<PAGE>
[LOGO OF EATON VANCE Investing
APPEARS HERE] for the
21st
Century
---------------------
EDUCATION
---------------------
[PHOTO OF STONE WALL
APPEARS HERE]
Annual Report December 31, 1997
[PHOTO OF HIGHWAY
AT NIGHT APPEARS HERE]
EATON VANCE
MUNICIPAL BOND
FUND, L.P.
Eaton Vance
Global Management -- Global Distribution
[PHOTO OF BROOKLYN BRIDGE APPEARS HERE]
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
LETTER TO SHAREHOLDERS
[PHOTO OF THOMAS J. FETTER APPEARS HERE]
Thomas J. Fetter, President
Eaton Vance Municipal Bond Fund, L.P. had a total return of 14.1% for the year
ended December 31, 1997. That return was the result of a rise in net asset value
per share from $10.07 on December 31, 1996 to $10.84 on December 31, 1997, and
the reinvestment of $0.5985 in dividends. Based on its one-year performance, the
Fund was ranked first among General Municipal Debt Funds as compiled by Lipper
Analytical Services, Inc. -- a nationally recognized monitor of mutual fund
performance. The average return for the group was 9.1% for the same period./1/
Investors were drawn to municipal bonds in a volatile period for the world's
fixed-income markets...
1997 was a very good year for municipal bonds. Against a backdrop of moderate
economic growth and low inflation, investors focused once again on the
advantages of municipals, which remain among the best tax-advantaged investment
vehicles. In addition, the municipal market attracted an increasing number of
crossover investors from other markets. Many investors bought municipals in a
flight to quality as the domestic equity market reached overvalued levels and
emerging markets were caught up in the turmoil of the Asian currency crisis.
1998 should bring more opportunities for municipal investors...
The upbeat economic climate has provided strong support for the municipal
market. Steady job growth has generated increased tax revenue for states and
local issuers. As a result, many areas that were hard-hit in the recessions of
the 1970s and 1980s have since made a significant economic comeback. Their
recovery has been reflected in the value of their bonds, which have in turn
financed worthwhile public projects such as bridges, roads and industrial
development. We expect to see many more such opportunities emerge in the coming
year.
The Fund's performance again earned high marks from Morningstar...
The Fund's risk-adjusted performance through December 31 earned it a Five-Star
Overall rating among municipal bond funds covered by Morningstar, Inc./2/ -- a
nationally recognized monitor of mutual fund performance. We will continue to
focus on promising opportunities within the municipal market in the coming year.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
February 9, 1998
- --------------------------------------------------------------------------------
Fund Information
as of December 31, 1997
Performance/3/
<TABLE>
<CAPTION>
Average Annual Total Returns (at net asset value) Five Largest Sector Weightings/4/
- ----------------------------------------------------------------- ---------------------------------------------------
<S> <C> <C> <C>
One year 14.1% By total net assets
Five years 8.1 -----------------------------------------------
Ten years 9.3 Transportation 18.0%
-----------------------------------------------
SEC Average Annual Total Returns (Including 4.75% sales charge) -----------------------------------------------
- ----------------------------------------------------------------- Long-Term Care 17.5%
One year 8.7% -----------------------------------------------
Five years 7.1 -----------------------------------------------
Ten years 8.8 Escrowed 15.2%
-----------------------------------------------
-----------------------------------------------
Insured 13.1%
-----------------------------------------------
-----------------------------------------------
Industrial Development 9.4%
-----------------------------------------------
</TABLE>
/1/ Lipper rankings are based on total return and do not take sales charges into
consideration. In Lipper's General Municipal Debt category as of 12/31/97,
Eaton Vance Municipal Bond Fund ranked #1 out of 235 funds for 1 year. It is
not possible to invest directly in an Average or Index.
/2/ Morningstar ratings reflect historical readjusted performance through
12/31/97 and are subject to change. Funds are assigned ratings from 1 star
(lowest) to 5 stars (highest). Ratings are calculated from the fund's 3-,5-
and 10-year returns (with fee adjustment) in excess of 90-day Treasury bill
returns. The top 10% of the funds in a category receive 5 stars; the next
22.5% receive 4 stars. For the 3-year period, the Fund was rated 5 stars
(1494 funds); for the 5-year period, 5 stars (720 funds); and for the 10-
year period, 4 stars (337 funds).
/3/ Returns are calculated by determining the percentage change in net asset
value with all distributions reinvested, SEC returns reflect sales charge as
noted.
/4/ Five largest sector weightings account for 73.2% of the portfolio's
investments, determined by dividing the total market value of the holdings
by the total net assets of the portfolio. Holdings are subject to change.
Past performance is no guarantee of future results, investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
2
<PAGE>
EATON VANCE MUNICIPAL BOND FUND, L.P. as of December 31, 1997
MANAGEMENT DISCUSSION
[PHOTO OF THOMAS J. FETTER PORTFOLIO MANAGER APPEARS HERE]
Thomas J. Fetter
Portfolio Manager
An interview with Thomas J. Fetter, president and portfolio manager of Eaton
Vance Municipal Bond Fund.
Q: Tom how would you characterize the municipal bond market in 1977?
A: The climate was favorable for the bond market in general, as inflation
become less of a force in the economy. While the Federal Reserve has done an
excellent job of monitoring inflation, the increasingly global nature of the
economy has restrained the wage and price pressures seen in past cycles.
The municipal market performed very well, although it did slightly lag the
Treasury market. The primary reason for the underperformance was a rise in
municipal supply. According to the Bond Market Association, long-term
municipal issuance rose to more than $220 billion in 1997, up from around
$190 billion in the previous year.
Q: The Fund had an excellent year. What accounted for the Fund's performance?
A: Given our favorable outlook for inflation, we maintained a relatively long
average maturity. That structure increased the Fund's sensitivity to falling
interest rates. In addition, the Fund was well positioned from a sector
standpoint to participate fully in the rally. The Fund's largest sector
weightings at December 31, were transportation bonds, long-term care issues,
escrowed bonds, and insured bonds.
Q: Could we look at those sectors in greater detail?
A: Transportation in an area of the economy that has attracted an increasing
amount of public investment in recent years. States and localities have
invested large sums to upgrade roads, bridges, and airports. In addition,
many jurisdictions have restructured existing systems to better meet the
needs of the next century.
One such issuer, the Massachusetts Turnpike Authority, was the Fund's
largest holding at December 31. As operator of the Commonwealth's largest
toll road, the Authority initiated a revamping of its toll structure,
funneling
- --------------------------------------------------------------------------------
Portfolio Quality Weightings/1/ Portfolio Overview/1/
- ------------------------------- -----------------------------
Number of Issues 64
[PIE CHART APPEARS HERE] Average Rating A
Average Coupon 5.84%
AAA.................. 38.0% Average Maturity 23.6 Yrs.
Non-Rated............ 32.5% Effective Maturity 11.6 Yrs.
BBB.................. 11.6% Average Call 9.4 Yrs.
BB................... 1.2% Average Dollar Price $97.69
/1/ Because the Portfolio is actively managed, quality ratings and portfolio
overview are subject to change.
- --------------------------------------------------------------------------------
Mutual fund shares are not insured by the FDIC and are not deposits or other
obligations of, or guaranteed by, any depository institution. Shares are subject
to investment risks, including possible loss of principal invested.
- --------------------------------------------------------------------------------
3
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
MANAGEMENT DISCUSSION CONT'D
toll proceeds toward users in specific areas, such as the Metro/Boston
region. The restructuring allowed the authority to raise massive funds to
help finance Boston's Central Artery/Third Harbor Tunnel project. As a result
of the restructuring, the Authority's bonds were upgraded from A to AAA. In
addition, the bonds went from callable to non-callable status. Each of those
developments contributed to a significant price appreciation for the Fund's
investment.
Q: Long-term care issues were your second largest investment. What did you find
attractive about that sector?
A: The health care sector has become increasingly competitive in recent years as
institutions struggle to maintain market share while providing quality care.
As a result of that competition, there will be clear winners, while less
competitive institutions are likely to fail.
Long-term life care facilities represent one health care niche that is
gaining market share and becoming increasingly vital for a fast-aging
population. These projects provide a wide range of services to meet the
housing, nursing, health care and social needs of our senior citizens.
Facilities such as New Jersey's Keswick Pines Project allow independent
living, while offering help with day-to-day needs and health care services as
residents require them. Equally as important, they have been found to be a
cost-effective health care alternative. We have uncovered compelling values
in some of these bonds, which are typically smaller, non-rated issues that
require very intensive research.
Q: Another major focus was escrowed bonds. What drew you to that sector?
A: Escrowed bonds are those that have been pre-refunded by their issuers as part
of an effort to take advantage of a lower interest rate environment. It's not
unlike homeowners refinancing their mortgages to get a better interest rate.
Escrowed bonds are backed by U.S. Treasury bonds and are therefore viewed as
the very highest quality. In the 1997 bond rally, when investors engaged in a
flight to quality, the Fund was especially well-served by its Treasury-backed
escrowed bonds.
Q: Earlier, you mentioned non-rated bonds. Have non-rated bonds played a large
role in your strategy?
A: Yes. We've taken advantage of our municipal credit research strengths and
been able to find good value in non-rated bonds. In a market where new
issuance is increasingly dominated by insured bonds, the non-rated segment
offers some compelling opportunities. I mentioned the continuing life care
sector earlier, but we have also found non-rated bonds in the nursing home,
transportation, and housing areas.
Typically, non-rated bonds offer an attractive yield advantage over their
rated counterparts. But we apply the same rigorous standards to this segment
of the market as to rated bonds. At Eaton Vance, we have made a major
commitment to credit research. We have analysts dedicated to industry sectors
within the municipal market, thereby assuring us of the continuing coverage
that is needed to monitor these bonds effectively.
Q: What is your outlook for the municipal market in the coming year?
A: Generally, the outlook for the market is favorable. There is little sign of
inflation on the horizon, and, with the Asian turmoil of recent months, it's
possible that the economy may slow somewhat in the next year. Furthermore,
the federal budget situation has improved dramatically in the past several
years. That also improves the outlook for bonds.
4
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
MANAGEMENT DISCUSSION CONT'D
I'd caution, however, that conditions could change over time. The market could
be vulnerable if the economy strengthens or the budget situation unexpectedly
worsens. We will, naturally, continue to closely monitor the economy for
developments that might alter the outlook.
Meanwhile, the Bond Market Association has estimated that issuance of new
municipal bonds will decline slightly in 1998. Thus, investor demand should be
more than adequate to absorb new municipal supply. In that kind of environment,
the municipal market should fair well.
Moreover, investors should consider municipals as a way to balance their
portfolios. It's a useful exercise to review one's investment allocations from
time to time, especially in the wake of the returns in recent years from
equities. 1997 marked the third consecutive year that the stock market returned
more than 20%, an unprecedented run for the equity market. It's reasonable,
therefore, to assume that at some point the equity averages may revert to their
historical annual returns -- closer to 10%.
A portfolio that includes municipal bonds offers the advantage of
diversification as well as high after-tax income. Those are important
considerations for investors. I'm confident that municipal bonds will continue
to serve their traditional function of financing vital public works while
offering good investment opportunities to tax-conscious citizens.
Comparison of Change in Value of a $10,000 Investment
in Eaton Vance Municipal Bond Fund vs. the Lehman
Brothers Municipal Bond Index
[LINE GRAPH APPEARS HERE]
Date Fund/NAV Fund/Off LHMBI
---- -------- -------- -----
12/31/87 $10,000 $ 9,523 $10,000
12/31/89 $12,485 $11,890 $12,205
12/31/91 $15,156 $14,434 $14,684
12/31/93 $18,739 $17,846 $17,942
12/31/95 $20,405 $19,433 $19,984
12/31/97 $24,401 $23,238 $22,787
Performance+
- --------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------
One year 14.1%
Five years 8.1
Ten years 9.3
SEC Average Annual Total Returns (including 4.75% sales charge)
- --------------------------------------------------------------
One year 8.7%
Five years 7.1
Ten years 8.8
* Source: Towers Data Systems, Bethesda, MD.
The chart compares the Fund's total return with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index of municipal
bonds. Returns are calculated by determining the percentage change in net
asset value (NAV) with all distributions reinvested. The lines on the chart
represent the total returns of $10,000 hypothetical investments in the Fund
and the Index. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually
purchased or sold the securities represented in the Index. It is not
possible to invest directly in an Index.
** This figure represents the Fund's performance including the Fund's 4.75%
sales charge.
+ Returns are calculated by determining the percentage change in net asset
value (NAV) with all distributions reinvested. SEC returns reflect
applicable sales charge as noted.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
5
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
PORTFOLIO OF INVESTMENTS
Tax-Exempt Investments -- 100.0%
<TABLE>
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
Assisted Living -- 3.6%
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
NR NR $ 1,000 Bell County, TX,
Health Facilities,
(Care Institute,
Inc.), 9.00%, 11/1/24 $ 1,163,280
NR NR 1,000 St. Paul, MN,
Housing and
Redevelopment,
(Care Institute,
Inc.), Highland
Park, 8.75%, 11/1/24 1,162,640
NR NR 1,000 Village of North
Syracuse, NY,
Housing Authority
(AJM Senior
Housing, Inc.,
Janus Park),
8.00%, 6/1/24 1,031,880
- --------------------------------------------------------------------------------
$ 3,357,800
- --------------------------------------------------------------------------------
Education -- 1.8%
- --------------------------------------------------------------------------------
A3 A- $ 1,755 New York State
Dormitory
Authority,
Educational
Facilities,
5.125%, 5/15/27 $ 1,719,654
- --------------------------------------------------------------------------------
$ 1,719,654
- --------------------------------------------------------------------------------
Electric Utilities -- 2.9%
- --------------------------------------------------------------------------------
Aa AA $ 1,000 Colorado Springs
Utility System,
6.75%, 11/15/21 $ 1,104,190
Baa2 BBB+ 1,500 Massachusetts
Municipal
Wholesale Electric
Co., 6.75%, 7/1/11 1,626,105
- --------------------------------------------------------------------------------
$ 2,730,295
- --------------------------------------------------------------------------------
Escrowed/Prerefunded -- 15.1%
- --------------------------------------------------------------------------------
Aaa NR $ 2,500 Boston City
Hospital, FHA
Insured, 7.625%,
2/15/21 $ 2,764,950
NR AAA 8,000 Colorado Health
Facilities
Authority,
(Liberty Heights),
(FSA), 0.00%, 7/15/24 1,965,360
Aaa NR 19,000 Dawson Ridge,
Metropolitan
District Number 1,
Douglas County,
CO, 0.00%, 10/1/22 5,168,190
Aaa NR 1,500 Indiana
Transportation
Finance Authority,
6.25%, 11/1/16 1,654,065
Aaa BBB 665 North Carolina
Eastern Municipal
Power, 6.50%,
1/1/18 799,204
Aaa NR 6,000 Savannah, GA,
Economic
Development
Authority,
0.00%, 12/1/21 1,705,200
- --------------------------------------------------------------------------------
$14,056,969
- --------------------------------------------------------------------------------
Hospitals -- 8.1%
- --------------------------------------------------------------------------------
Aa3 AA $ 1,500 Greenville, SC,
Hospital System,
5.25%, 5/1/23 $ 1,485,375
NR BBB 2,000 Louisiana PFA,
General Health
Systems Project,
6.80%, 11/1/16 2,216,460
Aaa AAA 1,250 Mahoning County,
OH, Hospital
Facilities
Revenue, (Forum
Health Obligation
Group), (MBIA),
5.00%, 11/15/17 1,228,300
Aaa AAA 225 New York State
Medical Care,
7.875%, 8/15/20/(1)/ 250,409
Baa1 A- 600 New York State,
Medical Care
Facility Finance
Agency Mental
Health Services,
7.875%, 8/15/20/(1)/ 666,042
Baa BBB+ 1,550 New York State,
Medical Care
Facility,
(Brookdale Medical
Center), 6.85%,
2/15/17/(1)/ 1,713,200
- --------------------------------------------------------------------------------
$ 7,559,786
- --------------------------------------------------------------------------------
Housing -- 6.0%
- --------------------------------------------------------------------------------
NR AA $ 440 Arkansas
Development
Finance Authority,
SFMR, 8.00%,
8/15/11/(1)/ $ 473,952
Aa2 NR 680 Colorado Housing
and Finance
Authority, Single
Family Access
Program, 7.90%,
12/1/24 764,558
NR NR 1,000 Florence, KY,
Housing
Facilities, (Blue
Grass Housing),
7.625%, 5/1/27 1,090,890
NR NR 1,280 Lake Creek
Affordable Housing
Corp., Eagle
County, CO,
8.00%, 12/1/23 1,353,306
Aa2 AA 175 North Carolina
Single Family
Mortgage Revenue,
8.125%, 9/1/19 180,124
NR A 1,650 Travis County, TX,
HFC Multifamily,
(Travis Station
Apartments),
6.75%, 4/1/19/(1)/ 1,751,426
- --------------------------------------------------------------------------------
$ 5,614,256
- --------------------------------------------------------------------------------
Industrial Development Revenue/Pollution
Control Revenue -- 9.3%
- --------------------------------------------------------------------------------
NR NR $ 850 Florence County,
SC, (Stone
Container
Company),
7.375%, 2/1/07 $ 926,458
</TABLE>
See notes to financial statements
6
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Industrial Development Revenue/
Pollution Control Revenue (continued)
- --------------------------------------------------------------------------------
NR NR $1,000 Iowa Finance
Authority,
Commercial
Development
Revenue,
(Southbridge
Mall), 6.375%,
12/1/13 $1,007,650
NR NR 1,000 Maricopa County,
AZ, IDA, Place
Five and The
Greenery Projects,
8.625%, 1/1/11 1,022,930
NR NR 1,750 New Jersey
Economic
Development
Authority, (Holt
Hauling and
Warehouse), 7.75%,
3/1/27 1,971,253
NR BBB- 2,450 Port
Camas-Washougan,
WA, James River,
6.70%, 4/1/23 2,609,593
NR NR 1,000 Santa Fe, NM, Crow
Hobbs Project,
8.50%, 9/1/16 1,117,570
- --------------------------------------------------------------------------------
$8,655,454
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.1%
- --------------------------------------------------------------------------------
Aaa AAA $2,000 Cleveland, OH,
Public Power
System Revenue,
(MBIA), 5.00%, 11/15/20 $1,967,760
Aaa AAA 800 Puerto Rico
Electric Power
Authority
"STRIPES", (FSA),
Variable Rate,
7/1/03/(2)/ 911,000
- --------------------------------------------------------------------------------
$2,878,760
- --------------------------------------------------------------------------------
Insured-Hospitals -- 6.2%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Fredericksburg,
VA, Industrial
Development
Authority,
(FGIC), "INFLOS",
Variable
Rate, 8/15/23/(2)/ $1,196,250
Aaa AAA 1,000 Illinois Health
Facilities
Authority,
(Rush-Presbyterian
- St. Lukes
Medical Center),
(MBIA), "INFLOS",
Variable Rate,
10/1/24/(2)/ 1,192,500
Aaa AAA 1,000 King County, WA,
Public Hospital
District No. 1,
(AMBAC),
6.00%, 9/1/20 1,040,290
Aaa AAA 1,000 Rhode Island
Health and
Educational
Facility, (Rhode
Island Hospital),
(FGIC),"INFLOS",
Variable Rate,
8/15/21/(2)/ 1,212,500
Aaa AAA 1,000 Salt Lake City,
UT, (IHC Hospitals
Inc.), "INFLOS",
(AMBAC),
Variable Rate,
5/15/20/(2)/ 1,190,000
- --------------------------------------------------------------------------------
$5,831,540
- --------------------------------------------------------------------------------
Insured-Housing -- 2.4%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 SCA MFMR Receipts,
Burnsville, MN,
(FSA), 7.10%,
1/1/30 $1,097,400
Aaa AAA 1,000 SCA MFMR Receipts,
Springfield, MO,
(FSA), 7.10%,
1/1/30 1,097,400
- --------------------------------------------------------------------------------
$2,194,800
- --------------------------------------------------------------------------------
Insured-Transportation -- 1.2%
- --------------------------------------------------------------------------------
Aaa AAA $1,000 Triborough Bridge
and Tunnel
Authority of New
York, "RITES",
(AMBAC), Variable
Rate, 1/1/12/(2)/ $1,157,500
- --------------------------------------------------------------------------------
$1,157,500
- --------------------------------------------------------------------------------
Lease Revenue/
Certificates of Participation -- 1.2%
- --------------------------------------------------------------------------------
NR NR $1,000 Hardeman County,
TN, (Correctional
Facilities Corp.),
7.75%, 8/1/17 $1,125,840
- --------------------------------------------------------------------------------
$1,125,840
- --------------------------------------------------------------------------------
Life Care -- 4.6%
- --------------------------------------------------------------------------------
NR NR $1,060 Loudoun County,
VA, Industrial
Development
Authority,
(Falcons Landing),
8.75%, 11/1/24 $1,225,000
Aaa AAA 655 New Hampshire
Higher Educational
and Health
Facilities,
(Riverwoods at
Exeter), 9.00%,
3/1/23 814,584
NR NR 1,000 New Jersey EDA,
(Keswick Pines
Project), 8.75%,
1/1/24 1,157,150
NR NR 1,000 Vermont Industrial
Development
Authority, (Wake
Robin Corp.),
8.75%, 4/1/23 1,129,680
- --------------------------------------------------------------------------------
$4,326,414
- --------------------------------------------------------------------------------
Miscellaneous -- 4.7%
- --------------------------------------------------------------------------------
NR BB- $1,000 New Hampshire
State Business
Finance Authority,
7.75%, 1/1/22 $1,145,350
NR NR 1,500 New Jersey Sports
and Exposition
Authority,
(Monmouth Park
Project), 8.00%,
1/1/25 1,716,165
Aaa AAA 1,500 Tampa, FL, Sports
Authority Revenue,
(MBIA), 5.25%,
1/1/17 1,523,820
- --------------------------------------------------------------------------------
$4,385,335
- --------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
7
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
Ratings (Unaudited)
- ------------------ Principal
Amount
Standard (000
Moody's & Poor's omitted) Security Value
- --------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Nursing Homes -- 9.1%
- --------------------------------------------------------------------------------
NR NR $ 1,455 Bell County, TX,
(Riverside
Healthcare, Inc. -
Normandy Terrace),
9.00%, 4/1/23 $1,752,969
NR NR 1,000 Clovis, NM,
Industrial
Development
Revenue,
(Retirement
Ranches, Inc.),
7.75%, 4/1/19 1,011,930
NR NR 395 Covington-Allegheny
County, VA, IDA,
(Beverly
Enterprises),
9.375%, 9/1/01 429,827
NR NR 940 Greene County, OH,
First Mortgage,
(Fairview Extended
Care), 10.125%,
1/1/11 1,121,890
NR NR 1,100 Massachusetts IFA,
(Age Institute of
Massachusetts),
8.05%, 11/1/25 1,236,719
NR NR 1,265 Montgomery, PA,
IDA, (Advancement
of Geriatric
Health Care
Institute),
8.375%, 7/1/23 1,371,096
NR NR 360 Okaloosa County,
FL, Beverly
Enterprises,
10.75%, 10/1/03 372,060
NR NR 680 Tarrant County
Health Facilities,
TX, 10.25%, 9/1/19 719,148
NR NR 485 Wisconsin Health
Facility
Authority, (Villa
Clement), 8.75%,
6/1/12 486,285
- --------------------------------------------------------------------------------
$8,501,924
- --------------------------------------------------------------------------------
Special Tax Revenue -- 2.8%
- --------------------------------------------------------------------------------
Baa1 A $ 2,500 Puerto Rico
Highway and
Transportation
Authority,
5.50%, 7/1/36 $2,618,850
- --------------------------------------------------------------------------------
$2,618,850
- --------------------------------------------------------------------------------
Transportation -- 17.9%
- --------------------------------------------------------------------------------
A2 NR $ 758 Indiana
Transportation
Finance Authority,
6.25%, 11/1/16 $ 812,485
Aaa NR 5,500 Massachusetts
Turnpike
Authority, 5.00%,
1/1/20 5,577,275
Baa1 BBB+ 2,640 Metropolitan
Transportation
Authority, NY,
Commuter
Facilities
Revenue, 5.50%,
7/1/17/(3)/ 2,634,720
NR NR 2,500 San Joaquin Hills,
CA, Toll Road
Bonds, 0.00%,
1/1/14 1,128,250
NR NR 10,000 San Joaquin Hills,
CA, Toll Road
Bonds, 0.00%,
1/1/25 2,517,100
Aa3 A+ 4,000 Triborough Bridge
and Tunnel
Authority, NY,
5.25%, 1/1/28 3,994,000
- --------------------------------------------------------------------------------
$16,663,830
- --------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $81,428,061) $93,379,007
- --------------------------------------------------------------------------------
</TABLE>
At December 31, 1997, the concentration of the Fund's investments in the various
states, determined as a percentage of total investments, is as follows:
New York 14%
Massachusetts 12%
Colorado 11%
Others, representing less 63%
than 10% individually
The Fund invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at December
31, 1997, 18.0% of the securities in the portfolio of investments are backed by
bond insurance of various financial institutions and financial guaranty
insurance agencies. The aggregate percentage by financial institution range from
2.6% to 6.3% of total investments.
/(1)/ Security has been segregated to cover when-issued securities.
/(2)/ Security has been issued as an inverse floater bond.
/(3)/ When-issued security.
See notes to financial statements
8
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
FINANCIAL STATEMENTS
Statement of Assets and Liabilities
<TABLE>
<CAPTION>
As of December 31, 1997
Assets
- -----------------------------------------------------------------------------------------------------
<S> <C>
Investments, at value (Note 1A) (identified cost, $81,428,061) $93,379,007
Cash 966
Receivable for investments sold 1,523,701
Receivable for shares of partnership interest sold 18,420
Interest receivable 1,512,472
- -----------------------------------------------------------------------------------------------------
Total assets $96,434,566
- -----------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------
Payable for when-issued security (Note 1F) $ 2,554,543
Payable for shares of partnership interest redeemed 90,401
Demand note payable (Note 5) 1,352,000
Payable to affiliate for Director General Partners' fees (Note 4) 1,561
Accrued expenses 60,678
- -----------------------------------------------------------------------------------------------------
Total liabilities $ 4,059,183
- -----------------------------------------------------------------------------------------------------
Net Assets for 8,521,164 shares of partnership interest outstanding $92,375,383
- -----------------------------------------------------------------------------------------------------
Net Assets Applicable to Shares of
Partnership Interest Owned by:
- -----------------------------------------------------------------------------------------------------
Limited Partners (8,376,638 shares) $90,808,620
General Partners --
Director partners (141,807 shares) 1,537,287
Adviser partners (2,719 shares) 29,476
- -----------------------------------------------------------------------------------------------------
Net Assets for 8,521,164 shares of partnership interest outstanding $92,375,383
- -----------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------
Proceeds from sales of shares of partnership interest (including shares issued
to partners electing to receive payment of distributions in shares), less
cost of shares of partnership interest redeemed $70,809,366
Accumulated net realized gain on investments (computed on the basis of
identified cost) 9,818,559
Net unrealized appreciation of investments (computed on the basis of
identified cost) 11,950,946
Accumulated distributions in excess of net investment income (203,488)
- -----------------------------------------------------------------------------------------------------
Total $ 92,375,383
- -----------------------------------------------------------------------------------------------------
Net Asset Value and Redemption
Price Per Share of Partnership Interest
- -----------------------------------------------------------------------------------------------------
($92,375,383 / 8,521,164 shares of partnership interest outstanding) $ 10.84
- -----------------------------------------------------------------------------------------------------
Computation of Offering Price
- -----------------------------------------------------------------------------------------------------
Offering price per share (100 / 95.25 of $10.84) $ 11.38
- -----------------------------------------------------------------------------------------------------
On sales of $25,000 or more, the offering price is reduced
</TABLE>
Statement of Operations
<TABLE>
<CAPTION>
For the Year Ended
December 31, 1997
Investment Income (Note 1B)
- -----------------------------------------------------------------------------------------------------
<S> <C>
Interest income $ 5,770,531
- -----------------------------------------------------------------------------------------------------
Total investment income $ 5,770,531
- -----------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------
Investment adviser fee earned by Adviser General Partner (Note 4) $ 441,330
Compensation of Director General Partners not members of the
Adviser General Partner's organization (Note 4) 6,618
Legal and accounting services 81,799
Printing and postage 31,724
Custodian fee (Note 1H) 52,820
Transfer and dividend disbursing agent fees 48,710
Registration fees 24,442
Miscellaneous 37,109
- -----------------------------------------------------------------------------------------------------
Total expenses $ 724,552
- -----------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee (Note 1H) $ 38,881
- -----------------------------------------------------------------------------------------------------
Total expense reductions $ 38,881
- -----------------------------------------------------------------------------------------------------
Net expenses $ 685,671
- -----------------------------------------------------------------------------------------------------
Net investment income $ 5,084,860
- -----------------------------------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss) on Investments
- -----------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 2,778,907
Financial futures contracts (741,870)
- -----------------------------------------------------------------------------------------------------
Net realized gain on investment transactions $ 2,037,037
- -----------------------------------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ 4,742,435
- -----------------------------------------------------------------------------------------------------
Net change in unrealized appreciation (depreciation) of investments $ 4,742,435
- -----------------------------------------------------------------------------------------------------
Net realized and unrealized gain on investments $ 6,779,472
- -----------------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 11,864,332
- -----------------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
9
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
FINANCIAL STATEMENTS CONT'D
Statements of Changes in Net Assets
<TABLE>
<CAPTION>
Increase (Decrease) Year Ended Year Ended
in Net Assets December 31, 1997 December 31, 1996
- ---------------------------------------------------------------------------------------------
<S> <C> <C>
From operations --
Net investment income $ 5,084,860 $ 5,575,857
Net realized gain (loss) on
investment transactions 2,037,037 (91,627)
Net change in unrealized
appreciation (depreciation)
of investments 4,742,435 (1,303,829)
- ---------------------------------------------------------------------------------------------
Net increase in net assets from operations $ 11,864,332 $ 4,180,401
- ---------------------------------------------------------------------------------------------
Distributions to partners --
From net investment income $ (5,084,860) $ (5,457,518)
In excess of net investment income (125,335) (78,153)
- ---------------------------------------------------------------------------------------------
Total distributions to partners $ (5,210,195) $ (5,535,671)
- ---------------------------------------------------------------------------------------------
Transactions in shares of partnership
interest (Note 2) --
Proceeds from sales of shares $ 8,318,871 $ 3,090,691
Net asset value of shares issued to
partners in payment of
distributions declared 2,708,543 2,960,279
Cost of shares redeemed (13,489,827) (12,922,047)
- ---------------------------------------------------------------------------------------------
Net decrease in net assets from
transactions in shares of
partnership interest $ (2,462,413) $ (6,871,077)
- ---------------------------------------------------------------------------------------------
Net increase (decrease) in net assets $ 4,191,724 $ (8,226,347)
- ---------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------
At beginning of year $ 88,183,659 $ 96,410,006
- ---------------------------------------------------------------------------------------------
At end of year $ 92,375,383 $ 88,183,659
- ---------------------------------------------------------------------------------------------
Accumulated
distributions in excess
of net investment income
included in net assets
- ---------------------------------------------------------------------------------------------
At end of year $ (203,488) $ (78,153)
- ---------------------------------------------------------------------------------------------
</TABLE>
See notes to financial statements
10
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
FINANCIAL STATEMENTS CONT'D
Financial Highlights
<TABLE>
<CAPTION>
Year Ended December 31,
-------------------------------------------------------
1997 1996 1995 1994 1993
- -----------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Net asset value -- Beginning of year $10.070 $10.210 $9.260 $10.630 $9.950
- -----------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------------------------------------------
Net investment income $0.584 $0.605 $0.604 $ 0.611 $0.614
Net realized and unrealized gain (loss) on investments 0.785 (0.143) 0.962 (1.369) 0.692
- -----------------------------------------------------------------------------------------------------------------------
Total income (loss) from operations $1.369 $0.462 $1.566 $(0.758) $1.306
- -----------------------------------------------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------------------------------------------
From net investment income $(0.584) $(0.594) $(0.604) $(0.611) $(0.619)
In excess of net investment income (0.015) (0.008) (0.012) (0.001) (0.007)
- -----------------------------------------------------------------------------------------------------------------------
Total distributions $(0.599) $(0.602) $(0.616) $(0.612) $(0.626)
- -----------------------------------------------------------------------------------------------------------------------
Net asset value -- End of year $10.840 $10.070 $10.210 $ 9.260 $10.630
- -----------------------------------------------------------------------------------------------------------------------
Total Return/(1)/ 14.13% 4.78% 17.40% (7.27)% 13.52%
- -----------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------------------------------------------
Net assets, end of year (000 omitted) $92,375 $88,184 $96,410 $90,802 $114,425
Ratio of net expenses to average daily net assets/(2)/ 0.81% 0.78% 0.76% 0.80% 0.72%
Ratio of net expenses to average daily net assets after
custodian fee reduction/(2)/ 0.77% 0.74% -- -- --
Ratio of net investment income to average daily net assets 5.69% 6.12% 6.16% 6.26% 5.91%
Portfolio Turnover 34% 30% 58% 58% 86%
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
/(1)/ Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the payable date. Total return is not
computed on an annualized basis.
/(2)/ The expense ratios for the year ended December 31, 1995 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund to increase
its expense ratio by the effect of any expense offset arrangements with
its service providers. The expense ratios for the periods ended on or
before December 31, 1994 have not been adjusted to reflect this change.
See Notes to financial statements
11
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
------------------------------------------------------------------------------
Eaton Vance Municipal Bond Fund, L.P. (the Fund) is a limited partnership
formed under the laws of the State of California, and is registered under the
Investment Company Act of 1940, as amended, as a diversified, open-end
management investment company. Under the Partnership Agreement, all
partnership interests, whether of a limited partner or a general partner, are
represented by shares of the same class. The following is a summary of
significant accounting policies consistently followed by the Fund in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
On December 12, 1997, at a Special Meeting of the Partners of the Fund, the
Partners approved a Plan of Reorganization (the Plan) for the Fund. Under the
terms of the Plan, the Fund will transfer substantially all of its assets and
liabilities to the Eaton Vance Municipal Bond Fund (the Successor Fund, one of
the series of Eaton Vance Mutual Funds Trust). The transaction will be
structured for tax purposes as a tax free reorganization under the Internal
Revenue Code. As a result of the reorganization, all partners of the Fund will
receive shares of beneficial interest of the Successor Fund designated as
Class I shares equal to the number of shares of partnership interest of the
Fund then outstanding. The reorganization will occur after the close of
business, December 31, 1997.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest available bid and asked prices. Futures contracts and
options on financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Over-the-counter options on financial
futures are normally valued at the mean between the latest bid and asked
prices. Investments, if any for which there are no such valuations are valued
at fair value using methods determined in good faith by or at the direction of
the Director General Partners. Short-term obligations, maturing in sixty days
or less, are valued at amortized cost, which approximates value.
B Income -- Interest income is determined on the basis of interest accrued and
discount earned, adjusted for amortization of premium or discount on long-term
debt securities when required for federal income tax purposes.
C Income Taxes -- Interest income received by the Fund on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from federal income tax
when allocated to the Fund's partners. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for shareholders. No provision is made by the
Fund for federal or state taxes on any taxable income of the partnership
because each partner is individually responsible for the payment of any taxes
on his share of such taxable income.
D 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. 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 only to hedge against anticipated
future changes in interest rates. Should interest rates move unexpectedly, the
Fund may not achieve the anticipated benefits of the financial futures
contracts and may realize a loss.
E Put 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 options is limited to the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Fund may engage in
when-issued or 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 payment for the securities purchased.
Securities purchased on a when-issued or delayed delivery basis are marked-to-
market daily and begin accruing interest on settlement date.
12
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
NOTES TO FINANCIAL STATEMENTS CONT'D
G Other -- Investment transactions are accounted for on a trade date basis.
Distributions to partners and shares of partnership interest issued in
payment thereof are recorded on the ex-date.
H 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
balances the Fund maintains with IBT. All significant credit balances used to
reduce the Fund's custodian fees are reported as a reduction of expenses in
the Statement of Operations.
I Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those amounts.
2 Shares of Partnership Interest
------------------------------------------------------------------------------
Transactions in shares of partnership interest were as follows:
Year Ended December 31, 1997
- --------------------------------------------------------------------------------
General Partners Limited Partners
- --------------------------------------------------------------------------------
Sales -- 811,929
Issued to partners electing
to receive payment of
distributions in shares 8,204 256,996
Redemptions -- (1,310,465)
- --------------------------------------------------------------------------------
Net increase (decrease) 8,204 (241,540)
- --------------------------------------------------------------------------------
Year Ended December 31, 1996
- --------------------------------------------------------------------------------
General Partners Limited Partners
- --------------------------------------------------------------------------------
Sales -- 310,886
Issued to partners electing
to receive payment of
distributions in shares 8,002 290,439
Redemptions -- (1,301,059)
- --------------------------------------------------------------------------------
Net increase (decrease) 8,002 (699,734)
- --------------------------------------------------------------------------------
3 Purchases and Sales of Investments
------------------------------------------------------------------------------
The Fund invests primarily in debt securities. The ability of the issuers of
the debt securities held by the Fund to meet their obligations may be affected
by economic developments in a specific industry or municipality. Purchases and
sales of investments, other than short-term obligations and put option
transactions, aggregated $30,501,417 and $34,074,953, respectively.
4 Investment Adviser Fee and Other Transactions with Affiliates
------------------------------------------------------------------------------
The investment adviser fee, computed at the monthly rate of 0.025% (0.300% per
annum) of the average daily net assets and 3.00% of gross income (excluding
net realized gains on sales of securities) up to $500 million and at reduced
rates as daily net assets exceed that level, was earned by Eaton Vance
Management (EVM), the Adviser General Partner, as compensation for management
and investment advisory services rendered to the Fund. For the year ended
December 31, 1997, the fee was equivalent to 0.49% of the Fund's average daily
net assets for such period and amounted to $441,330. Except as to Director
General Partners who are not members of EVM's organization, officers and
Director General Partners receive remuneration for their services to the Fund
out of such investment adviser fee. Eaton Vance Distributors, Inc., a
subsidiary of EVM and the Fund's principal underwriter, received $3,205 as its
portion of the sales charge on sales of partnership interest in the Fund.
Certain of the Director General Partners of the Fund are directors/trustees
and/or officers of the above organizations. Director General Partners of the
Fund that are not affiliated with the Investment Adviser may elect to defer
receipt of all or a portion of their annual fees in accordance with the terms
of the Trustees Deferred Compensation Plan. For the year ended December 31,
1997, no significant amounts have been deferred.
13
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
NOTES TO FINANCIAL STATEMENTS CONT'D
5 Line of Credit
------------------------------------------------------------------------------
The Fund participates with other portfolios and funds managed by EVM and
affiliates in a $100 million unsecured line of credit 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. At December 31, 1997, the Fund had a balance outstanding
pursuant to the line of credit of $1,352,000.
6 Federal Income Tax Basis of Investments
------------------------------------------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at December 31, 1997, as computed on a federal income tax basis, were as
follows:
Aggregate cost $81,428,061
----------------------------------------------------
Gross unrealized appreciation $11,950,946
Gross unrealized depreciation --
----------------------------------------------------
Net unrealized appreciation $11,950,946
----------------------------------------------------
7 Financial Instruments
------------------------------------------------------------------------------
The Fund regularly trades in financial instruments with off-balance sheet risk
in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include 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. There were no open obligations
under these financial instruments at December 31, 1997.
14
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
INDEPENDENT AUDITORS' REPORT
To the Partners of
Eaton Vance Municipal Bond Fund, L.P.:
- --------------------------------------------------------------------------------
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Eaton Vance Municipal Bond Fund, L.P. as of
December 31, 1997, and the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended December 31,
1997 and 1996 and the financial highlights for each of the years in the
five-year period ended December 31, 1997. These financial statements and
financial highlights are the responsibility of the Fund's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities held as of
December 31, 1997 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other audit procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and financial highlights present
fairly, in all material respects, the financial position of Eaton Vance
Municipal Bond Fund, L.P. as of December 31, 1997, the results of its
operations, the changes in its net assets and its financial highlights for the
respective stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
February 13, 1998
15
<PAGE>
Eaton Vance Municipal Bond Fund, L.P. as of December 31, 1997
INVESTMENT MANAGEMENT
Eaton Vance Municipal Bond Fund L.P.
Director General Partners
Landon T. Clay
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of
Investment Banking, Harvard
University Graduate School of
Business Administration
Norton H. Reamer
President and Director, United
Asset Management Corporation
John L. Thorndike
Formerly Director, Fiduciary
Company Incorporated
Jack L. Treynor
Investment Adviser and
Consultant
Officers
Landon T. Clay
John L. Thorndike
Formerly Director, Fiduciary Company Incorporated
Thomas J. Fetter
President and Portfolio Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
16
<PAGE>
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17
<PAGE>
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18
<PAGE>
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19
<PAGE>
Investment Advisor of the Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617)482-8260
Custodian
Investors Bank & Trust Company
200 Clarendon Street, 16th Floor
Boston, MA 02116
Transfer Agent
First Data Investors Services Group
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
Eaton Vance
Municipal Trust
24 Federal Street
Boston, MA 02110
---------------------------------------------------------------------------
This report must be provided or accompanied by a current prospectus
which contains more complete information on the Fund, including
its sales charges and expenses. Please read the prospectus
carefully before you invest or send money.
---------------------------------------------------------------------------
T-MBSRC-12/97
