UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-4443 |
|
Eaton Vance Investment Trust |
(Exact name of registrant as specified in charter) |
|
The Eaton Vance Building, 255 State Street, Boston, Massachusetts | | 02109 |
(Address of principal executive offices) | | (Zip code) |
|
Alan R. Dynner The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109 |
(Name and address of agent for service) |
|
Registrant’s telephone number, including area code: | (617) 482-8260 | |
|
Date of fiscal year end: | March 31 | |
|
Date of reporting period: | September 30, 2006 | |
| | | | | | | | | |
Item 1. Reports to Stockholders
Semiannual Report September 30, 2006
EATON VANCE
NATIONAL
LIMITED
MATURITY
MUNICIPALS
FUND
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 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 only applies 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 (if applicable) will file a schedule of its 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 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 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 National Limited Maturity Municipals Fund as of September 30, 2006
INVESTMENT UPDATE
Eaton Vance National Limited Maturity Municipals Fund (the “Fund”) is designed to provide a high level of current income exempt from regular federal income tax and limited principal fluctuation. The Fund invests primarily in investment-grade municipal obligations.
Economic and Market Conditions
Third quarter economic growth slowed to 1.6%, following the 2.6% rate achieved in the second quarter. With higher mortgage rates in the market, led largely by the persistent Federal Reserve (the “Fed”) tightening, the housing market continued to soften, with building permits and existing home sales leading the way. However, energy prices declined significantly in the quarter, somewhat offsetting the impact of a weakening housing market. The economy continued to create jobs over the period, with the unemployment rate standing at 4.6% as of September 30, 2006.
Inflation expectations moderated with the lower energy prices, although the core Consumer Price Index – measured on a year-over-year basis – has demonstrated a slow but steady rise. The Fed, which raised short-term rates 17 times since June 2004, is currently in a pausing mode, awaiting further economic inputs to determine the future direction of interest rate moves. At September 30, 2006, the Federal Funds rate stood at 5.25%.
Municipal market supply for the first half of the year was lower than that experienced in 2005. As a result, municipals have generally outperformed Treasury bonds for the six months ended September 30, 2006, as demand has remained strong. At September 30, 2006, long-term AAA-rated, insured municipal bonds yielded 90% of U.S. Treasury bonds with similar maturities.*
For the six-months ended September 30, 2006, the Lehman Brothers 7-Year Municipal Bond Index† (the “Index”), a broad-based, unmanaged index of investment-grade municipal debt securities with an average maturity of 7 years, posted a gain of 3.39%. For more information about the Fund’s performance and that of funds in the same Lipper Classification,† see the Performance Information and Portfolio Composition page that follows.
Management Discussion
The Fund currently invests primarily in intermediate-maturity municipal bonds, seeking to maintain a weighted average duration of between three and nine years (duration is a measure of interest-rate sensitivity; the shorter a bond’s duration, the less sensitive its price will be to changes in market interest rates). Shorter maturity bonds usually provide somewhat less tax-exempt income than longer ones but also usually exhibit lower price volatility. Given the flattening of the yield curve for other fixed-income securities over the past 18 months, the intermediate part of the curve has become an attractive area.
Because of the mixed economic backdrop of contained inflation expectations, a weakened housing market and continued growth in the labor market, Fund management continued to maintain a somewhat cautious outlook on interest rates. In this environment, Fund management continued to focus on finding relative value within the marketplace – in issuer names, coupons, maturities and sectors. Relative value trading, which seeks to capitalize on undervalued securities, has enhanced the Fund’s returns during the period.
* Source: Bloomberg L.P. Yields are a compilation of a representative variety of general obligations and are not necessarily representative of the Fund’s yield.
† It is not possible to invest directly in an Index or 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.
Past performance is no guarantee of future results.
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 manager 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.
1
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.63 | % | 3.24 | % | 3.24 | % |
One Year | | 5.90 | | 5.00 | | 5.01 | |
Five Years | | 5.15 | | 4.36 | | 4.33 | |
Ten Years | | 5.11 | | 4.32 | | 4.21 | |
Life of Fund† | | 5.18 | | 4.51 | | 3.81 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 1.26 | % | 0.24 | % | 2.24 | |
One Year | | 3.48 | | 2.00 | | 4.01 | |
Five Years | | 4.68 | | 4.36 | | 4.33 | |
Ten Years | | 4.88 | | 4.32 | | 4.21 | |
Life of Fund† | | 4.94 | | 4.51 | | 3.81 | |
† Inception Dates – Class A: 6/27/96; Class B: 5/22/92; Class C: 12/8/93
(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, returns would be lower. SEC average annual total returns for Class A reflect the maximum 2.25% sales charge. SEC 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 returns for Class C reflect a 1% CDSC for the first year.
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index – Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Intermediate Municipal Debt Funds Classification – Average Annual Total Returns | | | |
Six Months | | 2.87 | % |
One Year | | 3.33 | |
Five Years | | 3.78 | |
Ten Years | | 4.72 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
Distribution Rate(4) | | 3.97 | % | 3.23 | % | 3.23 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 6.11 | | 4.97 | | 4.97 | |
SEC 30-day Yield(6) | | 3.40 | | 2.74 | | 2.73 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 5.23 | | 4.22 | | 4.20 | |
Portfolio Manager: William H. Ahern, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 171 |
· Average Maturity: | | 14.5 years |
· Effective Maturity: | | 8.5 years |
· Average Rating: | | AA- |
· Average Call: | | 8.1 years |
· Average Price: | | $ 106.84 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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.
(3) The Lipper Averages are the average total returns 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 164, 155, 106 and 69 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only.
(4) The Fund’s distribution rate represents actual distributions paid to shareholders and is calculated by dividing the last distribution per share in the period (annualized) by the net asset value at the end of the period.
(5) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in lower tax-equivalent figures.
(6) 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.
(7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund.
(8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
2
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FUND EXPENSES
Example: As a shareholder of the 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 the 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 (April 1, 2006 – September 30, 2006).
Actual Expenses: The first section of the 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 the table below provides information about hypothetical account values and hypothetical expenses based on the Fund's actual 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 the 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 the 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 have been higher.
Eaton Vance National Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,036.30 | | | $ | 3.93 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,032.40 | | | $ | 7.74 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,032.40 | | | $ | 7.74 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,021.20 | | | $ | 3.90 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,017.40 | | | $ | 7.69 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,017.40 | | | $ | 7.69 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.77% for Class A shares, 1.52% for Class B shares and 1.52% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (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 March 31, 2006.
3
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 102.8% | | | |
Principal Amount
(000's omitted) | | Security | | Value | |
| Cogeneration — 1.4% | | | |
| $ | 2,700 | | | Carbon County, PA, Industrial Development
Authority/Agency, (Panther Creek Partners),
(AMT), 6.65%, 5/1/10 | | $ | 2,850,444 | | |
| | 985 | | | Ohio Water Development Authority, Solid Waste Disposal,
(Bay Shore Power), (AMT), 6.625%, 9/1/20 | | | 1,021,140 | | |
| | 675 | | | Pennsylvania Economic Development Financing Authority,
(Resource Recovery-Colver), (AMT), 5.125%, 12/1/15 | | | 677,106 | | |
| | | | | | | $ | 4,548,690 | | |
| Education — 7.0% | | | |
| $ | 4,500 | | | Connecticut Health and Educational Facilities Authority,
(Yale University), Variable Rate, 3.75%, 7/1/36 | | $ | 4,500,000 | | |
| | 2,000 | | | Illinois Educational Facility Authority,
(Art Institute of Chicago), 4.45%, 3/1/34 | | | 2,035,380 | | |
| | 420 | | | Maryland Industrial Development Financing Authority,
(Our Lady of Good Counsel High School), 5.50%, 5/1/20 | | | 443,348 | | |
| | 10,000 | | | Massachusetts Health and Higher Educational Facilities
Authority, (Massachusetts Institute of Technology),
Variable Rate, 3.68%, 7/1/31 | | | 10,000,000 | | |
| | 2,815 | | | Missouri State Health and Educational Facilities Authority,
(St. Louis University), 5.50%, 10/1/16 | | | 3,180,697 | | |
| | 1,235 | | | New Jersey Educational Facilities Authority, (Steven's
Institute of Technology), 5.00%, 7/1/12 | | | 1,298,183 | | |
| | 1,700 | | | University of Illinois, 0.00%, 4/1/15 | | | 1,207,255 | | |
| | 1,000 | | | University of Illinois, 0.00%, 4/1/16 | | | 677,700 | | |
| | | | | | | $ | 23,342,563 | | |
| Electric Utilities — 7.4% | | | |
| $ | 1,000 | | | Brazos River Authority, TX, (Reliant Energy, Inc.),
7.75%, 12/1/18 | | $ | 1,066,900 | | |
| | 1,000 | | | Illinois Development Finance Authority, PCR, (AMT),
5.00%, 6/1/28 | | | 1,000,910 | | |
| | 2,500 | | | New Hampshire Business Finance Authority Pollution
Control, (Central Maine Power Co.), 5.375%, 5/1/14 | | | 2,643,825 | | |
| | 3,050 | | | New York Energy Research and Development Authority
Facility, (AMT), Variable Rate, 4.70%, 6/1/36 | | | 3,051,372 | | |
| | 1,000 | | | North Carolina Municipal Power Agency, (Catawba),
6.375%, 1/1/13 | | | 1,079,740 | | |
| | 10,000 | | | Salt River, AZ, Agriculture Improvements and Power
District, 5.00%, 1/1/37 | | | 10,572,300 | | |
| | 1,250 | | | Sam Rayburn, TX, Municipal Power Agency, Power
Supply System, 6.00%, 10/1/16 | | | 1,328,462 | | |
| | 1,000 | | | San Antonio, TX, Electric and Natural Gas, 4.50%, 2/1/21 | | | 1,005,350 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Electric Utilities (continued) | | | |
| $ | 2,500 | | | Wake County, NC, Industrial Facilities and Pollution
Control Financing Authority, (Carolina Power and Light Co.),
5.375%, 2/1/17 | | $ | 2,655,975 | | |
| | | | | | | $ | 24,404,834 | | |
| Escrowed / Prerefunded — 5.9% | | | |
| $ | 1,500 | | | California Department of Water Resource Power Supply,
Prerefunded to 5/1/12, 5.125%, 5/1/18 | | $ | 1,637,625 | | |
| | 1,650 | | | Capital Trust Agency, FL, (Seminole Tribe Convention),
Prerefunded to 10/1/12, 8.95%, 10/1/33(1) | | | 2,038,096 | | |
| | 150 | | | Florence, KY, Housing Facilities, (Bluegrass Housing),
Escrowed to Maturity, 7.25%, 5/1/07 | | | 150,462 | | |
| | 245 | | | Forsyth County, GA, Hospital Authority, (Georgia Baptist
Health Care System), Escrowed to Maturity,
6.00%, 10/1/08 | | | 250,525 | | |
| | 500 | | | Kershaw County, SC, School District, Prerefunded to
2/1/10, 5.00%, 2/1/18 | | | 522,420 | | |
| | 3,500 | | | Maricopa County, AZ, Industrial Development Authority,
Multifamily, Escrowed to Maturity, 6.45%, 1/1/17 | | | 3,644,550 | | |
| | 495 | | | Maricopa County, AZ, Industrial Development Authority,
Multifamily, Escrowed to Maturity, 7.875%, 1/1/11 | | | 530,630 | | |
| | 3,000 | | | Massachusetts Turnpike Authority, Escrowed to Maturity,
5.00%, 1/1/20 | | | 3,272,850 | | |
| | 230 | | | Mesquite, TX, Health Facilities Development,
(Christian Care Centers), Escrowed to Maturity,
7.00%, 2/15/10 | | | 243,165 | | |
| | 2,000 | | | Michigan Hospital Finance Authority, (Henry Ford Health
System), Prerefunded to 3/1/13, 5.50%, 3/1/14 | | | 2,205,020 | | |
| | 1,195 | | | North Carolina Eastern Municipal Power Agency,
Escrowed to Maturity, 4.00%, 1/1/18 | | | 1,215,458 | | |
| | 1,000 | | | Northwest Arkansas Regional Airport Authority,
(AMT), Prerefunded to 2/1/08, 7.625%, 2/1/27 | | | 1,069,710 | | |
| | 2,000 | | | Orange County, FL, Health Facilities Authority,
(Adventist Health System), Prerefunded to 11/15/10,
6.375%, 11/15/20 | | | 2,223,400 | | |
| | 5 | | | Pennsylvania Economic Development Authority,
(Resource Recovery- Northampton), (AMT),
Escrowed to Maturity, 6.75%, 1/1/07 | | | 5,039 | | |
| | 480 | | | Wisconsin Health and Educational Facilities Authority,
(Wisconsin Illinois Senior Housing), Prerefunded to
8/1/09, 7.00%, 8/1/29 | | | 522,072 | | |
| | | | | | | $ | 19,531,022 | | |
| General Obligations — 2.6% | | | |
| $ | 1,650 | | | McAllen, TX, Independent School District, (PSF),
4.50%, 2/15/18 | | $ | 1,660,758 | | |
| | 5,000 | | | New York City, NY, 5.00%, 8/1/19 | | | 5,375,750 | | |
| | 1,500 | | | New York City, NY, 5.625%, 12/1/13 | | | 1,628,610 | | |
| | | | | | | $ | 8,665,118 | | |
See notes to financial statements
4
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Health Care-Miscellaneous — 0.2% | | | |
| $ | 80 | | | Pittsfield Township, MI, Economic Development Corp.,
(Arbor Hospice), 7.875%, 8/15/27 | | $ | 81,205 | | |
| | 424 | | | Tax Revenue Exempt Securities Trust, Community Health
Provider, (Pooled Loan Program Various States
Trust Certificates), 6.00%, 12/1/36 | | | 452,111 | | |
| | | | | | | $ | 533,316 | | |
| Hospital — 4.6% | | | |
| $ | 550 | | | Colorado Health Facilities Authority, (Parkview Episcopal
Medical Center), 5.75%, 9/1/09 | | $ | 577,021 | | |
| | 2,500 | | | Cuyahoga County, OH, (Cleveland Clinic Health System),
6.00%, 1/1/17 | | | 2,814,525 | | |
| | 200 | | | Maryland Health and Higher Educational Facilities Authority,
(Edenwald), 4.85%, 1/1/13 | | | 204,478 | | |
| | 100 | | | Michigan Hospital Finance Authority, (Central Michigan
Community Hospital), 6.10%, 10/1/06 | | | 100,009 | | |
| | 225 | | | Michigan Hospital Finance Authority, (Central Michigan
Community Hospital), 6.20%, 10/1/07 | | | 228,730 | | |
| | 370 | | | Michigan Hospital Finance Authority, (Gratiot Community
Hospital), 6.10%, 10/1/07 | | | 376,486 | | |
| | 1,000 | | | Michigan Hospital Finance Authority, (Memorial
Healthcare Center), 5.875%, 11/15/21 | | | 1,050,430 | | |
| | 2,490 | | | Michigan Hospital Finance Authority, Variable Rate,
7.01%, 11/1/12(1)(2) | | | 2,959,614 | | |
| | 100 | | | New Hampshire Health and Educational Facilities Authority,
(Littleton Hospital Association), 5.45%, 5/1/08 | | | 100,857 | | |
| | 2,000 | | | Orange County, FL, Health Facilities Authority, (Adventist
Health System), 5.25%, 11/15/18 | | | 2,132,300 | | |
| | 1,740 | | | Saginaw, MI, Hospital Finance Authority, 5.125%, 7/1/22 | | | 1,822,006 | | |
| | 575 | | | Salina, KS, Hospital Revenue, Salina Regional Health,
5.00%, 10/1/18 | | | 615,307 | | |
| | 2,000 | | | South Carolina Jobs-Economic Development Authority,
(Palmetto Health Alliance), 6.00%, 8/1/12 | | | 2,208,840 | | |
| | | | | | | $ | 15,190,603 | | |
| Housing — 1.9% | | | |
| $ | 2,500 | | | California Housing Finance Agency, (AMT),
4.75%, 8/1/21 | | $ | 2,538,650 | | |
| | 600 | | | Georgia Private Colleges and Universities Authority,
Student Housing Revenue, (Mercer Housing Corp.),
6.00%, 6/1/31 | | | 640,152 | | |
| | 665 | | | Sandoval County, NM, Multifamily, 6.00%, 5/1/32 | | | 668,032 | | |
| | 95 | | | Texas Student Housing Corp., (University of
Northern Texas), 9.375%, 7/1/06(3) | | | 92,383 | | |
| | 2,400 | | | Vancouver, WA, Housing Authority, 4.20%, 3/1/08 | | | 2,398,680 | | |
| | | | | | | $ | 6,337,897 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Industrial Development Revenue — 7.9% | | | |
| $ | 115 | | | Austin, TX, (Cargoport Development LLC), (AMT),
7.50%, 10/1/07 | | $ | 116,877 | | |
| | 420 | | | Austin, TX, (Cargoport Development LLC), (AMT),
8.30%, 10/1/21 | | | 469,056 | | |
| | 1,500 | | | Dallas-Fort Worth, TX, International Airport Facilities
Improvements Corp., (AMT), 9.00%, 5/1/29 | | | 1,793,445 | | |
| | 1,320 | | | Denver, CO, City and County Special Facilities,
(United Airlines), (AMT), 6.875%, 10/1/32(3)(4) | | | 1,353,000 | | |
| | 1,630 | | | Houston, TX, Industrial Development Corp., (AMT),
6.375%, 1/1/23 | | | 1,748,550 | | |
| | 5,000 | | | Liberty, NY, Development Corp., (Goldman Sachs
Group, Inc.), 5.25%, 10/1/35 | | | 5,715,000 | | |
| | 1,000 | | | Michigan Strategic Fund, (Waste Management, Inc.),
(AMT), 4.50%, 12/1/13 | | | 1,001,950 | | |
| | 1,435 | | | Mississippi Business Finance Corp., (Air Cargo),
(AMT), 7.25%, 7/1/34 | | | 1,573,851 | | |
| | 1,440 | | | New Jersey Economic Development Authority,
(Continental Airlines), (AMT), 6.25%, 9/15/19 | | | 1,482,955 | | |
| | 3,000 | | | New York, NY, Industrial Development Agency,
(American Airlines), (AMT), 7.50%, 8/1/16 | | | 3,412,980 | | |
| | 2,750 | | | New York, NY, Industrial Development Agency,
(Terminal One Group), (AMT), 5.50%, 1/1/14 | | | 2,978,552 | | |
| | 1,500 | | | Nez Perce County, ID, PCR, (Potlatch Corp.),
6.125%, 12/1/07 | | | 1,521,735 | | |
| | 2,825 | | | Toledo Lucas County, OH, Port Authority, (Cargill, Inc.),
4.50%, 12/1/15 | | | 2,901,162 | | |
| | | | | | | $ | 26,069,113 | | |
| Insured-Education — 3.9% | | | |
| $ | 1,000 | | | Montana Board of Regents, (Montana State University),
(AMBAC), 4.50%, 11/15/19 | | $ | 1,039,230 | | |
| | 1,000 | | | Montana Board of Regents, (Montana State University),
(AMBAC), 4.50%, 11/15/20 | | | 1,032,420 | | |
| | 2,025 | | | New York Dormitory Authority, (Educational Housing
Services), (AMBAC), 5.25%, 7/1/21 | | | 2,289,202 | | |
| | 5,150 | | | New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/22 | | | 5,893,505 | | |
| | 2,000 | | | New York Dormitory Authority, (SUNY, NY), (XLCA),
5.25%, 7/1/32 | | | 2,183,060 | | |
| | 500 | | | Southern Illinois University, Housing and Auxiliary
Facilities, (MBIA), 0.00%, 4/1/17 | | | 324,425 | | |
| | | | | | | $ | 12,761,842 | | |
| Insured-Electric Utilities — 1.9% | | | |
| $ | 750 | | | California Pollution Control Financing Authority, PCR,
(Pacific Gas and Electric), (MBIA), (AMT),
5.35%, 12/1/16 | | $ | 806,722 | | |
See notes to financial statements
5
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Electric Utilities (continued) | | | |
| $ | 2,000 | | | Forsyth, MT, PCR, (Avista Corp.), (AMBAC),
5.00%, 10/1/32(5) | | $ | 2,052,320 | | |
| | 1,600 | | | Long Island Power Authority, NY, (FGIC), Variable Rate,
6.93%, 12/1/19(1)(2) | | | 2,004,064 | | |
| | 400 | | | Piedmont, SC, Municipal Power Agency, (MBIA),
5.00%, 1/1/15 | | | 409,448 | | |
| | 1,000 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 | | | 1,136,440 | | |
| | | | | | | $ | 6,408,994 | | |
| Insured-Escrowed / Prerefunded — 4.5% | | | |
| $ | 1,000 | | | Laredo, TX, Certificates of Obligation, (MBIA),
Prerefunded to 2/15/08, 4.50%, 2/15/17 | | $ | 1,013,100 | | |
| | 1,000 | | | Metropolitan Transportation Authority, NY, Commuter
Facilities, (AMBAC), Escrowed to Maturity, 5.00%, 7/1/20 | | | 1,030,250 | | |
| | 1,000 | | | Metropolitan Transportation Authority, NY, Transit Facilities,
(FGIC), Prerefunded to 10/1/15, 4.50%, 4/1/18 | | | 1,057,260 | | |
| | 500 | | | Metropolitan Transportation Authority, NY, Transit Facilities,
(MBIA), Escrowed to Maturity, 5.00%, 7/1/17 | | | 515,200 | | |
| | 2,000 | | | Montgomery, AL, BMC Special Care Facilities Financing
Authority, (Baptist Health Montgomery), (MBIA), Prerefunded
to 11/15/14, 5.00%, (0.00% until 2007), 11/15/18 | | | 2,042,000 | | |
| | 5,000 | | | Montgomery, AL, BMC Special Care Facilities Financing
Authority, (Baptist Health Montgomery), (MBIA),
Prerefunded to 11/15/14, 0.00%, 11/15/24 | | | 5,105,000 | | |
| | 1,000 | | | Montgomery, AL, BMC Special Care Facilities Financing
Authority, (Baptist Health Montgomery), (MBIA),
Prerefunded to 11/15/14, 0.00%, 11/15/22 | | | 1,021,000 | | |
| | 3,000 | | | Montgomery, AL, BMC Special Care Facilities Financing
Authority, (Baptist Health Montgomery), (MBIA),
Prerefunded to 11/15/14, 0.00%, 11/15/17 | | | 3,063,000 | | |
| | | | | | | $ | 14,846,810 | | |
| Insured-General Obligations — 10.4% | | | |
| $ | 1,830 | | | Boise City, ID, Independent School District, (MBIA),
5.00%, 8/1/14 | | $ | 1,995,450 | | |
| | 1,700 | | | Boise City, ID, Independent School District, (MBIA),
5.00%, 8/1/16 | | | 1,872,380 | | |
| | 2,715 | | | Boise City, ID, Independent School District, (MBIA),
5.00%, 8/1/17 | | | 2,980,934 | | |
| | 1,000 | | | Hillsborough Township, NJ, School District, (FSA),
5.375%, 10/1/18 | | | 1,144,980 | | |
| | 5,000 | | | Jackson Township, NJ, School District, (Baptist
Healthcare Systems), (MBIA), 5.25%, 6/15/23 | | | 5,732,950 | | |
| | 1,055 | | | Linn County, OR, Community School District No. 9,
(Lebanon), (FGIC), 5.25%, 6/15/21 | | | 1,203,681 | | |
| | 1,175 | | | Linn County, OR, Community School District No. 9, (Lebanon),
(FGIC), 5.25%, 6/15/22 | | | 1,344,282 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-General Obligations (continued) | | | |
| $ | 5,000 | | | Massachusetts, (MBIA), 5.50%, 10/1/20 | | $ | 5,830,500 | | |
| | 5,580 | | | New Orleans, LA, (MBIA), 5.25%, 12/1/15 | | | 6,145,477 | | |
| | 965 | | | Pima County, AZ, (FSA), 3.50%, 7/1/20 | | | 896,360 | | |
| | 3,150 | | | Springfield, OH, City School District, Clark County, (AMBAC),
4.30%, 12/1/14 | | | 3,195,612 | | |
| | 1,400 | | | Springfield, OH, City School District, Clark County, (FGIC),
5.00%, 12/1/17 | | | 1,502,634 | | |
| | 1,000 | | | St. Louis, MO, Board of Education, (FSA),
0.00%, 4/1/16 | | | 684,050 | | |
| | | | | | | $ | 34,529,290 | | |
Insured-Lease Revenue / Certificates of
Participation — 4.3% | | | |
| $ | 1,380 | | | Anaheim, CA, Public Financing Authority Lease Revenue,
(Public Improvements), (FSA), 0.00%, 9/1/19 | | $ | 801,435 | | |
| | 10,000 | | | Michigan Building Authority, (FGIC), 5.00%, 10/15/36 | | | 10,603,600 | | |
| | 1,010 | | | South Dakota Building Authority, (MBIA), 5.00%, 9/1/14 | | | 1,094,517 | | |
| | 2,100 | | | Texas Public Finance Authority, (MBIA), 0.00%, 2/1/12 | | | 1,717,653 | | |
| | | | | | | $ | 14,217,205 | | |
| Insured-Miscellaneous — 0.3% | | | |
| $ | 1,000 | | | Missouri Development Finance Board Cultural Facility,
(Nelson Gallery Foundation), (MBIA), 5.25%, 12/1/14 | | $ | 1,074,250 | | |
| | | | | | | $ | 1,074,250 | | |
| Insured-Solid Waste — 0.4% | | | |
| $ | 1,175 | | | Massachusetts Development Finance Agency,
(Semass System), (MBIA), 5.625%, 1/1/12 | | $ | 1,278,846 | | |
| | | | | | | $ | 1,278,846 | | |
| Insured-Special Tax Revenue — 3.6% | | | |
| $ | 3,000 | | | Arlington, TX, (Dallas Cowboys), (MBIA),
5.00%, 8/15/34 | | $ | 3,179,370 | | |
| | 2,770 | | | Julington Creek Plantation, FL, Community
Development District, (MBIA), 4.75%, 5/1/19 | | | 2,884,623 | | |
| | 5,000 | | | Massachusetts Special Obligations, (FSA),
5.50%, 6/1/21 | | | 5,841,250 | | |
| | | | | | | $ | 11,905,243 | | |
| Insured-Transportation — 9.0% | | | |
| $ | 2,295 | | | Chicago, IL, O'Hare International Airport, (MBIA), (AMT),
5.75%, 1/1/17 | | $ | 2,478,439 | | |
| | 1,000 | | | Denver, CO, City and County Airport, (FSA), (AMT),
5.00%, 11/15/11 | | | 1,058,020 | | |
See notes to financial statements
6
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Transportation (continued) | | | |
| $ | 1,000 | | | Houston, TX, Airport System, (FGIC), (AMT),
5.50%, 7/1/12 | | $ | 1,074,320 | | |
| | 2,000 | | | Kenton County, KY, Airport, (Cincinnati/Northern
Kentucky), (MBIA), (AMT), 5.625%, 3/1/13 | | | 2,161,300 | | |
| | 2,500 | | | Massachusetts Port Authority, (Delta Airlines),
(AMBAC), (AMT), 5.50%, 1/1/15 | | | 2,640,200 | | |
| | 1,000 | | | Miami-Dade County, FL, Aviation, (Miami International
Airport), (FGIC), (AMT), 5.50%, 10/1/13 | | | 1,084,650 | | |
| | 2,000 | | | Minneapolis and St. Paul, MN, Metropolitan Airport
Commission, (FGIC), (AMT), 5.25%, 1/1/11 | | | 2,123,340 | | |
| | 1,430 | | | Minneapolis and St. Paul, MN, Metropolitan Airport
Commission, (FGIC), (AMT), 6.00%, 1/1/11 | | | 1,534,404 | | |
| | 5,000 | | | New Jersey Transportation Trust Fund Authority, (FGIC),
5.50%, 12/15/20 | | | 5,821,500 | | |
| | 1,000 | | | Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/18 | | | 1,148,330 | | |
| | 3,515 | | | Port Authority of New York and New Jersey, (FGIC),
(AMT), 4.50%, 10/1/20 | | | 3,588,815 | | |
| | 1,000 | | | Port Seattle, WA, (MBIA), (AMT), 6.00%, 2/1/11 | | | 1,089,560 | | |
| | 1,625 | | | San Jose, CA, Airport, (FSA), (AMT), 5.00%, 3/1/11 | | | 1,710,605 | | |
| | 2,000 | | | Wayne Charter County, MI, Metropolitan Airport, (FGIC),
(AMT), 5.50%, 12/1/15 | | | 2,173,340 | | |
| | | | | | | $ | 29,686,823 | | |
| Insured-Water and Sewer — 0.5% | | | |
| $ | 2,000 | | | Honolulu, HI, Wastewater System, (FGIC),
0.00%, 7/1/11 | | $ | 1,671,400 | | |
| | | | | | | $ | 1,671,400 | | |
| Lease Revenue / Certificates of Participation — 5.5% | | | |
| $ | 7,870 | | | California Public Works Board, (Department
Health Services), 5.00%, 11/1/19 | | $ | 8,425,465 | | |
| | 5,565 | | | Charleston, SC, Educational Excellence Finance Corp.,
(Charleston County School District Project),
5.00%, 12/1/20 | | | 5,946,815 | | |
| | 3,385 | | | New Jersey Economic Development Authority, (School
Facilities Construction), 5.50%, 9/1/19 | | | 3,858,426 | | |
| | | | | | | $ | 18,230,706 | | |
| Nursing Home — 0.2% | | | |
| $ | 775 | | | Clovis, NM, Industrial Development Revenue, (Retirement
Ranches, Inc.), 7.75%, 4/1/19 | | $ | 807,899 | | |
| | | | | | | $ | 807,899 | | |
| Other Revenue — 3.5% | | | |
| $ | 1,000 | | | Arizona Health Facilities Authority, (Blood Systems, Inc.),
5.00%, 4/1/21 | | $ | 1,036,380 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Other Revenue (continued) | | | |
| $ | 890 | | | Barona, CA, (Band of Mission Indians), 8.25%, 1/1/20(1) | | $ | 929,338 | | |
| | 1,900 | | | California Statewide Communities Development Authority,
(East Valley Tourist Development Authority),
8.25%, 10/1/14(1) | | | 2,044,875 | | |
| | 1,220 | | | Central Falls, RI, Detention Facility Revenue,
7.25%, 7/15/35 | | | 1,373,830 | | |
| | 1,000 | | | Mohegan Tribe, CT, Gaming Authority, 5.375%, 1/1/11(1) | | | 1,029,760 | | |
| | 4,500 | | | Tennessee Energy Acquisition Corp., 5.00%, 9/1/16 | | | 4,858,515 | | |
| | 225 | | | Willacy County, TX, Local Government Corp.,
6.00%, 3/1/09 | | | 230,139 | | |
| | | | | | | $ | 11,502,837 | | |
| Pooled Loans — 0.6% | | | |
| $ | 1,300 | | | Ohio Economic Development, (Ohio Enterprise Bond Fund),
(AMT), 4.60%, 6/1/20 | | $ | 1,347,060 | | |
| | 790 | | | Ohio Economic Development, (Ohio Enterprise Bond Fund),
(AMT), 5.25%, 12/1/15 | | | 824,760 | | |
| | | | | | | $ | 2,171,820 | | |
| Senior Living / Life Care — 1.0% | | | |
| $ | 760 | | | Albuquerque, NM, Retirement Facilities, (La Vida Liena
Retirement Center), 6.60%, 12/15/28 | | $ | 797,164 | | |
| | 1,105 | | | Arizona Health Facilities Authority, (Care Institute,
Inc. - Mesa), 7.625%, 1/1/06(6) | | | 993,782 | | |
| | 500 | | | Kansas City, MO, Industrial Development Revenue,
(Kingswood Manor), 5.80%, 11/15/17 | | | 502,690 | | |
| | 240 | | | Massachusetts Industrial Finance Agency, (Forge Hill),
(AMT), 6.75%, 4/1/30 | | | 247,291 | | |
| | 480 | | | North Miami, FL, Health Facilities Authority,
(Imperial Club), 6.75%, 1/1/33 | | | 475,853 | | |
| | 460 | | | St. Joseph County, IN, Holy Cross Village,
5.55%, 5/15/19 | | | 466,872 | | |
| | | | | | | $ | 3,483,652 | | |
| Solid Waste — 1.0% | | | |
| $ | 3,000 | | | Niagara County, NY, Industrial Development Agency,
(American Ref-Fuel Co., LLC), (AMT), 5.55%, 11/15/24 | | $ | 3,169,350 | | |
| | | | | | | $ | 3,169,350 | | |
| Special Tax Revenue — 8.6% | | | |
| $ | 1,095 | | | Arbor Greene, FL, Community Development District,
5.00%, 5/1/19 | | $ | 1,150,911 | | |
| | 1,450 | | | Brentwood, CA, Infrastructure Financing Authority,
6.375%, 9/2/33 | | | 1,494,849 | | |
| | 2,500 | | | Bridgeville, DE, (Heritage Shores Special Development
District), 5.125%, 7/1/35 | | | 2,525,275 | | |
See notes to financial statements
7
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Special Tax Revenue (continued) | | | |
| $ | 3,000 | | | California State Economic Recovery, 5.25%, 7/1/13 | | $ | 3,291,510 | | |
| | 325 | | | Concorde Estates, FL, Community Development District,
Capital Improvements, 5.00%, 5/1/11 | | | 325,462 | | |
| | 500 | | | Cottonwood, CO, Water and Sanitation District,
7.75%, 12/1/20 | | | 512,370 | | |
| | 290 | | | Covington Park, FL, Community Development District,
Capital Improvements, 5.00%, 5/1/21 | | | 294,133 | | |
| | 2,000 | | | Detroit, MI, Downtown Development Authority Tax
Increment, 0.00%, 7/1/21 | | | 979,340 | | |
| | 1,175 | | | Dupree Lakes, FL, Community Development District,
5.00%, 11/1/10 | | | 1,176,410 | | |
| | 855 | | | Dupree Lakes, FL, Community Development District,
5.00%, 5/1/12 | | | 858,480 | | |
| | 1,290 | | | Fishhawk, FL, Community Development District II,
5.125%, 11/1/09 | | | 1,291,987 | | |
| | 250 | | | Frederick County, MD, Urbana Community
Development Authority, 6.625%, 7/1/25 | | | 258,838 | | |
| | 125 | | | Gateway, FL, Services Community Development District,
(Stoneybrook), 5.50%, 7/1/08 | | | 125,916 | | |
| | 1,285 | | | Heritage Harbor, FL, South Community Development
District, Capital Improvements, 5.25%, 11/1/08 | | | 1,294,548 | | |
| | 1,105 | | | Jurupa, CA, Community Services District, 5.00%, 9/1/21 | | | 1,128,492 | | |
| | 785 | | | Jurupa, CA, Community Services District, 5.00%, 9/1/25 | | | 787,473 | | |
| | 65 | | | Longleaf, FL, Community Development District,
6.20%, 5/1/09 | | | 65,493 | | |
| | 3,000 | | | New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/16 | | | 3,272,190 | | |
| | 1,000 | | | New York Local Government Assistance Corp.,
5.25%, 4/1/16 | | | 1,100,440 | | |
| | 1,400 | | | Sterling Hill, FL, Community Development District,
Capital Improvements, 5.10%, 5/1/11 | | | 1,411,606 | | |
| | 1,290 | | | Sterling Hill, FL, Community Development District,
Capital Improvements, 5.50%, 11/1/10 | | | 1,295,031 | | |
| | 3,400 | | | Tisons Landing, FL, Community Development District,
5.00%, 11/1/11 | | | 3,412,716 | | |
| | 355 | | | Tiverton, RI, Obligation Tax Increment, (Mount Hope
Bay Village), 6.00%, 5/1/09 | | | 360,293 | | |
| | | | | | | $ | 28,413,763 | | |
| Transportation — 2.9% | | | |
| $ | 2,500 | | | Louisiana Offshore Terminal Authority, Deepwater Port
Revenue, (Loop, LLC), 5.25%, 9/1/15 | | $ | 2,682,875 | | |
| | 5,000 | | | New Jersey Transportation Trust Fund Authority,
5.25%, 12/15/21 | | | 5,648,700 | | |
| | 1,000 | | | Port Authority of New York and New Jersey,
5.375%, 3/1/28 | | | 1,157,920 | | |
| | | | | | | $ | 9,489,495 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Water and Sewer — 1.8% | |
| $ | 5,000 | | | Virginia Resource Authority, Clean Water, (Revolving Fund),
5.50%, 10/1/19 | | $ | 5,823,900 | | |
| | | | | $ | 5,823,900 | | |
Total Tax-Exempt Investments — 102.8%
(identified cost $326,489,908) | | | | $ | 340,097,281 | | |
| Other Assets, Less Liabilities — (2.8)% | | | | $ | (9,306,741 | ) | |
| Net Assets — 100.0% | | | | $ | 330,790,540 | | |
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
At September 30, 2006, the concentration of the Fund's investments in the various states, determined as a percentage of net assets, is as follows:
| New York | | | 14.0 | % | |
| Others, representing less than 10% individually | | | 88.8 | % | |
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 September 30, 2006, 39.4% 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 1.0% to 17.1% of total investments.
(1) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2006, the aggregate value of the securities is $11,005,747 or 3.3% of the Fund's net assets.
(2) Security has been issued as a leveraged inverse floater bond. The stated interest rate represents the rate in effect at September 30, 2006.
(3) Defaulted bond.
(4) Security valued at fair value using methods determined in good faith by or at the direction of the Trustees.
(5) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
(6) Security is in default and making only partial interest payments.
See notes to financial statements
8
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of September 30, 2006
| Assets | |
| Investments, at value (identified cost, $326,489,908) | | $ | 340,097,281 | | |
| Cash | | | 812,753 | | |
| Receivable for investments sold | | | 521,856 | | |
| Receivable for Fund shares sold | | | 1,991,897 | | |
| Interest receivable | | | 4,870,914 | | |
| Receivable for daily variation margin on open financial futures contracts | | | 17,719 | | |
| Miscellaneous receivable | | | 115,454 | | |
| Prepaid expenses | | | 4,146 | | |
| Total assets | | $ | 348,432,020 | | |
| Liabilities | |
| Payable for investments purchased | | $ | 16,002,544 | | |
| Payable for Fund shares redeemed | | | 784,170 | | |
| Dividends payable | | | 490,591 | | |
| Payable to affiliate for distribution and service fees | | | 152,267 | | |
| Payable to affiliate for investment advisory fees | | | 121,847 | | |
| Payable to affiliate for Trustees' fees | | | 398 | | |
| Accrued expenses | | | 89,663 | | |
| Total liabilities | | $ | 17,641,480 | | |
| Net assets | | $ | 330,790,540 | | |
| Sources of Net Assets | |
| Paid-in capital | | $ | 322,075,977 | | |
| Accumulated net realized loss (computed on the basis of identified cost) | | | (4,030,060 | ) | |
| Accumulated undistributed net investment income | | | 119,813 | | |
| Net unrealized appreciation (computed on the basis of identified cost) | | | 12,624,810 | | |
| Total | | $ | 330,790,540 | | |
| Class A Shares | |
| Net Assets | | $ | 239,080,911 | | |
| Shares Outstanding | | | 22,886,478 | | |
Net Asset Value and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.45 | | |
Maximum Offering Price Per Share
(100 ÷ 97.75 of $10.45) | | $ | 10.69 | | |
| Class B Shares | |
| Net Assets | | $ | 16,341,091 | | |
| Shares Outstanding | | | 1,563,203 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.45 | | |
| Class C Shares | |
| Net Assets | | $ | 75,368,538 | | |
| Shares Outstanding | | | 7,694,844 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 9.79 | | |
| On sales of $100,000 or more, the offering price of Class A shares is reduced. | |
Statement of Operations
For the Six Months Ended
September 30, 2006
| Investment Income | |
| Interest | | $ | 7,281,441 | | |
| Total investment income | | $ | 7,281,441 | | |
| Expenses | |
| Investment adviser fee | | $ | 659,101 | | |
| Trustees' fees and expenses | | | 8,144 | | |
Distribution and service fees
Class A | | | 151,063 | | |
| Class B | | | 83,291 | | |
| Class C | | | 340,753 | | |
| Custodian fee | | | 83,201 | | |
| Transfer and dividend disbursing agent fees | | | 69,026 | | |
| Legal and accounting services | | | 31,301 | | |
| Registration fees | | | 26,902 | | |
| Printing and postage | | | 15,555 | | |
| Miscellaneous | | | 33,052 | | |
| Total expenses | | $ | 1,501,389 | | |
Deduct —
Reduction of custodian fee | | $ | 13,921 | | |
| Total expense reductions | | $ | 13,921 | | |
| Net expenses | | $ | 1,487,468 | | |
| Net investment income | | $ | 5,793,973 | | |
| Realized and Unrealized Gain (Loss) | |
Net realized gain (loss) —
Investment transactions (identified cost basis) | | $ | (493,943 | ) | |
| Financial futures contracts | | | 864,199 | | |
| Net realized gain | | $ | 370,256 | | |
Change in unrealized appreciation (depreciation) —
Investments (identified cost basis) | | $ | 6,422,060 | | |
| Financial futures contracts | | | (2,311,616 | ) | |
| Net change in unrealized appreciation (depreciation) | | $ | 4,110,444 | | |
| Net realized and unrealized gain | | $ | 4,480,700 | | |
| Net increase in net assets from operations | | $ | 10,274,673 | | |
See notes to financial statements
9
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
Increase (Decrease)
in Net Assets | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
From operations —
Net investment income | | $ | 5,793,973 | | | $ | 10,034,797 | | |
Net realized gain from
investment transactions and
financial futures contracts | | | 370,256 | | | | 435,120 | | |
Net change in unrealized
appreciation (depreciation)
from investments and
financial futures contracts | | | 4,110,444 | | | | 1,284,947 | | |
| Net increase in net assets from operations | | $ | 10,274,673 | | | $ | 11,754,864 | | |
Distributions to shareholders —
From net investment income
Class A | | $ | (4,037,024 | ) | | $ | (6,615,915 | ) | |
| Class B | | | (302,657 | ) | | | (798,175 | ) | |
| Class C | | | (1,236,134 | ) | | | (2,566,759 | ) | |
| Total distributions to shareholders | | $ | (5,575,815 | ) | | $ | (9,980,849 | ) | |
Transactions in shares of beneficial interest —
Proceeds from sale of shares | |
| Class A | | $ | 89,369,427 | | | $ | 73,645,825 | | |
| Class B | | | 1,239,500 | | | | 2,975,642 | | |
| Class C | | | 10,724,745 | | | | 19,330,607 | | |
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A | | | 2,286,411 | | | | 3,903,927 | | |
| Class B | | | 187,933 | | | | 470,142 | | |
| Class C | | | 562,695 | | | | 1,154,523 | | |
Cost of shares redeemed
Class A | | | (38,949,284 | ) | | | (54,759,567 | ) | |
| Class B | | | (3,268,795 | ) | | | (5,719,091 | ) | |
| Class C | | | (14,451,504 | ) | | | (20,978,060 | ) | |
Net asset value of shares exchanged
Class A | | | 2,690,321 | | | | 4,473,296 | | |
| Class B | | | (2,690,321 | ) | | | (4,473,296 | ) | |
Net increase in net assets from
Fund share transactions | | $ | 47,701,128 | | | $ | 20,023,948 | | |
| Net increase in net assets | | $ | 52,399,986 | | | $ | 21,797,963 | | |
| Net Assets | |
| At beginning of period | | $ | 278,390,554 | | | $ | 256,592,591 | | |
| At end of period | | $ | 330,790,540 | | | $ | 278,390,554 | | |
Accumulated undistributed
(distributions in excess of)
net investment income
included in net assets | |
| At end of period | | $ | 119,813 | | | $ | (98,345 | ) | |
See notes to financial statements
10
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.290 | | | $ | 10.210 | | | $ | 10.400 | | | $ | 10.250 | | | $ | 9.860 | | | $ | 10.040 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.215 | | | $ | 0.411 | | | $ | 0.422 | | | $ | 0.437 | | | $ | 0.461 | | | $ | 0.485 | | |
| Net realized and unrealized gain (loss) | | | 0.153 | | | | 0.078 | | | | (0.187 | ) | | | 0.138 | | | | 0.395 | | | | (0.152 | ) | |
| Total income from operations | | $ | 0.368 | | | $ | 0.489 | | | $ | 0.235 | | | $ | 0.575 | | | $ | 0.856 | | | $ | 0.333 | | |
| Less distributions | |
| From net investment income | | $ | (0.208 | ) | | $ | (0.409 | ) | | $ | (0.425 | ) | | $ | (0.425 | ) | | $ | (0.466 | ) | | $ | (0.513 | ) | |
| Total distributions | | $ | (0.208 | ) | | $ | (0.409 | ) | | $ | (0.425 | ) | | $ | (0.425 | ) | | $ | (0.466 | ) | | $ | (0.513 | ) | |
| Net asset value — End of period | | $ | 10.450 | | | $ | 10.290 | | | $ | 10.210 | | | $ | 10.400 | | | $ | 10.250 | | | $ | 9.860 | | |
| Total Return(3) | | | 3.63 | % | | | 4.88 | % | | | 2.29 | % | | | 5.70 | % | | | 8.90 | % | | | 3.39 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 239,081 | | | $ | 180,401 | | | $ | 152,111 | | | $ | 130,466 | | | $ | 119,619 | | | $ | 83,647 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.78 | %(4) | | | 0.79 | % | | | 0.80 | %†(5) | | | 0.80 | %(5) | | | 0.82 | %(5) | | | 0.91 | %(5) | |
| Expenses after custodian fee reduction | | | 0.77 | %(4) | | | 0.78 | % | | | 0.79 | %†(5) | | | 0.80 | %(5) | | | 0.81 | %(5) | | | 0.88 | %(5) | |
| Net investment income | | | 4.15 | %(4) | | | 3.99 | % | | | 4.09 | %† | | | 4.22 | % | | | 4.54 | % | | | 4.85 | % | |
| Portfolio Turnover of the Portfolio | | | — | | | | — | | | | 14 | %(6) | | | 27 | %(6) | | | 24 | %(6) | | | 12 | %(6) | |
| Portfolio Turnover of the Fund | | | 30 | % | | | 48 | % | | | 19 | % | | | — | | | | — | | | | — | | |
† The operating expenses of the Fund reflect a reduction of the investment advisor fee. Had such actions not been taken, the ratios would have been the same.
(1) Net investment income per share was computed using the average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accouting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002, and increase the ratio of net investment income to average net assets from 4.83% to 4.85%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of the Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
11
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.290 | | | $ | 10.220 | | | $ | 10.410 | | | $ | 10.260 | | | $ | 9.860 | | | $ | 10.040 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.176 | | | $ | 0.335 | | | $ | 0.346 | | | $ | 0.360 | | | $ | 0.381 | | | $ | 0.409 | | |
| Net realized and unrealized gain (loss) | | | 0.153 | | | | 0.068 | | | | (0.191 | ) | | | 0.142 | | | | 0.405 | | | | (0.155 | ) | |
| Total income from operations | | $ | 0.329 | | | $ | 0.403 | | | $ | 0.155 | | | $ | 0.502 | | | $ | 0.786 | | | $ | 0.254 | | |
| Less distributions | |
| From net investment income | | $ | (0.169 | ) | | $ | (0.333 | ) | | $ | (0.345 | ) | | $ | (0.352 | ) | | $ | (0.386 | ) | | $ | (0.434 | ) | |
| Total distributions | | $ | (0.169 | ) | | $ | (0.333 | ) | | $ | (0.345 | ) | | $ | (0.352 | ) | | $ | (0.386 | ) | | $ | (0.434 | ) | |
| Net asset value — End of period | | $ | 10.450 | | | $ | 10.290 | | | $ | 10.220 | | | $ | 10.410 | | | $ | 10.260 | | | $ | 9.860 | | |
| Total Return(3) | | | 3.24 | % | | | 3.99 | % | | | 1.51 | % | | | 4.94 | % | | | 8.15 | % | | | 2.58 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 16,341 | | | $ | 20,610 | | | $ | 27,157 | | | $ | 33,731 | | | $ | 32,517 | | | $ | 10,638 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.53 | %(4) | | | 1.54 | % | | | 1.55 | %†(5) | | | 1.55 | %(5) | | | 1.57 | %(5) | | | 1.66 | %(5) | |
| Expenses after custodian fee reduction | | | 1.52 | %(4) | | | 1.53 | % | | | 1.54 | %†(5) | | | 1.55 | %(5) | | | 1.56 | %(5) | | | 1.63 | %(5) | |
| Net investment income | | | 3.40 | %(4) | | | 3.25 | % | | | 3.36 | %† | | | 3.48 | % | | | 3.75 | % | | | 4.09 | % | |
| Portfolio Turnover of the Portfolio | | | — | | | | — | | | | 14 | %(6) | | | 27 | %(6) | | | 24 | %(6) | | | 12 | %(6) | |
| Portfolio Turnover of the Fund | | | 30 | % | | | 48 | % | | | 19 | % | | | — | | | | — | | | | — | | |
† The operating expenses of the Fund reflect a reduction of the investment advisor fee. Had such actions not been taken, the ratios would have been the same.
(1) Net investment income per share was computed using the average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accouting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002, and increase the ratio of net investment income to average net assets from 4.07% to 4.09%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of the Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
12
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.640 | | | $ | 9.580 | | | $ | 9.750 | | | $ | 9.610 | | | $ | 9.240 | | | $ | 9.400 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.165 | | | $ | 0.313 | | | $ | 0.324 | | | $ | 0.335 | | | $ | 0.357 | | | $ | 0.379 | | |
| Net realized and unrealized gain (loss) | | | 0.144 | | | | 0.059 | | | | (0.171 | ) | | | 0.133 | | | | 0.379 | | | | (0.138 | ) | |
| Total income from operations | | $ | 0.309 | | | $ | 0.372 | | | $ | 0.153 | | | $ | 0.468 | | | $ | 0.736 | | | $ | 0.241 | | |
| Less distributions | |
| From net investment income | | $ | (0.159 | ) | | $ | (0.312 | ) | | $ | (0.323 | ) | | $ | (0.328 | ) | | $ | (0.366 | ) | | $ | (0.401 | ) | |
| Total distributions | | $ | (0.159 | ) | | $ | (0.312 | ) | | $ | (0.323 | ) | | $ | (0.328 | ) | | $ | (0.366 | ) | | $ | (0.401 | ) | |
| Net asset value — End of period | | $ | 9.790 | | | $ | 9.640 | | | $ | 9.580 | | | $ | 9.750 | | | $ | 9.610 | | | $ | 9.240 | | |
| Total Return(3) | | | 3.24 | % | | | 3.93 | % | | | 1.51 | %(4) | | | 4.93 | % | | | 8.12 | % | | | 2.58 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 75,369 | | | $ | 77,379 | | | $ | 77,325 | | | $ | 67,073 | | | $ | 46,629 | | | $ | 19,488 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.53 | %(5) | | | 1.54 | % | | | 1.55 | %†(6) | | | 1.55 | %(6) | | | 1.57 | %(6) | | | 1.66 | %(6) | |
| Expenses after custodian fee reduction | | | 1.52 | %(5) | | | 1.53 | % | | | 1.54 | %†(6) | | | 1.55 | %(6) | | | 1.56 | %(6) | | | 1.63 | %(6) | |
| Net investment income | | | 3.41 | %(5) | | | 3.25 | % | | | 3.35 | %† | | | 3.45 | % | | | 3.75 | % | | | 4.05 | % | |
| Portfolio Turnover of the Portfolio | | | — | | | | — | | | | 14 | %(7) | | | 27 | %(7) | | | 24 | %(7) | | | 12 | %(7) | |
| Portfolio Turnover of the Fund | | | 30 | % | | | 48 | % | | | 19 | % | | | — | | | | — | | | | — | | |
† The operating expenses of the Fund reflect a reduction of the investment advisor fee. Had such actions not been taken, the ratios would have been the same.
(1) Net investment income per share was computed using the average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accouting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002, and increase the ratio of net investment income to average net assets from 4.03% to 4.05%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Total return reflects a decrease of 0.07% due to a change in the timing of the payment and reinvestment of distributions.
(5) Annualized.
(6) Includes the Fund's share of the Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(7) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
13
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
Eaton Vance National Limited Maturity Municipals Fund (the Fund) is a diversified series of Eaton Vance Investment Trust (the Trust). The Trust is an entity of the type commonly known as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Fund seeks to provide a high level of current income exempt from regular federal income tax and limited principal fluctuations by investing primarily in investment grade municipal obligations. The Fund offers three classes of shares: Class A, Class B and Class C shares. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class B and Class C shares are sold at net asset value and are subject to a contingent deferred sales charge (see Note 6). Class B shares held longer than (i) four years or (ii) the time at which the contingent deferred sales charge applicabl e to such shares expires will automatically convert to Class A shares. In addition, Class B shares acquired through the reinvestment of distributions will also convert to Class A shares in proportion to shares not acquired through reinvestment. Each class represents a pro rata interest in the Fund, but votes separately on class-specific matters and (as noted below) is subject to different expenses. Realized and unrealized gains or losses are allocated daily to each class of shares based on the relative net assets of each class to the total net assets of the Fund. Net investment income, other than class specific expenses, is allocated daily to each class of shares based upon the ratio of the value of paid shares of each class 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 consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuation — Municipal bonds and taxable obligations, if any, are normally valued on the basis of valuations furnished by a pricing service. Financial futures contracts and options on financial future contracts listed on the commodity exchanges are valued at closing settlement prices. Over-the-counter options on futures contracts are normally valued at the mean between the latest bid and asked price. Interest rate swaps are normally valued on the basis of valuations furnished by a pricing service. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates value. Investments for which valuations or market quotations are unavailable, and investments for which the price of the security is not believed to represent its fair market value are valued at fair value using methods determined in good faith by or at the direction of the Trustees.
B Income — Interest income is determined on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
C 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.
D Federal Taxes — The Fund's policy is to comply with the provisions of the Internal Revenue Code applicable to regulated investment companies and to distribute to shareholders each year all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. At March 31, 2006, the Fund, for federal income tax purposes, had a capital loss carryover of $3,239,908 which will reduce taxable income arising from future net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code and thus will reduce the amount of distributions to shareholders which would otherwise be necessar y to relieve the Fund of any liability for federal income or excise tax. Such capital loss carryover will expire as follows on: March 31, 2011, $1,047,498, March 31, 2012, $779,785, March 31, 2013, $1,412,625. Dividends paid by the Fund from net tax-exempt interest on municipal bonds are not includable by shareholders as gross income for federal income tax purposes because the Fund intends to meet certain requirements of the Internal Revenue Code applicable to regulated Investment companies which will enable the Fund to pay exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
E Financial Futures Contracts — Upon the entering of a financial futures contract, the Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract.
14
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
Subsequent payments are made or received by the Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by the Fund. The Fund's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, the Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.
F Options on Financial Futures Contracts — Upon the purchase of a put option on a financial futures contract by the Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, the Fund will realize a loss in the amount of the cost of the option. When the Fund enters into a closing sale transaction, the Fund will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When the Fund exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid.
G When-issued and Delayed Transactions — The Fund may engage in when-issued and delayed delivery transactions. The Fund records when-issued securities on trade date and maintains security positions such that sufficient liquid assets will be available to make payments for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on settlement date.
H Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirements 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.
I Expense Reduction — Investors Bank & Trust Company (IBT) serves as custodian of the Fund. Pursuant to the custodian agreement, IBT receives a fee reduced by credits which are determined based on the average daily cash balance the Fund maintains with IBT. All credit balances used to reduce the Fund's custodian fees are reported as a reduction of total expenses on the Statement of Operations.
J 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.
K 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 Fund, and shareholders are indemnified against personal liability for obligations of the Trust. Additionally, in the normal course of business, the Fund enters into agreements with service providers that may contain indemnification clauses. The Fund's maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Fund that have not yet occurred.
L Other — Investment transactions are accounted for on a trade-date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.
M Interim Financial Statements — The interim financial statements relating to September 30, 2006 and for the six months then ended have not been audited by an Independent Registered Public Accounting Firm, but in the opinion of the Fund's management reflect all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
The net income of the Fund is determined daily and substantially all of the net income so determined is declared as a dividend to shareholders of record at the time of declaration. Dividends are declared separately for each class of shares. Distributions are paid monthly. Distributions of realized gains, if any, are made at least annually. Shareholders may reinvest income and capital gain distributions in additional shares of the same class of the Fund at the net asset value as of the reinvestment date. Distributions are paid in the form of additional shares of the same class or, at the election of the shareholder, in cash. The Fund distinguishes between distributions on a tax basis and a financial reporting
15
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
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. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital. The tax treatment of distributions for the calendar year will be reported to shareholders prior to February 1, 2007 and will be based on tax accounting methods which may differ from amounts determined for financial statement purposes.
3 Shares of Beneficial Interest
The Fund's Declaration of Trust permits the Trustees to issue an unlimited number of full and fractional shares of beneficial interest (without par value). Such shares may be issued in a number of different series (such as the Fund) and classes. Transactions in shares were as follows:
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 8,642,933 | | | | 7,156,285 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 221,637 | | | | 379,472 | | |
| Redemptions | | | (3,776,106 | ) | | | (5,327,434 | ) | |
| Exchange from Class B shares | | | 261,002 | | | | 434,033 | | |
| Net increase | | | 5,349,466 | | | | 2,642,356 | | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 119,935 | | | | 288,651 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 18,215 | | | | 45,652 | | |
| Redemptions | | | (316,356 | ) | | | (556,574 | ) | |
| Exchange to Class A shares | | | (260,738 | ) | | | (432,572 | ) | |
| Net decrease | | | (438,944 | ) | | | (654,843 | ) | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 1,107,689 | | | | 2,002,769 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 58,197 | | | | 119,690 | | |
| Redemptions | | | (1,493,915 | ) | | | (2,174,339 | ) | |
| Net decrease | | | (328,029 | ) | | | (51,880 | ) | |
4 Investment Adviser Fee and Other Transactions with Affiliates
The investment adviser fee is earned by Boston Management and Research (BMR), a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for management and investment advisory services rendered to the 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). For the six months ended September 30, 2006 the advisory fee amounted to $659,101 representing 0.45% of the Fund's average daily net assets. Except as to Trustees of the Fund who are not members of EVM's or BMR's organization, officers and Trustees receive remuneration for their services to the Fund out of such investment adviser fee. EVM serves as the sub-transfer agent of the Fund and receives from the transfer agent an aggregate fee based upon the actual expenses incurred by EVM in the performance of those activities. For the six months ended September 30, 2006, EVM received $4,072 in sub-transfer agent fees. The Fund was informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal underwriter, received approximately $20,000 as its portion of the sales charge on sales of Class A shares for the six months ended September 30, 2006.
Trustees of the Fund that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended September 30, 2006, no significant amounts have been deferred.
Certain officers and Trustees of the Fund are officers of the above organizations.
16
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
5 Distribution Plans
Class A has in effect a distribution plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (Class A Plan). The Class A Plan provides that the Fund will pay EVD a distribution and service fee not exceeding 0.25% of the Fund's average daily net assets attributable to Class A shares for each fiscal year for distribution services and facilities provided to the 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% annually of the Fund's net asset value attributable to Class A each fiscal year. Distribution and service fees paid or accrued for the six months ended September 30, 2006 amounted to $151,063 for Class A shares. The 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. The Class B and Class C Plans require the Fund t o pay EVD amounts equal to 1/365 of 0.75% (annualized) of the Fund's average daily net assets attributable to Class B and Class C shares for providing ongoing distribution services and facilities to the Fund. The Fund will automatically discontinue payments to EVD during any period in which there are no outstanding Uncovered Distribution Charges, which are equivalent to the sum of (i) 3% and 6.25% of the aggregate amount received by the Fund for the 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 6) and daily amounts theretofore paid to EVD by each respective class. The fund paid or accrued $69,409 and $283,961 for Class B and Class C shares, respectively, to or payable to EVD for the six months ended September 30, 2006, representing 0.75% (annualized) of the average daily net assets for Class B and Class C shares. At September 30, 2006, the amount of Uncovered Distribution Charges of EVD calculated under the Plans was approximately $1,287,000 and $13,077,000 for Class B and Class C shares, respectively.
The Class B and Class C Plans also authorize the Fund to make payments of service fees to EVD, investment dealers and other persons in amounts not exceeding 0.25% annually of the average daily net assets attributable to that Class. The Trustees approved service fee payments equal to 0.15% annually of the Fund's net asset value attributable to Class B and Class C each fiscal year. Service fees are paid 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 to EVD. Service fees paid or accrued for the six months ended September 30, 2006 amounted to $13,882 and $56,792 for Class B and Class C shares, respectively
6 Contingent Deferred Sales Charge
A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B shares made within four years of purchase and on redemptions of Class C shares made within one year of purchase. Class A shares may be subject to a 1% CDSC, if redeemed within eighteen months of purchase (depending upon the circumstances of purchase) or a 1% or 0.50% CDSC if redeemed within one year or two years, respectively, on purchases through the Eaton Vance Supplemental Retirement Account. Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on Class B and Class C shares acquired by reinvestment of dividends or capital gains distributions. The CDSC for Class B shares is imposed at declining rates that begin at 3% in the case of redemptions in the first year of purchase. Class C shares are subject to a 1% CDSC if redeemed within one year of purchase. No CDSC is levied on shares which have been sold to EVM or its affiliates or to their respective employees or clients and may be waived under certain other limited conditions. CDSC charges are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under the Fund's Distribution Plan (see Note 5). CDSC charges received when no Uncovered Distribution Charges exist will be credited to the Fund. EVD received approximately $22,000, $28,000 and $8,000 of CDSC paid by shareholders for Class A shares, Class B shares and Class C shares, respectively, for the six months ended September 30, 2006.
7 Investment Transactions
Purchases and sales of investments by the Fund, other than U.S. Government securities and short-term obligations, aggregated $132,659,826, and $86,996,958, respectively, for the six months ended September 30, 2006.
17
Eaton Vance National Limited Maturity Municipals Fund as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
8 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
The cost and unrealized appreciation (depreciation) in value of the investments owned at September 30, 2006, as determined on a federal income tax basis, were as follows:
| Aggregate cost | | $ | 326,302,032 | | |
| Gross unrealized appreciation | | $ | 13,991,253 | | |
| Gross unrealized depreciation | | | (196,004 | ) | |
| Net unrealized appreciation | | $ | 13,795,249 | | |
9 Line of Credit
The Fund participates with other portfolios and funds managed by BMR and EVM and their affiliates in a $150 million unsecured line of credit agreement with a group of banks. Borrowings will be made by the Fund solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participating portfolio or fund based on its borrowings at an amount above either the Eurodollar rate or federal funds rate. In addition, a fee computed at an annual rate of 0.10% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. The Fund did not have any significant borrowings or allocated fees during the six months ended September 30, 2006.
10 Financial Instruments
The Fund may trade in financial instruments with off-balance sheet risk in the normal course of its investing activities to assist in managing exposure to various market risks. These financial instruments include written options and futures contracts and may involve, to a varying degree, elements of risk in excess of the amounts recognized for financial statement purposes. The notional or contractual amounts of these instruments represent the investment the Fund has in particular classes of financial instruments and does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments as of September 30, 2006, is as follows:
Futures Contracts
Expiration
Date(s) | | Contracts | | Position | | Aggregate
Cost | | Value | | Net Unrealized
Depreciation | |
| 12/06 | | 375 U.S. Treasury Bond | | Short | | $ | (41,415,594 | ) | | $ | (42,152,344 | ) | | $ | (736,750 | ) | |
| 12/06 | | 189 U.S. Treasury Note | | Short | | | (20,178,000 | ) | | | (20,423,813 | ) | | | (245,813 | ) | |
| | | $ | (982,563 | ) | |
At September 30, 2006, the Fund had sufficient cash and/or securities to cover margin requirements on open future contracts.
11 Recently Issued Accounting Pronouncements
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, ("FIN 48") "Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. Management is currently evaluating the impact of applying the various provisions of FIN 48.
In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.
18
Eaton Vance National Limited Maturity Municipals Fund
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT
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 March 27, 2006, 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 Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February and March 2006. 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 managed by it;
Information about Portfolio Management
• Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed;
• 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 the 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;
• 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;
19
Eaton Vance National Limited Maturity Municipals Fund
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D
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;
• 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 Special 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 March 31, 2006, the Board met nine times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met eight, twelve and five 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 such sub-advisory agreement.
The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special 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 Special 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 Special Committee concluded that the continuance of the investment advisory agreement of the 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 Special Committee recommended to the Board approval of the agreement. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to the agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the 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. 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 particular foreign markets or industries. Specifically, the Board considered the Adviser's 30-person municipal bond team, which includes six portfolio managers and nine credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain investment pers onnel, and the time and attention devoted to each Fund in the complex by senior management.
The Board 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 National Association of Securities Dealers.
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
20
Eaton Vance National Limited Maturity Municipals Fund
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D
of a large family of funds, including the ability, in many cases, to exchange an investment among different funds without incurring additional sales charges.
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- and five-year periods ended September 30, 2005 for the Fund. On the basis of the foregoing and other relevant information, the Board concluded that the performance of the Fund is satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates payable by the Fund (referred to as "management fees").
As part of its review, the Board considered the Fund's management fee and total expense ratio for the one-year period ended September 30, 2005, 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 fee charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and, if applicable, its affiliates 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 in connection with its 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, 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 Adviser's profitability 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 the Fund. The Board also conclude d that, assuming reasonably foreseeable increases in the assets of the Fund, the structure of the 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.
21
Eaton Vance National Limited Maturity Municipals Fund
INVESTMENT MANAGEMENT
Eaton Vance National Limited Maturity Municipals Fund
Officers
Cynthia J. Clemson
President
William H. Ahern, Jr.
Vice President and
Portfolio Manager
Craig R. Brandon
Vice President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer | | Trustees
Samuel L. Hayes, III
Chairman
Benjamin C. Esty
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
Ralph F. Verni | |
|
22
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Investment Adviser of Eaton Vance National Limited Maturity Municipals Fund
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
Administrator of Eaton Vance National Limited Maturity Municipals Fund
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
Principal Underwriter
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
PFPC Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Eaton Vance National Limited Maturity Municipals Fund
The Eaton Vance Building
255 State Street
Boston, MA 02109
This report must be preceded or accompanied by a current prospectus. Before investing, investors should consider carefully the Fund's investment objective(s), risks, and charges and expenses. The Fund's current prospectus contains this and other information about the Fund and is available through your financial advisor. Please read the prospectus carefully before you invest or send money. For further information please call 1-800-225-6265.
439-11/06 LNASRC
Semiannual Report September 30, 2006
EATON VANCE LIMITED MATURITY MUNICIPALS FUNDS
California
Florida
Massachusetts
New Jersey
New York
Ohio
Pennsylvania
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 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 only applies 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 (if applicable) will file a schedule of its 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 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.
ps
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
TABLE OF CONTENTS
Investment Update | 2 |
| |
Fund Performance and Portfolio Composition | |
| |
California | 3 |
Florida | 4 |
Massachusetts | 5 |
New Jersey | 6 |
New York | 7 |
Ohio | 8 |
Pennsylvania | 9 |
| |
Fund Expenses | 10 |
| |
Financial Statements | 14 |
| |
Board of Trustees’ Annual Approval of the Investment Advisory Agreements | 74 |
| |
Management and Organization | 76 |
1
INVESTMENT UPDATE
Eaton Vance Limited Maturity Municipals Funds (the “Funds”) are designed to provide a high level of current income exempt from regular federal income tax and from particular state or local income or other taxes. The Funds also seek to provide limited principal fluctuation.
Economic and Market Conditions
Third quarter economic growth slowed to 1.6%, following the 2.6% rate achieved in the second quarter. With higher mortgage rates in the market, led largely by the persistent Federal Reserve (the “Fed”) tightening, the housing market continued to soften, with building permits and existing home sales leading the way. However, energy prices declined significantly in the quarter, somewhat offsetting the impact of a weakening housing market. The economy continued to create jobs over the period, with the unemployment rate standing at 4.6% as of September 30, 2006.
Inflation expectations moderated with the lower energy prices, although the core Consumer Price Index – measured on a year-over-year basis – has demonstrated a slow but steady rise. The Fed, which raised short-term rates 17 times since June 2004, is currently in a pausing mode, awaiting further economic inputs to determine the future direction of interest rate moves. At September 30, 2006, the Federal Funds rate stood at 5.25%.
Municipal market supply for the first half of the year was lower than that experienced in 2005. As a result, municipals have generally outperformed Treasury bonds for the year ended September 30, 2006, as demand has remained strong. At September 30, 2006, long-term AAA-rated, insured municipal bonds yielded 90% of U.S. Treasury bonds with similar maturities.*
For the six-months ended September 30, 2006, the Lehman Brothers 7-Year Municipal Bond Index† (the “Index”), a broad-based, unmanaged index of investment-grade municipal debt securities with an average maturity of 7 years, posted a gain of 3.39%. For more information about the Funds’ performance and that of funds in the same Lipper Classifications,† see the Performance Information and Portfolio Composition pages that follow.
Management Discussion
The Funds currently invest primarily in intermediate-maturity municipal bonds, seeking to maintain a weighted average duration of between three and nine years (duration is a measure of interest-rate sensitivity; the shorter a bond’s duration, the less sensitive its price will be to changes in market interest rates). Shorter maturity bonds usually provide somewhat less tax-exempt income than longer ones but also usually exhibit lower price volatility. Given the flattening of the yield curve for other fixed-income securities over the past 18 months, the intermediate part of the curve has become an attractive area.
Because of the mixed economic backdrop of contained inflation expectations, a weakened housing market and continued growth in the labor market, Fund management continued to maintain a somewhat cautious outlook on interest rates. In this environment, Fund management continued to focus on finding relative value within the marketplace – in issuer names, coupons, maturities and sectors. Relative value trading, which seeks to capitalize on undervalued securities, has enhanced the Funds’ returns during the period.
* | Source: Bloomberg L.P. Yields are a compilation of a representative variety of general obligations and are not necessarily representative of a Fund’s yield. |
† | It is not possible to invest directly in an Index or 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. |
| Past performance is no guarantee of future results. |
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.
2
Eaton Vance California Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 2.75 | % | 2.36 | % | 2.39 | % |
One Year | | 4.70 | | 3.92 | | 3.95 | |
Five Years | | 3.88 | | 3.05 | | N.A. | |
Ten Years | | 4.59 | | 3.80 | | N.A. | |
Life of Fund† | | 4.66 | | 4.04 | | 3.30 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 0.42 | % | -0.64 | % | 1.39 | % |
One Year | | 2.33 | | 0.92 | | 2.95 | |
Five Years | | 3.40 | | 3.05 | | N.A. | |
Ten Years | | 4.35 | | 3.80 | | N.A. | |
Life of Fund† | | 4.43 | | 4.04 | | 3.30 | |
† | Inception Dates - Class A: 6/27/96; Class B: 5/29/92; Class C: 3/23/05 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper California Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.94 | % |
One Year | | 3.50 | |
Five Years | | 3.60 | |
Ten Years | | 4.60 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.65 | % | 2.90 | % | 2.90 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 6.19 | | 4.92 | | 4.92 | |
SEC 30-day Yield(6) | | 2.97 | | 2.29 | | 2.28 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 5.04 | | 3.88 | | 3.87 | |
Portfolio Manager: Cynthia J. Clemson
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 65 |
· Average Maturity: | | 12.0 years |
· Effective Maturity: | | 7.5 years |
· Average Rating: | | AA |
· Average Call: | | 7.1 years |
· Average Price: | | $102.99 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 California Intermediate Municipal Debt Funds Classification contained 51, 48, 30 and 16 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 41.05% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
3
Eaton Vance Florida Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 2.70 | % | 2.31 | % | 2.36 | % |
One Year | | 4.10 | | 3.30 | | 3.33 | |
Five Years | | 4.05 | | 3.28 | | 3.29 | |
Ten Years | | 4.47 | | 3.70 | | 3.67 | |
Life of Fund† | | 4.52 | | 4.01 | | 3.38 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 0.35 | % | -0.69 | % | 1.36 | % |
One Year | | 1.73 | | 0.30 | | 2.33 | |
Five Years | | 3.57 | | 3.28 | | 3.29 | |
Ten Years | | 4.23 | | 3.70 | | 3.67 | |
Life of Fund† | | 4.29 | | 4.01 | | 3.38 | |
† | Inception Dates - Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Florida Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.63 | % |
One Year | | 3.07 | |
Five Years | | 3.48 | |
Ten Years | | 4.35 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.73 | % | 2.99 | % | 2.99 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 5.74 | | 4.60 | | 4.60 | |
SEC 30-day Yield(6) | | 3.09 | | 2.41 | | 2.41 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 4.75 | | 3.71 | | 3.71 | |
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 64 |
· Average Maturity: | | 10.9 years |
· Effective Maturity: | | 7.2 years |
· Average Rating: | | AA+ |
· Average Call: | | 6.9 years |
· Average Price: | | $103.98 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 Florida Intermediate Municipal Debt Funds Classification contained 14, 14, 10 and 8 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 35.00% federal income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
4
Eaton Vance Massachusetts Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.18 | % | 2.69 | % | 2.74 | % |
One Year | | 3.99 | | 3.19 | | 3.31 | |
Five Years | | 3.85 | | 3.04 | | 3.07 | |
Ten Years | | 4.41 | | 3.60 | | 3.61 | |
Life of Fund† | | 4.49 | | 3.91 | | 3.41 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 0.89 | % | -0.31 | % | 1.74 | % |
One Year | | 1.60 | | 0.19 | | 2.31 | |
Five Years | | 3.37 | | 3.04 | | 3.07 | |
Ten Years | | 4.17 | | 3.60 | | 3.61 | |
Life of Fund† | | 4.26 | | 3.91 | | 3.41 | |
† | Inception Dates – Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Massachusetts Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.95 | % |
One Year | | 3.22 | |
Five Years | | 3.52 | |
Ten Years | | 4.32 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.66 | % | 2.91 | % | 2.92 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 5.95 | | 4.73 | | 4.74 | |
SEC 30-day Yield(6) | | 2.98 | | 2.31 | | 2.30 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 4.84 | | 3.75 | | 3.74 | |
Portfolio Manager: William H. Ahern, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 69 |
· Average Maturity: | | 10.1 years |
· Effective Maturity: | | 7.4 years |
· Average Rating: | | AA+ |
· Average Call: | | 7.3 years |
· Average Price: | | $108.39 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 Massachusetts Intermediate Municipal Debt Funds Classification contained 14, 14, 11 and 8 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) The Fund’s distribution rate represents actual distributions paid to shareholders and is calculated by dividing the last distribution per share (annual-ized) by the net asset value. (5) Taxable-equivalent figure assumes a maximum 38.45% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
5
Eaton Vance New Jersey Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.38 | % | 3.10 | % | N.A. | |
One Year | | 5.04 | | 4.36 | | N.A. | |
Five Years | | 3.98 | | 3.19 | | N.A. | |
Ten Years | | 4.44 | | 3.65 | | N.A. | |
Life of Fund† | | 4.54 | | 3.96 | | 1.86 | % |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 1.08 | % | 0.10 | % | N.A. | |
One Year | | 2.70 | | 1.36 | | N.A. | |
Five Years | | 3.52 | | 3.19 | | N.A. | |
Ten Years | | 4.21 | | 3.65 | | N.A. | |
Life of Fund† | | 4.31 | | 3.96 | | 0.86 | % |
† | Inception date: Class A: 6/27/96; Class B: 6/1/92; Class C 8/1/06 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Other States Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.81 | % |
One Year | | 3.07 | |
Five Years | | 3.59 | |
Ten Years | | 4.37 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.65 | % | 2.91 | % | 2.91 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 6.17 | | 4.92 | | 4.92 | |
SEC 30-day Yield(6) | | 3.09 | | 2.41 | | 2.64 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 5.22 | | 4.07 | | 4.46 | |
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 55 |
· Average Maturity: | | 10.5 years |
· Effective Maturity: | | 8.3 years |
· Average Rating: | | AA |
· Average Call: | | 8.1 years |
· Average Price: | | $107.27 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 Other States Intermediate Municipal Debt Funds Classification contained 120, 120, 95 and 66 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 40.83% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
6
Eaton Vance New York Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.36 | % | 2.97 | % | 3.04 | % |
One Year | | 4.47 | | 3.58 | | 3.71 | |
Five Years | | 4.04 | | 3.24 | | 3.27 | |
Ten Years | | 4.79 | | 4.00 | | 3.99 | |
Life of Fund† | | 4.85 | | 4.20 | | 3.65 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 1.04 | % | -0.03 | % | 2.04 | % |
One Year | | 2.15 | | 0.58 | | 2.71 | |
Five Years | | 3.57 | | 3.24 | | 3.27 | |
Ten Years | | 4.56 | | 4.00 | | 3.99 | |
Life of Fund† | | 4.62 | | 4.20 | | 3.65 | |
| | | | | | | | | | | | | |
† | Inception Dates - Class A: 6/27/96; Class B: 5/29/92; Class C: 12/8/93 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper New York Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.76 | % |
One Year | | 3.09 | |
Five Years | | 3.67 | |
Ten Years | | 4.68 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.70 | % | 2.96 | % | 2.95 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 6.17 | | 4.93 | | 4.92 | |
SEC 30-day Yield(6) | | 3.13 | | 2.46 | | 2.46 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 5.22 | | 4.10 | | 4.10 | |
Portfolio Manager: William H. Ahern, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 88 |
· Average Maturity: | | 11.6 years |
· Effective Maturity: | | 7.7 years |
· Average Rating: | | AA+ |
· Average Call: | | 7.5 years |
· Average Price: | | $108.14 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 New York Intermediate Municipal Debt Funds Classification contained 42, 39, 23 and 15 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 40.01% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
7
Eaton Vance Ohio Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.02 | % | 2.63 | % | N.A. | |
One Year | | 3.52 | | 2.85 | | N.A. | |
Five Years | | 3.65 | | 2.87 | | N.A. | |
Ten Years | | N.A. | | 3.37 | | N.A. | |
Life of Fund† | | 4.12 | | 3.47 | | 1.51 | % |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 0.71 | % | -0.37 | % | N.A. | |
One Year | | 1.24 | | -0.15 | | N.A. | |
Five Years | | 3.17 | | 2.87 | | N.A. | |
Ten Years | | N.A. | | 3.37 | | N.A. | |
Life of Fund† | | 3.88 | | 3.47 | | 0.51 | % |
† | Inception date: Class A: 10/22/96; Class B: 4/16/93; Class: C 8/1/06 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Ohio Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.57 | % |
One Year | | 2.72 | |
Five Years | | 3.10 | |
Ten Years | | 4.03 | |
Distribution Rates/Yields(4)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.60 | % | 2.85 | % | 2.85 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 5.99 | | 4.74 | | 4.74 | |
SEC 30-day Yield(6) | | 2.85 | | 2.15 | | 2.44 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 4.74 | | 3.58 | | 4.06 | |
Portfolio Manager: William H. Ahern, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 47 |
· Average Maturity: | | 9.5 years |
· Effective Maturity: | | 7.0 years |
· Average Rating: | | AA+ |
· Average Call: | | 7.0 years |
· Average Price: | | $106.19 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 Ohio Intermediate Municipal Debt Funds Classification contained 18, 18, 14 and 10 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 39.88% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
8
Eaton Vance Pennsylvania Limited Maturity Municipals Fund as of September 30, 2006
PERFORMANCE INFORMATION AND PORTFOLIO COMPOSITION
Performance(1)
| | Class A | | Class B | | Class C | |
| | | | | | | |
Average Annual Total Returns (at net asset value) | | | | | | | |
Six Months | | 3.24 | % | 2.85 | % | 2.82 | % |
One Year | | 4.74 | | 3.95 | | 4.00 | |
Five Years | | 4.27 | | 3.48 | | 3.49 | |
Ten Years | | 4.65 | | 3.86 | | 3.83 | |
Life of Fund† | | 4.73 | | 4.16 | | 3.57 | |
| | | | | | | |
SEC Average Annual Total Returns (including sales charge or applicable CDSC) | | | | | | | |
Six Months | | 0.88 | % | -0.15 | % | 1.82 | % |
One Year | | 2.35 | | 0.95 | | 3.00 | |
Five Years | | 3.79 | | 3.48 | | 3.49 | |
Ten Years | | 4.41 | | 3.86 | | 3.83 | |
Life of Fund† | | 4.49 | | 4.16 | | 3.57 | |
† | Inception Dates – Class A: 6/27/96; Class B: 6/1/92; Class C: 12/8/93 |
| |
(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 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 returns for Class C reflect a 1% CDSC for the first year. |
Index Performance(2)
Lehman Brothers 7-Year Municipal Bond Index Average Annual Total Returns | | | |
Six Months | | 3.39 | % |
One Year | | 3.81 | |
Five Years | | 4.55 | |
Ten Years | | 5.40 | |
Lipper Averages(3)
Lipper Pennsylvania Intermediate Municipal Debt Funds Classification Average Annual Total Returns | | | |
Six Months | | 2.84 | % |
One Year | | 3.42 | |
Five Years | | 3.65 | |
Ten Years | | 4.46 | |
Distribution Rates/Yields
| | Class A | | Class B | | Class C | |
| | | | | | | |
Distribution Rate(4) | | 3.78 | % | 3.04 | % | 3.04 | % |
Taxable-Equivalent Distribution Rate(4),(5) | | 6.00 | | 4.83 | | 4.83 | |
SEC 30-day Yield(6) | | 3.13 | | 2.46 | | 2.46 | |
Taxable-Equivalent SEC 30-day Yield(5),(6) | | 4.97 | | 3.90 | | 3.90 | |
Portfolio Manager: Craig R. Brandon, CFA
Rating Distribution(7),(8)
By total investments
Fund Statistics(8)
· Number of Issues: | | 54 |
· Average Maturity: | | 11.7 years |
· Effective Maturity: | | 7.3 years |
· Average Rating: | | AA+ |
· Average Call: | | 7.2 years |
· Average Price: | | $102.70 |
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. For performance as of the most recent month end, please refer to www.eatonvance.com.
(2) 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. (3) The Lipper Averages are the average total returns 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 Pennsylvania Intermediate Municipal Debt Funds Classification contained 14, 14, 14 and 8 funds for the 6-month, 1-year, 5-year and 10-year time periods, respectively. Lipper Averages are available as of month end only. (4) 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. (5) Taxable-equivalent figure assumes a maximum 37.00% combined federal and state income tax rate. A lower tax rate would result in lower tax-equivalent figures. (6) 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. (7) As of 9/30/06. Rating Distribution is determined by dividing the total market value of the issues by the total investments of the Fund. (8) Portfolio information may not be representative of the Fund’s current or future investments and may change due to active management.
9
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FUND EXPENSES
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 (April 1, 2006 – September 30, 2006).
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 Fund's actual 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 have been higher.
Eaton Vance California Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,027.50 | | | $ | 4.47 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,023.60 | | | $ | 8.27 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,023.90 | | | $ | 8.27 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.46 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.88% for Class A shares, 1.63% for Class B shares and 1.63% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2006.
10
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FUND EXPENSES CONT'D
Eaton Vance Florida Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,027.00 | | | $ | 4.42 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,023.10 | | | $ | 8.22 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,023.60 | | | $ | 8.22 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.41 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.19 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.19 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.87% for Class A shares, 1.62% for Class B shares and 1.62% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (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 March 31, 2006.
Eaton Vance Massachusetts Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,031.80 | | | $ | 4.13 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,026.90 | | | $ | 7.98 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,027.40 | | | $ | 7.98 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,021.00 | | | $ | 4.10 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,017.20 | | | $ | 7.94 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,017.20 | | | $ | 7.94 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.81% for Class A shares, 1.57% for Class B shares and 1.57% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 ( 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 March 31, 2006.
11
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FUND EXPENSES CONT'D
Eaton Vance New Jersey Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual* | |
| Class A | | $ | 1,000.00 | | | $ | 1,033.80 | | | $ | 4.49 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,031.00 | | | $ | 8.30 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,018.60 | | | $ | 2.75 | | |
* Class C shares had not commenced operations as of April 1, 2006. Actual expenses are equal to the Fund's annualized expense ratio of 0.88% for Class A shares, 1.63% for Class B shares, and 1.63% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period; 61/365 for Class C to reflect the period from commencement of operations on August 1, 2006 to September 30, 2006). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2006 (July 31, 2006 for Class C).
| Hypothetical** | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.46 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
** Hypothetical expenses are equal to the Fund's annualized expense ratio of 0.88% for Class A shares, 1.63% for Class B shares, and 1.63% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the asset value per share determined at the close of business on March 31, 2006.
12
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FUND EXPENSES CONT'D
Eaton Vance New York Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,033.60 | | | $ | 4.13 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,029.70 | | | $ | 7.94 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,030.40 | | | $ | 7.94 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,021.00 | | | $ | 4.10 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,017.20 | | | $ | 7.89 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,017.20 | | | $ | 7.89 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.81% for Class A shares, 1.56% for Class B shares and 1.56% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (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 March 31, 2006.
Eaton Vance Ohio Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual* | |
| Class A | | $ | 1,000.00 | | | $ | 1,030.20 | | | $ | 4.99 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,026.30 | | | $ | 8.79 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.20 | | | $ | 2.86 | | |
* Class C shares had not commenced operations as of April 1, 2006. Actual expenses are equal to the Fund's annualized expense ratio of 0.98% for Class A shares, 1.73% for Class B shares, and 1.70% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half-year period; 61/365 for Class C to reflect the period from commencement of operations on August 1, 2006 to September 30, 2006). The example assumes that the $1,000 was invested at the net asset value per share determined at the close of business on March 31, 2006 (July 31, 2006 for Class C).
| Hypothetical** | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.20 | | | $ | 4.96 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,016.40 | | | $ | 8.74 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.55 | | | $ | 8.59 | | |
** Hypothetical expenses are equal to the Fund's annualized expense ratio of 0.98% for Class A shares, 1.73% for Class B shares, and 1.70% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (to reflect the one-half year period). The Example assumes that the $1,000 was invested at the asset value per share determined at the close of business on March 31, 2006.
13
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FUND EXPENSES CONT'D
Eaton Vance Pennsylvania Limited Maturity Municipals Fund
| | | Beginning Account Value
(4/1/06) | | Ending Account Value
(9/30/06) | | Expenses Paid During Period*
(4/1/06 – 9/30/06) | |
| Actual | |
| Class A | | $ | 1,000.00 | | | $ | 1,032.40 | | | $ | 4.48 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,028.50 | | | $ | 8.29 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,028.20 | | | $ | 8.29 | | |
| Hypothetical | |
| (5% return per year before expenses) | |
| Class A | | $ | 1,000.00 | | | $ | 1,020.70 | | | $ | 4.46 | | |
| Class B | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
| Class C | | $ | 1,000.00 | | | $ | 1,016.90 | | | $ | 8.24 | | |
* Expenses are equal to the Fund's annualized expense ratio of 0.88% for Class A shares, 1.63% for Class B shares and 1.63% for Class C shares, multiplied by the average account value over the period, multiplied by 183/365 (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 March 31, 2006.
14
Eaton Vance California Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 94.8% | | | |
Principal Amount
(000's omitted) | | Security | | Value | |
| Escrowed / Prerefunded — 3.1% | | | |
| $ | 520 | | | California Statewide Communities Development Authority,
(San Gabriel Valley), Escrowed to Maturity, 5.50%, 9/1/14 | | $ | 572,536 | | |
| | 250 | | | California Water Resource, Prerefunded to 5/1/12,
5.125%, 5/1/18 | | | 272,937 | | |
| | 290 | | | Roseville Special Tax, Prerefunded to 9/1/09,
6.00%, 9/1/11 | | | 315,076 | | |
| | | | | | | $ | 1,160,549 | | |
| General Obligations — 4.0% | | | |
| $ | 400 | | | California, 5.25%, 2/1/14 | | $ | 434,304 | | |
| | 1,000 | | | California, 5.25%, 11/1/16 | | | 1,091,930 | | |
| | | | | | | $ | 1,526,234 | | |
| Hospital — 6.1% | | | |
| $ | 500 | | | California Health Facilities Financing Authority, (Cedars-Sinai
Medical Center), 5.00%, 11/15/16 | | $ | 533,325 | | |
| | 700 | | | California Statewide Communities Development Authority,
(Huntington Memorial Hospital), 5.00%, 7/1/16 | | | 746,704 | | |
| | 75 | | | Eastern Plumas Health Care District, 7.50%, 8/1/07 | | | 76,075 | | |
| | 200 | | | San Benito Health Care District, 5.375%, 10/1/12 | | | 204,730 | | |
| | 400 | | | Stockton, Health Facilities Authority, (Dameron Hospital),
5.70%, 12/1/14 | | | 414,552 | | |
| | 300 | | | Torrance Hospital, (Torrance Memorial Medical Center),
5.40%, 6/1/15 | | | 319,935 | | |
| | | | | | | $ | 2,295,321 | | |
| Housing — 2.0% | | | |
| $ | 750 | | | California Housing Finance Agency, (AMT), 4.75%, 8/1/21 | | $ | 761,595 | | |
| | | | | | | $ | 761,595 | | |
| Industrial Development Revenue — 0.5% | | | |
| $ | 200 | | | California Pollution Control Financing Authority,
(Browning Ferris Industries), (AMT), 5.80%, 12/1/16 | | $ | 199,358 | | |
| | | | | | | $ | 199,358 | | |
| Insured-Education — 2.3% | | | |
| $ | 475 | | | California Educational Facilities Authority, (San Diego
University), (AMBAC), 0.00%, 10/1/15 | | $ | 334,120 | | |
| | 500 | | | California Educational Facilities Authority, (Santa Clara
University), (MBIA), 5.00%, 2/1/19 | | | 530,585 | | |
| | | | | | | $ | 864,705 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Electric Utilities — 7.4% | | | |
| $ | 1,000 | | | California Pollution Control Financing Authority, (San Diego
Gas and Electric), (MBIA), 5.90%, 6/1/14(1) | | $ | 1,142,710 | | |
| | 500 | | | California Pollution Control Financing Authority, PCR, (Pacific
Gas and Electric), (MBIA), (AMT), 5.35%, 12/1/16 | | | 537,815 | | |
| | 500 | | | Puerto Rico Electric Power Authority, (FGIC), 5.00%, 7/1/35 | | | 529,210 | | |
| | 500 | | | Puerto Rico Electric Power Authority, (MBIA),
5.50%, 7/1/18 | | | 575,085 | | |
| | | | | | | $ | 2,784,820 | | |
| Insured-Escrowed / Prerefunded — 0.6% | | | |
| $ | 210 | | | California University Foundation Revenue, (Sacramento
Auxiliary), (MBIA), Prerefunded to 10/1/12,
5.50%, 10/1/20 | | $ | 232,871 | | |
| | | | | | | $ | 232,871 | | |
| Insured-General Obligations — 22.3% | | | |
| $ | 400 | | | Barstow Unified School District, (FGIC), 5.25%, 8/1/18 | | $ | 432,596 | | |
| | 1,000 | | | Burbank Unified School District, (FGIC), 0.00%, 8/1/12 | | | 805,450 | | |
| | 1,080 | | | Fillmore Unified School District, (FGIC), 0.00%, 7/1/15 | | | 767,470 | | |
| | 760 | | | Fresno Unified School District, (MBIA), 5.80%, 2/1/16 | | | 884,556 | | |
| | 750 | | | Los Angeles Unified School District, (Election of 1997),
(MBIA), 5.125%, 7/1/21 | | | 803,902 | | |
| | 1,000 | | | Novato Unified School District, (MBIA), 5.00%, 8/1/23 | | | 1,077,670 | | |
| | 1,000 | | | San Juan Unified School District, (FSA), 0.00%, 8/1/17 | | | 643,420 | | |
| | 1,260 | | | Santa Clarita Community College, (FSA), 5.00%, 8/1/28 | | | 1,338,019 | | |
| | 705 | | | Ukiah Unified School District, (FGIC), 0.00%, 8/1/10 | | | 613,371 | | |
| | 1,000 | | | Walnut Valley Unified School District, (FGIC),
5.25%, 8/1/18 | | | 1,092,530 | | |
| | | | | | | $ | 8,458,984 | | |
| Insured-Hospital — 1.1% | | | |
| $ | 400 | | | California Statewide Communities Development Authority,
(Sutter Health), (FSA), 6.00%, 8/15/13 | | $ | 428,248 | | |
| | | | | | | $ | 428,248 | | |
Insured-Lease Revenue / Certificates of
Participation — 6.3% | | | |
| $ | 1,750 | | | Anaheim, Public Financing Authority Lease Revenue,
(Public Improvements), (FSA), 0.00%, 9/1/19 | | $ | 1,016,312 | | |
| | 750 | | | California Public Works, (UCLA Replacement Hospital),
(FSA), 5.375%, 10/1/16 | | | 821,745 | | |
| | 505 | | | California State Public Works Board, (Department of
Corrections), (AMBAC), 5.25%, 12/1/13 | | | 553,788 | | |
| | | | | | | $ | 2,391,845 | | |
See notes to financial statements
15
Eaton Vance California Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Other Revenue — 4.1% | | | |
| $ | 1,500 | | | Golden State Tobacco Securitization Corp. (FGIC),
5.00%, 6/1/35 | | $ | 1,570,275 | | |
| | | | | | | $ | 1,570,275 | | |
| Insured-Special Tax Revenue — 7.6% | | | |
| $ | 600 | | | Burbank Public Financing Authority, (Golden State
Redevelopment), (AMBAC), 5.25%, 12/1/22 | | $ | 646,524 | | |
| | 1,000 | | | Garden Grove Community Development, (Tax Allocation),
(AMBAC), 5.25%, 10/1/16 | | | 1,094,880 | | |
| | 1,000 | | | San Mateo County Transportation District, (MBIA),
5.25%, 6/1/17 | | | 1,127,780 | | |
| | | | | | | $ | 2,869,184 | | |
| Insured-Transportation — 8.0% | | | |
| $ | 1,000 | | | Puerto Rico Highway and Transportation Authority, (FSA),
5.50%, 7/1/17 | | $ | 1,142,710 | | |
| | 1,000 | | | San Joaquin Hills, Transportation Corridor Agency Bridge &
Toll Road, (MBIA), 0.00%, 1/15/12 | | | 821,860 | | |
| | 1,000 | | | San Jose Airport, (FSA), (AMT), 5.00%, 3/1/11 | | | 1,052,680 | | |
| | | | | | | $ | 3,017,250 | | |
| Insured-Water and Sewer — 2.2% | | | |
| $ | 250 | | | Sacramento County, CA, Sanitation District Financing Authority,
(AMBAC), 5.50%, 12/1/19 | | $ | 291,025 | | |
| | 500 | | | Sunnyvale Financing Authority Water and Wastewater,
(AMBAC), 5.00%, 10/1/22 | | | 525,950 | | |
| | | | | | | $ | 816,975 | | |
| Lease Revenue / Certificates of Participation — 3.0% | | | |
| $ | 1,000 | | | California Public Works, (University of California),
5.25%, 6/1/20 | | $ | 1,121,060 | | |
| | | | | | | $ | 1,121,060 | | |
| Other Revenue — 0.8% | | | |
| $ | 285 | | | California Statewide Communities Development Authority,
(East Valley Tourist Development Authority),
8.25%, 10/1/14 | | $ | 306,731 | | |
| | | | | | | $ | 306,731 | | |
| Senior Living / Life Care — 0.7% | | | |
| $ | 250 | | | ABAG Finance Authority, (American Baptist Homes),
5.75%, 10/1/17 | | $ | 253,365 | | |
| | | | | | | $ | 253,365 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Solid Waste — 0.9% | |
| $ | 350 | | | Napa-Vallejo Waste Management Authority, (Solid Waste
Transfer Facilities), (AMT), 5.10%, 2/15/14 | | $ | 355,828 | | |
| | | | | $ | 355,828 | | |
| Special Tax Revenue — 8.2% | |
| $ | 300 | | | Alameda Public Financing Authority, 5.45%, 9/2/14 | | $ | 307,419 | | |
| | 240 | | | Brentwood Infrastructure Financing Authority,
5.625%, 9/2/15 | | | 247,325 | | |
| | 195 | | | Corona Public Financing Authority, 5.70%, 9/1/13 | | | 195,700 | | |
| | 100 | | | Eastern Municipal Water District, 4.80%, 9/1/20 | | | 100,553 | | |
| | 75 | | | Eastern Municipal Water District, 4.85%, 9/1/21 | | | 75,273 | | |
| | 200 | | | Fontana Redevelopment Agency, (Jurupa Hills),
5.50%, 10/1/17 | | | 209,352 | | |
| | 250 | | | Jurupa Community Services District, 5.00%, 9/1/25 | | | 250,788 | | |
| | 40 | | | Moreno Valley Unified School District, (Community
District No. 2003-2), 5.20%, 9/1/17 | | | 40,876 | | |
| | 80 | | | Moreno Valley Unified School District, (Community
District No. 2003-2), 5.25%, 9/1/18 | | | 81,760 | | |
| | 390 | | | Pomona Redevelopment Agency, (West Holt Avenue
Redevelopment), 5.50%, 5/1/13 | | | 416,313 | | |
| | 295 | | | Rancho Cucamonga Public Finance Authority,
5.75%, 9/2/12 | | | 308,004 | | |
| | 200 | | | Santa Margarita Water District, 6.10%, 9/1/14 | | | 213,396 | | |
| | 200 | | | Santaluz Community Facility District No. 2, 5.80%, 9/1/14 | | | 203,248 | | |
| | 200 | | | Torrance Redevelopment Agency, 5.50%, 9/1/12 | | | 207,002 | | |
| | 250 | | | Whittier Public Financing Authority, (Greenleaf Ave/Whittier
Redevelopment), 5.50%, 11/1/16 | | | 262,893 | | |
| | | | | $ | 3,119,902 | | |
| Transportation — 2.2% | |
| $ | 500 | | | Bay Area Toll Authority, 5.00%, 4/1/31 | | $ | 530,075 | | |
| | 290 | | | Port Redwood City, (AMT), 5.40%, 6/1/19 | | | 301,351 | | |
| | | | | $ | 831,426 | | |
| Water and Sewer — 1.4% | |
| $ | 500 | | | Metropolitan Water District, (Southern California
Waterworks), 4.75%, 7/1/22 | | $ | 510,205 | | |
| | | | | $ | 510,205 | | |
Total Tax-Exempt Investments — 94.8%
(identified cost $34,246,626) | | | | $ | 35,876,731 | | |
| Other Assets, Less Liabilities — 5.2% | | | | $ | 1,984,058 | | |
| Net Assets — 100.0% | | | | $ | 37,860,789 | | |
See notes to financial statements
16
Eaton Vance California Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Fund invests primarily in debt securities issued by California municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 65.3% 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 9.6% to 21.6% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
See notes to financial statements
17
Eaton Vance Florida Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 98.8% | | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Hospital — 6.7% | | | |
| $ | 1,000 | | | Brevard County, Health Facilities Authority, (Health
First, Inc.), 5.00%, 4/1/18 | | $ | 1,059,750 | | |
| | 800 | | | Highlands County, Health Facilities Authority, (Adventist
Health System), 5.00%, 11/15/16 | | | 851,440 | | |
| | 1,000 | | | Highlands County, Health Facilities Authority, (Adventist
Health System), 5.25%, 11/15/20 | | | 1,029,030 | | |
| | 500 | | | West Orange Healthcare District, 5.50%, 2/1/10 | | | 524,360 | | |
| | | | | | | $ | 3,464,580 | | |
| Housing — 1.5% | | | |
| $ | 750 | | | Capital Trust Agency, (Atlantic Housing Foundation),
4.50%, 7/1/15 | | $ | 761,625 | | |
| | | | | | | $ | 761,625 | | |
| Industrial Development Revenue — 1.0% | | | |
| $ | 500 | | | Polk County, Industrial Development Authority, (Cargill
Fertilizer), (AMT), 5.50%, 11/1/09 | | $ | 521,085 | | |
| | | | | | | $ | 521,085 | | |
| Insured-Electric Utilities — 6.0% | | | |
| $ | 2,000 | | | Escambia County, Utilities Authority, (FGIC), 0.00%, 1/1/15 | | $ | 1,451,600 | | |
| | 1,450 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 | | | 1,647,838 | | |
| | | | | | | $ | 3,099,438 | | |
| Insured-Escrowed / Prerefunded — 3.0% | | | |
| $ | 1,000 | | | Port Saint Lucie Utility Revenue, (MBIA), Escrowed to
Maturity, 0.00%, 9/1/15 | | $ | 706,450 | | |
| | 770 | | | Seminole County Sales Tax, (FGIC), Prerefunded to
10/1/11, 5.375%, 10/1/19 | | | 840,201 | | |
| | | | | | | $ | 1,546,651 | | |
| Insured-General Obligations — 11.1% | | | |
| $ | 500 | | | Miami, (Homeland Defense), (MBIA), 0.00%, 1/1/12 | | $ | 409,830 | | |
| | 1,000 | | | Miami, (MBIA), 5.375%, 9/1/15 | | | 1,091,100 | | |
| | 750 | | | Miami-Dade County General Obligation, (Fire and Rescue
Service District), (AMBAC), 5.25%, 4/1/17 | | | 804,532 | | |
| | 1,000 | | | Miami-Dade County School District, (FSA), 5.375%, 8/1/15 | | | 1,123,800 | | |
| | 2,000 | | | Puerto Rico, (MBIA), 5.50%, 7/1/18 | | | 2,300,340 | | |
| | | | | | | $ | 5,729,602 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Hospital — 4.7% | | | |
| $ | 750 | | | Miami-Dade County, Health Facilities Authority, (Miami
Children's Hospital), (AMBAC), 5.625%, 8/15/16 | | $ | 819,075 | | |
| | 1,000 | | | Saint Petersburg, Health Facilities Authority, (All Children's
Hospital), (AMBAC), 5.50%, 11/15/17 | | | 1,083,350 | | |
| | 500 | | | Sarasota County, Public Hospital, (MBIA), 5.25%, 7/1/18 | | | 554,905 | | |
| | | | | | | $ | 2,457,330 | | |
| Insured-Housing — 2.0% | | | |
| $ | 510 | | | Florida Housing Finance Authority, (Leigh Meadows
Apartments), (AMBAC), (AMT), 5.85%, 9/1/10 | | $ | 520,654 | | |
| | 485 | | | Florida Housing Finance Authority, (Stottert Arms
Apartments), (AMBAC), (AMT), 5.90%, 9/1/10 | | | 495,151 | | |
| | | | | | | $ | 1,015,805 | | |
| Insured-Other Revenue — 3.3% | | | |
| $ | 1,100 | | | Florida Board of Education Lottery Revenue, (FGIC),
5.25%, 7/1/20 | | $ | 1,167,793 | | |
| | 500 | | | Saint Johns County, Industrial Development Authority,
(Professional Golf Hall of Fame), (MBIA), 5.00%, 9/1/20 | | | 530,960 | | |
| | | | | | | $ | 1,698,753 | | |
| Insured-Solid Waste — 4.9% | | | |
| $ | 1,750 | | | Dade County, Resource Recovery Facilities, (AMBAC),
(AMT), 5.30%, 10/1/07 | | $ | 1,778,595 | | |
| | 1,100 | | | Palm Beach County, Solid Waste Authority, (AMBAC),
0.00%, 10/1/16 | | | 736,846 | | |
| | | | | | | $ | 2,515,441 | | |
| Insured-Special Tax Revenue — 9.8% | | | |
| $ | 1,755 | | | Julington Creek Plantation, Community Development
District, (MBIA), 4.75%, 5/1/19 | | $ | 1,827,622 | | |
| | 2,000 | | | Miami-Dade County Professional Sports Franchise
Facilities, (MBIA), 0.00%, 10/1/13 | | | 1,537,440 | | |
| | 330 | | | Miami-Dade County, (MBIA), 0.00%, 10/1/08 | | | 306,666 | | |
| | 595 | | | St. Cloud, Sales Tax, (FGIC), 5.00%, 9/1/18 | | | 629,224 | | |
| | 250 | | | St. Cloud, Sales Tax, (FGIC), 5.00%, 9/1/19 | | | 264,380 | | |
| | 500 | | | Tamarac, Sales Tax, (FGIC), 5.00%, 4/1/18 | | | 529,170 | | |
| | | | | | | $ | 5,094,502 | | |
| Insured-Transportation — 10.7% | | | |
| $ | 1,000 | | | Broward County, Airport System, (MBIA), (AMT),
5.375%, 10/1/13 | | $ | 1,038,720 | | |
| | 1,750 | | | Dade County, Seaport, (MBIA), 5.125%, 10/1/16(1) | | | 1,786,942 | | |
| | 2,000 | | | Hillsborough County, Aviation Authority, (AMBAC), (AMT),
5.25%, 10/1/18 | | | 2,165,480 | | |
See notes to financial statements
18
Eaton Vance Florida Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Transportation (continued) | | | |
| $ | 500 | | | Miami-Dade County Expressway Authority, (AMBAC),
5.00%, 7/1/37 | | $ | 529,045 | | |
| | | | | | | $ | 5,520,187 | | |
| Insured-Water and Sewer — 15.2% | | | |
| $ | 2,400 | | | Cocoa, Water & Sewer Revenue, (AMBAC),
5.50%, 10/1/23 | | $ | 2,810,136 | | |
| | 750 | | | Hillsborough County, Capacity Assessment, (FSA),
5.125%, 3/1/20 | | | 793,890 | | |
| | 1,320 | | | Sebring, Water and Wastewater, (FGIC), 5.25%, 1/1/15 | | | 1,432,094 | | |
| | 1,000 | | | Sunrise Utilities Systems, (AMBAC), 5.20%, 10/1/22 | | | 1,120,720 | | |
| | 1,000 | | | Sunrise Utilities Systems, (AMBAC), 5.50%, 10/1/18 | | | 1,124,720 | | |
| | 500 | | | Tallahassee, Consolidated Utility System, (FGIC),
5.50%, 10/1/19 | | | 580,170 | | |
| | | | | | | $ | 7,861,730 | | |
| Nursing Home — 0.7% | | | |
| $ | 345 | | | Orange County, Health Facilities Authority, (Westminster
Community Care Services), 6.50%, 4/1/12 | | $ | 358,196 | | |
| | | | | | | $ | 358,196 | | |
| Senior Living / Life Care — 2.1% | | | |
| $ | 250 | | | Lee County Industrial Development Authority, (Shell Point
Village), 5.50%, 11/15/21 | | $ | 257,350 | | |
| | 250 | | | Lee County, Industrial Development Authority, (Shell Point
Village), 5.75%, 11/15/14 | | | 260,775 | | |
| | 580 | | | North Miami, Health Care Facilities Authority, (Imperial Club),
6.75%, 1/1/33 | | | 574,989 | | |
| | | | | | | $ | 1,093,114 | | |
| Special Tax Revenue — 9.1% | | | |
| $ | 500 | | | Arbor Greene, Community Development District,
5.00%, 5/1/19 | | $ | 525,530 | | |
| | 375 | | | Concorde Estates Community Development District,
(Capital Improvements), 5.00%, 5/1/11 | | | 375,533 | | |
| | 95 | | | Covington Community Development District,
(Capital Improvements), 5.00%, 5/1/21 | | | 96,354 | | |
| | 330 | | | Dupree Lakes Community Development District,
5.00%, 11/1/10 | | | 330,396 | | |
| | 145 | | | Dupree Lakes, Community Development District,
5.00%, 5/1/12 | | | 145,590 | | |
| | 245 | | | Fishhawk, Community Development District II,
5.125%, 11/1/09 | | | 245,377 | | |
| | 120 | | | Gateway Services Community Development District,
(Stoneybrook), 5.50%, 7/1/08 | | | 120,880 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Special Tax Revenue (continued) | |
| $ | 260 | | | Heritage Harbor South, Community Development District,
(Capital Improvements), 5.25%, 11/1/08 | | $ | 261,932 | | |
| | 15 | | | Heritage Harbor South, Community Development District,
(Capital Improvements), 5.40%, 11/1/08 | | | 15,011 | | |
| | 80 | | | Longleaf Community Development District, 6.20%, 5/1/09 | | | 80,607 | | |
| | 330 | | | North Springs, Improvement District, (Heron Bay),
7.00%, 5/1/19 | | | 337,286 | | |
| | 1,000 | | | Orlando, Capital Improvements, 5.00%, 10/1/18 | | | 1,033,510 | | |
| | 100 | | | Sterling Hill, Community Development District,
(Capital Improvements), 5.10%, 5/1/11 | | | 100,829 | | |
| | 420 | | | Sterling Hill, Community Development District,
(Capital Improvements), 5.50%, 11/1/10 | | | 421,638 | | |
| | 600 | | | Tisons Landing, Community Development District,
(Capital Improvements), 5.00%, 11/1/11 | | | 602,244 | | |
| | 40 | | | Waterlefe Community Development District,
(Capital Improvements), 6.25%, 5/1/10 | | | 40,324 | | |
| | | | | $ | 4,733,041 | | |
| Transportation — 2.7% | |
| $ | 1,340 | | | Florida Turnpike Authority, 5.25%, 7/1/21 | | $ | 1,417,747 | | |
| | | | | $ | 1,417,747 | | |
| Utilities — 4.3% | |
| $ | 240 | | | Orlando, Utilities Commission Water and Electric,
5.00%, 10/1/18 | | $ | 253,070 | | |
| | 750 | | | Orlando, Utilities Commission Water and Electric,
5.00%, 10/1/22 | | | 792,420 | | |
| | 1,100 | | | Orlando, Water and Electric Utilities Commission,
5.25%, 10/1/20 | | | 1,183,017 | | |
| | | | | $ | 2,228,507 | | |
Total Tax-Exempt Investments — 98.8%
(identified cost $48,876,763) | | | | $ | 51,117,334 | | |
| Other Assets, Less Liabilities — 1.2% | | | | $ | 605,550 | | |
| Net Assets �� 100.0% | | | | $ | 51,722,884 | | |
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
See notes to financial statements
19
Eaton Vance Florida Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
The Fund invests primarily in debt securities issued by Florida municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 71.5% 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 3.2% to 27.4% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
See notes to financial statements
20
Eaton Vance Massachusetts Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 97.9% | | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Education — 17.7% | | | |
| $ | 580 | | | Massachusetts Development Finance Agency,
(Massachusetts College of Pharmacy), 5.00%, 7/1/11 | | $ | 601,042 | | |
| | 1,000 | | | Massachusetts Development Finance Agency, (Milton
Academy), 5.00%, 9/1/19 | | | 1,073,670 | | |
| | 400 | | | Massachusetts Development Finance Agency, (Xaverian
Brothers High School), 5.55%, 7/1/19 | | | 415,416 | | |
| | 1,305 | | | Massachusetts Health and Educational Facilities Authority,
(Boston College), 5.25%, 6/1/20 | | | 1,415,925 | | |
| | 1,000 | | | Massachusetts Health and Educational Facilities Authority,
(Boston College), 5.375%, 6/1/14 | | | 1,105,170 | | |
| | 1,000 | | | Massachusetts Health and Educational Facilities Authority,
(Harvard University), 5.00%, 7/15/22 | | | 1,057,030 | | |
| | 1,000 | | | Massachusetts Health and Educational Facilities Authority,
(Massachusetts Institute of Technology), 5.375%, 7/1/17 | | | 1,135,570 | | |
| | 1,645 | | | Massachusetts Health and Educational Facilities Authority,
(Massachusetts Institute of Technology), 5.50%, 7/1/22 | | | 1,936,543 | | |
| | 750 | | | Massachusetts Health and Educational Facilities Authority,
(Tufts University), 5.50%, 8/15/15 | | | 848,482 | | |
| | 1,125 | | | Massachusetts Industrial Finance Agency, (Babson College),
5.375%, 10/1/17 | | | 1,161,495 | | |
| | 500 | | | Massachusetts Industrial Finance Agency, (Belmont Hill
School), 5.15%, 9/1/13 | | | 514,705 | | |
| | 750 | | | Massachusetts Industrial Finance Agency, (St. Johns High
School, Inc.), 5.70%, 6/1/18 | | | 777,562 | | |
| | | | | | | $ | 12,042,610 | | |
| Electric Utilities — 0.8% | | | |
| $ | 500 | | | Massachusetts Development Finance Agency, (Devens
Electric System), 5.75%, 12/1/20 | | $ | 537,775 | | |
| | | | | | | $ | 537,775 | | |
| Escrowed / Prerefunded — 9.0% | | | |
| $ | 350 | | | Massachusetts Development Finance Agency, (YMCA of
Greater Boston), Prerefunded to 11/1/08,
5.25%, 11/1/13 | | $ | 367,391 | | |
| | 485 | | | Massachusetts Industrial Finance Agency, (Dana Hall),
Prerefunded to 7/1/07, 5.90%, 7/1/27 | | | 502,833 | | |
| | 500 | | | Massachusetts Industrial Finance Agency, (Wentworth
Institute of Technology), Prerefunded to 10/1/08,
5.55%, 10/1/13 | | | 527,160 | | |
| | 1,200 | | | Massachusetts Turnpike Authority, Escrowed to Maturity,
5.00%, 1/1/13 | | | 1,265,628 | | |
| | 2,100 | | | Massachusetts Turnpike Authority, Escrowed to Maturity,
5.00%, 1/1/20(1) | | | 2,290,995 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Escrowed / Prerefunded (continued) | | | |
| $ | 680 | | | Massachusetts Water Pollution Abatement Trust,
Escrowed to Maturity, 5.25%, 8/1/14 | | $ | 743,328 | | |
| | 400 | | | Rail Connections, Inc., (Route 128 Parking Garage),
Escrowed to Maturity, 5.30%, 7/1/09 | | | 418,788 | | |
| | | | | | | $ | 6,116,123 | | |
| General Obligations — 8.0% | | | |
| $ | 1,000 | | | Boston, 5.00%, 2/1/18 | | $ | 1,047,740 | | |
| | 500 | | | Burlington, 5.00%, 2/1/15 | | | 544,675 | | |
| | 500 | | | Burlington, 5.00%, 2/1/16 | | | 548,960 | | |
| | 750 | | | Falmouth, 5.25%, 2/1/16 | | | 814,643 | | |
| | 1,100 | | | Wellesley, 5.00%, 6/1/16 | | | 1,216,930 | | |
| | 1,150 | | | Wellesley, 5.00%, 6/1/17 | | | 1,278,306 | | |
| | | | | | | $ | 5,451,254 | | |
| Health Care-Miscellaneous — 0.5% | | | |
| $ | 165 | | | Massachusetts Development Finance Agency,
(MCHSP Human Services), 6.60%, 8/15/29 | | $ | 166,180 | | |
| | 175 | | | Massachusetts Development Finance Agency, (New England
Center for Children), 5.30%, 11/1/08 | | | 177,615 | | |
| | | | | | | $ | 343,795 | | |
| Hospital — 4.9% | | | |
| $ | 600 | | | Massachusetts Health and Educational Facilities Authority,
(Baystate Medical Center), 5.75%, 7/1/14 | | $ | 648,498 | | |
| | 865 | | | Massachusetts Health and Educational Facilities Authority,
(Baystate Medical Center), 5.75%, 7/1/15 | | | 933,084 | | |
| | 390 | | | Massachusetts Health and Educational Facilities Authority,
(Central New England Health Systems), 6.125%, 8/1/13 | | | 391,303 | | |
| | 250 | | | Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare System), 5.00%, 7/1/09 | | | 258,790 | | |
| | 1,000 | | | Massachusetts Health and Educational Facilities Authority,
(Partners Healthcare System), 5.50%, 7/1/10 | | | 1,064,860 | | |
| | | | | | | $ | 3,296,535 | | |
| Insured-Education — 1.6% | | | |
| $ | 1,000 | | | University of Massachusetts Building Authority, (AMBAC),
5.25%, 11/1/13 | | $ | 1,097,930 | | |
| | | | | | | $ | 1,097,930 | | |
| Insured-Electric Utilities — 12.5% | | | |
| $ | 2,120 | | | Massachusetts Power Supply System, (Municipal Wholesale
Electric Co.), (MBIA), 5.25%, 7/1/12 | | $ | 2,290,533 | | |
| | 1,000 | | | Massachusetts Power Supply System, (Municipal Wholesale
Electric Co.), (MBIA), 5.25%, 7/1/13 | | | 1,084,100 | | |
See notes to financial statements
21
Eaton Vance Massachusetts Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Electric Utilities (continued) | | | |
| $ | 1,500 | | | Puerto Rico Electric Power Authority, (MBIA),
5.50%, 7/1/16 | | $ | 1,708,125 | | |
| | 2,000 | | | Puerto Rico Electric Power Authority, (MBIA),
5.50%, 7/1/18 | | | 2,300,340 | | |
| | 1,000 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/17 | | | 1,129,910 | | |
| | | | | | | $ | 8,513,008 | | |
| Insured-Escrowed / Prerefunded — 2.4% | | | |
| $ | 635 | | | Massachusetts Turnpike Authority, (FGIC), Escrowed to
Maturity, 5.125%, 1/1/23 | | $ | 712,686 | | |
| | 850 | | | Route 3 North Transportation Improvements Association,
(MBIA), Prerefunded to 6/15/10, 5.625%, 6/15/21 | | | 911,540 | | |
| | | | | | | $ | 1,624,226 | | |
| Insured-General Obligations — 12.4% | | | |
| $ | 1,000 | | | Boston, (MBIA), 5.00%, 2/1/19 | | $ | 1,059,670 | | |
| | 1,000 | | | Dudley-Charlton, Regional School District, (FGIC),
5.125%, 6/15/13 | | | 1,088,660 | | |
| | 1,000 | | | Fall River, (FSA), 5.25%, 2/1/14 | | | 1,097,840 | | |
| | 780 | | | Groton-Dunstable Mass Regional School District, (FSA),
5.00%, 10/15/17 | | | 832,182 | | |
| | 750 | | | Lawrence, (MBIA), 5.00%, 3/15/13 | | | 807,840 | | |
| | 1,000 | | | Massachusetts, (AMBAC), 5.00%, 7/1/12 | | | 1,070,800 | | |
| | 1,000 | | | Massachusetts, (MBIA), 5.25%, 8/1/22 | | | 1,144,920 | | |
| | 1,175 | | | Puerto Rico Public Improvements, (XLCA), 5.50%, 7/1/15 | | | 1,325,788 | | |
| | | | | | | $ | 8,427,700 | | |
| Insured-Hospital — 1.6% | | | |
| $ | 1,000 | | | Massachusetts Health and Educational Facilities Authority,
(New England Medical Center Hospital), (FGIC),
5.375%, 5/15/15 | | $ | 1,077,510 | | |
| | | | | | | $ | 1,077,510 | | |
| Insured-Solid Waste — 3.2% | | | |
| $ | 1,000 | | | Massachusetts Development Finance Agency, (Semass
System), (MBIA), 5.625%, 1/1/13 | | $ | 1,095,350 | | |
| | 1,000 | | | Massachusetts Development Finance Agency, (Semass
System), (MBIA), 5.625%, 1/1/16 | | | 1,096,350 | | |
| | | | | | | $ | 2,191,700 | | |
| Insured-Special Tax Revenue — 4.5% | | | |
| $ | 1,600 | | | Massachusetts Special Obligations, (FSA), 5.50%, 6/1/21 | | $ | 1,869,200 | | |
| | 1,000 | | | Puerto Rico Infrastructure Financing Authority, (FGIC),
5.50%, 7/1/19 | | | 1,156,800 | | |
| | | | | | | $ | 3,026,000 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Transportation — 6.8% | | | |
| $ | 500 | | | Massachusetts Port Authority, (Delta Airlines), (AMBAC),
(AMT), 5.50%, 1/1/15 | | $ | 528,040 | | |
| | 1,225 | | | Massachusetts Port Authority, (FSA), 5.125%, 7/1/17 | | | 1,278,545 | | |
| | 1,000 | | | Puerto Rico Highway and Transportation Authority, (CIFG),
5.50%, 7/1/15 | | | 1,128,330 | | |
| | 1,000 | | | Puerto Rico Highway and Transportation Authority, (FSA),
5.50%, 7/1/11 | | | 1,085,260 | | |
| | 500 | | | Puerto Rico Highway and Transportation Authority, (FSA),
5.50%, 7/1/17 | | | 571,355 | | |
| | | | | | | $ | 4,591,530 | | |
| Miscellaneous — 1.6% | | | |
| $ | 1,000 | | | Massachusetts Development Finance Agency, (Jewish
Philanthropies), 5.25%, 2/1/22 | | $ | 1,077,600 | | |
| | | | | | | $ | 1,077,600 | | |
| Nursing Home — 0.4% | | | |
| $ | 275 | | | Massachusetts Health and Educational Facilities Authority,
(Christopher House), 6.25%, 1/1/07 | | $ | 275,498 | | |
| | | | | | | $ | 275,498 | | |
| Senior Living / Life Care — 1.6% | | | |
| $ | 600 | | | Massachusetts Development Finance Agency, (Berkshire
Retirement), 5.60%, 7/1/19 | | $ | 619,194 | | |
| | 470 | | | Massachusetts Industrial Finance Agency, (Forge Hill),
(AMT), 6.75%, 4/1/30 | | | 484,279 | | |
| | | | | | | $ | 1,103,473 | | |
| Solid Waste — 1.5% | | | |
| $ | 1,000 | | | Massachusetts Industrial Finance Agency, (Ogden Haverhill),
(AMT), 5.50%, 12/1/13 | | $ | 1,040,360 | | |
| | | | | | | $ | 1,040,360 | | |
| Special Tax Revenue — 2.4% | | | |
| $ | 1,000 | | | Massachusetts Bay Transportation Authority, Sales Tax,
5.25%, 7/1/16 | | $ | 1,115,920 | | |
| | 500 | | | Massachusetts Special Obligations, 5.00%, 6/1/14 | | | 540,200 | | |
| | | | | | | $ | 1,656,120 | | |
| Transportation — 3.7% | | | |
| $ | 1,000 | | | Massachusetts Port Authority, (AMT), 6.25%, 7/1/17 | | $ | 1,076,920 | | |
| | 2,000 | | | Massachusetts, State Federal Highway Grant Anticipation
Notes, 0.00%, 6/15/15 | | | 1,420,180 | | |
| | | | | | | $ | 2,497,100 | | |
See notes to financial statements
22
Eaton Vance Massachusetts Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Water and Sewer — 0.8% | |
| $ | 500 | | | Massachusetts Water Pollution Abatement Trust,
5.25%, 2/1/12 | | $ | 536,840 | | |
| | | | | $ | 536,840 | | |
Total Tax-Exempt Investments — 97.9%
(identified cost $63,611,446) | | | | $ | 66,524,687 | | |
| Other Assets, Less Liabilities — 2.1% | | | | $ | 1,440,030 | | |
| Net Assets — 100.0% | | | | $ | 67,964,717 | | |
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.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Massachusetts municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 45.9% 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 1.7% to 20.3% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
See notes to financial statements
23
Eaton Vance New Jersey Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 100.2% | | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Education — 1.9% | | | |
| $ | 750 | | | New Jersey Educational Facilities Authority, (Stevens
Institute of Technology), 5.00%, 7/1/11 | | $ | 784,950 | | |
| | | | | | | $ | 784,950 | | |
| Electric Utilities — 1.0% | | | |
| $ | 420 | | | New Jersey Economic Development Authority, PCR,
(PSEG Power), 5.00%, 3/1/12 | | $ | 433,352 | | |
| | | | | | | $ | 433,352 | | |
| Escrowed / Prerefunded — 7.0% | | | |
| $ | 350 | | | New Jersey Economic Development Authority, (Kapkowski
Road Landfill), Prerefunded to 5/15/14, 6.375%, 4/1/18 | | $ | 412,093 | | |
| | 2,030 | | | New Jersey Economic Development Authority, (Principal
Custodial Receipts), Escrowed to Maturity,
0.00%, 12/15/12 | | | 1,616,590 | | |
| | 300 | | | New Jersey Economic Development Authority, (The Seeing
Eye, Inc.), Prerefunded to 12/1/09, 6.20%, 12/1/24 | | | 327,531 | | |
| | 600 | | | New Jersey Educational Facilities Authority, (Higher Education
Capital Improvements), Prerefunded to 9/1/10,
5.00%, 9/1/15 | | | 630,858 | | |
| | | | | | | $ | 2,987,072 | | |
| General Obligations — 3.6% | | | |
| $ | 500 | | | Jersey City School District, 6.25%, 10/1/10 | | $ | 547,450 | | |
| | 1,050 | | | Puerto Rico, 0.00%, 7/1/08 | | | 984,039 | | |
| | | | | | | $ | 1,531,489 | | |
| Hospital — 11.3% | | | |
| $ | 1,000 | | | Camden County Improvement Authority, (Cooper Health
System), 5.25%, 2/15/20 | | $ | 1,056,460 | | |
| | 500 | | | New Jersey Health Care Facilities Financing Authority,
(Atlantic City Medical Care Center), 6.00%, 7/1/12 | | | 548,635 | | |
| | 425 | | | New Jersey Health Care Facilities Financing Authority,
(Capital Health System), 5.75%, 7/1/23 | | | 458,830 | | |
| | 450 | | | New Jersey Health Care Facilities Financing Authority,
(Hackensack University Medical Center), 6.125%, 1/1/20 | | | 482,625 | | |
| | 500 | | | New Jersey Health Care Facilities Financing Authority,
(Hunterdon Medical Center), 5.25%, 7/1/25 | | | 534,200 | | |
| | 500 | | | New Jersey Health Care Facilities Financing Authority,
(Robert Wood Johnson University Hospital), 5.60%, 7/1/15 | | | 530,740 | | |
| | 425 | | | New Jersey Health Care Facilities Financing Authority,
(Saint Peters University Hospital), 6.875%, 7/1/20 | | | 468,040 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Hospital (continued) | | | |
| $ | 680 | | | New Jersey Health Care Facilities Financing Authority,
(St. Elizabeth's Hospital), 5.75%, 7/1/08 | | $ | 700,053 | | |
| | | | | | | $ | 4,779,583 | | |
| Industrial Development Revenue — 1.9% | | | |
| $ | 350 | | | New Jersey Economic Development Authority,
(American Airlines), (AMT), 7.10%, 11/1/31 | | $ | 350,493 | | |
| | 450 | | | New Jersey Economic Development Authority,
(Continental Airlines), (AMT), 6.25%, 9/15/19 | | | 463,424 | | |
| | | | | | | $ | 813,917 | | |
| Insured-Education — 2.2% | | | |
| $ | 900 | | | New Jersey Educational Facilities Authority, (Ramapo College),
(AMBAC), 4.60%, 7/1/14 | | $ | 935,181 | | |
| | | | | | | $ | 935,181 | | |
| Insured-Electric Utilities — 4.4% | | | |
| $ | 560 | | | Cape May County Industrial Pollution Control Financing
Authority, (Atlantic City Electric Co.), (MBIA), 6.80%, 3/1/21 | | $ | 730,050 | | |
| | 1,000 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 | | | 1,136,440 | | |
| | | | | | | $ | 1,866,490 | | |
| Insured-General Obligations — 19.4% | | | |
| $ | 330 | | | Clearview Regional High School District, (FGIC),
5.375%, 8/1/15 | | $ | 363,356 | | |
| | 750 | | | Freehold Regional High School District, (FGIC),
5.00%, 3/1/18 | | | 833,115 | | |
| | 720 | | | Hillsborough Township School District, (FSA),
5.375%, 10/1/18 | | | 824,386 | | |
| | 1,000 | | | Jackson Township School District, (Baptist Healthcare
Systems), (MBIA), 5.25%, 6/15/23 | | | 1,146,590 | | |
| | 1,320 | | | Manalapan-Englishtown Regional Board of Education, (FGIC),
5.50%, 12/1/18 | | | 1,526,514 | | |
| | 725 | | | Monroe Township Board of Education, (FGIC),
5.20%, 8/1/11 | | | 780,463 | | |
| | 825 | | | Monroe Township Board of Education, (FGIC),
5.20%, 8/1/14 | | | 908,672 | | |
| | 1,620 | | | New Jersey, (AMBAC), 5.25%, 7/15/19 | | | 1,837,679 | | |
| | | | | | | $ | 8,220,775 | | |
| Insured-Hospital — 3.4% | | | |
| $ | 1,300 | | | New Jersey Health Care Facilities Financing Authority,
(AHS Hospital Corp.), (AMBAC), 6.00%, 7/1/12(1) | | $ | 1,455,428 | | |
| | | | | | | $ | 1,455,428 | | |
See notes to financial statements
24
Eaton Vance New Jersey Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
Insured-Lease Revenue / Certificates of
Participation — 4.6% | | | |
| $ | 1,000 | | | Hudson County, (MBIA), 6.25%, 6/1/15 | | $ | 1,168,800 | | |
| | 710 | | | Puerto Rico Public Finance Corp., (AMBAC),
5.375%, 6/1/17 | | | 803,124 | | |
| | | | | | | $ | 1,971,924 | | |
| Insured-Nursing Home — 1.0% | | | |
| $ | 400 | | | Rahway Geriatrics Center, Inc., (MBIA), 5.25%, 5/1/15 | | $ | 441,164 | | |
| | | | | | | $ | 441,164 | | |
| Insured-Other Revenue — 1.3% | | | |
| $ | 500 | | | Monmouth County Improvements Authority, (AMBAC),
5.00%, 12/1/11 | | $ | 533,665 | | |
| | | | | | | $ | 533,665 | | |
| Insured-Transportation — 11.4% | | | |
| $ | 1,000 | | | Delaware River Port Authority, (FSA), 5.10%, 1/1/20 | | $ | 1,060,610 | | |
| | 500 | | | Delaware River Port Authority, (FSA), 5.50%, 1/1/10 | | | 530,250 | | |
| | 1,000 | | | New Jersey Transportation Trust Fund Authority, (MBIA),
5.50%, 12/15/17 | | | 1,143,730 | | |
| | 1,000 | | | New Jersey Transportation Trust Fund Authority, (XLCA),
Variable Rate, 6.01%, 6/15/17(2)(3) | | | 1,060,460 | | |
| | 770 | | | Port Authority of New York and New Jersey, (FGIC), (AMT),
4.50%, 10/1/20 | | | 786,170 | | |
| | 250 | | | South Jersey Transportation Authority, (AMBAC),
5.00%, 11/1/18 | | | 261,443 | | |
| | | | | | | $ | 4,842,663 | | |
| Insured-Water and Sewer — 10.6% | | | |
| $ | 1,135 | | | Bayonne Municipal Utilities Authority, (XLCA),
5.25%, 4/1/19 | | $ | 1,219,126 | | |
| | 1,000 | | | North Hudson Sewer Authority, (FGIC), 5.25%, 8/1/16 | | | 1,081,220 | | |
| | 1,000 | | | North Hudson Sewer Authority, (MBIA), 5.125%, 8/1/22 | | | 1,130,370 | | |
| | 565 | | | Pennsville Sewer Authority, (MBIA), 0.00%, 11/1/16 | | | 378,443 | | |
| | 565 | | | Pennsville Sewer Authority, (MBIA), 0.00%, 11/1/17 | | | 362,402 | | |
| | 565 | | | Pennsville Sewer Authority, (MBIA), 0.00%, 11/1/18 | | | 346,531 | | |
| | | | | | | $ | 4,518,092 | | |
| Lease Revenue / Certificates of Participation — 2.7% | | | |
| $ | 1,000 | | | New Jersey Economic Development Authority,
(School Facilities Construction), 5.50%, 9/1/19 | | $ | 1,139,860 | | |
| | | | | | | $ | 1,139,860 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Nursing Home — 1.2% | |
| $ | 500 | | | New Jersey Economic Development Authority, (Masonic
Charity Foundation), 4.80%, 6/1/11 | | $ | 518,310 | | |
| | | | | $ | 518,310 | | |
| Pooled Loans — 2.6% | |
| $ | 1,000 | | | New Jersey Economic Environmental Infrastructure Trust,
5.00%, 9/1/20 | | $ | 1,116,710 | | |
| | | | | $ | 1,116,710 | | |
| Senior Living / Life Care — 1.4% | |
| $ | 300 | | | New Jersey Economic Development Authority,
(Fellowship Village), 5.50%, 1/1/18 | | $ | 307,008 | | |
| | 300 | | | New Jersey Economic Development Authority,
(Fellowship Village), 5.50%, 1/1/25 | | | 305,196 | | |
| | | | | $ | 612,204 | | |
| Solid Waste — 0.3% | |
| $ | 120 | | | Atlantic County Utilities Authority, Solid Waste System,
7.00%, 3/1/08 | | $ | 122,473 | | |
| | | | | $ | 122,473 | | |
| Special Tax Revenue — 2.6% | |
| $ | 1,000 | | | New Jersey Economic Development Authority,
(Cigarette Tax), 5.50%, 6/15/16 | | $ | 1,090,730 | | |
| | | | | $ | 1,090,730 | | |
| Transportation — 4.4% | |
| $ | 1,000 | | | New Jersey Transportation Trust Fund Authority,
5.25%, 12/15/21 | | $ | 1,129,740 | | |
| | 700 | | | Port Authority of New York and New Jersey, (AMT),
5.50%, 7/15/12 | | | 725,963 | | |
| | | | | $ | 1,855,703 | | |
Total Tax-Exempt Investments — 100.2%
(identified cost $40,227,606) | | | | $ | 42,571,735 | | |
| Other Assets, Less Liabilities — (0.2)% | | | | $ | (70,382 | ) | |
| Net Assets — 100.0% | | | | $ | 42,501,353 | | |
See notes to financial statements
25
Eaton Vance New Jersey Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New Jersey municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 58.2% 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 5.7% to 16.1% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2006, the aggregate value of the securities is $1,060,460 or 2.5% of the Fund's net assets.
(3) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at September 30, 2006.
See notes to financial statements
26
Eaton Vance New York Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 97.8% | | | |
Principal Amount
(000's omitted) | | Security | | Value | |
| Cogeneration — 0.6% | | | |
| $ | 600 | | | Suffolk County Industrial Development Agency,
(Nissequogue Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23(5) | | $ | 596,442 | | |
| | | | | | | $ | 596,442 | | |
| Education — 1.4% | | | |
| $ | 600 | | | New York Dormitory Authority, (State University
Educational Facilities), 5.25%, 5/15/15 | | $ | 655,842 | | |
| | 105 | | | New York Dormitory Authority, (State University
Educational Facilities), 5.25%, 5/15/19 | | | 115,185 | | |
| | 625 | | | Troy Industrial Development Authority, (Rensselaer
Polytechnic Institute), 5.50%, 9/1/15 | | | 685,019 | | |
| | | | | | | $ | 1,456,046 | | |
| Electric Utilities — 2.5% | | | |
| $ | 2,500 | | | New York Energy Research and Development Authority
Facility, (AMT), Variable Rate, 4.70%, 6/1/36 | | $ | 2,501,125 | | |
| | | | | | | $ | 2,501,125 | | |
| Escrowed / Prerefunded — 4.0% | | | |
| $ | 500 | | | Suffolk County Industrial Development Agency,
(Jefferson's Ferry Project), Prerefunded to 11/1/09,
7.20%, 11/1/19 | | $ | 554,835 | | |
| | 1,170 | | | Triborough Bridge and Tunnel Authority, Escrowed
to Maturity, 5.00%, 1/1/20 | | | 1,285,853 | | |
| | 1,000 | | | Triborough Bridge and Tunnel Authority, Prerefunded to
1/1/16, 5.375%, 1/1/19 | | | 1,123,120 | | |
| | 1,000 | | | Triborough Bridge and Tunnel Authority, Prerefunded to
7/1/09, 5.25%, 1/1/17 | | | 1,051,020 | | |
| | | | | | | $ | 4,014,828 | | |
| General Obligations — 4.1% | | | |
| $ | 1,000 | | | New York City, 0.00%, 8/1/08 | | $ | 935,260 | | |
| | 1,000 | | | New York City, 0.00%, 8/1/08 | | | 935,260 | | |
| | 1,200 | | | New York City, 5.00%, 3/1/19 | | | 1,279,308 | | |
| | 1,000 | | | New York City, 5.00%, 6/1/22 | | | 1,060,950 | | |
| | | | | | | $ | 4,210,778 | | |
| Health Care-Miscellaneous — 0.6% | | | |
| $ | 175 | | | Suffolk County Industrial Development Agency,
(Alliance of Long Island Agencies), 7.50%, 9/1/15 | | $ | 189,002 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Health Care-Miscellaneous (continued) | | | |
| $ | 400 | | | Westchester County Industrial Development Agency,
(Children's Village), 5.375%, 3/15/19 | | $ | 408,888 | | |
| | | | | | | $ | 597,890 | | |
| Hospital — 4.2% | | | |
| $ | 435 | | | Chautauqua County Industrial Development Agency,
(Women's Christian Association), 6.35%, 11/15/17 | | $ | 457,550 | | |
| | 480 | | | Fulton County Industrial Development Agency,
(Nathan Littauer Hospital), 5.75%, 11/1/09 | | | 483,408 | | |
| | 200 | | | Nassau County Industrial Development Agency,
(North Shore Health System), 5.875%, 11/1/11 | | | 209,688 | | |
| | 1,000 | | | New York Dormitory Authority, (Lenox Hill Hospital),
5.75%, 7/1/13 | | | 1,056,380 | | |
| | 200 | | | New York Dormitory Authority, (Lenox Hill Hospital),
5.75%, 7/1/15 | | | 210,158 | | |
| | 500 | | | New York Dormitory Authority, (Lenox Hill Hospital),
5.75%, 7/1/17 | | | 522,195 | | |
| | 500 | | | Oneida County Industrial Development Agency,
(St. Elizabeth Medical Center), 5.50%, 12/1/10 | | | 509,630 | | |
| | 750 | | | Suffolk County Industrial Development Agency,
(Huntington Hospital), 6.00%, 11/1/22 | | | 811,170 | | |
| | | | | | | $ | 4,260,179 | | |
| Housing — 2.5% | | | |
| $ | 2,000 | | | New York State Mortgage Agency, (AMT),
4.95%, 10/1/21 | | $ | 2,070,080 | | |
| | 500 | | | New York State Mortgage Agency, (AMT),
5.20%, 10/1/08 | | | 511,160 | | |
| | | | | | | $ | 2,581,240 | | |
| Industrial Development Revenue — 5.2% | | | |
| $ | 1,000 | | | Dutchess County Industrial Development Agency, (IBM),
(AMT), Variable Rate, 5.45%, 12/1/29 | | $ | 1,047,810 | | |
| | 1,000 | | | Liberty Development Corp., (Goldman Sachs Group, Inc.),
5.25%, 10/1/35 | | | 1,143,000 | | |
| | 1,250 | | | New York City Industrial Development Agency, (AMT),
5.50%, 1/1/14 | | | 1,353,887 | | |
| | 250 | | | Onondaga County Industrial Development Agency,
(Senior Air Cargo), (AMT), 6.125%, 1/1/32 | | | 265,060 | | |
| | 1,500 | | | Puerto Rico Port Authority, (American Airlines), (AMT),
6.25%, 6/1/26 | | | 1,502,535 | | |
| | | | | | | $ | 5,312,292 | | |
| Insured-Education — 9.4% | | | |
| $ | 1,000 | | | New York Dormitory Authority, (Canisius College),
(MBIA), 5.00%, 7/1/16 | | $ | 1,082,030 | | |
See notes to financial statements
27
Eaton Vance New York Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Education (continued) | | | |
| $ | 1,000 | | | New York Dormitory Authority, (City University),
(AMBAC), 5.625%, 7/1/16 | | $ | 1,118,720 | | |
| | 1,420 | | | New York Dormitory Authority, (Educational Housing
Services), (AMBAC), 5.25%, 7/1/20 | | | 1,602,285 | | |
| | 1,000 | | | New York Dormitory Authority, (New York University),
(AMBAC), 5.50%, 7/1/19 | | | 1,157,890 | | |
| | 1,085 | | | New York Dormitory Authority, (Rochester Institute of
Technology), (AMBAC), 5.25%, 7/1/21 | | | 1,238,245 | | |
| | 1,000 | | | New York Dormitory Authority, (State University
Educational Facilities), (FSA), 5.75%, 5/15/17 | | | 1,163,250 | | |
| | 1,000 | | | New York Dormitory Authority, (Student Housing),
(FGIC), 5.25%, 7/1/15 | | | 1,101,140 | | |
| | 1,000 | | | New York Dormitory Authority, (University Educational
Facilities), (FGIC), 5.25%, 5/15/13 | | | 1,081,100 | | |
| | | | | | | $ | 9,544,660 | | |
| Insured-Electric Utilities — 7.0% | | | |
| $ | 1,000 | | | Long Island Power Authority, Electric Systems Revenue,
(FGIC), 5.00%, 12/1/17 | | $ | 1,095,630 | | |
| | 500 | | | Long Island Power Authority, Electric Systems Revenue,
(FSA), 0.00%, 6/1/15 | | | 360,185 | | |
| | 2,500 | | | Puerto Rico Electric Power Authority, (MBIA),
5.50%, 7/1/16 | | | 2,846,875 | | |
| | 1,250 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/17 | | | 1,412,387 | | |
| | 1,250 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 | | | 1,420,550 | | |
| | | | | | | $ | 7,135,627 | | |
| Insured-Escrowed / Prerefunded — 5.9% | | | |
| $ | 500 | | | Long Island Power Authority, Electric Systems Revenue,
(FSA), Prerefunded to 6/1/08, 5.00%, 12/1/18 | | $ | 517,145 | | |
| | 2,240 | | | Metropolitan Transportation Authority, (FGIC),
Prerefunded to 7/1/08, 5.70%, 7/1/10 | | | 2,324,806 | | |
| | 1,000 | | | Metropolitan Transportation Authority, (FGIC),
Prerefunded to 7/1/09, 5.25%, 7/1/17 | | | 1,046,470 | | |
| | 1,225 | | | New York Dormitory Authority, (Mental Health Services),
Prerefunded to 8/15/11, (MBIA), 5.50%, 8/15/13 | | | 1,335,079 | | |
| | 450 | | | New York Thruway Authority Service Contract,
(Local Highway and Bridge), (MBIA), Prerefunded to
4/1/09, 5.40%, 4/1/15 | | | 474,966 | | |
| | 250 | | | Niagara County Industrial Development Agency,
(Niagara University), (AMBAC), Escrowed to Maturity,
5.25%, 10/1/18 | | | 282,290 | | |
| | | | | | | $ | 5,980,756 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-General Obligations — 8.4% | | | |
| $ | 1,085 | | | Amityville Union Free School District, (FSA),
5.00%, 12/15/19 | | $ | 1,179,612 | | |
| | 500 | | | Clarence Central School District, (FSA),
5.00%, 5/15/17 | | | 531,815 | | |
| | 1,000 | | | Monroe County, (Public Improvements), (MBIA),
6.00%, 3/1/19 | | | 1,204,620 | | |
| | 1,500 | | | New York City, (XLCA), 5.50%, 8/1/12 | | | 1,647,390 | | |
| | 1,915 | | | Puerto Rico, (FGIC), 5.50%, 7/1/17 | | | 2,188,290 | | |
| | 1,645 | | | Red Hook Central School District, (FSA),
5.125%, 6/15/16 | | | 1,772,488 | | |
| | | | | | | $ | 8,524,215 | | |
| Insured-Hospital — 2.3% | | | |
| $ | 1,600 | | | New York Dormitory Authority, (Memorial Sloan
Kettering Cancer Center), (MBIA), 5.50%, 7/1/17 | | $ | 1,819,264 | | |
| | 500 | | | New York Dormitory Authority, (New York and
Presbyterian Hospital), (AMBAC), 5.50%, 8/1/11 | | | 540,275 | | |
| | | | | | | $ | 2,359,539 | | |
Insured-Lease Revenue / Certificates of
Participation — 1.1% | | | |
| $ | 1,000 | | | New York Dormitory Authority, (Municipal Health
Facilities), (FSA), 5.50%, 1/15/13 | | $ | 1,077,900 | | |
| | | | | | | $ | 1,077,900 | | |
| Insured-Other Revenue — 1.1% | | | |
| $ | 1,000 | | | New York City Industrial Development Agency,
(Queens Baseball Stadium), (AMBAC), 5.00%, 1/1/18 | | $ | 1,095,290 | | |
| | | | | | | $ | 1,095,290 | | |
| Insured-Special Tax Revenue — 8.1% | | | |
| $ | 2,250 | | | New York Local Government Assistance Corp., (MBIA),
0.00%, 4/1/13 | | $ | 1,775,970 | | |
| | 2,000 | | | New York Urban Development Corp., (Personal
Income Tax), (AMBAC), 5.50%, 3/15/19(1) | | | 2,305,940 | | |
| | 3,540 | | | Puerto Rico Infrastructure Financing Authority, (FGIC),
5.50%, 7/1/19 | | | 4,095,072 | | |
| | | | | | | $ | 8,176,982 | | |
| Insured-Transportation — 8.3% | | | |
| $ | 1,000 | | | Metropolitan Transportation Authority, (AMBAC),
5.50%, 11/15/18 | | $ | 1,154,960 | | |
| | 1,000 | | | Metropolitan Transportation Authority, (MBIA),
5.50%, 11/15/13 | | | 1,116,470 | | |
See notes to financial statements
28
Eaton Vance New York Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Transportation (continued) | | | |
| $ | 500 | | | Monroe County Airport Authority, (MBIA), (AMT),
Variable Rate, 7.60%, 1/1/17(2)(3) | | $ | 641,475 | | |
| | 1,000 | | | Puerto Rico Highway and Transportation Authority, (FSA),
5.50%, 7/1/17 | | | 1,142,710 | | |
| | 1,850 | | | Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/15 | | | 2,091,832 | | |
| | 1,920 | | | Triborough Bridge and Tunnel Authority, (MBIA),
5.50%, 11/15/18 | | | 2,221,555 | | |
| | | | | | | $ | 8,369,002 | | |
| Lease Revenue / Certificates of Participation — 3.1% | | | |
| $ | 1,000 | | | New York Dormitory Authority, (Child Care Facility),
5.375%, 4/1/14 | | $ | 1,073,730 | | |
| | 1,000 | | | New York Urban Development Corp., (Correctional and
Youth Facilities), 5.25%, 1/1/21 | | | 1,033,520 | | |
| | 1,000 | | | New York Urban Development Corp., (Correctional and
Youth Facilities), 5.50%, 1/1/17 | | | 1,068,380 | | |
| | | | | | | $ | 3,175,630 | | |
| Other Revenue — 0.8% | | | |
| $ | 750 | | | Albany Industrial Development Agency, (Charitable
Leadership), 6.00%, 7/1/19 | | $ | 812,033 | | |
| | | | | | | $ | 812,033 | | |
| Senior Living / Life Care — 0.7% | | | |
| $ | 330 | | | Glen Cove Industrial Development Agency, (The Regency
at Glen Cove), 9.50%, 7/1/12(4) | | $ | 276,715 | | |
| | 400 | | | Mt. Vernon Industrial Development Agency, (Wartburg
Senior Housing, Inc.), 6.15%, 6/1/19 | | | 412,872 | | |
| | | | | | | $ | 689,587 | | |
| Solid Waste — 2.8% | | | |
| $ | 750 | | | Hempstead Industrial Development Agency,
(American Refuel), 5.00%, 12/1/10 | | $ | 769,845 | | |
| | 2,000 | | | Niagara County Industrial Development Agency,
(American Ref-Fuel Co., LLC), (AMT), Variable Rate,
5.55%, 11/15/24 | | | 2,112,900 | | |
| | | | | | | $ | 2,882,745 | | |
| Special Tax Revenue — 7.9% | | | |
| $ | 1,140 | | | 34th Street Partnership, Inc., 5.00%, 1/1/17 | | $ | 1,212,527 | | |
| | 1,000 | | | New York City Transitional Finance Authority,
4.75%, 11/15/23 | | | 1,021,830 | | |
| | 500 | | | New York City Transitional Finance Authority,
5.375%, 2/15/14 | | | 542,255 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Special Tax Revenue (continued) | |
| $ | 830 | | | New York City Transitional Finance Authority, (Future Tax),
5.00%, 5/1/16 | | $ | 853,788 | | |
| | 1,000 | | | New York City Transitional Finance Authority, (Future Tax),
5.375%, 2/1/13 | | | 1,078,520 | | |
| | 3,000 | | | New York Local Government Assistance Corp.,
5.25%, 4/1/16 | | | 3,301,320 | | |
| | | | | $ | 8,010,240 | | |
| Transportation — 1.1% | |
| $ | 1,000 | | | Triborough Bridge and Tunnel Authority,
5.00%, 11/15/21 | | $ | 1,081,260 | | |
| | | | | $ | 1,081,260 | | |
| Water and Sewer — 4.7% | |
| $ | 2,000 | | | New York City Municipal Water Finance Authority,
5.125%, 6/15/21 | | $ | 2,038,480 | | |
| | 1,000 | | | New York State Environmental Facilities Corp., Clean
Water, (Municipal Water Finance), 5.00%, 6/15/20 | | | 1,082,690 | | |
| | 500 | | | New York State Environmental Facilities Corp., Clean
Water, (Municipal Water Finance), 5.25%, 6/15/14 | | | 542,220 | | |
| | 1,000 | | | New York State Environmental Facilities Corp., Water
Finance Authority, 5.00%, 6/15/17 | | | 1,076,890 | | |
| | | | | $ | 4,740,280 | | |
Total Tax-Exempt Investments
(identified cost $95,064,880) | | | | $ | 99,186,566 | | |
| Short-Term Investments — 1.0% | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| $ | 1,000 | | | New York City Transitional Finance Authority, (Future Tax),
Variable Rate, 3.80%, 11/1/22 | | $ | 1,000,000 | | |
Total Short-Term Investments
(at amortized cost, $1,000,000) | | | | $ | 1,000,000 | | |
Total Investments — 98.8%
(identified cost $96,064,880) | | | | $ | 100,186,566 | | |
| Other Assets, Less Liabilities — 1.2% | | | | $ | 1,211,411 | | |
| Net Assets — 100.0% | | | | $ | 101,397,977 | | |
See notes to financial statements
29
Eaton Vance New York Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by New York municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 52.2% 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 4.5% to 16.6% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
(2) Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At September 30, 2006, the aggregate value of the securities is $641,475 or 0.6% of the Fund's net assets.
(3) Security has been issued as an inverse floater bond. The stated interest rate represents the rate in effect at September 30, 2006.
(4) Security is in default and making only partial interest payments.
(5) Security is in bankruptcy, but continues to make full interest payments.
See notes to financial statements
30
Eaton Vance Ohio Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 99.1% | | | |
Principal Amount
(000's omitted) | | Security | | Value | |
| Cogeneration — 0.5% | | | |
| $ | 95 | | | Ohio Water Development Authority, Solid Waste Disposal,
(Bay Shore Power), (AMT), 6.625%, 9/1/20 | | $ | 98,486 | | |
| | | | | | | $ | 98,486 | | |
| Education — 5.5% | | | |
| $ | 500 | | | Ohio Higher Educational Facilities Commission,
(John Carroll University), 5.00%, 11/15/13 | | $ | 538,755 | | |
| | 500 | | | Ohio State University General Receipts, 5.25%, 12/1/17 | | | 540,240 | | |
| | | | | | | $ | 1,078,995 | | |
| Escrowed / Prerefunded — 2.3% | | | |
| $ | 250 | | | Cuyahoga County, (Rock and Roll Hall of Fame), Escrowed
to Maturity, 5.85%, 12/1/08 | | $ | 262,017 | | |
| | 165 | | | Richland County Hospital Facilities, (Medcentral Health
Systems), Prerefunded to 11/15/10, 6.375%, 11/15/22 | | | 183,632 | | |
| | | | | | | $ | 445,649 | | |
| General Obligations — 4.8% | | | |
| $ | 100 | | | Cuyahoga County, Sewer Improvement District,
5.45%, 12/1/15 | | $ | 106,807 | | |
| | 500 | | | Hamilton School District, 6.15%, 12/1/15 | | | 588,340 | | |
| | 250 | | | Ohio, 0.00%, 8/1/08 | | | 234,010 | | |
| | | | | | | $ | 929,157 | | |
| Hospital — 7.4% | | | |
| $ | 500 | | | Cuyahoga County, (Cleveland Clinic Health System),
6.00%, 1/1/17 | | $ | 562,905 | | |
| | 500 | | | Erie County Hospital Facilities, (Firelands Regional
Medical Center), 5.50%, 8/15/12 | | | 538,725 | | |
| | 250 | | | Parma, Hospital Improvement, (Parma Community
General Hospital Association), 5.25%, 11/1/13 | | | 260,722 | | |
| | 85 | | | Richland County Hospital Facilities, (Medcentral Health
Systems), 6.375%, 11/15/22 | | | 92,921 | | |
| | | | | | | $ | 1,455,273 | | |
| Housing — 1.3% | | | |
| $ | 250 | | | Ohio Housing Finance Agency, (AMT), 4.55%, 9/1/11 | | $ | 255,722 | | |
| | | | | | | $ | 255,722 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Industrial Development Revenue — 7.0% | | | |
| $ | 500 | | | Dayton, Special Facilities Revenue, (Emery Air Freight),
5.625%, 2/1/18 | | $ | 520,445 | | |
| | 330 | | | Summit County Port Authority, (Twinsburg Township),
5.125%, 5/15/25 | | | 334,300 | | |
| | 500 | | | Toledo Lucas County Port Authority, (Cargill, Inc.),
4.50%, 12/1/15 | | | 513,480 | | |
| | | | | | | $ | 1,368,225 | | |
| Insured-Education — 4.1% | | | |
| $ | 750 | | | Cleveland-Cuyahoga County, Port Authority, (Euclid Avenue
Housing Corp.), (AMBAC), 5.00%, 8/1/21 | | $ | 798,157 | | |
| | | | | | | $ | 798,157 | | |
| Insured-General Obligations — 28.4% | | | |
| $ | 200 | | | Amherst School District, (FGIC), 5.00%, 12/1/11 | | $ | 213,564 | | |
| | 250 | | | Athens School District, (FSA), 5.45%, 12/1/10 | | | 268,627 | | |
| | 250 | | | Cincinnati City School District, (FGIC), 5.00%, 12/1/16 | | | 274,150 | | |
| | 265 | | | Clinton Massie Local School District, (AMBAC),
0.00%, 12/1/11 | | | 218,294 | | |
| | 265 | | | Clinton Massie Local School District, (MBIA),
0.00%, 12/1/09 | | | 235,649 | | |
| | 225 | | | Finneytown Local School District, (FGIC), 6.15%, 12/1/11 | | | 252,025 | | |
| | 1,000 | | | Hilliard School District, (FGIC), 0.00%, 12/1/14 | | | 728,260 | | |
| | 175 | | | Sciota Valley and Ross County School District, (FGIC),
0.00%, 12/1/11 | | | 144,156 | | |
| | 750 | | | Springfield City School District, Clark County, (AMBAC),
4.30%, 12/1/14 | | | 760,860 | | |
| | 600 | | | Springfield City School District, Clark County, (FGIC),
5.00%, 12/1/17 | | | 643,986 | | |
| | 500 | | | Strongsville City School District, (MBIA),
5.375%, 12/1/12(1) | | | 548,905 | | |
| | 670 | | | Upper Arlington City School District, (FSA), 5.00%, 12/1/21 | | | 719,922 | | |
| | 460 | | | Wyoming School District, (FGIC), 5.75%, 12/1/17 | | | 537,676 | | |
| | | | | | | $ | 5,546,074 | | |
| Insured-Hospital — 2.8% | | | |
| $ | 500 | | | Cuyahoga County, (Metrohealth System), (MBIA),
5.50%, 2/15/12 | | $ | 543,070 | | |
| | | | | | | $ | 543,070 | | |
| Insured-Industrial Development Revenue — 2.9% | | | |
| $ | 500 | | | Akron Economic Development, (MBIA), 6.00%, 12/1/12 | | $ | 556,495 | | |
| | | | | | | $ | 556,495 | | |
See notes to financial statements
31
Eaton Vance Ohio Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Lease Revenue — 2.7% | | | |
| $ | 500 | | | Ohio Higher Educational Facilities Commission,
(Xavier University), (CIFG), 5.00%, 5/1/22 | | $ | 533,935 | | |
| | | | | | | $ | 533,935 | | |
Insured-Lease Revenue / Certificates of
Participation — 2.8% | | | |
| $ | 500 | | | Ohio Building Authority, (FSA), 5.50%, 10/1/11 | | $ | 543,280 | | |
| | | | | | | $ | 543,280 | | |
| Insured-Other Revenue — 2.9% | | | |
| $ | 500 | | | Cleveland Parking Facilities, (FSA), 5.25%, 9/15/20 | | $ | 569,930 | | |
| | | | | | | $ | 569,930 | | |
| Insured-Special Tax Revenue — 1.5% | | | |
| $ | 250 | | | Puerto Rico Infrastructure Financing Authority, (FGIC),
5.50%, 7/1/19 | | $ | 289,200 | | |
| | | | | | | $ | 289,200 | | |
| Insured-Transportation — 6.0% | | | |
| $ | 300 | | | Cleveland Airport System, (FSA), 5.25%, 1/1/14 | | $ | 316,122 | | |
| | 750 | | | Ohio Turnpike Commission, (FGIC), 5.50%, 2/15/18 | | | 861,248 | | |
| | | | | | | $ | 1,177,370 | | |
| Insured-Water and Sewer — 2.6% | | | |
| $ | 475 | | | Cleveland Waterworks, (FSA), 5.375%, 1/1/16 | | $ | 514,069 | | |
| | | | | | | $ | 514,069 | | |
| Lease Revenue / Certificates of Participation — 5.3% | | | |
| $ | 750 | | | Ohio Parks and Recreational Capital Facilities,
5.50%, 6/1/14 | | $ | 822,885 | | |
| | 200 | | | Union County, (Pleasant Valley Joint Fire District),
6.125%, 12/1/19 | | | 210,108 | | |
| | | | | | | $ | 1,032,993 | | |
| Pooled Loans — 5.5% | | | |
| $ | 250 | | | Cuyahoga County Port Authority, (Garfield Heights),
5.25%, 5/15/23 | | $ | 257,508 | | |
| | 295 | | | Ohio Economic Development, (Ohio Enterprise Bond Fund),
(AMT), 4.60%, 6/1/20 | | | 305,679 | | |
| | 250 | | | Ohio Economic Development, (Ohio Enterprise Bond Fund),
(AMT), 5.25%, 12/1/15 | | | 261,000 | | |
| | 100 | | | Toledo Lucas County Port Authority, (Northwest Ohio Bond
Fund), (AMT), 6.125%, 11/15/09 | | | 103,990 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Pooled Loans (continued) | |
| $ | 145 | | | Toledo Lucas County, Port Authority, (Northwest Ohio
Bond Fund), 5.10%, 5/15/12 | | $ | 148,384 | | |
| | | | | $ | 1,076,561 | | |
| Water and Sewer — 2.8% | |
| $ | 500 | | | Ohio Water Development Authority, (Drinking Water),
5.50%, 12/1/14 | | $ | 552,425 | | |
| | | | | $ | 552,425 | | |
Total Tax-Exempt Investments — 99.1%
(identified cost $18,354,506) | | | | $ | 19,365,066 | | |
| Other Assets, Less Liabilities — 0.9% | | | | $ | 174,698 | | |
| Net Assets — 100.0% | | | | $ | 19,539,764 | | |
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.
CIFG - CDC IXIS Financial Guaranty North America, Inc.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
The Fund invests primarily in debt securities issued by Ohio municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 57.2% 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 2.8% to 20.4% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
See notes to financial statements
32
Eaton Vance Pennsylvania Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited)
| Tax-Exempt Investments — 100.2% | | | |
Principal Amount
(000's omitted) | | Security | | Value | |
| Cogeneration — 1.7% | | | |
| $ | 520 | | | Carbon County Industrial Development Authority, (Panther
Creek Partners), (AMT), 6.65%, 5/1/10 | | $ | 548,974 | | |
| | 350 | | | Pennsylvania Economic Development Financing Authority,
(Resource Recovery-Colver), (AMT), 5.125%, 12/1/15 | | | 351,092 | | |
| | | | | | | $ | 900,066 | | |
| Education — 4.5% | | | |
| $ | 2,290 | | | Pennsylvania Higher Educational Facilities Authority,
(University of Pennsylvania), 5.00%, 7/15/21 | | $ | 2,452,109 | | |
| | | | | | | $ | 2,452,109 | | |
| Electric Utilities — 0.8% | | | |
| $ | 400 | | | York County Industrial Development Authority, Pollution
Control, (Public Service Enterprise Group, Inc.),
5.50%, 9/1/20 | | $ | 423,372 | | |
| | | | | | | $ | 423,372 | | |
| Escrowed / Prerefunded — 2.4% | | | |
| $ | 250 | | | Allegheny County Industrial Development Authority,
(Residential Resources, Inc.), Prerefunded to 9/1/11,
6.50%, 9/1/21 | | $ | 278,350 | | |
| | 985 | | | Lehigh County, General Purpose Authority, (Muhlenberg
Hospital), Escrowed to Maturity, 5.75%, 7/15/10 | | | 1,022,075 | | |
| | | | | | | $ | 1,300,425 | | |
| General Obligations — 2.0% | | | |
| $ | 1,000 | | | Delaware County, 5.00%, 10/1/21 | | $ | 1,076,170 | | |
| | | | | | | $ | 1,076,170 | | |
| Hospital — 3.1% | | | |
| $ | 80 | | | Hazleton, Health Services Authority, (Hazleton General
Hospital), 5.50%, 7/1/07 | | $ | 79,875 | | |
| | 200 | | | Lebanon County, Health Facility Authority, (Good Samaritan
Hospital), 5.50%, 11/15/18 | | | 212,382 | | |
| | 500 | | | Pennsylvania Higher Educational Facilities Authority,
(UPMC Health System), 6.25%, 1/15/18 | | | 553,700 | | |
| | 800 | | | Washington County, Hospital Authority, (Monongahela
Vineyard Hospital), 5.00%, 6/1/12 | | | 835,120 | | |
| | | | | | | $ | 1,681,077 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Housing — 2.5% | | | |
| $ | 1,335 | | | Allegheny County, Residential Finance Authority, Single
Family Mortgages, (AMT), 4.80%, 11/1/22 | | $ | 1,350,606 | | |
| | | | | | | $ | 1,350,606 | | |
| Industrial Development Revenue — 4.1% | | | |
| $ | 700 | | | Erie Industrial Development Authority, (International Paper),
(AMT), 5.85%, 12/1/20 | | $ | 723,058 | | |
| | 750 | | | Puerto Rico Port Authority, (American Airlines), (AMT),
6.25%, 6/1/26 | | | 751,267 | | |
| | 750 | | | Schuylkill County Industrial Development Authority,
(Pine Grove Landfill, Inc.), (AMT), 5.10%, 10/1/19 | | | 766,777 | | |
| | | | | | | $ | 2,241,102 | | |
| Insured-Cogeneration — 2.5% | | | |
| $ | 1,300 | | | Pennsylvania Economic Development Authority, (Resource
Recovery-Colver), (AMBAC), (AMT), 4.625%, 12/1/18 | | $ | 1,335,542 | | |
| | | | | | | $ | 1,335,542 | | |
| Insured-Education — 6.6% | | | |
| $ | 2,000 | | | Delaware County, (Villanova University), (AMBAC),
5.00%, 8/1/20 | | $ | 2,170,580 | | |
| | 1,100 | | | Lycoming County, College Authority, (Pennsylvania College
of Technology ), (AMBAC), 5.125%, 5/1/22 | | | 1,167,045 | | |
| | 250 | | | University of Pittsburgh, (FGIC), 5.125%, 6/1/22 | | | 256,972 | | |
| | | | | | | $ | 3,594,597 | | |
| Insured-Electric Utilities — 8.4% | | | |
| $ | 1,500 | | | Cambria County Industrial Development Authority,
(Pennsylvania Electric), (MBIA), 5.35%, 11/1/10 | | $ | 1,600,575 | | |
| | 1,250 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/17 | | | 1,412,388 | | |
| | 1,370 | | | Puerto Rico Electric Power Authority, (XLCA),
5.375%, 7/1/18 | | | 1,556,923 | | |
| | | | | | | $ | 4,569,886 | | |
| Insured-Escrowed / Prerefunded — 18.3% | | | |
| $ | 2,000 | | | Ephrata, Area School District, (FGIC), Prerefunded to
10/15/11, 5.25%, 4/15/19 | | $ | 2,155,260 | | |
| | 500 | | | Pennsylvania Public School Building Authority, (Garnet Valley
School District), (AMBAC), Prerefunded to 2/1/11,
5.50%, 2/1/20 | | | 538,965 | | |
| | 1,000 | | | Pennsylvania Turnpike Commission, Registration Fee Revenue,
(AMBAC), Prerefunded to 7/15/11, 5.125%, 7/15/22 | | | 1,077,410 | | |
| | 1,000 | | | Philadelphia, School District, (FSA), Prerefunded to 2/1/12,
5.50%, 2/1/17 | | | 1,093,110 | | |
See notes to financial statements
33
Eaton Vance Pennsylvania Limited Maturity Municipals Fund as of September 30, 2006
PORTFOLIO OF INVESTMENTS (Unaudited) CONT'D
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Escrowed / Prerefunded (continued) | | | |
| $ | 1,000 | | | Pittsburgh, (AMBAC), Prerefunded to 3/1/12,
5.25%, 9/1/22 | | $ | 1,082,020 | | |
| | 1,000 | | | Spring-Ford, Area School District, (FSA), Prerefunded to
9/1/11, 5.00%, 9/1/19 | | | 1,064,840 | | |
| | 5,000 | | | Westmoreland, Municipal Authority, (FGIC), Escrowed to
Maturity, 0.00%, 8/15/19 | | | 2,946,100 | | |
| | | | | | | $ | 9,957,705 | | |
| Insured-General Obligations — 20.3% | | | |
| $ | 1,020 | | | Cornwall Lebanon, School District, (FSA),
0.00%, 3/15/16 (1) | | $ | 696,446 | | |
| | 1,000 | | | Council Rock, School District, (MBIA), 5.00%, 11/15/19 | | | 1,056,580 | | |
| | 1,250 | | | Cranberry Township, (FGIC), 5.00%, 12/1/20 | | | 1,321,275 | | |
| | 1,635 | | | Harrisburg, (AMBAC), 0.00%, 9/15/12 | | | 1,303,308 | | |
| | 1,355 | | | McKeesport, (FGIC), 0.00%, 10/1/11 | | | 1,124,393 | | |
| | 1,000 | | | Palmyra, Area School District, (FGIC), 5.00%, 5/1/17 | | | 1,060,660 | | |
| | 2,000 | | | Pennsylvania, (MBIA), 5.375%, 7/1/19 | | | 2,295,200 | | |
| | 1,000 | | | Reading, School District, (FGIC), 0.00%, 1/15/12 | | | 818,450 | | |
| | 1,250 | | | Sto-Rox, School District, (FGIC), 5.125%, 12/15/22 | | | 1,323,325 | | |
| | | | | | | $ | 10,999,637 | | |
| Insured-Hospital — 1.0% | | | |
| $ | 500 | | | Washington County, Hospital Authority, (Washington
Hospital), (AMBAC), 5.375%, 7/1/14 | | $ | 552,260 | | |
| | | | | | | $ | 552,260 | | |
| Insured-Special Tax Revenue — 1.7% | | | |
| $ | 350 | | | Pittsburgh and Allegheny County, Public Auditorium Authority,
(AMBAC), 5.00%, 2/1/24 | | $ | 362,968 | | |
| | 500 | | | Puerto Rico Infrastructure Financing Authority, (FGIC),
5.50%, 7/1/19 | | | 578,400 | | |
| | | | | | | $ | 941,368 | | |
| Insured-Transportation — 12.3% | | | |
| $ | 1,000 | | | Allegheny County, Airport, (MBIA), (AMT), 5.75%, 1/1/10 | | $ | 1,061,010 | | |
| | 590 | | | Allegheny County, Airport, (MBIA), (AMT), 5.75%, 1/1/12 | | | 641,961 | | |
| | 2,000 | | | Pennsylvania Turnpike Commission, Registration Fee Revenue,
(FSA), 5.25%, 7/15/22 | | | 2,289,260 | | |
| | 1,000 | | | Philadelphia, Airport, (FGIC), (AMT), 5.375%, 7/1/14 | | | 1,031,830 | | |
| | 1,000 | | | Puerto Rico Highway and Transportation Authority, (MBIA),
5.50%, 7/1/15 | | | 1,130,720 | | |
| | 500 | | | Southeastern Pennsylvania Transportation Authority, (FGIC),
5.25%, 3/1/16 | | | 522,360 | | |
| | | | | | | $ | 6,677,141 | | |
Principal Amount
(000's omitted) | |
Security | |
Value | |
| Insured-Utility — 2.0% | |
| $ | 1,000 | | | Philadelphia, Gas Works Revenue, (FSA), 5.25%, 8/1/17 | | $ | 1,077,380 | | |
| | | | | $ | 1,077,380 | | |
| Insured-Water and Sewer — 2.9% | |
| $ | 1,500 | | | Allegheny County, Sanitation Authority, (MBIA),
5.00%, 12/1/19 | | $ | 1,597,890 | | |
| | | | | $ | 1,597,890 | | |
| Senior Living / Life Care — 2.5% | |
| $ | 500 | | | Bucks County Industrial Development Authority, (Pennswood),
5.80%, 10/1/20 | | $ | 530,340 | | |
| | 390 | | | Cliff House Trust (AMT), 6.625%, 6/1/27(2) | | | 275,219 | | |
| | 335 | | | Crawford County, Hospital Authority, (Wesbury United
Methodist Community), 6.00%, 8/15/11 | | | 349,221 | | |
| | 185 | | | Lancaster County, Hospital Authority, (Health Center-Willow
Valley Retirement), 5.55%, 6/1/15 | | | 195,935 | | |
| | | | | $ | 1,350,715 | | |
| Transportation — 0.6% | |
| $ | 325 | | | Erie, Municipal Airport Authority, (AMT), 5.50%, 7/1/09 | | $ | 327,074 | | |
| | | | | $ | 327,074 | | |
Total Tax-Exempt Investments — 100.2%
(identified cost $51,647,081) | | | | $ | 54,406,122 | | |
| Other Assets, Less Liabilities — (0.2)% | | | | $ | (100,280 | ) | |
| Net Assets — 100.0% | | | | $ | 54,305,842 | | |
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.
FGIC - Financial Guaranty Insurance Company
FSA - Financial Security Assurance, Inc.
MBIA - Municipal Bond Insurance Association
XLCA - XL Capital Assurance, Inc.
The Fund invests primarily in debt securities issued by Pennsylvania municipalities. The ability of the issuers of the debt securities to meet their obligations may be affected by economic developments in a specific industry or municipality. In order to reduce the risk associated with such economic developments, at September 30, 2006, 75.9% 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 5.5% to 24.1% of total investments.
(1) Security (or a portion thereof) has been segregated to cover margin requirements on open financial futures contracts.
(2) Security in default with respect to principal payments.
See notes to financial statements
34
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited)
Statement of Assets and Liabilities
As of September 30, 2006
| | | California
Limited Fund | | Florida
Limited Fund | | Massachusetts
Limited Fund | | New Jersey
Limited Fund | |
| Assets | |
| Investments — | |
| Identified cost | | $ | 34,246,626 | | | $ | 48,876,763 | | | $ | 63,611,446 | | | $ | 40,227,606 | | |
| Unrealized appreciation | | | 1,630,105 | | | | 2,240,571 | | | | 2,913,241 | | | | 2,344,129 | | |
| Investments, at value | | $ | 35,876,731 | | | $ | 51,117,334 | | | $ | 66,524,687 | | | $ | 42,571,735 | | |
| Cash | | $ | — | | | $ | — | | | $ | 762,490 | | | $ | — | | |
| Receivable for investments sold | | | 10,000 | | | | 231,719 | | | | — | | | | — | | |
| Receivable for Fund shares sold | | | 1,751,862 | | | | 11,571 | | | | 74,832 | | | | 28,406 | | |
| Interest receivable | | | 416,432 | | | | 821,659 | | | | 836,290 | | | | 500,743 | | |
| Receivable for daily variation margin on open financial futures contracts | | | — | | | | 5,063 | | | | 3,844 | | | | 4,219 | | |
| Prepaid expenses | | | — | | | | 1,751 | | | | — | | | | — | | |
| Total assets | | $ | 38,055,025 | | | $ | 52,189,097 | | | $ | 68,202,143 | | | $ | 43,105,103 | | |
| Liabilities | |
| Payable for Fund shares redeemed | | $ | 10 | | | $ | 135,086 | | | $ | 42,722 | | | $ | 61,607 | | |
| Demand note payable | | | — | | | | 100,000 | | | | — | | | | 400,000 | | |
| Dividends payable | | | 53,264 | | | | 74,534 | | | | 95,171 | | | | 62,582 | | |
| Due to custodian | | | 87,818 | | | | 79,738 | | | | — | | | | 10,716 | | |
| Payable to affiliate for Trustees' fees | | | 23 | | | | 204 | | | | 219 | | | | 13 | | |
| Payable to affiliate for investment advisory fees | | | 12,914 | | | | 18,880 | | | | 24,370 | | | | 16,992 | | |
| Payable to affiliate for distribution and service fees | | | 15,109 | | | | 27,363 | | | | 36,248 | | | | 19,058 | | |
| Accrued expenses | | | 25,098 | | | | 30,408 | | | | 38,696 | | | | 32,782 | | |
| Total liabilities | | $ | 194,236 | | | $ | 466,213 | | | $ | 237,426 | | | $ | 603,750 | | |
| Net assets | | $ | 37,860,789 | | | $ | 51,722,884 | | | $ | 67,964,717 | | | $ | 42,501,353 | | |
| Sources of Net Assets | |
| Paid-in capital | | $ | 36,940,287 | | | $ | 50,917,610 | | | $ | 67,512,796 | | | $ | 41,400,334 | | |
| Accumulated net realized loss (computed on the basis of identified cost) | | | (609,423 | ) | | | (1,258,085 | ) | | | (2,348,424 | ) | | | (1,177,693 | ) | |
| Accumulated undistributed net investment income | | | 16,453 | | | | 28,446 | | | | 28,016 | | | | 94,679 | | |
| Net unrealized appreciation (computed on the basis of identified cost) | | | 1,513,472 | | | | 2,034,913 | | | | 2,772,329 | | | | 2,184,033 | | |
| Net assets | | $ | 37,860,789 | | | $ | 51,722,884 | | | $ | 67,964,717 | | | $ | 42,501,353 | | |
| Class A Shares | |
| Net Assets | | $ | 35,277,242 | | | $ | 34,630,023 | | | $ | 45,457,751 | | | $ | 37,964,286 | | |
| Shares Outstanding | | | 3,386,086 | | | | 3,358,179 | | | | 4,440,291 | | | | 3,701,253 | | |
Net Asset Value and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.42 | | | $ | 10.31 | | | $ | 10.24 | | | $ | 10.26 | | |
Maximum Offering Price Per Share
(100 ÷ 97.75 of net asset value per share) | | $ | 10.66 | | | $ | 10.55 | | | $ | 10.48 | | | $ | 10.50 | | |
| Class B Shares | |
| Net Assets | | $ | 2,112,299 | | | $ | 4,772,081 | | | $ | 5,773,747 | | | $ | 4,536,051 | | |
| Shares Outstanding | | | 203,354 | | | | 462,666 | | | | 564,339 | | | | 442,256 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.39 | | | $ | 10.31 | | | $ | 10.23 | | | $ | 10.26 | | |
| Class C Shares | |
| Net Assets | | $ | 471,248 | | | $ | 12,320,780 | | | $ | 16,733,219 | | | $ | 1,016 | | |
| Shares Outstanding | | | 46,812 | | | | 1,265,366 | | | | 1,706,356 | | | | 99 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.07 | | | $ | 9.74 | | | $ | 9.81 | | | $ | 10.26 | | |
On sales of $100,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
35
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statement of Assets and Liabilities
As of September 30, 2006
| | | New York
Limited Fund | | Ohio
Limited Fund | | Pennsylvania
Limited Fund | |
| Assets | |
| Investments — | |
| Identified cost | | $ | 96,064,880 | | | $ | 18,354,506 | | | $ | 51,647,081 | | |
| Unrealized appreciation | | | 4,121,686 | | | | 1,010,560 | | | | 2,759,041 | | |
| Investments, at value | | $ | 100,186,566 | | | $ | 19,365,066 | | | $ | 54,406,122 | | |
| Cash | | $ | 109,309 | | | $ | 284,979 | | | $ | — | | |
| Receivable for Fund shares sold | | | 130,233 | | | | 5 | | | | 42,806 | | |
| Interest receivable | | | 1,338,799 | | | | 249,749 | | | | 653,832 | | |
| Receivable for daily variation margin on open financial futures contracts | | | 8,813 | | | | 2,344 | | | | 3,750 | | |
| Total assets | | $ | 101,773,720 | | | $ | 19,902,143 | | | $ | 55,106,510 | | |
| Liabilities | |
| Payable for investments purchased | | $ | — | | | $ | 273,965 | | | $ | — | | |
| Payable for Fund shares redeemed | | | 99,722 | | | | 22,113 | | | | 899 | | |
| Demand note payable | | | — | | | | — | | | | 600,000 | | |
| Dividends payable | | | 142,733 | | | | 28,740 | | | | 78,047 | | |
| Due to custodian | | | — | | | | — | | | | 34,973 | | |
| Payable to affiliate for Trustees' fees | | | 75 | | | | — | | | | 309 | | |
| Payable to affiliate for investment advisory fees | | | 35,824 | | | | 7,031 | | | | 19,986 | | |
| Payable to affiliate for distribution and service fees | | | 50,269 | | | | 7,687 | | | | 30,110 | | |
| Accrued expenses | | | 47,120 | | | | 22,843 | | | | 36,344 | | |
| Total liabilities | | $ | 375,743 | | | $ | 362,379 | | | $ | 800,668 | | |
| Net assets | | $ | 101,397,977 | | | $ | 19,539,764 | | | $ | 54,305,842 | | |
| Sources of Net Assets | |
| Paid-in capital | | $ | 99,738,518 | | | $ | 19,491,198 | | | $ | 53,409,069 | | |
| Accumulated net realized loss (computed on the basis of identified cost) | | | (2,139,383 | ) | | | (929,274 | ) | | | (1,583,064 | ) | |
| Accumulated undistributed (distributions in excess of) net investment income | | | (49,252 | ) | | | 3,896 | | | | (48,225 | ) | |
| Net unrealized appreciation (computed on the basis of identified cost) | | | 3,848,094 | | | | 973,944 | | | | 2,528,062 | | |
| Net assets | | $ | 101,397,977 | | | $ | 19,539,764 | | | $ | 54,305,842 | | |
| Class A Shares | |
| Net Assets | | $ | 70,408,279 | | | $ | 18,845,006 | | | $ | 33,309,432 | | |
| Shares Outstanding | | | 6,622,654 | | | | 1,936,480 | | | | 3,202,726 | | |
Net Asset Value and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.63 | | | $ | 9.73 | | | $ | 10.40 | | |
Maximum Offering Price Per Share
(100 ÷ 97.75 of net asset value per share) | | $ | 10.87 | | | $ | 9.95 | | | $ | 10.64 | | |
| Class B Shares | |
| Net Assets | | $ | 6,929,048 | | | $ | 693,738 | | | $ | 5,695,489 | | |
| Shares Outstanding | | | 652,160 | | | | 71,377 | | | | 547,567 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.62 | | | $ | 9.72 | | | $ | 10.40 | | |
| Class C Shares | |
| Net Assets | | $ | 24,060,650 | | | $ | 1,020 | | | $ | 15,300,921 | | |
| Shares Outstanding | | | 2,380,414 | | | | 105 | | | | 1,551,630 | | |
Net Asset Value, Offering Price and Redemption Price Per Share
(net assets ÷ shares of beneficial interest outstanding) | | $ | 10.11 | | | $ | 9.71 | | | $ | 9.86 | | |
On sales of $100,000 or more, the offering price of Class A shares is reduced.
See notes to financial statements
36
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statement of Operations
For the Six Months Ended September 30, 2006
| | | California
Limited Fund | | Florida
Limited Fund | | Massachusetts
Limited Fund | | New Jersey
Limited Fund | |
| Investment Income | |
| Interest | | $ | 826,291 | | | $ | 1,257,624 | | | $ | 1,601,367 | | | $ | 1,040,838 | | |
| Total investment income | | $ | 826,291 | | | $ | 1,257,624 | | | $ | 1,601,367 | | | $ | 1,040,838 | | |
| Expenses | |
| Investment adviser fee | | $ | 78,531 | | | $ | 117,605 | | | $ | 154,877 | | | $ | 95,137 | | |
| Trustee fees and expenses | | | 869 | | | | 3,549 | | | | 3,564 | | | | 859 | | |
| Distribution and service fees | |
| Class A | | | 24,992 | | | | 26,638 | | | | 35,115 | | | | 28,252 | | |
| Class B | | | 11,334 | | | | 24,209 | | | | 30,869 | | | | 23,587 | | |
| Class C | | | 863 | | | | 57,378 | | | | 80,045 | | | | 1 | | |
| Legal and accounting services | | | 19,304 | | | | 23,568 | | | | 19,949 | | | | 17,490 | | |
| Printing and postage | | | 3,545 | | | | 5,075 | | | | 6,490 | | | | 5,945 | | |
| Custodian fee | | | 18,891 | | | | 21,064 | | | | 48,963 | | | | 20,577 | | |
| Transfer and dividend disbursing agent fees | | | 6,541 | | | | 10,502 | | | | 17,260 | | | | 11,394 | | |
| Registration fees | | | 549 | | | | 2,368 | | | | 2,723 | | | | 1,080 | | |
| Miscellaneous | | | 8,497 | | | | 12,004 | | | | 10,878 | | | | 9,093 | | |
| Total expenses | | $ | 173,916 | | | $ | 303,960 | | | $ | 410,733 | | | $ | 213,415 | | |
| Deduct — | |
| Reduction of custodian fee | | $ | 4,526 | | | $ | 3,354 | | | $ | 27,290 | | | $ | 5,927 | | |
| Total expense reductions | | $ | 4,526 | | | $ | 3,354 | | | $ | 27,290 | | | $ | 5,927 | | |
| Net expenses | | $ | 169,390 | | | $ | 300,606 | | | $ | 383,443 | | | $ | 207,488 | | |
| Net investment income | | $ | 656,901 | | | $ | 957,018 | | | $ | 1,217,924 | | | $ | 833,350 | | |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss) — | |
| Investment transactions (identified cost basis) | | $ | (61,654 | ) | | $ | (35,381 | ) | | $ | 100,695 | | | $ | 26,542 | | |
| Financial futures contracts | | | 205,991 | | | | 325,844 | | | | 168,776 | | | | 201,699 | | |
| Net realized gain | | $ | 144,337 | | | $ | 290,463 | | | $ | 269,471 | | | $ | 228,241 | | |
| Change in unrealized appreciation (depreciation) — | |
| Investments (identified cost basis) | | $ | 568,160 | | | $ | 668,646 | | | $ | 928,232 | | | $ | 752,482 | | |
| Financial futures contracts | | | (415,836 | ) | | | (549,455 | ) | | | (343,857 | ) | | | (404,673 | ) | |
| Net change in unrealized appreciation (depreciation) | | $ | 152,324 | | | $ | 119,191 | | | $ | 584,375 | | | $ | 347,809 | | |
| Net realized and unrealized gain | | $ | 296,661 | | | $ | 409,654 | | | $ | 853,846 | | | $ | 576,050 | | |
| Net increase in net assets from operations | | $ | 953,562 | | | $ | 1,366,672 | | | $ | 2,071,770 | | | $ | 1,409,400 | | |
See notes to financial statements
37
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statement of Operations
For the Six Months Ended September 30, 2006
| | | New York
Limited Fund | | Ohio
Limited Fund | | Pennsylvania
Limited Fund | |
| Investment Income | |
| Interest | | $ | 2,213,027 | | | $ | 430,824 | | | $ | 1,320,220 | | |
| Total investment income | | $ | 2,213,027 | | | $ | 430,824 | | | $ | 1,320,220 | | |
| Expenses | |
| Investment adviser fee | | $ | 211,007 | | | $ | 40,745 | | | $ | 123,102 | | |
| Trustee fees and expenses | | | 3,419 | | | | 85 | | | | 3,653 | | |
| Distribution and service fees | |
| Class A | | | 47,707 | | | | 13,392 | | | | 25,484 | | |
| Class B | | | 36,538 | | | | 3,534 | | | | 28,932 | | |
| Class C | | | 114,307 | | | | 2 | | | | 70,075 | | |
| Legal and accounting services | | | 24,088 | | | | 14,900 | | | | 20,842 | | |
| Printing and postage | | | 10,280 | | | | 2,745 | | | | 6,405 | | |
| Custodian fee | | | 34,746 | | | | 11,930 | | | | 22,913 | | |
| Transfer and dividend disbursing agent fees | | | 25,700 | | | | 4,333 | | | | 16,460 | | |
| Registration fees | | | 1,464 | | | | 716 | | | | 915 | | |
| Miscellaneous | | | 15,989 | | | | 5,676 | | | | 13,179 | | |
| Total expenses | | $ | 525,245 | | | $ | 98,058 | | | $ | 331,960 | | |
| Deduct — | |
| Reduction of custodian fee | | $ | 7,438 | | | $ | 3,611 | | | $ | 2,388 | | |
| Total expense reductions | | $ | 7,438 | | | $ | 3,611 | | | $ | 2,388 | | |
| Net expenses | | $ | 517,807 | | | $ | 94,447 | | | $ | 329,572 | | |
| Net investment income | | $ | 1,695,220 | | | $ | 336,377 | | | $ | 990,648 | | |
| Realized and Unrealized Gain (Loss) | |
| Net realized gain (loss) — | |
| Investment transactions (identified cost basis) | | $ | 30,890 | | | $ | (19,588 | ) | | $ | 64,658 | | |
| Financial futures contracts | | | 259,318 | | | | 47,596 | | | | 249,773 | | |
| Net realized gain | | $ | 290,208 | | | $ | 28,008 | | | $ | 314,431 | | |
| Change in unrealized appreciation (depreciation) — | |
| Investments (identified cost basis) | | $ | 1,742,174 | | | $ | 281,854 | | | $ | 911,201 | | |
| Financial futures contracts | | | (604,639 | ) | | | (84,130 | ) | | | (551,128 | ) | |
| Net change in unrealized appreciation (depreciation) | | $ | 1,137,535 | | | $ | 197,724 | | | $ | 360,073 | | |
| Net realized and unrealized gain | | $ | 1,427,743 | | | $ | 225,732 | | | $ | 674,504 | | |
| Net increase in net assets from operations | | $ | 3,122,963 | | | $ | 562,109 | | | $ | 1,665,152 | | |
See notes to financial statements
38
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statement of Changes in Net Assets
For the Six Months Ended September 30, 2006
| Increase (Decrease) in Net Assets | | California
Limited Fund | | Florida
Limited Fund | | Massachusetts
Limited Fund | | New Jersey
Limited Fund | |
| From operations — | |
| Net investment income | | $ | 656,901 | | | $ | 957,018 | | | $ | 1,217,924 | | | $ | 833,350 | | |
| Net realized gain from investment transactions and financial futures contracts | | | 144,337 | | | | 290,463 | | | | 269,471 | | | | 228,241 | | |
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts | | | 152,324 | | | | 119,191 | | | | 584,375 | | | | 347,809 | | |
| Net increase in net assets from operations | | $ | 953,562 | | | $ | 1,366,672 | | | $ | 2,071,770 | | | $ | 1,409,400 | | |
| Distributions to shareholders — | |
| From net investment income | |
| Class A | | $ | (611,583 | ) | | $ | (667,874 | ) | | $ | (863,919 | ) | | $ | (696,269 | ) | |
| Class B | | | (36,720 | ) | | | (80,745 | ) | | | (100,485 | ) | | | (77,096 | ) | |
| Class C | | | (2,622 | ) | | | (191,742 | ) | | | (261,226 | ) | | | (5 | ) | |
| Total distributions to shareholders | | $ | (650,925 | ) | | $ | (940,361 | ) | | $ | (1,225,630 | ) | | $ | (773,370 | ) | |
| Transactions in shares of beneficial interest — | |
| Proceeds from sale of shares | |
| Class A | | $ | 4,361,091 | | | $ | 818,029 | | | $ | 3,365,794 | | | $ | 1,050,961 | | |
| Class B | | | 132,427 | | | | 12,186 | | | | 171,088 | | | | 236,361 | | |
| Class C | | | 445,000 | | | | 442,037 | | | | 450,801 | | | | 1,000 | | |
Net asset value of shares issued to shareholders in payment of
distributions declared | | | |
| Class A | | | 376,310 | | | | 298,932 | | | | 485,602 | | | | 460,637 | | |
| Class B | | | 17,544 | | | | 46,802 | | | | 57,383 | | | | 45,437 | | |
| Class C | | | 331 | | | | 57,319 | | | | 159,468 | | | | 4 | | |
| Cost of shares redeemed | |
| Class A | | | (3,947,819 | ) | | | (3,625,892 | ) | | | (7,333,686 | ) | | | (2,509,212 | ) | |
| Class B | | | (366,664 | ) | | | (462,877 | ) | | | (795,149 | ) | | | (491,546 | ) | |
| Class C | | | — | | | | (1,745,386 | ) | | | (3,984,932 | ) | | | — | | |
| Net asset value of shares exchanged | |
| Class A | | | 378,597 | | | | 790,093 | | | | 972,331 | | | | 1,316,344 | | |
| Class B | | | (378,597 | ) | | | (790,093 | ) | | | (972,331 | ) | | | (1,316,344 | ) | |
| Net increase (decrease) in net assets from Fund share transactions | | $ | 1,018,220 | | | $ | (4,158,850 | ) | | $ | (7,423,631 | ) | | $ | (1,206,358 | ) | |
| Net increase (decrease) in net assets | | $ | 1,320,857 | | | $ | (3,732,539 | ) | | $ | (6,577,491 | ) | | $ | (570,328 | ) | |
| Net Assets | |
| At beginning of year | | $ | 36,539,932 | | | $ | 55,455,423 | | | $ | 74,542,208 | | | $ | 43,071,681 | | |
| At end of year | | $ | 37,860,789 | | | $ | 51,722,884 | | | $ | 67,964,717 | | | $ | 42,501,353 | | |
Accumulated undistributed net investment
income included in net assets | |
| At end of year | | $ | 16,453 | | | $ | 28,446 | | | $ | 28,016 | | | $ | 94,679 | | |
See notes to financial statements
39
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS (Unaudited) CONT'D
Statement of Changes in Net Assets
For the Six Months Ended September 30, 2006
| Increase (Decrease) in Net Assets | | New York
Limited Fund | | Ohio
Limited Fund | | Pennsylvania
Limited Fund | |
| From operations — | |
| Net investment income | | $ | 1,695,220 | | | $ | 336,377 | | | $ | 990,648 | | |
| Net realized gain from investment transactions and financial futures contracts | | | 290,208 | | | | 28,008 | | | | 314,431 | | |
| Net change in unrealized appreciation (depreciation) from investments and financial futures contracts | | | 1,137,535 | | | | 197,724 | | | | 360,073 | | |
| Net increase in net assets from operations | | $ | 3,122,963 | | | $ | 562,109 | | | $ | 1,665,152 | | |
| Distributions to shareholders — | |
| From net investment income | |
| Class A | | $ | (1,184,548 | ) | | $ | (324,813 | ) | | $ | (650,551 | ) | |
| Class B | | | (121,234 | ) | | | (11,339 | ) | | | (98,969 | ) | |
| Class C | | | (379,270 | ) | | | (5 | ) | | | (239,572 | ) | |
| Total distributions to shareholders | | $ | (1,685,052 | ) | | $ | (336,157 | ) | | $ | (989,092 | ) | |
| Transactions in shares of beneficial interest — | |
| Proceeds from sale of shares | |
| Class A | | $ | 13,523,094 | | | $ | 2,179,242 | | | $ | 945,270 | | |
| Class B | | | 348,141 | | | | 20,603 | | | | 171,001 | | |
| Class C | | | 1,084,731 | | | | 1,000 | | | | 1,106,855 | | |
| Net asset value of shares issued to shareholders in payment of distributions declared | |
| Class A | | | 811,408 | | | | 147,151 | | | | 362,000 | | |
| Class B | | | 76,035 | | | | 7,942 | | | | 50,873 | | |
| Class C | | | 219,410 | | | | 4 | | | | 107,648 | | |
| Cost of shares redeemed | |
| Class A | | | (5,851,382 | ) | | | (1,155,107 | ) | | | (3,885,781 | ) | |
| Class B | | | (1,175,977 | ) | | | (53,354 | ) | | | (680,173 | ) | |
| Class C | | | (4,076,049 | ) | | | — | | | | (1,995,853 | ) | |
| Net asset value of shares exchanged | |
| Class A | | | 1,401,859 | | | | 169,153 | | | | 884,858 | | |
| Class B | | | (1,401,859 | ) | | | (169,153 | ) | | | (884,858 | ) | |
| Net increase (decrease) in net assets from Fund share transactions | | $ | 4,959,411 | | | $ | 1,147,481 | | | $ | (3,818,160 | ) | |
| Net increase (decrease) in net assets | | $ | 6,397,322 | | | $ | 1,373,433 | | | $ | (3,142,100 | ) | |
| Net Assets | |
| At beginning of year | | $ | 95,000,655 | | | $ | 18,166,331 | | | $ | 57,447,942 | | |
| At end of year | | $ | 101,397,977 | | | $ | 19,539,764 | | | $ | 54,305,842 | | |
Accumulated undistributed (distributions in excess of)
net investment income included in net assets | |
| At end of year | | $ | (49,252 | ) | | $ | 3,896 | | | $ | (48,225 | ) | |
See notes to financial statements
40
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 2006
| Increase (Decrease) in Net Assets | | California
Limited Fund | | Florida
Limited Fund | | Massachusetts
Limited Fund | | New Jersey
Limited Fund | |
| From operations — | |
| Net investment income | | $ | 1,313,704 | | | $ | 2,198,388 | | | $ | 2,645,703 | | | $ | 1,745,968 | | |
Net realized gain (loss) from investment transactions and financial
futures contracts | | | (30,968 | ) | | | 261,083 | | | | (127,909 | ) | | | 381,948 | | |
Net change in unrealized appreciation (depreciation) from investments and
financial futures contracts | | | 136,553 | | | | (198,603 | ) | | | (306,210 | ) | | | (383,135 | ) | |
| Net increase in net assets from operations | | $ | 1,419,289 | | | $ | 2,260,868 | | | $ | 2,211,584 | | | $ | 1,744,781 | | |
| Distributions to shareholders — | |
| From net investment income | |
| Class A | | $ | (1,205,197 | ) | | $ | (1,511,016 | ) | | $ | (1,662,282 | ) | | $ | (1,483,036 | ) | |
| Class B | | | (91,680 | ) | | | (208,177 | ) | | | (254,837 | ) | | | (222,516 | ) | |
| Class C | | | (876 | ) | | | (449,247 | ) | | | (689,434 | ) | | | — | | |
| Total distributions to shareholders | | $ | (1,297,753 | ) | | $ | (2,168,440 | ) | | $ | (2,606,553 | ) | | $ | (1,705,552 | ) | |
| Transactions in shares of beneficial interest — | |
| Proceeds from sale of shares | |
| Class A | | $ | 13,101,027 | | | $ | 10,579,762 | | | $ | 8,869,245 | | | $ | 3,501,552 | | |
| Class B | | | 114,396 | | | | 96,659 | | | | 455,124 | | | | 400,508 | | |
| Class C | | | 42,286 | | | | 2,856,375 | | | | 3,512,579 | | | | — | | |
Net asset value of shares issued to shareholders in payment of
distributions declared | | | |
| Class A | | | 658,605 | | | | 636,832 | | | | 959,797 | | | | 1,017,873 | | |
| Class B | | | 41,407 | | | | 115,566 | | | | 160,990 | | | | 120,670 | | |
| Class C | | | 344 | | | | 134,511 | | | | 431,607 | | | | — | | |
| Cost of shares redeemed | |
| Class A | | | (12,117,746 | ) | | | (21,089,408 | ) | | | (13,044,035 | ) | | | (12,499,237 | ) | |
| Class B | | | (793,102 | ) | | | (1,495,889 | ) | | | (1,725,834 | ) | | | (1,784,118 | ) | |
| Class C | | | (29,956 | ) | | | (7,019,123 | ) | | | (11,523,171 | ) | | | — | | |
| Net asset value of shares exchanged | |
| Class A | | | 527,744 | | | | 1,168,153 | | | | 1,969,640 | | | | 1,605,620 | | |
| Class B | | | (527,744 | ) | | | (1,168,153 | ) | | | (1,969,640 | ) | | | (1,605,620 | ) | |
| Net increase (decrease) in net assets from Fund share transactions | | $ | 1,017,261 | | | $ | (15,184,715 | ) | | $ | (11,903,698 | ) | | $ | (9,242,752 | ) | |
| Net increase (decrease) in net assets | | $ | 1,138,797 | | | $ | (15,092,287 | ) | | $ | (12,298,667 | ) | | $ | (9,203,523 | ) | |
| Net Assets | |
| At beginning of year | | $ | 35,401,135 | | | $ | 70,547,710 | | | $ | 86,840,875 | | | $ | 52,275,204 | | |
| At end of year | | $ | 36,539,932 | | | $ | 55,455,423 | | | $ | 74,542,208 | | | $ | 43,071,681 | | |
Accumulated undistributed net investment
income included in net assets | |
| At end of year | | $ | 10,477 | | | $ | 11,789 | | | $ | 35,722 | | | $ | 33,756 | | |
See notes to financial statements
41
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
For the Year Ended March 31, 2006
| Increase (Decrease) in Net Assets | | New York
Limited Fund | | Ohio
Limited Fund | | Pennsylvania
Limited Fund | |
| From operations — | |
| Net investment income | | $ | 3,690,524 | | | $ | 658,069 | | | $ | 2,059,822 | | |
| Net realized gain (loss) from investment transactions and financial futures contracts | | | 111,051 | | | | (36,914 | ) | | | 87,363 | | |
| Net change in unrealized appreciation (depreciation) from investments and financial futures contracts | | | (732,241 | ) | | | (173,682 | ) | | | (114,588 | ) | |
| Net increase in net assets from operations | | $ | 3,069,334 | | | $ | 447,473 | | | $ | 2,032,597 | | |
| Distributions to shareholders — | |
| From net investment income | |
| Class A | | $ | (2,436,745 | ) | | $ | (633,997 | ) | | $ | (1,334,021 | ) | |
| Class B | | | (330,703 | ) | | | (54,800 | ) | | | (244,175 | ) | |
| Class C | | | (923,016 | ) | | | — | | | | (514,636 | ) | |
| Total distributions to shareholders | | $ | (3,690,464 | ) | | $ | (688,797 | ) | | $ | (2,092,832 | ) | |
| Transactions in shares of beneficial interest — | |
| Proceeds from sale of shares | |
| Class A | | $ | 15,259,196 | | | $ | 2,232,846 | | | $ | 5,177,168 | | |
| Class B | | | 1,060,022 | | | | 87,374 | | | | 408,960 | | |
| Class C | | | 3,603,186 | | | | — | | | | 3,243,099 | | |
| Net asset value of shares issued to shareholders in payment of distributions declared | |
| Class A | | | 1,681,684 | | | | 384,295 | | | | 690,668 | | |
| Class B | | | 197,996 | | | | 25,624 | | | | 125,914 | | |
| Class C | | | 513,861 | | | | — | | | | 232,148 | | |
| Cost of shares redeemed | |
| Class A | | | (22,432,321 | ) | | | (2,440,770 | ) | | | (5,883,315 | ) | |
| Class B | | | (2,129,547 | ) | | | (823,422 | ) | | | (1,486,580 | ) | |
| Class C | | | (14,329,294 | ) | | | — | | | | (4,237,377 | ) | |
| Net asset value of shares exchanged | |
| Class A | | | 2,615,082 | | | | 552,378 | | | | 1,045,971 | | |
| Class B | | | (2,615,082 | ) | | | (552,378 | ) | | | (1,045,971 | ) | |
| Net decrease in net assets from Fund share transactions | | $ | (16,575,217 | ) | | $ | (534,053 | ) | | $ | (1,729,315 | ) | |
| Net decrease in net assets | | $ | (17,196,347 | ) | | $ | (775,377 | ) | | $ | (1,789,550 | ) | |
| Net Assets | |
| At beginning of year | | $ | 112,197,002 | | | $ | 18,941,708 | | | $ | 59,237,492 | | |
| At end of year | | $ | 95,000,655 | | | $ | 18,166,331 | | | $ | 57,447,942 | | |
Accumulated undistributed (distributions in excess of)
net investment income included in net assets | |
| At end of year | | $ | (59,420 | ) | | $ | 3,676 | | | $ | (49,781 | ) | |
See notes to financial statements
42
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | California Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.330 | | | $ | 10.290 | | | $ | 10.560 | | | $ | 10.540 | | | $ | 10.100 | | | $ | 10.260 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.192 | | | $ | 0.377 | | | $ | 0.377 | | | $ | 0.394 | | | $ | 0.414 | | | $ | 0.430 | | |
| Net realized and unrealized gain (loss) | | | 0.089 | | | | 0.036 | | | | (0.274 | ) | | | 0.016 | | | | 0.436 | | | | (0.160 | ) | |
| Total income from operations | | $ | 0.281 | | | $ | 0.413 | | | $ | 0.103 | | | $ | 0.410 | | | $ | 0.850 | | | $ | 0.270 | | |
| Less distributions | |
| From net investment income | | $ | (0.191 | ) | | $ | (0.373 | ) | | $ | (0.373 | ) | | $ | (0.390 | ) | | $ | (0.410 | ) | | $ | (0.430 | ) | |
| Total distributions | | $ | (0.191 | ) | | $ | (0.373 | ) | | $ | (0.373 | ) | | $ | (0.390 | ) | | $ | (0.410 | ) | | $ | (0.430 | ) | |
| Net asset value — End of period | | $ | 10.420 | | | $ | 10.330 | | | $ | 10.290 | | | $ | 10.560 | | | $ | 10.540 | | | $ | 10.100 | | |
| Total Return(3) | | | 2.75 | % | | | 4.06 | % | | | 0.99 | % | | | 3.92 | % | | | 8.56 | % | | | 2.65 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 35,277 | | | $ | 33,830 | | | $ | 31,555 | | | $ | 29,957 | | | $ | 26,750 | | | $ | 20,747 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.91 | %(4) | | | 0.86 | % | | | 0.90 | %(5) | | | 0.88 | %(5) | | | 0.96 | %(5) | | | 1.02 | %(5) | |
| Expenses after custodian fee reduction | | | 0.88 | %(4) | | | 0.84 | % | | | 0.89 | %(5) | | | 0.88 | %(5) | | | 0.94 | %(5) | | | 1.00 | %(5) | |
| Net investment income | | | 3.70 | %(4) | | | 3.64 | % | | | 3.62 | % | | | 3.73 | % | | | 3.97 | % | | | 4.19 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 13 | % | | | 27 | % | | | 7 | % | | | 9 | % | |
| Portfolio Turnover of the Fund | | | 19 | % | | | 28 | % | | | 13 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002 and increase the ratio of net investment income to average net assets from 4.17% to 4.19%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
43
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | California Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.300 | | | $ | 10.260 | | | $ | 10.520 | | | $ | 10.500 | | | $ | 10.070 | | | $ | 10.260 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.153 | | | $ | 0.298 | | | $ | 0.301 | | | $ | 0.313 | | | $ | 0.333 | | | $ | 0.353 | | |
| Net realized and unrealized gain (loss) | | | 0.088 | | | | 0.035 | | | | (0.268 | ) | | | 0.017 | | | | 0.432 | | | | (0.185 | ) | |
| Total income from operations | | $ | 0.241 | | | $ | 0.333 | | | $ | 0.033 | | | $ | 0.330 | | | $ | 0.765 | | | $ | 0.168 | | |
| Less distributions | |
| From net investment income | | $ | (0.151 | ) | | $ | (0.293 | ) | | $ | (0.293 | ) | | $ | (0.310 | ) | | $ | (0.335 | ) | | $ | (0.358 | ) | |
| Total distributions | | $ | (0.151 | ) | | $ | (0.293 | ) | | $ | (0.293 | ) | | $ | (0.310 | ) | | $ | (0.335 | ) | | $ | (0.358 | ) | |
| Net asset value — End of period | | $ | 10.390 | | | $ | 10.300 | | | $ | 10.260 | | | $ | 10.520 | | | $ | 10.500 | | | $ | 10.070 | | |
| Total Return(3) | | | 2.36 | % | | | 3.28 | % | | | 0.31 | % | | | 3.16 | % | | | 7.71 | % | | | 1.64 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 2,112 | | | $ | 2,687 | | | $ | 3,837 | | | $ | 5,844 | | | $ | 5,107 | | | $ | 1,723 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.66 | %(4) | | | 1.61 | % | | | 1.65 | %(5) | | | 1.63 | %(5) | | | 1.71 | %(5) | | | 1.77 | %(5) | |
| Expenses after custodian fee reduction | | | 1.63 | %(4) | | | 1.59 | % | | | 1.64 | %(5) | | | 1.63 | %(5) | | | 1.69 | %(5) | | | 1.75 | %(5) | |
| Net investment income | | | 2.96 | %(4) | | | 2.89 | % | | | 2.90 | % | | | 2.97 | % | | | 3.19 | % | | | 3.44 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 13 | % | | | 27 | % | | | 7 | % | | | 9 | % | |
| Portfolio Turnover of the Fund | | | 19 | % | | | 28 | % | | | 13 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.002, increase net realized and unrealized losses per share by $0.002 and increase the ratio of net investment income to average net assets from 3.42% to 3.44%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
44
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | California Limited Fund — Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.980 | | | $ | 9.950 | | | $ | 10.000 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.132 | | | $ | 0.282 | | | $ | 0.002 | | |
| Net realized and unrealized gain (loss) | | | 0.104 | | | | 0.034 | | | | (0.052 | ) | |
| Total income (loss) from operations | | $ | 0.236 | | | $ | 0.316 | | | $ | (0.050 | ) | |
| Less distributions | |
| From net investment income | | $ | (0.146 | ) | | $ | (0.286 | ) | | $ | — | | |
| Total distributions | | $ | (0.146 | ) | | $ | (0.286 | ) | | $ | — | | |
| Net asset value — End of period | | $ | 10.070 | | | $ | 9.980 | | | $ | 9.950 | | |
| Total Return(3) | | | 2.39 | % | | | 3.15 | % | | | (0.01 | )% | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 471 | | | $ | 22 | | | $ | 10 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.65 | %(4) | | | 1.61 | % | | | 0.00 | %(4)(5) | |
| Expenses after custodian fee reduction | | | 1.63 | %(4) | | | 1.59 | % | | | — | | |
| Net investment income | | | 2.63 | %(4) | | | 2.83 | % | | | 0.00 | %(4)(5) | |
| Portfolio Turnover of the Fund | | | 19 | % | | | 28 | % | | | 13 | % | |
(1) Net investment income per share was computed using average shares outstanding.
(2) For the period from the commencement of offering of Class C shares, March 23, 2005 to March 31, 2005.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Represents less than 0.01%.
See notes to financial statements
45
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Florida Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.230 | | | $ | 10.230 | | | $ | 10.500 | | | $ | 10.480 | | | $ | 10.050 | | | $ | 10.130 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.196 | | | $ | 0.385 | | | $ | 0.387 | | | $ | 0.396 | | | $ | 0.420 | | | $ | 0.449 | | |
| Net realized and unrealized gain (loss) | | | 0.077 | | | | (0.005 | ) | | | (0.277 | ) | | | 0.018 | | | | 0.425 | | | | (0.077 | ) | |
| Total income from operations | | $ | 0.273 | | | $ | 0.380 | | | $ | 0.110 | | | $ | 0.414 | | | $ | 0.845 | | | $ | 0.372 | | |
| Less distributions | |
| From net investment income | | $ | (0.193 | ) | | $ | (0.380 | ) | | $ | (0.380 | ) | | $ | (0.394 | ) | | $ | (0.415 | ) | | $ | (0.452 | ) | |
| Total distributions | | $ | (0.193 | ) | | $ | (0.380 | ) | | $ | (0.380 | ) | | $ | (0.394 | ) | | $ | (0.415 | ) | | $ | (0.452 | ) | |
| Net asset value — End of period | | $ | 10.310 | | | $ | 10.230 | | | $ | 10.230 | | | $ | 10.500 | | | $ | 10.480 | | | $ | 10.050 | | |
| Total Return(3) | | | 2.70 | % | | | 3.76 | % | | | 1.06 | % | | | 3.99 | % | | | 8.59 | % | | | 3.71 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 34,630 | | | $ | 36,064 | | | $ | 44,720 | | | $ | 45,088 | | | $ | 47,033 | | | $ | 33,611 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.88 | %(4) | | | 0.85 | % | | | 0.82 | %(5) | | | 0.82 | %(5) | | | 0.84 | %(5) | | | 0.94 | %(5) | |
| Expenses after custodian fee reduction | | | 0.87 | %(4) | | | 0.84 | % | | | 0.81 | %(5) | | | 0.82 | %(5) | | | 0.81 | %(5) | | | 0.91 | %(5) | |
| Net investment income | | | 3.82 | %(4) | | | 3.74 | % | | | 3.74 | % | | | 3.76 | % | | | 4.07 | % | | | 4.42 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 8 | % | | | 13 | % | | | 23 | % | | | 15 | % | |
| Portfolio Turnover of the Fund | | | 11 | % | | | 23 | % | | | 16 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 4.41% to 4.42%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
46
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Florida Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.230 | | | $ | 10.230 | | | $ | 10.500 | | | $ | 10.480 | | | $ | 10.050 | | | $ | 10.130 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.158 | | | $ | 0.307 | | | $ | 0.310 | | | $ | 0.316 | | | $ | 0.340 | | | $ | 0.377 | | |
| Net realized and unrealized gain (loss) | | | 0.076 | | | | (0.007 | ) | | | (0.280 | ) | | | 0.018 | | | | 0.433 | | | | (0.077 | ) | |
| Total income from operations | | $ | 0.234 | | | $ | 0.300 | | | $ | 0.030 | | | $ | 0.334 | | | $ | 0.773 | | | $ | 0.300 | | |
| Less distributions | |
| From net investment income | | $ | (0.154 | ) | | $ | (0.300 | ) | | $ | (0.300 | ) | | $ | (0.314 | ) | | $ | (0.343 | ) | | $ | (0.380 | ) | |
| Total distributions | | $ | (0.154 | ) | | $ | (0.300 | ) | | $ | (0.300 | ) | | $ | (0.314 | ) | | $ | (0.343 | ) | | $ | (0.380 | ) | |
| Net asset value — End of period | | $ | 10.310 | | | $ | 10.230 | | | $ | 10.230 | | | $ | 10.500 | | | $ | 10.480 | | | $ | 10.050 | | |
| Total Return(3) | | | 2.31 | % | | | 2.96 | % | | | 0.28 | % | | | 3.22 | % | | | 7.84 | % | | | 2.98 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 4,772 | | | $ | 5,925 | | | $ | 8,361 | | | $ | 8,944 | | | $ | 8,217 | | | $ | 2,621 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.63 | %(4) | | | 1.60 | % | | | 1.57 | %(5) | | | 1.57 | %(5) | | | 1.59 | %(5) | | | 1.69 | %(5) | |
| Expenses after custodian fee reduction | | | 1.62 | %(4) | | | 1.59 | % | | | 1.56 | %(5) | | | 1.57 | %(5) | | | 1.56 | %(5) | | | 1.66 | %(5) | |
| Net investment income | | | 3.07 | %(4) | | | 2.98 | % | | | 3.00 | % | | | 3.01 | % | | | 3.28 | % | | | 3.72 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 8 | % | | | 13 | % | | | 23 | % | | | 15 | % | |
| Portfolio Turnover of the Fund | | | 11 | % | | | 23 | % | | | 16 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.71% to 3.72%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
47
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Florida Limited Fund — Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.660 | | | $ | 9.650 | | | $ | 9.910 | | | $ | 9.890 | | | $ | 9.490 | | | $ | 9.570 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.149 | | | $ | 0.291 | | | $ | 0.293 | | | $ | 0.298 | | | $ | 0.319 | | | $ | 0.348 | | |
| Net realized and unrealized gain (loss) | | | 0.077 | | | | 0.004 | | | | (0.268 | ) | | | 0.021 | | | | 0.404 | | | | (0.068 | ) | |
| Total income from operations | | $ | 0.226 | | | $ | 0.295 | | | $ | 0.025 | | | $ | 0.319 | | | $ | 0.723 | | | $ | 0.280 | | |
| Less distributions | |
| From net investment income | | $ | (0.146 | ) | | $ | (0.285 | ) | | $ | (0.285 | ) | | $ | (0.299 | ) | | $ | (0.323 | ) | | $ | (0.360 | ) | |
| Total distributions | | $ | (0.146 | ) | | $ | (0.285 | ) | | $ | (0.285 | ) | | $ | (0.299 | ) | | $ | (0.323 | ) | | $ | (0.360 | ) | |
| Net asset value — End of period | | $ | 9.740 | | | $ | 9.660 | | | $ | 9.650 | | | $ | 9.910 | | | $ | 9.890 | | | $ | 9.490 | | |
| Total Return(3) | | | 2.36 | % | | | 3.07 | % | | | 0.19 | %(4) | | | 3.24 | % | | | 7.76 | % | | | 2.93 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 12,321 | | | $ | 13,466 | | | $ | 17,467 | | | $ | 19,226 | | | $ | 12,883 | | | $ | 4,322 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.63 | %(5) | | | 1.60 | % | | | 1.57 | %(6) | | | 1.57 | %(6) | | | 1.59 | %(6) | | | 1.69 | %(6) | |
| Expenses after custodian fee reduction | | | 1.62 | %(5) | | | 1.59 | % | | | 1.56 | %(6) | | | 1.57 | %(6) | | | 1.56 | %(6) | | | 1.66 | %(6) | |
| Net investment income | | | 3.07 | %(5) | | | 2.99 | % | | | 3.00 | % | | | 3.00 | % | | | 3.26 | % | | | 3.63 | % | |
| Portfolio Turnover of the Portfolio(7) | | | — | | | | — | | | | 8 | % | | | 13 | % | | | 23 | % | | | 15 | % | |
| Portfolio Turnover of the Fund | | | 11 | % | | | 23 | % | | | 16 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.62% to 3.63%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Total return reflects a decrease of 0.06% due to a change in the timing of the payment and reinvestment of distributions.
(5) Annualized.
(6) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the fund was making investments directly into the Portfolio.
(7) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
48
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Massachusetts Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.110 | | | $ | 10.180 | | | $ | 10.460 | | | $ | 10.450 | | | $ | 9.980 | | | $ | 10.110 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.186 | | | $ | 0.367 | | | $ | 0.370 | | | $ | 0.384 | | | $ | 0.413 | | | $ | 0.443 | | |
| Net realized and unrealized gain (loss) | | | 0.132 | | | | (0.074 | ) | | | (0.287 | ) | | | 0.013 | | | | 0.483 | | | | (0.124 | ) | |
| Total income from operations | | $ | 0.318 | | | $ | 0.293 | | | $ | 0.083 | | | $ | 0.397 | | | $ | 0.896 | | | $ | 0.319 | | |
| Less distributions | |
| From net investment income | | $ | (0.188 | ) | | $ | (0.363 | ) | | $ | (0.363 | ) | | $ | (0.387 | ) | | $ | (0.426 | ) | | $ | (0.449 | ) | |
| Total distributions | | $ | (0.188 | ) | | $ | (0.363 | ) | | $ | (0.363 | ) | | $ | (0.387 | ) | | $ | (0.426 | ) | | $ | (0.449 | ) | |
| Net asset value — End of period | | $ | 10.240 | | | $ | 10.110 | | | $ | 10.180 | | | $ | 10.460 | | | $ | 10.450 | | | $ | 9.980 | | |
| Total Return(3) | | | 3.18 | % | | | 2.90 | % | | | 0.79 | % | | | 3.84 | % | | | 9.17 | % | | | 3.17 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 45,458 | | | $ | 47,407 | | | $ | 48,901 | | | $ | 47,567 | | | $ | 47,321 | | | $ | 33,848 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.89 | %(4) | | | 0.82 | % | | | 0.82 | %(5) | | | 0.80 | %(5) | | | 0.85 | %(5) | | | 0.94 | %(5) | |
| Expenses after custodian fee reduction | | | 0.81 | %(4) | | | 0.81 | % | | | 0.81 | %(5) | | | 0.80 | %(5) | | | 0.83 | %(5) | | | 0.91 | %(5) | |
| Net investment income | | | 3.67 | %(4) | | | 3.59 | % | | | 3.59 | % | | | 3.66 | % | | | 4.01 | % | | | 4.37 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 13 | % | | | 12 | % | | | 22 | % | | | 8 | % | |
| Portfolio Turnover of the Fund | | | 6 | % | | | 7 | % | | | 7 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 4.36% to 4.37%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
49
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Massachusetts Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.110 | | | $ | 10.170 | | | $ | 10.450 | | | $ | 10.430 | | | $ | 9.970 | | | $ | 10.110 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.148 | | | $ | 0.289 | | | $ | 0.292 | | | $ | 0.304 | | | $ | 0.331 | | | $ | 0.364 | | |
| Net realized and unrealized gain (loss) | | | 0.121 | | | | (0.066 | ) | | | (0.289 | ) | | | 0.022 | | | | 0.475 | | | | (0.135 | ) | |
| Total income from operations | | $ | 0.269 | | | $ | 0.223 | | | $ | 0.003 | | | $ | 0.326 | | | $ | 0.806 | | | $ | 0.229 | | |
| Less distributions | |
| From net investment income | | $ | (0.149 | ) | | $ | (0.283 | ) | | $ | (0.283 | ) | | $ | (0.306 | ) | | $ | (0.346 | ) | | $ | (0.369 | ) | |
| Total distributions | | $ | (0.149 | ) | | $ | (0.283 | ) | | $ | (0.283 | ) | | $ | (0.306 | ) | | $ | (0.346 | ) | | $ | (0.369 | ) | |
| Net asset value — End of period | | $ | 10.230 | | | $ | 10.110 | | | $ | 10.170 | | | $ | 10.450 | | | $ | 10.430 | | | $ | 9.970 | | |
| Total Return(3) | | | 2.69 | % | | | 2.20 | % | | | 0.02 | % | | | 3.16 | % | | | 8.23 | % | | | 2.27 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 5,774 | | | $ | 7,234 | | | $ | 10,350 | | | $ | 10,818 | | | $ | 9,127 | | | $ | 3,969 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.64 | %(4) | | | 1.57 | % | | | 1.57 | %(5) | | | 1.55 | %(5) | | | 1.60 | %(5) | | | 1.69 | %(5) | |
| Expenses after custodian fee reduction | | | 1.57 | %(4) | | | 1.56 | % | | | 1.56 | %(5) | | | 1.55 | %(5) | | | 1.58 | %(5) | | | 1.66 | %(5) | |
| Net investment income | | | 2.92 | %(4) | | | 2.83 | % | | | 2.83 | % | | | 2.91 | % | | | 3.22 | % | | | 3.59 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 13 | % | | | 12 | % | | | 22 | % | | | 8 | % | |
| Portfolio Turnover of the Fund | | | 6 | % | | | 7 | % | | | 7 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.58% to 3.59%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
50
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Massachusetts Limited Fund — Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.690 | | | $ | 9.740 | | | $ | 10.020 | | | $ | 10.010 | | | $ | 9.560 | | | $ | 9.680 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.142 | | | $ | 0.278 | | | $ | 0.280 | | | $ | 0.289 | | | $ | 0.316 | | | $ | 0.348 | | |
| Net realized and unrealized gain (loss) | | | 0.121 | | | | (0.057 | ) | | | (0.287 | ) | | | 0.017 | | | | 0.465 | | | | (0.114 | ) | |
| Total income (loss) from operations | | $ | 0.263 | | | $ | 0.221 | | | $ | (0.007 | ) | | $ | 0.306 | | | $ | 0.781 | | | $ | 0.234 | | |
| Less distributions | |
| From net investment income | | $ | (0.143 | ) | | $ | (0.271 | ) | | $ | (0.273 | ) | | $ | (0.296 | ) | | $ | (0.331 | ) | | $ | (0.354 | ) | |
| Total distributions | | $ | (0.143 | ) | | $ | (0.271 | ) | | $ | (0.273 | ) | | $ | (0.296 | ) | | $ | (0.331 | ) | | $ | (0.354 | ) | |
| Net asset value — End of period | | $ | 9.810 | | | $ | 9.690 | | | $ | 9.740 | | | $ | 10.020 | | | $ | 10.010 | | | $ | 9.560 | | |
| Total Return(3) | | | 2.74 | % | | | 2.28 | % | | | (0.14 | )%(4) | | | 3.09 | % | | | 8.32 | % | | | 2.40 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 16,733 | | | $ | 19,901 | | | $ | 27,589 | | | $ | 28,195 | | | $ | 15,231 | | | $ | 5,632 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.64 | %(5) | | | 1.57 | % | | | 1.57 | %(6) | | | 1.55 | %(6) | | | 1.60 | %(6) | | | 1.69 | %(6) | |
| Expenses after custodian fee reduction | | | 1.57 | %(5) | | | 1.56 | % | | | 1.56 | %(6) | | | 1.55 | %(6) | | | 1.58 | %(6) | | | 1.66 | %(6) | |
| Net investment income | | | 2.92 | %(5) | | | 2.84 | % | | | 2.83 | % | | | 2.88 | % | | | 3.20 | % | | | 3.58 | % | |
| Portfolio Turnover of the Portfolio(7) | | | — | | | | — | | | | 13 | % | | | 12 | % | | | 22 | % | | | 8 | % | |
| Portfolio Turnover of the Fund | | | 6 | % | | | 7 | % | | | 7 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.57% to 3.58%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Total return reflects a decrease of 0.05% due to a change in the timing of the payment and reinvestment of distributions.
(5) Annualized.
(6) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(7) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
51
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New Jersey Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.110 | | | $ | 10.100 | | | $ | 10.360 | | | $ | 10.300 | | | $ | 10.000 | | | $ | 10.180 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.202 | | | $ | 0.371 | | | $ | 0.366 | | | $ | 0.379 | | | $ | 0.427 | | | $ | 0.453 | | |
| Net realized and unrealized gain (loss) | | | 0.136 | | | | 0.001 | | | | (0.266 | ) | | | 0.052 | | | | 0.301 | | | | (0.169 | ) | |
| Total income from operations | | $ | 0.338 | | | $ | 0.372 | | | $ | 0.100 | | | $ | 0.431 | | | $ | 0.728 | | | $ | 0.284 | | |
| Less distributions | |
| From net investment income | | $ | (0.188 | ) | | $ | (0.362 | ) | | $ | (0.360 | ) | | $ | (0.371 | ) | | $ | (0.428 | ) | | $ | (0.464 | ) | |
| Total distributions | | $ | (0.188 | ) | | $ | (0.362 | ) | | $ | (0.360 | ) | | $ | (0.371 | ) | | $ | (0.428 | ) | | $ | (0.464 | ) | |
| Net asset value — End of period | | $ | 10.260 | | | $ | 10.110 | | | $ | 10.100 | | | $ | 10.360 | | | $ | 10.300 | | | $ | 10.000 | | |
| Total Return(3) | | | 3.38 | % | | | 3.74 | % | | | 0.98 | % | | | 4.22 | % | | | 7.45 | % | | | 2.82 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 37,964 | | | $ | 37,080 | | | $ | 43,424 | | | $ | 46,192 | | | $ | 39,572 | | | $ | 34,898 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.90 | %(4) | | | 0.88 | % | | | 0.87 | %(5) | | | 0.84 | %(5) | | | 0.90 | %(5) | | | 0.96 | %(5) | |
| Expenses after custodian fee reduction | | | 0.88 | %(4) | | | 0.87 | % | | | 0.86 | %(5) | | | 0.84 | %(5) | | | 0.89 | %(5) | | | 0.94 | %(5) | |
| Net investment income | | | 3.98 | %(4) | | | 3.66 | % | | | 3.59 | % | | | 3.66 | % | | | 4.17 | % | | | 4.47 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 11 | % | | | 11 | % | | | 25 | % | | | 17 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 25 | % | | | 14 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 4.46% to 4.47%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
52
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New Jersey Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.100 | | | $ | 10.100 | | | $ | 10.350 | | | $ | 10.290 | | | $ | 9.990 | | | $ | 10.180 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.163 | | | $ | 0.294 | | | $ | 0.290 | | | $ | 0.302 | | | $ | 0.343 | | | $ | 0.376 | | |
| Net realized and unrealized gain (loss) | | | 0.147 | | | | (0.009 | ) | | | (0.260 | ) | | | 0.051 | | | | 0.306 | | | | (0.182 | ) | |
| Total income from operations | | $ | 0.310 | | | $ | 0.285 | | | $ | 0.030 | | | $ | 0.353 | | | $ | 0.649 | | | $ | 0.194 | | |
| Less distributions | |
| From net investment income | | $ | (0.150 | ) | | $ | (0.285 | ) | | $ | (0.280 | ) | | $ | (0.293 | ) | | $ | (0.349 | ) | | $ | (0.384 | ) | |
| Total distributions | | $ | (0.150 | ) | | $ | (0.285 | ) | | $ | (0.280 | ) | | $ | (0.293 | ) | | $ | (0.349 | ) | | $ | (0.384 | ) | |
| Net asset value — End of period | | $ | 10.260 | | | $ | 10.100 | | | $ | 10.100 | | | $ | 10.350 | | | $ | 10.290 | | | $ | 9.990 | | |
| Total Return(3) | | | 3.10 | % | | | 2.85 | % | | | 0.30 | % | | | 3.45 | % | | | 6.63 | % | | | 1.92 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 4,536 | | | $ | 5,992 | | | $ | 8,851 | | | $ | 10,211 | | | $ | 8,099 | | | $ | 3,152 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.65 | %(4) | | | 1.63 | % | | | 1.62 | %(5) | | | 1.59 | %(5) | | | 1.65 | %(5) | | | 1.71 | %(5) | |
| Expenses after custodian fee reduction | | | 1.63 | %(4) | | | 1.62 | % | | | 1.61 | %(5) | | | 1.59 | %(5) | | | 1.64 | %(5) | | | 1.69 | %(5) | |
| Net investment income | | | 3.21 | %(4) | | | 2.91 | % | | | 2.84 | % | | | 2.91 | % | | | 3.35 | % | | | 3.70 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 11 | % | | | 11 | % | | | 25 | % | | | 17 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 25 | % | | | 14 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.69% to 3.70%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
53
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New Jersey Limited Fund — Class C | |
| | | Period Ended
September 30, 2006
(Unaudited)(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.110 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.062 | | |
| Net realized and unrealized gain | | | 0.138 | | |
| Total income from operations | | $ | 0.200 | | |
| Less distributions | |
| From net investment income | | $ | (0.050 | ) | |
| Total distributions | | $ | (0.050 | ) | |
| Net asset value — End of period | | $ | 10.260 | | |
| Total Return(3) | | | 1.86 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 1 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.65 | %(4) | |
| Expenses after custodian fee reduction | | | 1.63 | %(4) | |
| Net investment income | | | 3.61 | %(4) | |
| Portfolio Turnover | | | 14 | %(5) | |
(1) Net investment income per share was computed using average shares outstanding.
(2) For the period from the start of business, August 1, 2006 to September 30, 2006.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) For the Fund's fiscal period from April 1, 2006 to September 30, 2006.
See notes to financial statements
54
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New York Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.480 | | | $ | 10.540 | | | $ | 10.850 | | | $ | 10.770 | | | $ | 10.360 | | | $ | 10.550 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.197 | | | $ | 0.388 | | | $ | 0.394 | | | $ | 0.400 | | | $ | 0.430 | | | $ | 0.460 | | |
| Net realized and unrealized gain (loss) | | | 0.150 | | | | (0.059 | ) | | | (0.315 | ) | | | 0.081 | | | | 0.415 | | | | (0.180 | ) | |
| Total income from operations | | $ | 0.347 | | | $ | 0.329 | | | $ | 0.079 | | | $ | 0.481 | | | $ | 0.845 | | | $ | 0.280 | | |
| Less distributions | |
| From net investment income | | $ | (0.197 | ) | | $ | (0.389 | ) | | $ | (0.389 | ) | | $ | (0.401 | ) | | $ | (0.435 | ) | | $ | (0.470 | ) | |
| Total distributions | | $ | (0.197 | ) | | $ | (0.389 | ) | | $ | (0.389 | ) | | $ | (0.401 | ) | | $ | (0.435 | ) | | $ | (0.470 | ) | |
| Net asset value — End of period | | $ | 10.630 | | | $ | 10.480 | | | $ | 10.540 | | | $ | 10.850 | | | $ | 10.770 | | | $ | 10.360 | | |
| Total Return(3) | | | 3.36 | % | | | 3.15 | % | | | 0.73 | % | | | 4.51 | % | | | 8.32 | % | | | 2.67 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 70,408 | | | $ | 59,546 | | | $ | 62,843 | | | $ | 67,711 | | | $ | 60,721 | | | $ | 44,811 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.83 | %(4) | | | 0.82 | % | | | 0.80 | %(5) | | | 0.79 | %(5) | | | 0.83 | %(5) | | | 0.92 | %(5) | |
| Expenses after custodian fee reduction | | | 0.81 | %(4) | | | 0.81 | % | | | 0.80 | %(5) | | | 0.79 | %(5) | | | 0.81 | %(5) | | | 0.89 | %(5) | |
| Net investment income | | | 3.74 | %(4) | | | 3.67 | % | | | 3.69 | % | | | 3.69 | % | | | 4.03 | % | | | 4.37 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 7 | % | | | 20 | % | | | 18 | % | | | 11 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 12 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 4.36% to 4.37%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
55
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New York Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.470 | | | $ | 10.530 | | | $ | 10.840 | | | $ | 10.760 | | | $ | 10.340 | | | $ | 10.550 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.159 | | | $ | 0.308 | | | $ | 0.314 | | | $ | 0.318 | | | $ | 0.346 | | | $ | 0.378 | | |
| Net realized and unrealized gain (loss) | | | 0.148 | | | | (0.061 | ) | | | (0.317 | ) | | | 0.081 | | | | 0.428 | | | | (0.198 | ) | |
| Total income (loss) from operations | | $ | 0.307 | | | $ | 0.247 | | | $ | (0.003 | ) | | $ | 0.399 | | | $ | 0.774 | | | $ | 0.180 | | |
| Less distributions | |
| From net investment income | | $ | (0.157 | ) | | $ | (0.307 | ) | | $ | (0.307 | ) | | $ | (0.319 | ) | | $ | (0.354 | ) | | $ | (0.390 | ) | |
| Total distributions | | $ | (0.157 | ) | | $ | (0.307 | ) | | $ | (0.307 | ) | | $ | (0.319 | ) | | $ | (0.354 | ) | | $ | (0.390 | ) | |
| Net asset value — End of period | | $ | 10.620 | | | $ | 10.470 | | | $ | 10.530 | | | $ | 10.840 | | | $ | 10.760 | | | $ | 10.340 | | |
| Total Return(3) | | | 2.97 | % | | | 2.36 | % | | | (0.03 | )% | | | 3.73 | % | | | 7.61 | % | | | 1.70 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 6,929 | | | $ | 8,978 | | | $ | 12,518 | | | $ | 15,389 | | | $ | 14,227 | | | $ | 4,822 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.58 | %(4) | | | 1.57 | % | | | 1.55 | %(5) | | | 1.54 | %(5) | | | 1.58 | %(5) | | | 1.67 | %(5) | |
| Expenses after custodian fee reduction | | | 1.56 | %(4) | | | 1.56 | % | | | 1.55 | %(5) | | | 1.54 | %(5) | | | 1.56 | %(5) | | | 1.64 | %(5) | |
| Net investment income | | | 3.02 | %(4) | | | 2.92 | % | | | 2.94 | % | | | 2.93 | % | | | 3.24 | % | | | 3.59 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 7 | % | | | 20 | % | | | 18 | % | | | 11 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 12 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.58% to 3.59%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
56
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | New York Limited Fund — Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.960 | | | $ | 10.020 | | | $ | 10.310 | | | $ | 10.230 | | | $ | 9.840 | | | $ | 10.010 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.151 | | | $ | 0.294 | | | $ | 0.299 | | | $ | 0.301 | | | $ | 0.324 | | | $ | 0.356 | | |
| Net realized and unrealized gain (loss) | | | 0.149 | | | | (0.062 | ) | | | (0.299 | ) | | | 0.081 | | | | 0.401 | | | | (0.163 | ) | |
| Total income from operations | | $ | 0.300 | | | $ | 0.232 | | | $ | — | | | $ | 0.382 | | | $ | 0.725 | | | $ | 0.193 | | |
| Less distributions | |
| From net investment income | | $ | (0.150 | ) | | $ | (0.292 | ) | | $ | (0.290 | ) | | $ | (0.302 | ) | | $ | (0.335 | ) | | $ | (0.363 | ) | |
| Total distributions | | $ | (0.150 | ) | | $ | (0.292 | ) | | $ | (0.290 | ) | | $ | (0.302 | ) | | $ | (0.335 | ) | | $ | (0.363 | ) | |
| Net asset value — End of period | | $ | 10.110 | | | $ | 9.960 | | | $ | 10.020 | | | $ | 10.310 | | | $ | 10.230 | | | $ | 9.840 | | |
| Total Return(3) | | | 3.04 | % | | | 2.32 | % | | | (0.07 | )%(4) | | | 3.76 | % | | | 7.49 | % | | | 1.92 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 24,061 | | | $ | 26,477 | | | $ | 36,837 | | | $ | 42,627 | | | $ | 27,781 | | | $ | 7,408 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.58 | %(5) | | | 1.57 | % | | | 1.55 | %(6) | | | 1.54 | %(6) | | | 1.58 | %(6) | | | 1.67 | %(6) | |
| Expenses after custodian fee reduction | | | 1.56 | %(5) | | | 1.56 | % | | | 1.55 | %(6) | | | 1.54 | %(6) | | | 1.56 | %(6) | | | 1.64 | %(6) | |
| Net investment income | | | 3.01 | %(5) | | | 2.92 | % | | | 2.94 | % | | | 2.92 | % | | | 3.19 | % | | | 3.57 | % | |
| Portfolio Turnover of the Portfolio(7) | | | — | | | | — | | | | 7 | % | | | 20 | % | | | 18 | % | | | 11 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 12 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.56% to 3.57%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Total returns reflects a decrease of 0.06% due to a change in the timing of the payment and reinvestment of distributions.
(5) Annualized.
(6) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(7) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
57
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Ohio Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.620 | | | $ | 9.740 | | | $ | 10.020 | | | $ | 10.010 | | | $ | 9.590 | | | $ | 9.760 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.176 | | | $ | 0.346 | | | $ | 0.363 | | | $ | 0.361 | | | $ | 0.392 | | | $ | 0.394 | | |
| Net realized and unrealized gain (loss) | | | 0.109 | | | | 0.104 | | | | (0.293 | ) | | | 0.014 | | | | 0.410 | | | | (0.142 | ) | |
| Total income from operations | | $ | 0.285 | | | $ | 0.242 | | | $ | 0.070 | | | $ | 0.375 | | | $ | 0.802 | | | $ | 0.252 | | |
| Less distributions | |
| From net investment income | | $ | (0.175 | ) | | $ | (0.362 | ) | | $ | (0.350 | ) | | $ | (0.365 | ) | | $ | (0.382 | ) | | $ | (0.422 | ) | |
| Total distributions | | $ | (0.175 | ) | | $ | (0.362 | ) | | $ | (0.350 | ) | | $ | (0.365 | ) | | $ | (0.382 | ) | | $ | (0.422 | ) | |
| Net asset value — End of period | | $ | 9.730 | | | $ | 9.620 | | | $ | 9.740 | | | $ | 10.020 | | | $ | 10.010 | | | $ | 9.590 | | |
| Total Return(3) | | | 3.02 | % | | | 2.50 | % | | | 0.70 | % | | | 3.80 | % | | | 8.52 | % | | | 2.62 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 18,845 | | | $ | 17,286 | | | $ | 16,783 | | | $ | 20,404 | | | $ | 18,313 | | | $ | 16,310 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.03 | %(4) | | | 1.04 | % | | | 1.05 | %(5) | | | 0.99 | %(5) | | | 1.03 | %(5) | | | 1.14 | %(5) | |
| Expenses after custodian fee reduction | | | 0.98 | %(4) | | | 1.02 | % | | | 1.04 | %(5) | | | 0.99 | %(5) | | | 1.02 | %(5) | | | 1.11 | %(5) | |
| Net investment income | | | 3.64 | %(4) | | | 3.55 | % | | | 3.68 | % | | | 3.61 | % | | | 3.96 | % | | | 4.05 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 6 | % | | | 28 | % | | | 12 | % | | | 19 | % | |
| Portfolio Turnover of the Fund | | | 8 | % | | | 13 | % | | | 7 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by less than $0.001, increase net realized and unrealized losses per share by less than $0.001 and increase the ratio net investment income to average net assets by less than 0.01%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
58
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Ohio Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.610 | | | $ | 9.730 | | | $ | 10.010 | | | $ | 10.000 | | | $ | 9.590 | | | $ | 9.760 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.140 | | | $ | 0.274 | | | $ | 0.289 | | | $ | 0.286 | | | $ | 0.314 | | | $ | 0.321 | | |
| Net realized and unrealized gain (loss) | | | 0.109 | | | | (0.109 | ) | | | (0.294 | ) | | | 0.017 | | | | 0.407 | | | | (0.139 | ) | |
| Total income (loss) from operations | | $ | 0.249 | | | $ | 0.165 | | | $ | (0.005 | ) | | $ | 0.303 | | | $ | 0.721 | | | $ | 0.182 | | |
| Less distributions | |
| From net investment income | | $ | (0.139 | ) | | $ | (0.285 | ) | | $ | (0.275 | ) | | $ | (0.293 | ) | | $ | (0.311 | ) | | $ | (0.352 | ) | |
| Total distributions | | $ | (0.139 | ) | | $ | (0.285 | ) | | $ | (0.275 | ) | | $ | (0.293 | ) | | $ | (0.311 | ) | | $ | (0.352 | ) | |
| Net asset value — End of period | | $ | 9.720 | | | $ | 9.610 | | | $ | 9.730 | | | $ | 10.010 | | | $ | 10.000 | | | $ | 9.590 | | |
| Total Return(3) | | | 2.63 | % | | | 1.73 | % | | | (0.05 | )% | | | 3.06 | % | | | 7.64 | % | | | 1.89 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 694 | | | $ | 880 | | | $ | 2,159 | | | $ | 2,623 | | | $ | 2,768 | | | $ | 1,390 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.78 | %(4) | | | 1.79 | % | | | 1.80 | %(5) | | | 1.74 | %(5) | | | 1.78 | %(5) | | | 1.89 | %(5) | |
| Expenses after custodian fee reduction | | | 1.73 | %(4) | | | 1.77 | % | | | 1.79 | %(5) | | | 1.74 | %(5) | | | 1.77 | %(5) | | | 1.86 | %(5) | |
| Net investment income | | | 2.91 | %(4) | | | 2.81 | % | | | 2.94 | % | | | 2.86 | % | | | 3.17 | % | | | 3.30 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 6 | % | | | 28 | % | | | 12 | % | | | 19 | % | |
| Portfolio Turnover of the Fund | | | 8 | % | | | 13 | % | | | 7 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by less than $0.001, increase net realized and unrealized losses per share by less than $0.001 and increase the ratio of net investment income to average net assets by less than 0.01%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
59
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Ohio Limited Fund — Class C | |
| | | Period Ended
September 30, 2006
(Unaudited)(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.600 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.046 | | |
| Net realized and unrealized gain | | | 0.110 | | |
| Total income from operations | | $ | 0.156 | | |
| Less distributions | |
| From net investment income | | $ | (0.046 | ) | |
| Total distributions | | $ | (0.046 | ) | |
| Net asset value — End of period | | $ | 9.710 | | |
| Total Return(3) | | | 1.51 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 1 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | �� | 1.75 | %(4) | |
| Expenses after custodian fee reduction | | | 1.70 | %(4) | |
| Net investment income | | | 2.84 | %(4) | |
| Portfolio Turnover of the Fund | | | 8 | %(5) | |
(1) Net investment income per share was computed using average shares outstanding.
(2) For the period from the start of business, August 1, 2006 to September 30, 2006.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) For the Fund's fiscal period from April 1, 2006 to September 30, 2006.
See notes to financial statements
60
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Pennsylvania Limited Fund — Class A | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.270 | | | $ | 10.280 | | | $ | 10.550 | | | $ | 10.470 | | | $ | 10.130 | | | $ | 10.270 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.198 | | | $ | 0.394 | | | $ | 0.402 | | | $ | 0.406 | | | $ | 0.440 | | | $ | 0.453 | | |
| Net realized and unrealized gain (loss) | | | 0.129 | | | | (0.004 | ) | | | (0.272 | ) | | | 0.084 | | | | 0.349 | | | | (0.130 | ) | |
| Total income from operations | | $ | 0.327 | | | $ | 0.390 | | | $ | 0.130 | | | $ | 0.490 | | | $ | 0.789 | | | $ | 0.323 | | |
| Less distributions | |
| From net investment income | | $ | (0.197 | ) | | $ | (0.400 | ) | | $ | (0.400 | ) | | $ | (0.410 | ) | | $ | (0.449 | ) | | $ | (0.463 | ) | |
| Total distributions | | $ | (0.197 | ) | | $ | (0.400 | ) | | $ | (0.400 | ) | | $ | (0.410 | ) | | $ | (0.449 | ) | | $ | (0.463 | ) | |
| Net asset value — End of period | | $ | 10.400 | | | $ | 10.270 | | | $ | 10.280 | | | $ | 10.550 | | | $ | 10.470 | | | $ | 10.130 | | |
| Total Return(3) | | | 3.24 | % | | | 3.84 | % | | | 1.25 | % | | | 4.72 | % | | | 7.97 | % | | | 3.18 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 33,309 | | | $ | 34,592 | | | $ | 33,611 | | | $ | 35,175 | | | $ | 33,580 | | | $ | 29,845 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 0.89 | %(4) | | | 0.87 | % | | | 0.88 | %(5) | | | 0.85 | %(5) | | | 0.89 | %(5) | | | 0.97 | %(5) | |
| Expenses after custodian fee reduction | | | 0.88 | %(4) | | | 0.85 | % | | | 0.87 | %(5) | | | 0.85 | %(5) | | | 0.87 | %(5) | | | 0.92 | %(5) | |
| Net investment income | | | 3.84 | %(4) | | | 3.82 | % | | | 3.86 | % | | | 3.85 | % | | | 4.24 | % | | | 4.41 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 0 | % | | | 8 | % | | | 3 | % | | | 20 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 6 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 4.40% to 4.41%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
61
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Pennsylvania Limited Fund — Class B | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 10.270 | | | $ | 10.280 | | | $ | 10.550 | | | $ | 10.460 | | | $ | 10.120 | | | $ | 10.270 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.159 | | | $ | 0.317 | | | $ | 0.323 | | | $ | 0.327 | | | $ | 0.355 | | | $ | 0.372 | | |
| Net realized and unrealized gain (loss) | | | 0.129 | | | | (0.005 | ) | | | (0.273 | ) | | | 0.093 | | | | 0.354 | | | | (0.138 | ) | |
| Total income from operations | | $ | 0.288 | | | $ | 0.312 | | | $ | 0.050 | | | $ | 0.420 | | | $ | 0.709 | | | $ | 0.234 | | |
| Less distributions | |
| From net investment income | | $ | (0.158 | ) | | $ | (0.322 | ) | | $ | (0.320 | ) | | $ | (0.330 | ) | | $ | (0.369 | ) | | $ | (0.384 | ) | |
| Total distributions | | $ | (0.158 | ) | | $ | (0.322 | ) | | $ | (0.320 | ) | | $ | (0.330 | ) | | $ | (0.369 | ) | | $ | (0.384 | ) | |
| Net asset value — End of period | | $ | 10.400 | | | $ | 10.270 | | | $ | 10.280 | | | $ | 10.550 | | | $ | 10.460 | | | $ | 10.120 | | |
| Total Return(3) | | | 2.85 | % | | | 3.06 | % | | | 0.48 | % | | | 4.04 | % | | | 7.14 | % | | | 2.28 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 5,695 | | | $ | 6,962 | | | $ | 8,957 | | | $ | 10,273 | | | $ | 9,313 | | | $ | 2,643 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.64 | %(4) | | | 1.62 | % | | | 1.63 | %(5) | | | 1.60 | %(5) | | | 1.64 | %(5) | | | 1.72 | %(5) | |
| Expenses after custodian fee reduction | | | 1.63 | %(4) | | | 1.60 | % | | | 1.62 | %(5) | | | 1.60 | %(5) | | | 1.62 | %(5) | | | 1.67 | %(5) | |
| Net investment income | | | 3.09 | %(4) | | | 3.07 | % | | | 3.11 | % | | | 3.10 | % | | | 3.42 | % | | | 3.63 | % | |
| Portfolio Turnover of the Portfolio(6) | | | — | | | | — | | | | 0 | % | | | 8 | % | | | 3 | % | | | 20 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 6 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.62% to 3.63%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Annualized.
(5) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(6) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
62
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
FINANCIAL STATEMENTS CONT'D
Financial Highlights
| | | Pennsylvania Limited Fund — Class C | |
| | | Six Months Ended
September 30, 2006 | | Year Ended March 31, | |
| | | (Unaudited)(1) | | 2006(1) | | 2005(1) | | 2004(1) | | 2003(1) | | 2002(1)(2) | |
| Net asset value — Beginning of period | | $ | 9.740 | | | $ | 9.750 | | | $ | 10.000 | | | $ | 9.910 | | | $ | 9.590 | | | $ | 9.720 | | |
| Income (loss) from operations | |
| Net investment income | | $ | 0.151 | | | $ | 0.300 | | | $ | 0.307 | | | $ | 0.308 | | | $ | 0.339 | | | $ | 0.354 | | |
| Net realized and unrealized gain (loss) | | | 0.119 | | | | (0.006 | ) | | | (0.257 | ) | | | 0.091 | | | | 0.330 | | | | (0.121 | ) | |
| Total income from operations | | $ | 0.270 | | | $ | 0.294 | | | $ | 0.050 | | | $ | 0.399 | | | $ | 0.669 | | | $ | 0.233 | | |
| Less distributions | |
| From net investment income | | $ | (0.150 | ) | | $ | (0.304 | ) | | $ | (0.300 | ) | | $ | (0.309 | ) | | $ | (0.349 | ) | | $ | (0.363 | ) | |
| Total distributions | | $ | (0.150 | ) | | $ | (0.304 | ) | | $ | (0.300 | ) | | $ | (0.309 | ) | | $ | (0.349 | ) | | $ | (0.363 | ) | |
| Net asset value — End of period | | $ | 9.860 | | | $ | 9.740 | | | $ | 9.750 | | | $ | 10.000 | | | $ | 9.910 | | | $ | 9.590 | | |
| Total Return(3) | | | 2.82 | % | | | 3.05 | % | | | 0.44 | %(4) | | | 4.06 | % | | | 7.11 | % | | | 2.40 | % | |
| Ratios/Supplemental Data | |
| Net assets, end of period (000's omitted) | | $ | 15,301 | | | $ | 15,894 | | | $ | 16,670 | | | $ | 21,398 | | | $ | 15,188 | | | $ | 7,262 | | |
| Ratios (As a percentage of average daily net assets): | |
| Expenses before custodian fee reduction | | | 1.64 | %(5) | | | 1.62 | % | | | 1.63 | %(6) | | | 1.60 | %(6) | | | 1.64 | %(6) | | | 1.72 | %(6) | |
| Expenses after custodian fee reduction | | | 1.63 | %(5) | | | 1.60 | % | | | 1.62 | %(6) | | | 1.60 | %(6) | | | 1.62 | %(6) | | | 1.67 | %(6) | |
| Net investment income | | | 3.08 | %(5) | | | 3.07 | % | | | 3.12 | % | | | 3.08 | % | | | 3.44 | % | | | 3.64 | % | |
| Portfolio Turnover of the Portfolio(7) | | | — | | | | — | | | | 0 | % | | | 8 | % | | | 3 | % | | | 20 | % | |
| Portfolio Turnover of the Fund | | | 14 | % | | | 22 | % | | | 6 | % | | | — | | | | — | | | | — | | |
(1) Net investment income per share was computed using average shares outstanding.
(2) The Fund, through its investment in the Portfolio, has adopted the provisions of the revised AICPA Audit and Accounting Guide for Investment Companies and began using the interest method to amortize premiums on fixed-income securities. The effect of this change for the year ended March 31, 2002 was to increase net investment income per share by $0.001, increase net realized and unrealized losses per share by $0.001 and increase the ratio of net investment income to average net assets from 3.63% to 3.64%.
(3) Returns are historical and are calculated by determining the percentage change in net asset value with all distributions reinvested. Total return is not computed on an annualized basis.
(4) Total return reflects a decrease of 0.06% due to a change in the timing of the payment and reinvestment of distributions.
(5) Annualized.
(6) Includes the Fund's share of its corresponding Portfolio's allocated expenses while the Fund was making investments directly into the Portfolio.
(7) Portfolio turnover represents the rate of portfolio activity for the period while the Fund was making investments directly into the Portfolio.
See notes to financial statements
63
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited)
1 Significant Accounting Policies
Eaton Vance Investment Trust (the Trust) is an entity of the type commonly known as a Massachusetts business trust and is registered under the Investment Company Act of 1940, as amended, as an open-end management investment company. The Trust presently consists of eight Funds, each non-diversified, seven of which are included in these financial statements. They include Eaton Vance California Limited Maturity Municipals Fund (California Limited Fund), Eaton Vance Florida Limited Maturity Municipals Fund (Florida Limited Fund), Eaton Vance Massachusetts Limited Maturity Municipals Fund (Massachusetts Limited Fund), Eaton Vance New Jersey Limited Maturity Municipals Fund (New Jersey Limited Fund), Eaton Vance New York Limited Maturity Municipals Fund (New York Limited Fund), Eaton Vance Ohio Limited Maturity Municipals Fund (Ohio Limited Fund) and Eaton Vance Pennsylvania Limited Maturity Municipals Fund (Pennsylvania Limited Fund) , collectively the "Funds" or individually the "Fund." The Funds seek to provide a high level of current income exempt from regular federal income tax and particular state or local income or other taxes with limited principal fluctuation by investing primarily in investment grade municipal obligations. The Funds offer three classes of shares: Class A, Class B and Class C. Class A shares are generally sold subject to a sales charge imposed at time of purchase. Class B and Class C shares are sold at net asset value and are subject to a contingent deferred sales charge (see Note 6). Class B shares held longer than (i) four years or (ii) the time at which the contingent deferred sales charge applicable to such shares expires will automatically convert to Class A shares. In addition, Class B shares acquired through the reinvestment of distributions will also convert to Class A shares in proportion to shares not acquired through reinvestment. Each class represents a pro rata interest in the Fund, but votes separat ely 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 paid shares of each class 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 consistently followed by the Funds in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America.
A Investment Valuations — Municipal bonds and taxable obligations, if any, are normally valued on the basis of valuations furnished by a pricing service. Financial futures contracts and options on financial future contracts listed on the commodity exchanges are valued at closing settlement prices. Over-the-counter options on futures contracts are normally valued at the mean between the latest bid and asked price. Interest rate swaps are normally valued on the basis of valuations furnished by a pricing service. Short-term obligations, maturing in sixty days or less, are valued at amortized cost, which approximates value. Investments for which valuations or market quotations are unavailable, and investm ents for which the price of the security is not believed to represent its fair market value are valued at fair value using methods determined in good faith by or at the direction of the Trustees.
B Income — Interest income is determined on the basis of interest accrued, adjusted for amortization of premium and accretion of discount.
C 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.
D 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 all of its taxable, if any, and tax-exempt income, including any net realized gain on investments. Accordingly, no provision for federal income or excise tax is necessary. At March 31, 2006, the following Funds, for federal income tax purposes, had capital loss carryovers, which will reduce each Fund's taxable income arising from future taxable net realized gain on investments, if any, to the extent permitted by the Internal Revenue Code, and thus will reduce the amount of distributions to shareholders which would ot herwise be necessary to relieve the Funds of any liability for federal income or excise taxes. The amounts and expiration dates of the capital loss carryovers are as follows:
| Fund | | Amount | | Expires | |
| California Limited Fund | | $ | 46,725 | | | March 31, 2011 | |
|
| | | | 13,351 | | | March 31, 2012 | |
|
| | | | 384,970 | | | March 31, 2013 | |
|
| Florida Limited Fund | | | 52,567 | | | March 31, 2009 | |
|
| | | | 200,399 | | | March 31, 2011 | |
|
| | | | 995,128 | | | March 31, 2013 | |
|
64
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
| Fund | | Amount | | Expires | |
| Massachusetts Limited Fund | | $ | 136,941 | | | March 31, 2009 | |
|
| | | | 35,096 | | | March 31, 2010 | |
|
| | | | 506,705 | | | March 31, 2011 | |
|
| | | | 393,962 | | | March 31, 2012 | |
|
| | | | 1,336,686 | | | March 31, 2013 | |
|
| | | | 25,938 | | | March 31, 2014 | |
|
| New Jersey Limited Fund | | | 160,165 | | | March 31, 2011 | |
|
| | | | 298,472 | | | March 31, 2012 | |
|
| | | | 728,451 | | | March 31, 2013 | |
|
| New York Limited Fund | | | 144,635 | | | March 31, 2011 | |
|
| | | | 483,774 | | | March 31, 2012 | |
|
| | | | 1,522,094 | | | March 31, 2013 | |
|
| Ohio Limited Fund | | | 36,233 | | | March 31, 2009 | |
|
| | | | 69,085 | | | March 31, 2010 | |
|
| | | | 366,442 | | | March 31, 2011 | |
|
| | | | 60,692 | | | March 31, 2012 | |
|
| | | | 358,602 | | | March 31, 2013 | |
|
| | | | 19,117 | | | March 31, 2014 | |
|
| Pennsylvania Limited Fund | | | 35,625 | | | March 31, 2009 | |
|
| | | | 59,482 | | | March 31, 2010 | |
|
| | | | 400,339 | | | March 31, 2011 | |
|
| | | | 154,413 | | | March 31, 2012 | |
|
| | | | 954,523 | | | March 31, 2013 | |
|
Dividends paid by each Fund from net tax-exempt interest on municipal bonds are not includable by shareholders as gross income for federal income tax purposes because each Fund intends to meet certain requirements of the Internal Revenue Code applicable to regulated investment companies which will enable the Funds to pay exempt-interest dividends. The portion of such interest, if any, earned on private activity bonds issued after August 7, 1986, may be considered a tax preference item to shareholders.
E Financial Futures Contracts — Upon the entering of a financial futures contract, a Fund is required to deposit (initial margin) either in cash or securities an amount equal to a certain percentage of the purchase price indicated in the financial futures contract. Subsequent payments are made or received by a Fund (margin maintenance) each day, dependent on the daily fluctuations in the value of the underlying security, and are recorded for book purposes as unrealized gains or losses by a Fund. A Fund's investment in financial futures contracts is designed for both hedging against anticipated future changes in interest rates and investment purposes. Should interest rates move unexpectedly, a Fund may not achieve the anticipated benefits of the financial futures contracts and may realize a loss.
F Options on Financial Futures Contracts — Upon the purchase of a put option on a financial futures contract by a Fund, the premium paid is recorded as an investment, the value of which is marked-to-market daily. When a purchased option expires, a Fund will realize a loss in the amount of the cost of the option. When a Fund enters into a closing sale transaction, a Fund will realize a gain or loss depending on whether the sales proceeds from the closing sale transaction are greater or less than the cost of the option. When a Fund exercises a put option, settlement is made in cash. The risk associated with purchasing put options is limited to the premium originally paid.
G Interest Rate Swaps — The Funds may enter into interest rate swap agreements for risk management purposes and not as speculative investment. Pursuant to these agreements the Funds receive quarterly payments at a rate equal to a predetermined three-month London Interbank Offering Rate (LIBOR). In exchange, the Funds make semi-annual payments at a predetermined fixed rate of interest. During the term of the outstanding swap agreement, changes in the underlying value of the swap are recorded as unrealized gains and losses. The value of the swap is determined by changes in the relationship between two rates of interest. The Funds are exposed to credit loss in the event of non-performance by the swap cou nterparty. The Fund does not anticipate non-performance by the counterparty. Risk may also arise from the unanticipated movements in value of interest rates.
H When-issued and Delayed Delivery Transactions — The Funds may engage in when-issued and delayed delivery transactions. The Funds record when-issued securities on trade date and maintain security positions such that sufficient liquid assets will be available to make payments for the securities purchased. Securities purchased on a when-issued or delayed delivery basis are marked-to-market daily and begin earning interest on settlement date.
I Legal Fees — Legal fees and other related expenses incurred as part of negotiations of the terms and requirements 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.
65
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
J Expense Reduction — Investors Bank & Trust Company (IBT) serves as custodian of the Funds. Pursuant to the respective custodian agreements, IBT receives a fee reduced by credits which are determined based on the average daily cash balances each Fund maintains with IBT. All credit balances used to reduce the Funds' custodian fees are reported as a reduction of total expenses on the Statements of Operations.
K 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.
L 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 and shareholders are indemnified against personal liability for obligations of the Trust. Additionally, in the normal course of business, the Funds enter into agreements with service providers that may contain indemnification clauses. The Funds' maximum exposure under these arrangements is unknown as this would involve future claims that may be made against the Funds that have not yet occurred.
M Other — Investment transactions are accounted for on a trade-date basis. Realized gains and losses on securities sold are determined on the basis of identified cost.
N Interim Financial Statements — The interim financial statements relating to September 30, 2006 and for the six months then ended have not been audited by an independent registered public accounting firm, but in the opinion of the Funds' management reflects all adjustments, consisting only of normal recurring adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
The net income of each Fund is determined daily and substantially all of the net income so determined is declared as a dividend to shareholders of record at the time of declaration. Dividends are declared separately for each class of shares. Distributions are paid monthly.
Distributions of realized gains, 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. Distributions are paid in the form of additional shares of the same class or, at the election of the shareholder, 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. Permanent differences between book and tax accounting relating to distributions are reclassified to paid-in capital.
3 Shares of Beneficial Interest
The Funds' 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:
| | | California Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 420,541 | | | | 1,266,350 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 36,425 | | | | 63,680 | | |
| Redemptions | | | (382,354 | ) | | | (1,171,995 | ) | |
| Exchange from Class B shares | | | 36,512 | | | | 51,112 | | |
| Net increase | | | 111,124 | | | | 209,147 | | |
| | | California Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 12,867 | | | | 11,090 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 1,703 | | | | 4,016 | | |
| Redemptions | | | (35,529 | ) | | | (76,886 | ) | |
| Exchange to Class A shares | | | (36,617 | ) | | | (51,257 | ) | |
| Net decrease | | | (57,576 | ) | | | (113,037 | ) | |
66
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
| | | California Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 44,529 | | | | 4,215 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 33 | | | | 34 | | |
| Redemptions | | | — | | | | (2,999 | ) | |
| Net increase | | | 44,562 | | | | 1,250 | | |
| | | Florida Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 79,843 | | | | 1,033,834 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 29,215 | | | | 61,954 | | |
| Redemptions | | | (354,168 | ) | | | (2,056,171 | ) | |
| Exchange from Class B shares | | | 77,177 | | | | 113,445 | | |
| Net decrease | | | (167,933 | ) | | | (846,938 | ) | |
| | | Florida Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 1,189 | | | | 9,370 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 4,573 | | | | 11,240 | | |
| Redemptions | | | (45,168 | ) | | | (145,580 | ) | |
| Exchange to Class A shares | | | (77,162 | ) | | | (113,429 | ) | |
| Net decrease | | | (116,568 | ) | | | (238,399 | ) | |
| | | Florida Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 45,849 | | | | 294,922 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 5,931 | | | | 13,864 | | |
| Redemptions | | | (180,862 | ) | | | (723,746 | ) | |
| Net decrease | | | (129,082 | ) | | | (414,960 | ) | |
| | | Massachusetts Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 331,380 | | | | 867,133 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 47,973 | | | | 93,978 | | |
| Redemptions | | | (721,834 | ) | | | (1,272,609 | ) | |
| Exchange from Class B shares | | | 95,599 | | | | 193,171 | | |
| Net decrease | | | (246,882 | ) | | | (118,327 | ) | |
| | | Massachusetts Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 16,898 | | | | 44,426 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 5,672 | | | | 15,768 | | |
| Redemptions | | | (78,351 | ) | | | (169,287 | ) | |
| Exchange to Class A shares | | | (95,657 | ) | | | (193,291 | ) | |
| Net decrease | | | (151,438 | ) | | | (302,384 | ) | |
| | | Massachusetts Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 46,509 | | | | 359,561 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 16,446 | | | | 44,111 | | |
| Redemptions | | | (410,914 | ) | | | (1,180,985 | ) | |
| Net decrease | | | (347,959 | ) | | | (777,313 | ) | |
| | | New Jersey Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 103,854 | | | | 345,022 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 45,493 | | | | 100,396 | | |
| Redemptions | | | (247,366 | ) | | | (1,234,433 | ) | |
| Exchange from Class B shares | | | 130,156 | | | | 158,511 | | |
| Net increase (decrease) | | | 32,137 | | | | (630,504 | ) | |
67
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
| | | New Jersey Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 23,396 | | | | 39,477 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 4,489 | | | | 11,906 | | |
| Redemptions | | | (48,480 | ) | | | (176,424 | ) | |
| Exchange to Class A shares | | | (130,167 | ) | | | (158,572 | ) | |
| Net decrease | | | (150,762 | ) | | | (283,613 | ) | |
| | | New Jersey Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited)(1) | | Year Ended
March 31, 2006 | |
| Sales | | | 99 | | | | — | | |
| Net increase | | | 99 | | | | — | | |
| | | New York Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 1,288,014 | | | | 1,444,433 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 77,235 | | | | 159,209 | | |
| Redemptions | | | (558,124 | ) | | | (2,129,482 | ) | |
| Exchange from Class B shares | | | 133,247 | | | | 247,470 | | |
| Net increase (decrease) | | | 940,372 | | | | (278,370 | ) | |
| | | New York Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 33,246 | | | | 99,887 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 7,247 | | | | 18,755 | | |
| Redemptions | | | (112,340 | ) | | | (202,084 | ) | |
| Exchange to Class A shares | | | (133,293 | ) | | | (247,613 | ) | |
| Net decrease | | | (205,140 | ) | | | (331,055 | ) | |
| | | New York Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 108,390 | | | | 358,646 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 21,975 | | | | 51,149 | | |
| Redemptions | | | (407,521 | ) | | | (1,428,295 | ) | |
| Net decrease | | | (277,156 | ) | | | (1,018,500 | ) | |
| | | Ohio Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 226,619 | | | | 229,139 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 15,286 | | | | 39,446 | | |
| Redemptions | | | (119,934 | ) | | | (251,412 | ) | |
| Exchange from Class B shares | | | 17,596 | | | | 57,095 | | |
| Net increase | | | 139,567 | | | | 74,268 | | |
| | | Ohio Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 2,143 | | | | 9,024 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 827 | | | | 2,634 | | |
| Redemptions | | | (5,562 | ) | | | (84,854 | ) | |
| Exchange to Class A shares | | | (17,620 | ) | | | (57,157 | ) | |
| Net decrease | | | (20,212 | ) | | | (130,353 | ) | |
| | | Ohio Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited)(2) | | Year Ended
March 31, 2006 | |
| Sales | | | 105 | | | | — | | |
| Net increase | | | 105 | | | | — | | |
68
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
| | | Pennsylvania Limited Fund | |
| Class A | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 91,669 | | | | 499,530 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 35,182 | | | | 66,952 | | |
| Redemptions | | | (377,145 | ) | | | (569,910 | ) | |
| Exchange from Class B shares | | | 85,819 | | | | 102,215 | | |
| Net increase (decrease) | | | (164,475 | ) | | | 98,787 | | |
| | | Pennsylvania Limited Fund | |
| Class B | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 16,646 | | | | 39,665 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 4,942 | | | | 12,198 | | |
| Redemptions | | | (65,837 | ) | | | (143,769 | ) | |
| Exchange to Class A shares | | | (85,773 | ) | | | (101,487 | ) | |
| Net decrease | | | (130,022 | ) | | | (193,393 | ) | |
| | | Pennsylvania Limited Fund | |
| Class C | | Six Months Ended
September 30, 2006
(Unaudited) | | Year Ended
March 31, 2006 | |
| Sales | | | 113,441 | | | | 330,880 | | |
Issued to shareholders electing to
receive payments of distributions
in Fund shares | | | 11,033 | | | | 23,730 | | |
| Redemptions | | | (204,494 | ) | | | (432,897 | ) | |
| Net decrease | | | (80,020 | ) | | | (78,287 | ) | |
(1) Class C shares of the New Jersey Limited Fund commenced operations on August 1, 2006.
(2) Class C shares of the Ohio Limited Fund commenced operations on August 1, 2006.
4 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). For the six months ended September 30, 2006, advisory fees incurred by the Funds were as follows:
| Fund | | Amount | | Effective Rate* | |
| California Limited | | $ | 78,531 | | | | 0.44 | % | |
| Florida Limited | | | 117,605 | | | | 0.44 | % | |
| Massachusetts Limited | | | 154,877 | | | | 0.43 | % | |
| New Jersey Limited | | | 95,137 | | | | 0.44 | % | |
| New York Limited | | | 211,007 | | | | 0.43 | % | |
| Ohio Limited | | | 40,745 | | | | 0.44 | % | |
| Pennsylvania Limited | | | 123,102 | | | | 0.44 | % | |
* As a percentage of average daily net assets. (annualized)
Except as to Trustees of the Funds who are not members of EVM's or BMR's organization, officers and Trustees receive remuneration for their services to the Funds out of such investment adviser fee. EVM serves as the 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 those services. For the six months ended September 30, 2006, EVM earned approximately $300, $600, $1,100, $800, $1,600, $300 and $1000 in sub-transfer agent fees from California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively . The Funds were informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Funds' principal underwriter, received approximately $700, $400 $2,900, $1,335, $1,300, $1,500 and $900 as its portion of the sales charge on sales of Class A shares from California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively, for the six months ended September 30, 2006.
Trustees of the Funds that are not affiliated with the Investment Adviser may elect to defer receipt of all or a percentage of their annual fees in accordance with the terms of the Trustees Deferred Compensation Plan. For the six months ended September 30, 2006, no significant amounts have been deferred.
Certain of the officers and Trustees of the Funds are officers of the above organizations.
69
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
5 Distribution Plans
Class A of each Fund has in effect a distribution plan pursuant to Rule 12b-1 under the Investment Company Act of 1940 (Class A Plan). The Class A Plan provides that each Fund will pay EVD a distribution and service fee not exceeding 0.25% (annualized) of each Fund's average daily net assets attributable to Class A shares for each fiscal year 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% annually of each Fund's average daily net assets attributable to Class A each fiscal year. Distribution and service fees paid or accrued for the six months ended September 30, 2006, amounted to $24,992, $26,638, $35,115, $28,252, $47,707, $13,392 and $25,484, for Class A shares of California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Li mited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund. 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. The Class B and Class C Plans require each Fund to pay EVD amounts equal to 1/365 of 0.75% (annualized) of each Fund's 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% (3-1/2% for Ohio Limited Fund) 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 reduced by the aggregate amount of contingent defe rred sales charges (see Note 6) and theretofore paid or payable to EVD by each respective class. The California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund paid or accrued $9,445, $20,174, $25,724, $19,656, $30,448, $2,945 and $24,110 respectively, for Class B shares, to or payable to EVD for the six months ended September 30, 2006, representing 0.75% (annualized) of the average daily net assets for Class B. The California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio
Limited Fund and Pennsylvania Limited Fund paid or accrued $720, $47,815, $66,704, $1, $95,256, $1 and $58,396, respectively, for Class C shares, to or payable to EVD for the six months ended September 30, 2006, representing 0.75% (annualized) of the average daily net assets for Class C shares. At September 30, 2006, the amount of Uncovered Distribution Charges of EVD calculated under the Plans for the California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund were approximately $451,000, $871,000, $515,000, $501,000, $744,000, $744,000 and $352,000, respectively for Class B shares, and the amount of Uncovered Distribution Charges of EVD calculated under the plan, for California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylv ania Limited Fund were approximately $29,000, $8,347,000, $4,174,000, $30, $5,042,000, $0, and $5,025,000, respectively, for Class C shares.
The Class B and Class C Plans also authorize the Fund to make payments of service fees to EVD, investment dealers and other persons in amounts not exceeding 0.25% annually of the average daily net assets attributable to that Class. The Trustees approved service fee payments equal to 0.15% annually of each Fund's average daily net assets attributable to Class B and Class C, if applicable, for each fiscal year. Service fees are paid 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 to EVD. Service fees paid or accrued for the six months ended September 30, 2006, amounted to $1,889, $4,035, $5,145, $3,931, $6,090, $589 and $4,822, for the California Limited Fund, Florida Limited Fund, Massachusett s Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively, for Class B shares. Service fees paid or accrued for the six months ended September 30, 2006, amounted to $143, $9,563, $13,341, $0, $19,051, $1 and $11,679, for California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, respectively, for Class C shares.
70
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
6 Contingent Deferred Sales Charge
A contingent deferred sales charge (CDSC) generally is imposed on redemptions of Class B shares made within four years of purchase and on redemptions of Class C shares within one year of purchase. Class A shares may be subject to a 1% CDSC if redeemed within eighteen months of purchase (depending upon the circumstances of purchase) or a 1% or a 0.50% CDSC if redeemed within one year or two years, respectively on purchases through the Eaton Vance Supplemental Retirement Account. Generally, the CDSC is based upon the lower of the net asset value at date of redemption or date of purchase. No charge is levied on Class B and Class C shares acquired by reinvestment of dividends or capital gains distributions. The CDSC for Class B shares is imposed at declining rates that begin at 3% in the case of redemptions in the first year after purchase declining half a percentage point the second and third year and one percentage point each subs equent 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 employees or clients and may be waived under certain other limited conditions. CDSC charges are paid to EVD to reduce the amount of Uncovered Distribution Charges calculated under each Fund's Distribution Plan (see Note 5). CDSC charges received when no Uncovered Distribution Charges exist will be credited to each Fund. For the six months ended September 30, 2006, EVD received approximately $200, $5,000, $10,000, $30, and $2,000, respectively, for Class A shares, of CDSC paid by shareholders of the California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New York Limited Fund, and Pennsylvania Limited Fund. EVD received approximately $5,000, $3,000, $3,000, $2,000, $9,000, $1,000 and $2,000, respectively, for Class B shares, of CDSC paid by shareholders of California Limited Fund, Florida Limited Fund, Massachusetts Limited Fund, New Jersey Limited Fund, New York Limited Fund, Ohio Limited Fund and Pennsylvania Limited Fund, and CDSC paid by shareholders of the Florida Limited Fund, Massachusetts Limited Fund, New York Limited Fund and Pennsylvania Limited Fund were approximately $1,000, $1,000, $1,000 and $100, respectively, for Class C shares.
7 Investments
Purchases and sales of investments by the Funds, other than U.S. Government securities and short-term
obligations, for the six months ended September 30, 2006, were as follows:
| California Limited Fund | | | |
| Purchases | | $ | 6,919,084 | | |
| Sales | | | 7,510,901 | | |
| Florida Limited Fund | | | |
| Purchases | | $ | 6,045,589 | | |
| Sales | | | 11,243,952 | | |
| Massachusetts Limited Fund | | | |
| Purchases | | $ | 4,402,738 | | |
| Sales | | | 11,762,894 | | |
| New Jersey Limited Fund | | | |
| Purchases | | $ | 6,113,740 | | |
| Sales | | | 7,335,042 | | |
| New York Limited Fund | | | |
| Purchases | | $ | 14,456,562 | | |
| Sales | | | 13,122,515 | | |
| Ohio Limited Fund | | | |
| Purchases | | $ | 2,561,671 | | |
| Sales | | | 1,547,854 | | |
| Pennsylvania Limited Fund | | | |
| Purchases | | $ | 7,975,611 | | |
| Sales | | | 11,853,072 | | |
8 Federal Income Tax Basis of Unrealized Appreciation (Depreciation)
The cost and unrealized appreciation (depreciation) in the value of the investments owned by each Fund at September 30, 2006, as determined on a federal income tax basis, were as follows:
| California Limited Fund | | | |
| Aggregate cost | | $ | 34,254,653 | | |
| Gross unrealized appreciation | | $ | 1,622,078 | | |
| Gross unrealized depreciation | | | — | | |
| Net unrealized appreciation | | $ | 1,622,078 | | |
71
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
| Florida Limited Fund | | | |
| Aggregate cost | | $ | 48,823,243 | | |
| Gross unrealized appreciation | | $ | 2,302,493 | | |
| Gross unrealized depreciation | | | (8,402 | ) | |
| Net unrealized appreciation | | $ | 2,294,091 | | |
| Massachusetts Limited Fund | | | |
| Aggregate cost | | $ | 63,596,749 | | |
| Gross unrealized appreciation | | $ | 2,927,938 | | |
| Gross unrealized depreciation | | | — | | |
| Net unrealized appreciation | | $ | 2,927,938 | | |
| New Jersey Limited Fund | | | |
| Aggregate cost | | $ | 40,168,501 | | |
| Gross unrealized appreciation | | $ | 2,410,471 | | |
| Gross unrealized depreciation | | | (7,237 | ) | |
| Net unrealized appreciation | | $ | 2,403,234 | | |
| New York Limited Fund | | | |
| Aggregate cost | | $ | 95,005,213 | | |
| Gross unrealized appreciation | | $ | 4,231,646 | | |
| Gross unrealized depreciation | | | (50,293 | ) | |
| Net unrealized appreciation | | $ | 4,181,353 | | |
| Ohio Limited Fund | | | |
| Aggregate cost | | $ | 18,354,213 | | |
| Gross unrealized appreciation | | $ | 1,017,481 | | |
| Gross unrealized depreciation | | | (6,628 | ) | |
| Net unrealized appreciation | | $ | 1,010,853 | | |
| Pennsylvania Limited Fund | | | |
| Aggregate cost | | $ | 51,617,726 | | |
| Gross unrealized appreciation | | $ | 2,903,302 | | |
| Gross unrealized depreciation | | | (114,906 | ) | |
| Net unrealized appreciation | | $ | 2,788,396 | | |
9 Line of Credit
The Funds participate with other portfolios and funds managed by BMR and EVM and their affiliates in a $150 million unsecured line of credit agreement with a group of banks. Borrowings will be made by the funds solely to facilitate the handling of unusual and/or unanticipated short-term cash requirements. Interest is charged to each participating portfolio or fund based on its borrowings at an amount above either the Eurodollar rate or Federal Funds effective rate. In addition, a fee computed at an annual rate of 0.10% on the daily unused portion of the line of credit is allocated among the participating portfolios and funds at the end of each quarter. At September 30, 2006 the Florida Limited Fund, the New Jersey Limited, and the Pennsylvania Limited Fund had a balance outstanding pursu ant to this line of credit of $100,000, $400,000 and $600,000, respectively.
10 Overdraft Advances
Pursuant to the custodian agreement between the Funds and IBT, IBT may in its discretion advance funds to the Funds to make properly authorized payments. When such payments result in an overdraft by the Funds, the Funds are obligated to repay IBT at the current rate of interest charged by IBT for secured loans (currently, a rate above the Federal Funds rate). This obligation is payable on demand to IBT. IBT has a lien on the Fund's assets to the extent of any overdraft. At September 30, 2006, the California Limited Fund, the Florida Limited Fund, the New Jersey Limited and the Pennsylvania Limited Fund had payments due to IBT pursuant to the foregoing arrangement of $87,818, $79,738, $10,716 and $34,973, respectively.
11 Financial Instruments
The Funds may trade in financial instruments with off-balance sheet risk in the normal course of their investing activities to assist in managing exposure to various market risks. These financial instruments include futures contracts and interest rate swap 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 does not necessarily represent the amounts potentially subject to risk. The measurement of the risks associated with these instruments is meaningful only when all related and offsetting transactions are considered.
72
Eaton Vance Limited Maturity Municipals Funds as of September 30, 2006
NOTES TO FINANCIAL STATEMENTS (Unaudited) CONT'D
A summary of obligations under these financial instruments at September 30, 2006 is as follows:
Futures Contracts
Fund | |
Expiration
Date | |
Contracts | |
Position | |
Aggregate
Cost | |
Value | | Net
Unrealized
Appreciation
(Depreciation) | |
| California | | 12/06 | | 68 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Bond | | Short | | $ | (7,526,992 | ) | | $ | (7,643,625 | ) | | $ | (116,633 | ) | |
| Florida | | 12/06 | | 54 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Note | | Short | | $ | (5,765,143 | ) | | $ | (5,835,375 | ) | | $ | (70,232 | ) | |
| | 12/06 | | 56 U.S. | | | | | | | | | | | | |
| | |
| | | | Treasury Bond | | Short | | $ | (6,159,324 | ) | | $ | (6,294,750 | ) | | $ | (135,426 | ) | |
| Massachusetts | | 12/06 | | 72 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Note | | Short | | $ | (8,005,664 | ) | | $ | (8,093,251 | ) | | $ | (87,587 | ) | |
| | | 12/06 | | 41 U.S. | | | | | | | | | | | | |
| | |
| | | | | Treasury Bond | | Short | | $ | (4,377,238 | ) | | $ | (4,430,562 | ) | | $ | (53,324 | ) | |
| New Jersey | | 12/06 | | 42 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Bond | | Short | | $ | (4,619,493 | ) | | $ | (4,721,062 | ) | | $ | (101,569 | ) | |
| | | | 45 U.S. | | | | | | | | | | | | |
| | |
| | | | | Treasury Note | | Short | | $ | (4,804,285 | ) | | $ | (4,862,812 | ) | | $ | (58,527 | ) | |
| New York | | 12/06 | | 79 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Bond | | Short | | $ | (8,728,759 | ) | | $ | (8,880,095 | ) | | $ | (151,336 | ) | |
| | | | | 94 U.S. | | | | | | | | | | | | |
| | |
| | | | | Treasury Note | | Short | | $ | (10,035,619 | ) | | $ | (10,157,875 | ) | | $ | (122,256 | ) | |
| Ohio | | 12/06 | | 9 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Bond | | Short | | $ | (1,007,555 | ) | | $ | (1,011,656 | ) | | $ | (4,101 | ) | |
| | | 12/06 | | 25 U.S. | | | | | | | | | | | | |
| | |
| | | | | Treasury Note | | Short | | $ | (2,669,048 | ) | | $ | (2,701,563 | ) | | $ | (32,515 | ) | |
| Pennsylvania | | 12/06 | | 74 U.S. | | | | | | | | | | | | |
| | |
| Limited | | | | Treasury Bond | | Short | | $ | (8,134,108 | ) | | $ | (8,313,063 | ) | | $ | (178,955 | ) | |
| | | 12/06 | | 40 U.S. | | | | | | | | | | | | |
| | |
| | | | | Treasury Note | | Short | | $ | (4,270,476 | ) | | $ | (4,322,500 | ) | | $ | (52,024 | ) | |
At September 30, 2006, the Funds had sufficient cash and/or securities to cover margin requirements on open future contracts.
12 Recently Issued Accounting Pronouncements
In June 2006, the Financial Accounting Standards Board ("FASB") issued FASB Interpretation No. 48, ("FIN 48") "Accounting for Uncertainty in Income Taxes – an interpretation of FASB Statement No. 109". FIN 48 clarifies the accounting for uncertainty in income taxes recognized in accordance with FASB Statement No. 109, "Accounting for Income Taxes." This interpretation prescribes a recognition threshold and measurement attribute for the financial statement recognition and measurement of a tax position taken or expected to be
taken in a tax return. It also provides guidance on de-recognition, classification, interest and penalties, accounting in interim periods, disclosure and transition. FIN 48 is effective for fiscal years beginning after December 15, 2006. Management is currently evaluating the impact of applying the various provisions of FIN 48.
In September 2006, the Financial Accounting Standards Board ("FASB") issued Statement of Financial Accounting Standards No. 157, ("FAS 157") "Fair Value Measurements". FAS 157 defines fair value, establishes a framework for measuring fair value in accordance with generally accepted accounting principles and expands disclosure about fair value measurements. FAS 157 is effective for fiscal years beginning after November 15, 2007. Management is currently evaluating the impact the adoption of FAS 157 will have on the Fund's financial statement disclosures.
73
Eaton Vance Limited Maturity Municipal Funds
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENTS
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 March 27, 2006, 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 Special Committee of the Board, which is a committee comprised exclusively of Independent Trustees. Prior to making its recommendation, the Special Committee reviewed information furnished for a series of meetings of the Special Committee held in February and March 2006. 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 managed by it;
Information about Portfolio Management
• Descriptions of the investment management services provided to each fund, including the investment strategies and processes employed;
• 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 the 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;
• 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;
• 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.
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Eaton Vance Limited Maturity Municipal Funds
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D
In addition to the information identified above, the Special 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 March 31, 2006, the Board met nine times and the Special Committee, the Audit Committee and the Governance Committee, each of which is a Committee comprised solely of Independent Trustees, met eight, twelve and five 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 such sub-advisory agreement.
The Special Committee was assisted throughout the contract review process by Goodwin Procter LLP, legal counsel for the Independent Trustees. The members of the Special 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 Special 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 Special Committee concluded that the continuance of the investment advisory agreements of the following funds:
• Eaton Vance California Limited Maturity Municipals Fund
• Eaton Vance Florida Limited Maturity Municipals Fund
• Eaton Vance Massachusetts Limited Maturity Municipals Fund
• Eaton Vance New Jersey Limited Maturity Municipals Fund
• Eaton Vance New York Limited Maturity Municipals Fund
• Eaton Vance Ohio Limited Maturity Municipals Fund
• Eaton Vance Pennsylvania Limited Maturity Municipals Fund
(the "Funds"), each with Boston Management and Research (the "Adviser"), including their fee structures, is in the interests of shareholders and, therefore, the Special Committee recommended to the Board approval of each agreement. The Board accepted the recommendation of the Special Committee as well as the factors considered and conclusions reached by the Special Committee with respect to each agreement. Accordingly, the Board, including a majority of the Independent Trustees, voted to approve continuation of the advisory agreements for each Fund.
Nature, Extent and Quality of Services
In considering whether to approve the investment advisory agreements of the Funds, the Board evaluated the nature, extent and quality of services provided to the Funds by the Adviser.
The Board considered the Adviser's management capabilities and investment process with respect to the types of investments held by each 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 Funds, and recent changes in the identity of such personnel. In particular, the Board evaluated 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 30-person municipal bond team, which includes six portfolio managers and nine credit specialists who provide services to the Funds. The Board also took into account the resources dedicated to portfolio management and other services, including the compensation paid to recruit and retain i nvestment personnel, and the time and attention devoted to each Fund in the complex by senior management.
The Board 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 National Association of Securities Dealers.
The Board also 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
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Eaton Vance Limited Maturity Municipal Funds
BOARD OF TRUSTEES' ANNUAL APPROVAL OF THE INVESTMENT ADVISORY AGREEMENT CONT'D
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.
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 respective investment advisory agreements.
Fund Performance
The Board compared each 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, 2005 for each Fund in operation over such periods. On the basis of the foregoing and other relevant information, the Board concluded that the performance of each Fund is satisfactory.
Management Fees and Expenses
The Board reviewed contractual investment advisory fee rates payable by each Fund (referred to as "management fees").
As part of its review, the Board considered each Fund's management fee and total expense ratio for the one year period ended September 30, 2005, 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 each Fund that the management fee charged to the Fund for advisory and related services and the total expense ratio of the Fund are reasonable.
Profitability
The Board reviewed the level of profits realized by the Adviser and, if applicable, its affiliates in providing investment advisory and administrative services to each 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 Funds.
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, the Board also considered the extent to which the Adviser and its affiliates, on the one hand, and each 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 each 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 each 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 af filiates and each Fund. The Board also concluded that, assuming reasonably foreseeable increases in the assets of each 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.
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Eaton Vance Limited Maturity Municipals Funds
INVESTMENT MANAGEMENT
Limited Maturity Municipals Funds
Officers
Cynthia J. Clemson
President
William H. Ahern, Jr.
Vice President
Craig R. Brandon
Vice President
James B Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President
Barbara E. Campbell
Treasurer
Alan R. Dynner
Secretary
Paul M. O'Neil
Chief Compliance Officer | | Trustees
Samuel L. Hayes, III
Chairman
Benjamin C. Esty
William H. Park
Ronald A. Pearlman
Norton H. Reamer
Lynn A. Stout
Ralph F. Verni | |
|
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Investment Adviser of the Limited Maturity Municipals Portfolios
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
Administrator of Eaton Vance Limited Maturity Municipals Funds
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
Principal Underwriter
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
Transfer Agent
PFPC Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02940-9653
(800) 262-1122
Eaton Vance Municipals Trust
The Eaton Vance Building
255 State Street
Boston, MA 02109
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 1-800-225-6265.
442-11/06 7LTFSRC
Item 2. Code of Ethics
The registrant has adopted a code of ethics applicable to its Principal Executive Officer, Principal Financial Officer and Principal Accounting Officer. The registrant undertakes to provide a copy of such code of ethics to any person upon request, without charge, by calling 1-800-262-1122.
Item 3. Audit Committee Financial Expert
The registrant’s Board has designated William H. Park, Samuel L. Hayes, III and Norton H. Reamer, each an independent trustee, as its audit committee financial experts. Mr. Park is a certified public accountant who is the Vice Chairman of Commercial Industrial Finance Corp (specialty finance company). Previously, he served as President and Chief Executive Officer of Prizm Capital Management, LLC (investment management firm) and as Executive Vice President and Chief Financial Officer of United Asset Management Corporation (“UAM”) (a holding company owning institutional investment management firms). Mr. Hayes is the Jacob H. Schiff Professor of Investment Banking Emeritus of the Harvard University Graduate School of Business Administration. Mr. Reamer is the President, Chief Executive Officer and a Director of Asset Management Finance Corp. (a specialty finance company serving the investment management industry) and is President of Unicorn Corporation (an investment and financial advisory services company). Formerly, Mr. Reamer was Chairman of Hellman, Jordan Management Co., Inc. (an investment management company) and Advisory Director of Berkshire Capital Corporation (an investment banking firm), Chairman of the Board of UAM and Chairman, President and Director of the UAM Funds (mutual funds).
Item 4. Principal Accountant Fees and Services
Not required in this filing
Item 5. Audit Committee of Listed registrants
Not required in this filing.
Item 6. Schedule of Investments
Please see schedule of investments contained in the Report to Stockholders included under Item 1 of this Form N-CSR.
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies
Not required in this filing.
Item 8. Portfolio Managers of Closed-End Management Investment Companies
Not required in this filing.
Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.
Not required in this filing.
Item 10. Submission of Matters to a Vote of Security Holders.
No Material Changes.
Item 11. Controls and Procedures
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
(b) There have been no changes in the registrant’s internal controls over financial reporting during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12. Exhibits
(a)(1) | Registrant’s Code of Ethics – Not applicable (please see Item 2). |
(a)(2)(i) | Treasurer’s Section 302 certification. |
(a)(2)(ii) | President’s Section 302 certification. |
(b) | Combined Section 906 certification. |
Signatures
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
Eaton Vance Investment Trust
By: | /s/Cynthia J. Clemson | |
| Cynthia J. Clemson |
| President |
Date: November 17, 2006
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By: | /s/Barbara E. Campbell | |
| Barbara E. Campbell |
| Treasurer |
Date: November 17, 2006
By: | /s/Cynthia J. Clemson | |
| Cynthia J. Clemson |
| President |
Date: November 17, 2006
