement with a group of banks. Borrowings are made by the Funds solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each Fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds rate. In addition, a fee computed at an annual rate of 0.10% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. Because the line of credit is not available exclusively to the Funds, a Fund may be unable to borrow some or all of its requested amounts at any particular time. At March 31, 2010, the National Limited Fund had a balance outstanding pursuant to this line of credit of $2,000,000 at an interest rate of 1.41%. Based on the short-term nature of the borrowings und er the line of credit and variable interest rate, the carrying value of the borrowings approximated its fair value at March 31, 2010. The Funds’ average borrowing or allocated fees during the year ended March 31, 2010 were not significant.
10 Financial Instruments
The Funds may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities. These financial instruments may include financial 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 Fund has in particular classes of financial instruments and do 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 March 31, 2010 is as follows:
38
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
| Futures Contracts | ||||||
| Net | ||||||
| Unrealized | ||||||
| Expiration | Aggregate | Appreciation | ||||
| Fund | Date | Contracts | Position | Cost | Value | (Depreciation) |
| AMT-Free Limited | 6/10 | 70 | ||||
| U.S. 10-Year Treasury | ||||||
| Note | Short | $ (8,104,443) $ (8,137,501) | $ (33,058) | |||
| National Limited | 6/10 | 417 | ||||
| U.S. 10-Year Treasury | ||||||
| Note | Short | $(48,279,321) $(48,476,250) | $(196,929) | |||
| 346 | ||||||
| U.S. 30-Year Treasury | ||||||
| Bond | Short | $(40,239,414) $(40,179,250) | $ 60,164 | |||
At March 31, 2010, the Funds had sufficient cash and/or securities to cover commitments under these contracts.
Each Fund is subject to interest rate risk in the normal course of pursuing its investment objectives. Because the Funds hold fixed-rate bonds, the value of these bonds may decrease if interest rates rise. The Funds may purchase and sell U.S. Treasury futures contracts to hedge against changes in interest rates.
The fair values of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) and whose primary underlying risk exposure is interest rate risk at March 31, 2010 were as follows:
| Fair Value | ||
| Asset Derivative(1) | Liability Derivative(2) | |
| AMT-Free Limited Fund | ||
| Futures Contracts | $ — | $ (33,058) |
| Total | $ — | $ (33,058) |
| National Limited Fund | ||
| Futures Contracts | $60,164 | $(196,929) |
| Total | $60,164 | $(196,929) |
| (1) | Amount represents cumulative unrealized appreciation on futures contracts in the Futures Contracts table above. |
Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. | |
| (2) | Amount represents cumulative unrealized depreciation on futures contracts in the Futures Contracts table above. Only the current day’s variation margin on open futures contracts is reported within the Statement of Assets and Liabilities as Receivable or Payable for variation margin, as applicable. |
The effect of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) on the Statement of Operations and whose primary underlying risk exposure is interest rate risk for the year ended March 31, 2010 was as follows:
| Change in | ||
| Unrealized | ||
| Realized Gain | Appreciation | |
| (Loss) on | (Depreciation) on | |
| Derivatives | Derivatives | |
| Recognized in | Recognized in | |
| Fund | Income(1) | Income(2) |
| AMT-Free Limited | $ 176,139 | $ 50,207 |
| National Limited | 3,216,816 | 1,710,888 |
| (1) | Statement of Operations location: Net realized gain (loss) – Financial futures contracts. |
| (2) | Statement of Operations location: Change in unrealized appreciation (depreciation) – Financial futures contracts. |
The average notional amounts of futures contracts outstanding during the year ended March 31, 2010, which are indicative of the volume of this derivative type, were approximately as follows:
| Futures Contacts | |
| Average | |
| Fund | Notional Amount |
| AMT-Free Limited | $ 5,500,000 |
| National Limited | 84,523,077 |
11 Fair Value Measurements
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
Level 1 – quoted prices in active markets for identical investments
Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
Level 3 – significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
At March 31, 2010, the inputs used in valuing the Funds’ investments, which are carried at value, were as follows:
39
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| NOTES TO FINANCIAL STATEMENTS CON T ’D |
| AMT-Free Limited Fund | ||||||
| Quoted | ||||||
| Prices in | ||||||
| Active | Significant | |||||
| Markets for | Other | Significant | ||||
| Identical | Observable | Unobservable | ||||
| Assets | Inputs | Inputs | ||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||
| Tax-Exempt Investments | $ — | $ 68,708,244 | $ — | $ 68,708,244 | ||
| Short-Term Investments | — | 2,113,498 | — | 2,113,498 | ||
| Total Investments | $ — | $ 70,821,742 | $ — | $ 70,821,742 | ||
| Liability Description | ||||||
| Futures Contracts | $ (33,058) $ | — | $ — | $ (33,058) | ||
| Total | $ (33,058) $ | — | $ — | $ (33,058) | ||
| National Limited Fund | ||||||
| Quoted | ||||||
| Prices in | ||||||
| Active | Significant | |||||
| Markets for | Other | Significant | ||||
| Identical | Observable | Unobservable | ||||
| Assets | Inputs | Inputs | ||||
| Asset Description | (Level 1) | (Level 2) | (Level 3) | Total | ||
| Tax-Exempt Investments | $ — | $658,798,804 | $ — | $658,798,804 | ||
| Total Investments | $ — | $658,798,804 | $ — | $658,798,804 | ||
| Futures Contracts | $ 60,164 | $ — | $ — | $ 60,164 | ||
| Total | $ 60,164 | $658,798,804 | $ — | $658,858,968 | ||
| Liability Description | ||||||
| Futures Contracts | $(196,929) $ | — | $ — | $ (196,929) | ||
| Total | $(196,929) $ | — | $ — | $ (196,929) | ||
The Funds held no investments or other financial instruments as of March 31, 2009 whose fair value was determined using Level 3 inputs.
12 Reorganization
As of the close of business on September 25, 2009, the National Limited Fund acquired the net assets of Eaton Vance Ohio Limited Maturity Municipals Fund (Ohio Limited Fund) pursuant to a plan of reorganization approved by the shareholders of Ohio Limited Fund. The acquisition was accomplished by a tax-free exchange of 1,811,451 shares of Class A of the National Limited Fund (valued at $18,406,510) for the 2,701,684 shares of Class A of Ohio Limited Fund, 21,518 shares of Class B of the National Limited Fund (valued at $218,753) for the 38,026 shares of Class B of Ohio Limited Fund, and 91,100 shares of Class C of the National Limited Fund (valued at $868,318) for the 101,823 shares of
Class C of Ohio Limited Fund, each outstanding on September 25, 2009. The investment portfolio of Ohio Limited Fund, with a fair value of $19,968,464 and identified cost of $18,777,122 was the principal asset acquired by the National Limited Fund. For financial reporting purposes, assets received and shares issued by the National Limited Fund were recorded at fair value; however, the identified cost of the investments received from the Ohio Limited Fund was carried forward to align ongoing reporting of the National Limited Fund’s realized and unrealized gains and losses with amounts distributable to shareholders for tax purposes. The aggregate net assets of the National Limited Fund immediately before the acquisition were $700,453,624. The net assets of Ohio Limited Fund at that date of $19,493,581, including $1,263,216 of accumulated net realized losses and $1,191,342 of unrealized appreciation, were combined with those of the National Limited Fund, r esulting in combined net assets of $719,947,205.
Assuming the acquisition had been completed on April 1, 2009, the beginning of the National Limited Fund’s annual reporting period, the National Limited Fund’s pro forma results of operations for the year ended March 31, 2010 are as follows:
| Net investment income | $26,985,587 |
| Net realized gains | $ 2,536,752 |
| Net increase in net assets resulting from operations | $83,359,359 |
Because the combined investment portfolios have been managed as a single integrated portfolio since the acquisition was completed, it is not practicable to separate the amounts of revenue and earnings of Ohio Limited Fund that have been included in the National Limited Fund’s Statement of Operations since September 25, 2009.
13 Name Change
Effective December 1, 2009, the names of the Eaton Vance AMT-Free Limited Maturity Municipal Income Fund and Eaton Vance National Limited Maturity Municipal Income Fund were changed from Eaton Vance AMT-Free Limited Maturity Municipals Fund and Eaton Vance National Limited Maturity Municipals Fund, respectively.
40
Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Trustees of Eaton Vance Investment Trust and the Shareholders of Eaton Vance AMT-Free Limited Maturity Municipal Income Fund and Eaton Vance National Limited Maturity Municipal Income Fund:
We have audited the accompanying statements of assets and liabilities of Eaton Vance AMT-Free Limited Maturity Municipal Income Fund (formerly Eaton Vance AMT-Free Limited Maturity Municipals Fund) and Eaton Vance National Limited Maturity Municipal Income Fund (formerly Eaton Vance National Limited Maturity Municipals Fund) (collectively, the “Funds”) (certain of the funds constituting Eaton Vance Investment Trust), including the portfolios of investments, as of March 31, 2010, and the related statements of operations for the year then ended, the statements of changes in net assets for each of the two years in the period then ended, and the financial highlights for each of the five years in the period then ended. These financial statements and financial highlights are the responsibility of the Funds’ management. Our responsibility is to express an opinion on these financial statements and financial highlights based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements and financial highlights are free of material misstatement. The Funds are not required to have, nor were we engaged to perform, an audit of their internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Funds’ internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimate s made by management, as well as evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of March 31, 2010, by correspondence with the custodian and brokers; where replies were not received from brokers, we performed other auditing procedures. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights referred to above present fairly, in all material respects, the financial positions of Eaton Vance AMT-Free Limited Maturity Municipal Income Fund and Eaton Vance National Limited Maturity Municipal Income Fund as of March 31, 2010, the results of their operations for the year then ended, the changes in their net assets for each of the two years in the period then ended, and their financial
highlights for each of the five years in the period then ended, in conformity with accounting principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP Boston, Massachusetts May 14, 2010
41
| Eaton Vance Limited Maturity Municipal Income Funds as of March 31, 2010 |
| FEDERAL TAX IN FORMATION (Unaudited) |
The Form 1099-DIV you receive in January 2011 will show the tax status of all distributions paid to your account in calendar year 2010. Shareholders are advised to consult their own tax adviser with respect to the tax consequences of their investment in a Fund. As required by the Internal Revenue Code and/or regulations, shareholders must be notified within 60 days of a Fund’s fiscal year end regarding exempt-interest dividends.
Exempt-Interest Dividends. The Funds designate the following percentages of dividends from net investment income as exempt-interest dividends:
| AMT-Free Limited Maturity Municipal Income Fund | 99.94% |
| National Limited Maturity Municipal Income Fund | 99.68% |
42
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
A MT-Fr ee Lim ite d M aturity M unic ipal Inc o me Fund (form e rly, Eaton Vanc e A MT-Fr ee L im ite d M aturity M unic ipals F und)
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a “Board”) of the Eaton Vance group of mutual funds (the “Eaton Vance Funds”) held on April 27, 2009, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board (formerly the Special Committee), which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished for a series of meetings of the Contract Review Committee held in February, March and April 2009. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;
An independent report comparing each fund’s total expense ratio and its components to comparable funds;
An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;
Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;
Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;
Profitability analyses for each adviser with respect to each fund;
Information about Portfolio Management
Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed, and any changes in portfolio management processes and personnel;
Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through “soft dollar” benefits received in connection with the funds’ brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;
Data relating to portfolio turnover rates of each fund;
The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;
Information about each Adviser
Reports detailing the financial results and condition of each adviser;
Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;
Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;
Copies of or descriptions of each adviser’s proxy voting policies and procedures;
Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;
Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;
Other Relevant Information
Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;
43
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT’D
Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and
The terms of each advisory agreement.
In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2009, the Board met eighteen times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, five, six, six and six times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund’s investment objective.
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund’s investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.
Results of the Process
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuance of the investment advisory agreement of Eaton Vance AMT-Free Limited Maturity Municipals Fund (the “Fund”) with Boston Management and Research (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.
The Board considered the Adviser’s management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund, and recent changes in the identity of such personnel. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. Specifically, the Board considered the Adviser’s large municipal bond team, which includes portfolio managers and credit specialists who provide services to the Fund. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personne l, and the time and attention devoted to the Fund by senior management.
The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
44
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT’D
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
The Board considered the Adviser’s recommendations for Board action and other steps taken in response to the unprecedented dislocations experienced in the capital markets over recent periods, including sustained periods of high volatility, credit disruption and government intervention. In particular, the Board considered the Adviser’s efforts and expertise with respect to each of the following matters as they relate to the Fund and/or other funds within the Eaton Vance family of funds: (i) negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs; (ii) establishing the fair value of securities and other instruments held in investment portfolios during periods of market volatility and issuer-specific disruptions; and (iii) the ongoing monitoring of investment management processes and risk controls.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.
Fund Performance
The Board compared the Fund’s investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2008 for the Fund. The Board considered the impact of extraordinary market conditions during 2008 on the Fund’s performance relative to its peer universe in light of, among other things, the Adviser’s strategy of generating current income through investments in higher quality (including insured) municipal bonds with longer maturities. On the basis of the foregoing and other relevant information, the Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by the Fund (referred to as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the year ended September 30, 2008, as compared to a group of similarly managed funds selected by an independent data provider.
After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to the Fund that the management fees charged for advisory and related services and the Fund’s total expense ratio are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationship with the Fund.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
Economies of Scale
In reviewing management fees and profitability of the Fund, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and the Fun d. The Board also concluded that, assuming reasonably foreseeable increases in the assets of the Fund, the structure of each advisory fee, which includes breakpoints at several asset levels, can be expected to cause the Adviser and its affiliates and the Fund to continue to share such benefits equitably.
45
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
National Lim ite d M at urity M unic ipal Inc o me Fund (formerly, Eaton Vance National L im ite d M aturity M unic ipals F und)
Overview of the Contract Review Process
The Investment Company Act of 1940, as amended (the “1940 Act”), provides, in substance, that each investment advisory agreement between a fund and its investment adviser will continue in effect from year to year only if its continuance is approved at least annually by the fund’s board of trustees, including by a vote of a majority of the trustees who are not “interested persons” of the fund (“Independent Trustees”), cast in person at a meeting called for the purpose of considering such approval.
At a meeting of the Boards of Trustees (each a “Board”) of the Eaton Vance group of mutual funds (the “Eaton Vance Funds”) held on April 27, 2009, the Board, including a majority of the Independent Trustees, voted to approve continuation of existing advisory and sub-advisory agreements for the Eaton Vance Funds for an additional one-year period. In voting its approval, the Board relied upon the affirmative recommendation of the Contract Review Committee of the Board (formerly the Special Committee), which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Contract Review Committee reviewed information furnished for a series of meetings of the Contract Review Committee held in February, March and April 2009. Such information included, among other things, the following:
Information about Fees, Performance and Expenses
An independent report comparing the advisory and related fees paid by each fund with fees paid by comparable funds;
An independent report comparing each fund’s total expense ratio and its components to comparable funds;
An independent report comparing the investment performance of each fund to the investment performance of comparable funds over various time periods;
Data regarding investment performance in comparison to relevant peer groups of funds and appropriate indices;
Comparative information concerning fees charged by each adviser for managing other mutual funds and institutional accounts using investment strategies and techniques similar to those used in managing the fund;
Profitability analyses for each adviser with respect to each fund;
Information about Portfolio Management
Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed, and any changes in portfolio management processes and personnel;
Information concerning the allocation of brokerage and the benefits received by each adviser as a result of brokerage allocation, including information concerning the acquisition of research through “soft dollar” benefits received in connection with the funds’ brokerage, and the implementation of a soft dollar reimbursement program established with respect to the funds;
Data relating to portfolio turnover rates of each fund;
The procedures and processes used to determine the fair value of fund assets and actions taken to monitor and test the effectiveness of such procedures and processes;
Information about each Adviser
Reports detailing the financial results and condition of each adviser;
Descriptions of the qualifications, education and experience of the individual investment professionals whose responsibilities include portfolio management and investment research for the funds, and information relating to their compensation and responsibilities with respect to managing other mutual funds and investment accounts;
Copies of the Codes of Ethics of each adviser and its affiliates, together with information relating to compliance with and the administration of such codes;
Copies of or descriptions of each adviser’s proxy voting policies and procedures;
Information concerning the resources devoted to compliance efforts undertaken by each adviser and its affiliates on behalf of the funds (including descriptions of various compliance programs) and their record of compliance with investment policies and restrictions, including policies with respect to market-timing, late trading and selective portfolio disclosure, and with policies on personal securities transactions;
Descriptions of the business continuity and disaster recovery plans of each adviser and its affiliates;
Other Relevant Information
Information concerning the nature, cost and character of the administrative and other non-investment management services provided by Eaton Vance Management and its affiliates;
46
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT’D
Information concerning management of the relationship with the custodian, subcustodians and fund accountants by each adviser or the funds’ administrator; and
The terms of each advisory agreement.
In addition to the information identified above, the Contract Review Committee considered information provided from time to time by each adviser throughout the year at meetings of the Board and its committees. Over the course of the twelve-month period ended April 30, 2009, the Board met eighteen times and the Contract Review Committee, the Audit Committee, the Governance Committee, the Portfolio Management Committee and the Compliance Reports and Regulatory Matters Committee, each of which is a Committee comprised solely of Independent Trustees, met seven, five, six, six and six times, respectively. At such meetings, the Trustees received, among other things, presentations by the portfolio managers and other investment professionals of each adviser relating to the investment performance of each fund and the investment strategies used in pursuing the fund’s investment objective.
For funds that invest through one or more underlying portfolios, the Board considered similar information about the portfolio(s) when considering the approval of advisory agreements. In addition, in cases where the fund’s investment adviser has engaged a sub-adviser, the Board considered similar information about the sub-adviser when considering the approval of any sub-advisory agreement.
The Contract Review Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Contract Review Committee relied upon the advice of such counsel and their own business judgment in determining the material factors to be considered in evaluating each advisory and sub-advisory agreement and the weight to be given to each such factor. The conclusions reached with respect to each advisory and sub-advisory agreement were based on a comprehensive evaluation of all the information provided and not any single factor. Moreover, each member of the Contract Review Committee may have placed varying emphasis on particular factors in reaching conclusions with respect to each advisory and sub-advisory agreement.
Results of the Process
Based on its consideration of the foregoing, and such other information as it deemed relevant, including the factors and conclusions described below, the Contract Review Committee concluded that the continuance of the investment advisory agreement of Eaton Vance National Limited Maturity Municipals Fund (the “Fund”) with Boston Management and Research (the “Adviser”), including its fee structure, is in the interests of shareholders and, therefore, the Contract Review Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Contract Review Committee as well as the factors considered and conclusions reached by the Contract Review Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the investment advisory agreement for the Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreement of the Fund, the Board evaluated the nature, extent and quality of services provided to the Fund by the Adviser.
The Board considered the Adviser’s management capabilities and investment process with respect to the types of investments held by the Fund, including the education, experience and number of its investment professionals and other personnel who provide portfolio management, investment research, and similar services to the Fund, and recent changes in the identity of such personnel. In particular, the Board evaluated, where relevant, the abilities and experience of such investment personnel in analyzing factors such as credit risk, tax efficiency, and special considerations relevant to investing in municipal bonds. Specifically, the Board considered the Adviser’s large municipal bond team, which includes portfolio managers and credit specialists who provide services to the Fund. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment personne l, and the time and attention devoted to the Fund by senior management.
The Board also reviewed the compliance programs of the Adviser and relevant affiliates thereof. Among other matters, the Board considered compliance and reporting matters relating to personal trading by investment personnel, selective disclosure of portfolio holdings, late trading, frequent trading, portfolio valuation, business continuity and the allocation of investment opportunities. The Board also evaluated the responses of the Adviser and its affiliates to requests from regulatory authorities such as the Securities and Exchange Commission and the Financial Industry Regulatory Authority.
47
Eaton Vance Limited Maturity Municipal Income Funds
BOARD OF TRUSTEES’ ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT’D
The Board considered shareholder and other administrative services provided or managed by Eaton Vance Management and its affiliates, including transfer agency and accounting services. The Board evaluated the benefits to shareholders of investing in a fund that is a part of a large family of funds, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
The Board considered the Adviser’s recommendations for Board action and other steps taken in response to the unprecedented dislocations experienced in the capital markets over recent periods, including sustained periods of high volatility, credit disruption and government intervention. In particular, the Board considered the Adviser’s efforts and expertise with respect to each of the following matters as they relate to the Fund and/or other funds within the Eaton Vance family of funds: (i) negotiating and maintaining the availability of bank loan facilities and other sources of credit used for investment purposes or to satisfy liquidity needs; (ii) establishing the fair value of securities and other instruments held in investment portfolios during periods of market volatility and issuer-specific disruptions; and (iii) the ongoing monitoring of investment management processes and risk controls.
After consideration of the foregoing factors, among others, the Board concluded that the nature, extent and quality of services provided by the Adviser, taken as a whole, are appropriate and consistent with the terms of the investment advisory agreement.
Fund Performance
The Board compared the Fund’s investment performance to a relevant universe of similarly managed funds identified by an independent data provider and appropriate benchmark indices. The Board reviewed comparative performance data for the one-, three-, five- and ten-year periods ended September 30, 2008 for the Fund. The Board considered the impact of extraordinary market conditions during 2008 on the Fund’s performance relative to its peer universe in light of, among other things, the Adviser’s strategy of generating current income through investments in higher quality (including insured) municipal bonds with longer maturities. On the basis of the foregoing and other relevant information, the Board concluded that the performance of the Fund was satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates, including any administrative fee rates, payable by the Fund (referred to as “management fees”). As part of its review, the Board considered the Fund’s management fees and total expense ratio for the year ended September 30, 2008, as compared to a group of similarly managed funds selected by an independent data provider.
After reviewing the foregoing information, and in light of the nature, extent and quality of the services provided by the Adviser, the Board concluded with respect to the Fund that the management fees charged for advisory and related services and the Fund’s total expense ratio are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and relevant affiliates thereof in providing investment advisory and administrative services to the Fund and to all Eaton Vance Funds as a group. The Board considered the level of profits realized without regard to revenue sharing or other payments by the Adviser and its affiliates to third parties in respect of distribution services. The Board also considered other direct or indirect benefits received by the Adviser and its affiliates in connection with their relationship with the Fund.
The Board concluded that, in light of the foregoing factors and the nature, extent and quality of the services rendered, the profits realized by the Adviser and its affiliates are reasonable.
Economies of Scale
In reviewing management fees and profitability of the Fund, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and the Fund, on the other hand, can expect to realize benefits from economies of scale as the assets of the Fund increase. The Board acknowledged the difficulty in accurately measuring the benefits resulting from the economies of scale with respect to the management of any specific fund or group of funds. The Board reviewed data summarizing the increases and decreases in the assets of the Fund and of all Eaton Vance Funds as a group over various time periods, and evaluated the extent to which the total expense ratio of the Fund and the profitability of the Adviser and its affiliates may have been affected by such increases or decreases. Based upon the foregoing, the Board concluded that the benefits from economies of scale are currently being shared equitably by the Adviser and its affiliates and the Fun d. The Board also concluded that, assuming reasonably foreseeable increases in the assets of the Fund, the structure of each advisory fee, which includes breakpoints at several asset levels, can be expected to cause the Adviser and its affiliates and the Fund to continue to share such benefits equitably.
48
Eaton Vance Limited Maturity Municipal Income Funds
MANAGEMENT AND ORGANIZATION
Fund Management. The Trustees of Eaton Vance Investment Trust (the Trust) are responsible for the overall management and supervision of the Trust’s affairs. The Trustees and officers of the Trust are listed below. Except as indicated, each individual has held the office shown or other offices in the same company for the last five years. Trustees and officers of the Trust hold indefinite terms of office. The “noninterested Trustees” consist of those Trustees who are not “interested persons” of the Trust, as that term is defined under the 1940 Act. The business address of each Trustee and officer is Two International Place, Boston, Massachusetts 02110. As used below, “EVC” refers to Eaton Vance Corp., “EV” refers to Eaton Vance, Inc., “EVM” refers to Eaton Vance Management, “BMR” refers to Boston Management and Research and “EVD” refers to Eaton Va nce Distributors, Inc. EVC and EV are the corporate parent and trustee, respectively, of EVM and BMR. EVD is the Fund’s principal underwriter and a wholly-owned subsidiary of EVC. Each officer affiliated with Eaton Vance may hold a position with other Eaton Vance affiliates that is comparable to his or her position with EVM listed below.
| Term of | Number of Portfolios | ||||
| Position(s) | Office and | Principal Occupation(s) | in Fund Complex | ||
| Name and | with the | Length of | During Past Five Years and | Overseen By | Other Directorships Held |
| Date of Birth | Trust | Service | Other Relevant Experience | Trustee(1) | During Last Five Years |
| Interested Trustee | |||||
| Thomas E. Faust Jr. | Trustee | Since 2007 | Chairman, Chief Executive Officer and President of EVC, Director | 181 | Director of EVC. Formerly, Trustee of Eaton |
| 5/31/58 | and President of EV, Chief Executive Officer and President of | Vance Credit Opportunities Fund (2007-2010), | |||
| EVM and BMR, and Director of EVD. Trustee and/or officer of | Eaton Vance Insured Florida Plus Municipal | ||||
| 181 registered investment companies and 3 private companies | Bond Fund (2007-2008) and Eaton Vance | ||||
| managed by EVM or BMR. Mr. Faust is an interested person | National Municipal Income Trust (2007-2009). | ||||
| because of his positions with EVM, BMR, EVD, EVC and EV, | |||||
| which are affiliates of the Trust. | |||||
| Noninterested Trustees | |||||
| Benjamin C. Esty | Trustee | Since 2005 | Roy and Elizabeth Simmons Professor of Business Administration | 181 | Formerly, Trustee of Eaton Vance Credit |
| 1/2/63 | and Finance Unit Head, Harvard University Graduate School of | Opportunities Fund (2005-2010), Eaton Vance | |||
| Business Administration. | Insured Florida Plus Municipal Bond Fund | ||||
| (2005-2008) and Eaton Vance National | |||||
| Municipal Income Trust (2006-2009). | |||||
| Allen R. Freedman | Trustee | Since 2007 | Private investor and consultant. Former Chairman (2002-2004) | 181 | Director of Assurant, Inc. (insurance provider) |
| 4/3/40 | and a Director (1983-2004) of Systems & Computer | and Stonemor Partners, L.P. (owner and | |||
| Technology Corp. (provider of software to higher education). | operator of cemeteries). Formerly, Trustee of | ||||
| Formerly, a Director of Loring Ward International (fund | Eaton Vance Credit Opportunities Fund (2007- | ||||
| distributor) (2005-2007). Formerly, Chairman and a Director of | 2010), Eaton Vance Insured Florida Plus | ||||
| Indus International, Inc. (provider of enterprise management | Municipal Bond Fund (2007-2008) and Eaton | ||||
| software to the power generating industry) (2005-2007). | Vance National Municipal Income Trust (2007- | ||||
| 2009). | |||||
| William H. Park | Trustee | Since 2003 | Vice Chairman, Commercial Industrial Finance Corp. (specialty | 181 | Formerly, Trustee of Eaton Vance Credit |
| 9/19/47 | finance company) (since 2006). Formerly, President and Chief | Opportunities Fund (2005-2010), Eaton Vance | |||
| Executive Officer, Prizm Capital Management, LLC (investment | Insured Florida Plus Municipal Bond Fund | ||||
| management firm) (2002-2005). Formerly, Executive Vice | (2003-2008) and Eaton Vance National | ||||
| President and Chief Financial Officer, United Asset Management | Municipal Income Trust (2003-2009). | ||||
| Corporation (an institutional investment management firm) | |||||
| (1982-2001). Formerly, Senior Manager, Price Waterhouse | |||||
| (now PricewaterhouseCoopers) (an independent registered public | |||||
| accounting firm) (1972-1981). | |||||
| Ronald A. Pearlman | Trustee | Since 2003 | Professor of Law, Georgetown University Law Center. Formerly, | 181 | Formerly, Trustee of Eaton Vance Credit |
| 7/10/40 | Deputy Assistant Secretary (Tax Policy) and Assistant Secretary | Opportunities Fund (2005-2010), Eaton Vance | |||
| (Tax Policy), U.S. Department of the Treasury (1983-1985). | Insured Florida Plus Municipal Bond Fund | ||||
| Formerly, Chief of Staff, Joint Committee on Taxation, U.S. | (2003-2008) and Eaton Vance National | ||||
| Congress (1988-1990). | Municipal Income Trust (2003-2009). | ||||
49
Eaton Vance Limited Maturity Municipal Income Funds
MANAGEMENT AND ORGANIZATION CON T’D
| Term of | Number of Portfolios | ||||
| Position(s) | Office and | Principal Occupation(s) | in Fund Complex | ||
| Name and | with the | Length of | During Past Five Years and | Overseen By | Other Directorships Held |
| Date of Birth | Trust | Service | Other Relevant Experience | Trustee(1) | During Last Five Years |
| Noninterested Trustees (continued) | |||||
| Helen Frame Peters | Trustee | Since 2008 | Professor of Finance, Carroll School of Management, Boston | 181 | Director of BJ’s Wholesale Club, Inc. |
| 3/22/48 | College. Formerly, Dean, Carroll School of Management, Boston | (wholesale club retailer). Formerly, Trustee of | |||
| College (2000-2002). Formerly, Chief Investment Officer, Fixed | SPDR Index Shares Funds and SPDR Series | ||||
| Income, Scudder Kemper Investments (investment management | Trust (exchange traded funds) (2000-2009). | ||||
| firm) (1998-1999). Formerly, Chief Investment Officer, Equity | Formerly, Director of Federal Home Loan Bank | ||||
| and Fixed Income, Colonial Management Associates (investment | of Boston (a bank for banks) (2007-2009). | ||||
| management firm) (1991-1998). | Formerly, Trustee of Eaton Vance Credit | ||||
| Opportunities Fund (2008-2010). | |||||
| Heidi L. Steiger | Trustee | Since 2007 | Managing Partner, Topridge Associates LLC (global wealth | 181 | Director of Nuclear Electric Insurance Ltd. |
| 7/8/53 | management firm) (since 2008); Senior Adviser (since 2008), | (nuclear insurance provider), Aviva USA | |||
| President (2005-2008), Lowenhaupt Global Advisors, LLC | (insurance provider) and CIFG (family of | ||||
| (global wealth management firm). Formerly, President and | financial guaranty companies) and Advisory | ||||
| Contributing Editor, Worth Magazine (2004-2005). Formerly, | Director, Berkshire Capital Securities LLC | ||||
| Executive Vice President and Global Head of Private Asset | (private investment banking firm). Formerly, | ||||
| Management (and various other positions), Neuberger Berman | Trustee of Eaton Vance Credit Opportunities | ||||
| (investment firm) (1986-2004). | Fund (2007-2010), Eaton Vance Insured | ||||
| Florida Plus Municipal Bond Fund (2007- | |||||
| 2008) and Eaton Vance National Municipal | |||||
| Income Trust (2007-2009). | |||||
| Lynn A. Stout | Trustee | Since 1998 | Paul Hastings Professor of Corporate and Securities Law (since | 181 | Formerly, Trustee of Eaton Vance Credit |
| 9/14/57 | 2006) and Professor of Law (2001-2006), University of | Opportunities Fund (2005-2010), Eaton Vance | |||
| California at Los Angeles School of Law. Nationally-recognized | Insured Florida Plus Municipal Bond Fund | ||||
| expert on corporate law, corporate governance, and securities | (2002-2008) and Eaton Vance National | ||||
| regulation and author of numerous academic and professional | Municipal Income Trust (1998-2009). | ||||
| papers on these topics. | |||||
| Ralph F. Verni | Chairman of | Chairman of the Board | Consultant and private investor. Formerly, Chief Investment | 181 | Formerly, Trustee of Eaton Vance Credit |
| 1/26/43 | the Board | since 2007 and Trustee | Officer (1982-1992), Chief Financial Officer (1988-1990) and | Opportunities Fund (2005-2010), Eaton Vance | |
| and Trustee | since 2005 | Director (1982-1992), New England Life. Formerly, Chairperson, | Insured Florida Plus Municipal Bond Fund | ||
| New England Mutual Funds (1982-1992). Formerly, President | (2005-2008) and Eaton Vance National | ||||
| and Chief Executive Officer, State Street Management & | Municipal Income Trust (2006-2009). | ||||
| Research (1992-2000). Formerly, Chairperson, State Street | |||||
| Research Mutual Funds (1992-2000). Formerly, Director, W.P. | |||||
| Carey, LLC (1998-2004) and First Pioneer Farm Credit Corp. | |||||
| (2002-2006). | |||||
Principal Officers who are not Trustees
| Term of | |||
| Position(s) | Office and | ||
| Name and | with the | Length of | Principal Occupation(s) |
| Date of Birth | Trust | Service | During Past Five Years |
| Cynthia J. Clemson | President | Since 2005 | Vice President of EVM and BMR. Officer of 94 registered investment companies |
| 3/2/63 | managed by EVM or BMR. | ||
| William H. Ahern, Jr. | Vice President | Since 2004 | Vice President of EVM and BMR. Officer of 78 registered investment companies |
| 7/28/59 | managed by EVM or BMR. | ||
| Craig R. Brandon | Vice President | Since 2004 | Vice President of EVM and BMR. Officer of 49 registered investment companies |
| 12/21/66 | managed by EVM or BMR. | ||
| Thomas M. Metzold | Vice President | Since 2004 | Vice President of EVM and BMR. Officer of 56 registered investment companies |
| 8/3/58 | managed by EVM or BMR. | ||
50
Eaton Vance Limited Maturity Municipal Income Funds
MANAGEMENT AND ORGANIZATION CON T’D
| Term of | |||
| Position(s) | Office and | ||
| Name and | with the | Length of | Principal Occupation(s) |
| Date of Birth | Trust | Service | During Past Five Years |
| Principal Officers who are not Trustees (continued) | |||
| Adam A. Weigold | Vice President | Since 2007 | Vice President of EVM and BMR. Officer of 71 registered investment companies |
| 3/22/75 | managed by EVM or BMR. | ||
| Barbara E. Campbell | Treasurer | Since 2005 | Vice President of EVM and BMR. Officer of 181 registered investment companies |
| 6/19/57 | managed by EVM or BMR. | ||
| Maureen A. Gemma | Secretary and Chief Legal | Secretary since 2007 and | Vice President of EVM and BMR. Officer of 181 registered investment companies |
| 5/24/60 | Officer | Chief Legal Officer since | managed by EVM or BMR. |
| 2008 | |||
| Paul M. O’Neil | Chief Compliance Officer | Since 2004 | Vice President of EVM and BMR. Officer of 181 registered investment companies |
| 7/11/53 | managed by EVM or BMR. | ||
| (1) Includes both master and feeder funds in a master-feeder structure. | |||
The SAI for the Funds includes additional information about the Trustees and officers of the Funds and can be obtained without charge on Eaton Vance’s website at www.eatonvance.com or by calling 1-800-262-1122.
51
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Investment Adviser
Boston Management and Research
Two International Place
Boston, MA 02110
Fund Administrator
Eaton Vance Management
Two International Place
Boston, MA 02110
Principal Underwriter*
Eaton Vance Distributors, Inc.
Two International Place
Boston, MA 02110
(617) 482-8260
Custodian
State Street Bank and Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
PNC Global Investment Servicing
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Independent Registered Public Accounting Firm Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
Eaton Vance Limited Maturity Municipal Income Funds Two International Place Boston, MA 02110
* FINRA BrokerCheck. Investors may check the background of their Investment Professional by contacting the Financial Industry Regulatory Authority (FINRA). FINRA BrokerCheck is a free tool to help investors check the professional background of current and former FINRA-registered securities firms and brokers. FINRA BrokerCheck is available by calling 1-800-289-9999 and at www.FINRA.org. The FINRA BrokerCheck brochure describing the program is available to investors at www.FINRA.org.
This report must be preceded or accompanied by a current prospectus. Before investing, investors should consider carefully a Fund’s investment objective(s), risks, and charges and expenses. The Funds’ current prospectus contains this and other information about the Funds and is available through your financial advisor. Please read the prospectus carefully before you invest or send money. For further information please call 1-800-262-1122.
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