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EATON VANCE MUNICIPALS TRUST
FOR THE FUND:
o Massachusetts Municipal Bond Portfolio
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[ logo ]
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ANNUAL SHAREHOLDER REPORT
SEPTEMBER 30, 1995
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TO SHAREHOLDERS
Massachusetts Municipal Bond Portfolio (the Fund) paid to its shareholders
monthly income dividends totaling $0.545 per share during the fiscal year ended
September 30, 1995.
Based on the most recent dividend paid and the Portfolio's net asset value per
share of $9.51 on September 30, 1995, the Fund's annualized distribution rate
was 5.63%. To equal that rate in a taxable investment, a couple in the combined
Federal and state 43.68% tax bracket would have to earn 9.94%.
The global economy continues to demonstrate a pattern of slow growth with low
inflation. The U.S. economy is no exception, as Gross Domestic Product should
grow only modestly during 1995 at between 2% and 3%, with inflation of less than
3%. These characteristics bode well for all capital markets and particularly
fixed-income markets, including municipal bonds.
Indeed, municipal bonds performed well during the first half of 1995 by
realizing strong capital appreciation as a result of this favorable investment
environment. However, during this period, the municipal market under-performed
the taxable market because of concern about the potential passage of major tax
reform (e.g., flat tax, value added tax or consumption tax) legislation.
Were major tax reform to become law, municipal bonds would probably be
underperformers relative to taxable bonds because the current tax-advantaged
status of municipal bonds likely would be eliminated.
However, for many reasons, we at Eaton Vance believe there is little chance of
major tax reform legislation being enacted. For example, the inherent
regressivity of the various flat tax proposals will provoke much opposition, as
will proposals to eliminate such tax breaks as deductions for mortgage interest
and state and local taxes. Also, such proposals could seriously depress entire
sectors of the U.S. economy.
Accordingly, we view this recent underperformance by municipal bonds (because of
fears of tax reform) as a potential buying opportunity. Municipal bonds could
represent an attractive asset class at these current relative trading
relationships, with the potential for future outperformance for those investors
willing to adopt a patient, long-term investment horizon.
In addition, proposals are now circulating in both Congress and the White House
to reduce the nation's budget deficit by severely cutting expenditures over the
next decade. If enacted, such a concept would drastically reduce the federal
government's borrowing needs and, as a result, would exert a meaningful downward
influence on interest rates across the entire yield curve. All fixed-income
instruments, including municipal bonds, would benefit.
We will continue to monitor changes in economic and political conditions and to
pursue the goal of your Fund: to provide you with a competitive distribution of
tax-free income from a portfolio of quality municipal bonds.(+)
Sincerely,
/s/Thomas J. Fetter
Thomas J. Fetter
President
November 20, 1995
(+) A portion of the Portfolio's income could be subject to Federal alternative
minimum tax.
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS...
For Federal income tax purposes, 99.85% of the total dividends paid by the Fund
from net investment income during the fiscal year that ended September 30, 1995,
is designated as an exempt-interest dividend. Tax legislation eliminated the
exemption to market discount rules applicable to tax-exempt obligations. As a
result, certain tax-exempt obligations acquired by the Portfolio subsequent to
April 30, 1993, at market discounts, may generate a small amount of ordinary
taxable income.
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Included on the following page is a performance chart that compares your Fund's
total return with that of a broad-based securities market index. The lines on
the chart represent the total returns of $10,000 hypothetical investments in
your Fund and the unmanaged Lehman Brothers Municipal Bond Index. The solid line
on the chart represents the Fund's performance. The Fund's total return figure
reflects fund expenses and portfolio transaction costs, and assumes the
reinvestment of income dividends and capital gain distributions. The dotted line
represents the performance of the Lehman Brothers Municipal Bond Index, a
broad-based, widely recognized unmanaged index of municipal bonds. Whereas the
Fund's portfolio comprises bonds principally from your individual state, the
Index is composed of bonds from all 50 states and many jurisdictions. The
Index's total return does not reflect any commissions or expenses that would be
incurred if an investor individually purchased or sold the securities
represented in the Index.
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MANAGEMENT REPORT
YOUR INVESTMENT AT WORK [logo]
Plymouth County
Correctional Facility
These bonds were used to construct a new 1,140-bed prison to house federal,
state and county inmates in Plymouth. In addition to expanded housing
facilities, the project includes a modern medical facility. The project was
designed to provide partial relief for the Commonwealth's correctional system,
which has become seriously overcrowded in the past decade. As a
state-of-the-art, "direct supervision" facility, the project aims to provide a
more successful correctional environment while reducing costs. The new facility
is operated by the Plymouth County Sheriff's Department.
PORTFOLIO OVERVIEW
Based on market value as of Sept. 30, 1995
Number of issues.......................................95
Average quality........................................A+
Investment grade....................................96.3%
Effective maturity (years)..........................15.47
Largest sectors:
General obligations..............................13.7%
Insured hospitals................................11.8*
Housing..........................................11.4
Education........................................ 9.8
Water and sewer.................................. 9.8
* Private insurance does not remove the risk of loss of principal due to changes
in market conditions that is associated with these investments.
THE STATE OF THE STATE: Massachusetts
Massachusetts' employment levels have climbed significantly in recent years,
recovering roughly 60% of the jobs lost in the last recession. Recent jobless
rates have remained at or below the national rate, and personal income growth
continues to accelerate. Growth has been especially impressive in the high
technology and financial sectors.
The Commonwealth has greatly improved its financial position. Debt levels, while
still too high, have nonetheless been reduced, while reserve levels have
increased to 3% of revenues. As a result, Massachusetts now enjoys enhanced
liquidity and more leeway with respect to operations and should record a modest
surplus in the current fiscal year. As a reflection of the progress the
Commonwealth has made in recent years, its debt ratings have been upgraded to A1
and A+, considerably higher than they were at their lowest point in early 1991.
Looking ahead, the economy should continue to post modest growth. On the fiscal
front, the administration has recently initiated efforts to control social
spending. While opening a thorny political issue, the move could result in
further fiscal improvements in the future.
FROM THE PORTFOLIO MANAGER:
"The Portfolio's exposure to the hospital sector remains quite low. Health care
institutions around the country are under increasing pressure from competition.
This condition is especially true in Massachusetts, where there are too many
hospital beds for the Commonwealth's population.
"As a result, we do extensive research before adding any hospital bonds to the
Portfolio, to ensure that the hospitals we choose will be among the survivors in
this increasingly competitive environment.
"In structuring the Portfolio, we've employed a two-pronged strategy in the
Portfolio, emphasizing quality on one hand and prudent yield enhancement on the
other."
- Robert B. MacIntosh
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN MASSACHUSETTS MUNICIPAL
BOND PORTFOLIO AND THE LEHMAN BROTHER MUNICIPAL BOND INDEX
From June 30, 1993. through September 30, 1995
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AVERAGE ANNUAL RETURN
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1 Year 9.4%
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Life of Portfolio* 3.6%
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Label A B
Massachusetts
Label date Municipal Bond Lehman Bros.
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1 6/93+ 10000 10000
2 7/93 9930 10013
3 8/93 10215 10221
4 9/93 10332 10338
5 10/93 10338 10358
6 11/93 10234 10266
7 12/93 10455 10483
8 1/94 10567 10603
9 2/94 10314 10328
10 3/94 9799 9908
11 4/94 9785 9992
12 5/94 9876 10078
13 6/94 9786 10020
14 7/94 9975 10200
15 8/94 10021 10236
16 9/94 9837 10086
17 10/94 9588 9907
18 11/94 9301 9727
19 12/94 9587 9941
20 1/95 9955 10266
21 2/95 10276 10523
22 3/95 10377 10644
23 4/95 10376 10656
24 5/95 10655 10996
25 6/95 10473 10900
26 7/95 10536 11003
27 8/95 10675 11143
28 9/95 10759 11214
Massachusetts Municipal Bond Portfolio: $10,759
Lehman Brothers Municipal Bond Index: $11,214
Past performance is not indicative of future results. Investment returns and
principal will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Source: Towers Data Systems,
Bethesda, MD.
* Investment operations commenced on 6/17/93.
+ Index information is available only at month-end; therefore, the line
comparison begins at the next month-end following the commencement of the
Fund's investment operations.
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Massachusetts Municipal Bond Portfolio
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
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September 30, 1995
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ASSETS:
Investment in Massachusetts Tax Free Portfolio-
Identified cost $7,063,263
Unrealized appreciation 116,995
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Total investment in Portfolio, at value (Note 1A) $7,180,258
Receivable from the Administrator (Note 4) 18,261
Deferred organization expenses (Note 1D) 4,870
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Total assets $7,203,389
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LIABILITIES:
Dividends payable $15,820
Payable to affiliates-
Trustees' fees 43
Custodian fee 584
Accrued expenses 985
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Total liabilities 17,432
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NET ASSETS for 755,764 shares of beneficial
interest outstanding $7,185,957
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SOURCES OF NET ASSETS:
Paid-in capital $7,961,511
Accumulated net realized loss on investment and
financial futures transactions (computed on the basis
of identified cost) (884,905)
Accumulated distributions in excess of
net investment income (7,644)
Unrealized appreciation of investments and
financial futures contracts from Portfolio
(computed on the basis of identified cost) 116,995
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Total $7,185,957
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NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
($7,185,957 / 755,764 shares of beneficial interest outstanding) $9.51
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See notes to financial statements
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STATEMENT OF OPERATIONS
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Year Ended September 30, 1995
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INVESTMENT INCOME (NOTE 1B):
Investment income allocated from Portfolio $ 474,754
Expenses allocated from Portfolio (39,205)
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Net investment income from Portfolio $ 435,549
Expenses-
Compensation of Trustees not members
of the Administrator's organization $ 165
Custodian fee (Note 4) 3,285
Legal and accounting services 7,159
Transfer and dividend disbursing agent fees 4,835
Printing and postage 4,647
Amortization of organization expenses
(Note 1D) 1,854
Registration costs 1,084
Miscellaneous 401
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Total expenses $23,430
Deduct allocation of expenses to the
Administrator (Note 4) 18,261
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Net expenses 5,169
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Net investment income $ 430,380
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REALIZED AND UNREALIZED GAIN
(LOSS)ON INVESTMENTS:
Net realized loss from Portfolio-
Investment transactions (identified
cost basis) $ (510,070)
Financial futures contracts (72,565)
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Net realized loss $ (582,635)
Change in unrealized appreciation of investments and
financial futures contracts 717,570
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Net realized and unrealized gain $ 134,935
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Net increase in net assets from operations $ 565,315
==========
See notes to financial statements
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STATEMENTS OF CHANGES IN NET ASSETS
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FOR THE YEAR ENDED SEPTEMBER 30,
--------------------------------
1995 1994
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INCREASE (DECREASE) IN NET ASSETS:
From operations-
Net investment income $ 430,380 $ 501,835
Net realized loss on investments (582,635) (300,911)
Change in unrealized appreciation
(depreciation) of investments 717,570 (656,269)
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Net increase (decrease) in net
assets from operations $ 565,315 $ (455,345)
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Distributions to shareholders (Note 2)-
From net investment income $ (429,708) $ (501,835)
In excess of net investment income - (3,565)
In excess of realized gain on
investment transactions - (7,899)
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Total distributions to
shareholders $ (429,708) $ (513,299)
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Transactions in shares of beneficial
interest (Note 3)-
Proceeds from sales of shares $ 1,433,581 $ 7,345,742
Net asset value of shares issued to
shareholders in payment
of distributions declared 96,976 113,009
Cost of shares redeemed (3,818,659) (2,214,217)
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Increase (decrease) in net assets
from Fund share transactions $(2,288,102) $ 5,244,534
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Net increase (decrease) in
net assets $(2,152,495) $ 4,275,890
NET ASSETS:
At beginning of year 9,338,452 5,062,562
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At end of year $ 7,185,957 $ 9,338,452
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ACCUMULATED DISTRIBUTIONS IN EXCESS OF NET
INVESTMENT INCOME INCLUDED IN NET
ASSETS AT END OF YEAR $ (7,644) $ (8,316)
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See notes to financial statements
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FINANCIAL HIGHLIGHTS
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<TABLE>
<CAPTION>
YEAR ENDED SEPTEMBER 30,
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1995 1994 1993<F2>
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<S> <C> <C> <C>
NET ASSET VALUE, beginning of year $ 9.220 $ 10.260 $ 10.000
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INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.546 $ 0.548 $ 0.141
Net realized and unrealized
gain (loss) on investments 0.290 (1.026) 0.284
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Total income (loss) from operations $ 0.836 $ (0.478) $ 0.425
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LESS DISTRIBUTIONS:
From net investment income $ (0.546) $ (0.548) $ (0.141)
In excess of net investment income - (0.004) (0.024)
In excess of net realized gain on investment transactions - (0.010) -
---------- ---------- --------
Total distributions $ (0.546) $ (0.562) $ (0.165)
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NET ASSET VALUE, end of year $ 9.510 $ 9.220 $ 10.260
========== ========== ========
TOTAL RETURN<F4> 9.37% (4.79%) 4.04%
RATIOS/SUPPLEMENTAL DATA*:
Net assets, end of year (000 omitted) $ 7,186 $ 9,338 $ 5,063
Ratio of net expenses to average daily net assets<F3> 0.63% 0.60% 1.21%<F1>
Ratio of net investment income to average daily net assets 5.93% 5.65% 4.80%<F1>
* For the years ended September 30, 1995 and 1994, the operating expenses of the Fund reflect a reduction of expenses by the
Administrator. Had such action not been taken, net investment income per share and the ratios would have been as follows:
Net investment income per share: $ 0.523 $ 0.498
========== ==========
RATIOS (As a percentage of average daily net assets):
Expenses<F3> 0.88% 1.12%
Net investment income 5.68% 5.13%
<FN>
<F1> Annualized.
<F2> For the period from the start of business, June 17, 1993, to September 30, 1993.
<F3> Includes the Fund's share of Massachusetts Tax Free Portfolio's allocated expenses.
<F4> 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 computed on a non-annualized basis.
</TABLE>
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Notes to Financial Statements
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(1) SIGNIFICANT ACCOUNTING POLICIES
Massachusetts Municipal Bond Portfolio (the Fund) is a non-diversified series of
Eaton Vance Municipals 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 invests all of its investable assets in interests in
Massachusetts Tax Free Portfolio (the Portfolio), a New York Trust, having the
same investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (2.4% at September 30, 1995). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the Portfolio of investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements. 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.
A. INVESTMENT VALUATIONS - Valuation of securities by the Portfolio is discussed
in Note 1 of the Portfolio's Notes to Financial Statements, which are included
elsewhere in this report.
B. INCOME - The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and accrued
expenses of the Fund determined in accordance with generally accepted accounting
principles.
C. 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 and tax-exempt income,
including any net realized gain on investments. Accordingly, no provision for
Federal income or excise tax is necessary. At September 30, 1995, the Fund for
Federal income tax purposes had a capital loss carryover of $297,528 which will
reduce taxable income arising from future net realized gains on investments, if
any, to the extent permitted by the Internal Revenue Code, and thus will reduce
the amount of the distributions to shareholders which would otherwise be
necessary to relieve the Fund of any liability for Federal income or excise tax.
Such capital loss carryover will expire on September 30, 2003. Additionally, at
September 30, 1995, net capital losses of $541,316 attributable to security
transactions incurred after October 31, 1994, are treated as arising on the
first day of the Fund's next taxable year. Dividends paid by the Fund from net
interest on tax-exempt municipal bonds allocated from the Portfolio are not
includable by shareholders as gross income for Federal income tax purposes
because the Fund and Portfolio intend 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.
D. DEFERRED ORGANIZATION EXPENSES - Costs incurred by the Fund in connection
with its organization, including registration costs, are being amortized on the
straight-line basis over five years.
E. OTHER - Investment transactions are accounted for on a trade date basis.
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(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. Distributions are paid monthly. Distributions of allocated
realized capital gains, if any, are made at least annually. Shareholders may
reinvest capital gain distributions in additional shares of the Fund at the net
asset value as of the ex-dividend date. Distributions are paid in the form of
additional shares or, at the election of the shareholder, in cash. The Fund
distinguishes between distributions on a tax basis and a financial reporting
basis. Generally accepted accounting principles require that only distributions
in excess of tax basis earnings and profits be reported in the financial
statements as a return of capital. Differences in the recognition or
classification of income between the financial statements and tax earnings and
profits which result in temporary over distributions for financial statement
purposes are classified as distributions in excess of net investment income or
accumulated net realized gains. 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, 1996 and will be based on tax accounting
methods which may differ from amounts determined for financial statement
purposes.
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(3) SHARES OF BENEFICIAL INTEREST
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value).
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
Year Ended September 30,
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1995 1994
------------------- -------------------
<S> <C> <C>
Sales 158,095 733,241
Issued to shareholders electing to receive
payments of distributions in Fund shares 10,463 11,633
Redemptions (425,246) (225,793)
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Net increase (decrease) (256,688) 519,081
================= ==================
</TABLE>
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(4) TRANSACTIONS WITH AFFILIATES
Eaton Vance Management (EVM) serves as the Administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services. See
Note 2 of the Portfolio's Notes to the Financial Statements which are included
elsewhere in this report. To enhance the net income of the Fund, $18,261 of
expenses related to the operation of the Fund were allocated to EVM. Except as
to Trustees of the Fund and the Portfolio, 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. Investors Bank & Trust Company
(IBT), an affiliate of EVM, serves as custodian to the Fund and the Portfolio.
Pursuant to the respective custodian agreements, IBT receives a fee reduced by
credits which are determined based on the average cash balances the Fund or
Portfolio maintains with IBT. Certain of the officers and Trustees of the Fund
and Portfolio are officers and directors/trustees of the above organizations.
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(5) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio for the year
ended September 30, 1995, aggregated $1,479,720 and $4,180,879, respectively.
<PAGE>
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Independent Auditors' Report
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TO THE TRUSTEES AND SHAREHOLDERS OF
EATON VANCE MUNICIPALS TRUST:
We have audited the accompanying statement of assets and liabilities of
Massachusetts Municipal Bond Portfolio (one of the series constituting Eaton
Vance Municipals Trust) as of September 30, 1995, and the related statement of
operations for the year then ended, the statements of changes in net assets for
each of the two years in the period ended September 30, 1995 and the financial
highlights for each of the two years in the period ended September 30, 1995 and
for the period from the start of business June 17, 1993 to September 30, 1993.
These financial statements and financial highlights are the responsibility of
the Trust'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 audits 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. 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 the Massachusetts
Municipal Bond Portfolio series of Eaton Vance Municipals Trust at September 30,
1995, 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
OCTOBER 27, 1995
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Massachusetts Tax Free Portfolio
Portfolio of Investments - September 30, 1995
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TAX-EXEMPT INVESTMENTS- 100%
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<TABLE>
<CAPTION>
RATINGS (UNAUDITED) PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- -----------------------------------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
EDUCATION - 9.8%
Aa1 AA+ $1,625 Massachusetts Health and Educational Facilities Authority, (HEFA) Amherst College,
6.80%, 11/1/21 $ 1,740,440
A1 A+ 250 Massachusetts HEFA, Tufts University, 7.75%, 8/1/13 271,052
NR BBB- 3,700 Massachusetts HEFA, Merrimack College, 7.125%, 7/1/12 3,882,003
NR AAA 2,900 Massachusetts HEFA, Wentworth Institute, (Connie Lee), 5.50%, 10/1/23 2,675,047
NR BBB- 6,855 Massachusetts HEFA, Smith College, 5.75%, 7/1/24 6,694,182
Aaa AAA 5,180 Massachusetts HEFA, Harvard University, 5.625%, 11/1/28 5,114,577
Aa1 AA 4,690 Massachusetts Industrial Finance Agency, Phillips Academy, 5.375%, 9/1/23 4,385,056
A1 NR 2,000 The New England Education Loan Marketing Corporation, (AMT), 6.90%, 11/1/09 2,157,440
NR BBB- 1,300 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control
Authority, Polytechnic University, 5.50%, 8/1/24 1,128,491
NR BBB- 1,000 Puerto Rico Industrial, Tourist, Educational, Medical and Environmental Control Authority,
Polytechnic University, 6.50%, 8/1/24 990,870
------------
$ 29,039,158
------------
GENERAL OBLIGATIONS - 13.7%
Baa1 NR $1,000 City of Lowell, 6.375%, 8/15/01 $ 1,067,490
A1 A+ 3,900 Commonwealth of Massachusetts, 5.00%, 1/1/12 3,609,060
A1 A+ 875 Commonwealth of Massachusetts, 5.00%, 1/1/14 795,839
A1 A+ 4,750 Massachusetts Bay Transportation Authority (MBTA), 5.50%, 3/1/21 4,525,135
A1 A+ 2,500 MBTA, 5.75%, 3/1/18 2,465,775
A1 A+ 14,000 MBTA, 5.75%, 3/1/25 13,593,440
A1 A+ 1,000 MBTA, 5.90%, 3/1/12 1,014,690
NR BBB 1,175 Government of Guam, 5.40%, 11/15/18 1,022,650
A NR 3,375 Town of Nantucket, 6.80%, 12/1/11 3,634,875
Baa1 A 100 Puerto Rico Public Buildings Authority, 5.50%, 7/1/21 92,369
Baa1 A 1,900 Puerto Rico Aqueduct and Sewer Authority, 7.00%, 7/1/19 2,037,313
A A 2,500 University of Massachusetts Building Authority, 6.875%, 5/1/14 2,839,950
A A 250 University of Massachusetts Building Authority, 7.20%, 5/1/04 287,396
NR NR 3,350 Virgin Islands Public Finance Authority, 7.25%, 10/1/18 3,528,321
------------
$ 40,514,303
------------
HOSPITALS - 8.4%
A A- $3,000 Massachusetts HEFA, Charlton Memorial Hospital, 7.25%, 7/1/13 $ 3,147,750
A1 A 530 Massachusetts HEFA, Spaulding Rehabilitation Hospital, 7.625%, 7/1/21 568,632
Baa1 BBB+ 2,000 Massachusetts HEFA, New England Baptist Hospital, 7.35%, 7/1/17 2,067,480
Aa NR 3,100 Massachusetts HEFA, Daughters of Charity Health System, 6.10%, 7/1/14 3,143,524
A1 A+ 1,000 Massachusetts HEFA, Dana-Farber Cancer Institute, 6.65%, 12/1/15 1,020,340
A A 4,250 Massachusetts HEFA, The Medical Center of Central Massachusetts, 7.10%, 7/1/21 4,394,755
Baa BBB 1,825 Massachusetts HEFA, Sisters of Providence Health System, 6.50%, 11/15/08 1,877,870
NR A- 1,470 Massachusetts HEFA, Jordan Hospital, 6.875%, 10/1/15 1,052,722
NR A- 1,470 Massachusetts HEFA, Jordan Hospital, 6.875%, 10/1/22 1,507,073
NR AAA 2,625 Massachusetts HEFA, Winchester Hospital (Connie Lee), 5.75%, 7/1/14 2,557,223
NR AAA 3,650 Massachusetts HEFA, Winchester Hospital (Connie Lee), 5.75%, 7/1/24 3,486,917
------------
$ 24,824,286
------------
HOUSING - 11.4%
NR AAA $2,750 Framingham Housing Authority, (GNMA), 6.65%, 2/20/32 $ 2,783,275
A1 A+ 6,000 Massachusetts Housing Finance Agency (HFA), 6.375%, 4/1/21 5,973,720
Aa A+ 7,250 Massachusetts HFA, (AMT), 6.60%, 12/1/26 7,328,952
Aa A+ 6,400 Massachusetts HFA, (AMT), 6.60%, 12/1/26 6,469,696
Aaa AAA 1,000 Massachusetts HFA, (FNMA), 6.875%, 11/15/11 1,063,630
Aaa AAA 2,750 Massachusetts HFA, (FNMA), 6.90%, 11/15/21 2,882,330
Aa A+ 2,795 Massachusetts HFA, (AMT), 7.125%, 6/1/25 2,908,924
Aa A+ 400 Massachusetts HFA, 7.35%, 12/1/16 425,408
Aa A+ 2,265 Massachusetts HFA, (AMT), 8.10%, 6/1/20 2,369,734
Aa A+ 1,500 Massachusetts HFA, (AMT), 8.10%, 12/1/21 1,576,035
------------
$ 33,781,704
------------
INDUSTRIAL DEVELOPMENT/POLLUTION CONTROL - 7.0%
Baa1 BBB $14,185 City of Boston Harbor Electric Energy Company Project, (AMT), 7.30%, 5/15/15 $ 15,178,942
NR NR 9,000 Massachusetts Industrial Finance Agency, Massachusetts Biomedical Research
Corporation, 0%, 8/1/19 3,817,800
Aa3 AA 1,550 Puerto Rico Industrial, Medical and Environmental Pollution Control Authority,
The Upjohn Company, 7.50%, 12/1/23 1,697,235
------------
$ 20,693,977
------------
INSURED EDUCATION - 2.1%
Aaa AAA $ 335 Massachusetts Educational Finance Authority, (MBIA), (AMT), 7.25%, 1/1/09 $ 350,460
Aaa AAA 2,000 Massachusetts Educational Finance Authority, (AMBAC), (AMT), 7.30%, 1/1/12 2,096,840
Aaa AAA 250 Massachusetts HEFA, Northeastern University, (AMBAC), 7.50%, 10/1/08 273,820
Aaa AAA 400 Massachusetts HEFA, Boston University "RIBS", (MBIA), Variable, 10/1/31<F1> 439,464
Aaa AAA 3,000 Massachusetts HEFA, Tufts University, (FGIC), 5.95%, 8/15/18 3,032,640
------------
$ 6,193,224
------------
INSURED GENERAL OBLIGATION - 1.7%
Aaa AAA $1,795 City of Boston, (FSA), 4.875%, 9/1/09 $ 1,686,833
Aaa AAA 1,000 Commonwealth of Puerto Rico "RIBS", (AMBAC), Variable, 7/1/15<F1> 1,009,940
Aaa AAA 600 Town of Tyngsborough, (AMBAC), 6.90%, 5/15/08 663,798
Aaa AAA 1,770 MBTA, (MBIA), 5.50%, 3/1/21 1,663,995
------------
$ 5,024,566
------------
INSURED HOSPITALS - 11.8%
Aaa AAA $ 300 Massachusetts HEFA, Berkshire Health Systems, (MBIA), 7.60%, 10/1/14 $ 332,346
Aaa AAA 1,250 Massachusetts HEFA, Beth Israel Hospital, Inverse Floaters, (AMBAC),
Variable, 7/1/25<F1> 1,253,675
Aaa AAA 1,500 Massachusetts HEFA, Capital Asset Program, (MBIA), 7.20%, 7/1/09 1,649,085
AAA AAA 2,050 Massachusetts HEFA, Fallon Healthcare System (CGIG), 6.75%, 6/1/20<F2> 2,171,442
AAA AAA 4,500 Massachusetts HEFA, Fallon Healthcare System (CGIG), 6.875%, 6/1/11 4,881,465
Aaa AAA 2,040 Massachusetts HEFA, Beverly Hospital, (MBIA), 7.30%, 7/1/13 2,219,581
Aaa AAA 1,000 Massachusetts HEFA, BayState Medical Center, (FGIC), 5.00%, 7/1/20 883,550
Aaa AAA 3,000 Massachusetts HEFA, The Medical Center of Central Massachusetts, (AMBAC), "CARS",
Variable, 6/23/22<F1> 3,330,090
Aaa AAA 2,000 Massachusetts HEFA, St. Elizabeth Hospital Issue, "LEVRRS", (FSA),
Variable, 8/15/21<F1> 2,196,960
Aaa AAA 2,600 Massachusetts HEFA, Saint Luke's Hospital, "Yield Curve Notes", (MBIA),
Variable, 8/15/13<F1> 2,556,970
Aaa AAA 1,200 Massachusetts HEFA, University Hospital, (MBIA), 7.25%, 7/1/19 1,323,552
Aaa AAA 6,950 Massachusetts HEFA, Lahey Clinic, (MBIA), 5.375%, 7/1/23 6,454,118
Aaa AAA 5,000 Massachusetts HEFA, New England Medical Center, (MBIA), 5.375%, 7/1/24 4,664,350
Aaa AAA 1,000 Massachusetts HEFA, New England Medical Center, (FGIC), 6.50%, 7/1/12 1,052,960
------------
$ 34,970,144
------------
INSURED HOUSING - 0.7%
Aaa AAA $2,000 Massachusetts Housing Finance Agency, (AMBAC), 6.45%, 1/1/36 $ 2,027,680
------------
INSURED TRANSPORTATION - 2.2%
Aaa AAA $5,860 Massachusetts Port Authority, (AMT), (FGIC), 7.50%, 7/1/20 $ 6,490,243
------------
LEASE/CERTIFICATE OF PARTICIPATION - 2.8%
NR A $7,800 Plymouth County, Massachusetts Correctional Facility Project, 7.00%, 4/1/22 $ 8,363,862
------------
NURSING HOMES - 0.5%
NR AA $1,495 Massachusetts HEFA, Deutches Altenheim, Incorporated, (FHA), 7.70%, 11/1/31<F2> $ 1,613,195
------------
SOLID WASTE - 2.6%
Baa1 BBB $5,970 Massachusetts Industrial Finance Agency, Massachusetts Refusetech, Inc.
Project, 6.30%, 7/1/05 $ 6,242,531
NR NR 1,340 City of Pittsfield, Vicon Recovery Associates Project, 7.95%, 11/1/04 1,409,425
------------
$ 7,651,956
------------
SPECIAL TAX - 4.2%
A1 A+ $5,695 Commonwealth of Massachusetts, Special Obligation Revenue Bonds, 6.00%, 6/1/13 $ 5,747,223
A1 A+ 4,560 Commonwealth of Massachusetts, Special Obligation Revenue Bonds, 5.80%, 6/1/14 4,518,550
Baa1 A 2,000 Puerto Rico Highway and Transportation Authority, 6.625%, 7/1/18 2,099,080
------------
$ 12,364,853
------------
TRANSPORTATION - 5.2%
NR BBB $7,950 Guam Airport Authority, (AMT), 6.70%, 10/1/23 $ 7,967,093
Aa AA- 7,300 Massachusetts Port Authority, 6.00%, 7/1/23 7,260,069
------------
$ 15,227,162
------------
UTILITY - 6.0%
NR BBB $2,765 Guam Power Authority, 5.25%, 10/1/23 $ 2,382,103
A BBB+ 2,610 Massachusetts Municipal Wholesale Electric Company, 6.00%, 7/1/18 2,555,843
A BBB+ 5,560 Massachusetts Municipal Wholesale Electric Company, 6.625%, 7/1/18 5,747,205
A BBB+ 3,500 Massachusetts Municipal Wholesale Electric Company, 6.75%, 7/1/11 3,664,010
Baa1 A- 1,850 Puerto Rico Electric Power Authority, 5.50%, 7/1/13 1,755,447
Baa1 A- 150 Puerto Rico Electric Power Authority, 5.50%, 7/1/20 138,746
NR NR 1,500 Virgin Islands Water and Power Authority, 7.40%, 7/1/11 1,575,314
------------
$ 17,818,668
------------
WATER & SEWER - 9.8%
NR NR $2,075 Massachusetts Industrial Finance Authority, American Hingham Water, 6.60%, 12/1/15 $ 2,095,480
A A 18,620 Massachusetts Water Resources Authority (MWRA), 4.75%, 12/1/23 15,364,479
A A 5,000 MWRA, 5.00%, 3/1/22 4,323,500
A A 1,500 MWRA, 5.25%, 3/1/13 1,390,095
A A 3,915 MWRA, 5.25%, 12/1/15 3,608,260
NR NR 2,000 Virgin Islands Water and Power Authority, 7.60%, 1/1/12 2,122,760
------------
$ 28,904,574
------------
TOTAL TAX-EXEMPT INVESTMENTS (IDENTIFIED COST, $277,979,560) $295,503,555
============
<FN>
<F1> The above designated securities have been issued as inverse floater bonds.
<F2> Security has been segregated to cover margin requirements on open financial futures contracts.
The Portfolio 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, 1995, 21.2% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and financial guaranty assurance agencies. The aggregate
percentage by financial institution ranged from 0.5% to 7.3% of total investments.
</TABLE>
See notes to financial statements
<PAGE>
- ------------------------------------------------------------------------------
Massachusetts Tax Free Portfolio
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
- -----------------------------------------------------------------------------
September 30, 1995
- -----------------------------------------------------------------------------
ASSETS:
Investments-
Identified cost $277,979,560
Unrealized appreciation 17,523,995
------------
Total investments, at value (Note 1A) $295,503,555
Cash 6,632
Receivable for investments sold 13,030,253
Interest receivable 5,219,546
Deferred organization expenses (Note 1D) 12,432
------------
Total assets $313,772,418
------------
LIABILITIES:
Demand note payable (Note 5) $2,018,000
Payable for investments purchased 9,507,914
Payable for daily variation margin
on open financial futures contracts
(Note 1E) 61,875
Payable to affiliates-
Trustees' fees 4,126
Custodian fee 4,381
Accrued expenses 5,875
----------
Total liabilities $ 11,602,171
------------
NET ASSETS applicable to investors'
interest in Portfolio $302,170,247
============
SOURCES OF NET ASSETS:
Net proceeds from capital
contributions and withdrawals $284,750,352
Unrealized appreciation of investments
and financial futures contracts
(computed on the basis of identified cost) 17,419,895
------------
Total $302,170,247
============
See notes to financial statements
<PAGE>
- -----------------------------------------------------------------------------
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------
For the Year Ended September 30, 1995
- -----------------------------------------------------------------------------
INVESTMENT INCOME:
Interest income (Note 1B) $ 19,516,946
Expenses -
Investment adviser fee (Note 2) $ 1,383,407
Compensation of Trustees not members
of the Investment Adviser's
organization 16,111
Custodian fee (Note 2) 135,884
Legal and accounting services 30,407
Amortization of organization expenses
(Note 1D) 5,209
Miscellaneous 91,575
------------
Total expenses $ 1,662,593
Deduct reduction in custodian fee
(Note 2) 61,501
------------
Net expenses 1,601,092
------------
Net investment income $ 17,915,854
------------
REALIZED AND UNREALIZED GAIN (LOSS)
ON INVESTMENTS:
Net realized loss -
Investment transactions
(identified cost basis) $(12,310,806)
Financial futures contracts (3,356,628)
Net realized loss on investments $(15,667,434)
Change in unrealized appreciation
(depreciation) -
Investments $ 24,470,289
Financial futures contracts (482,875)
------------
Net unrealized appreciation of
investments 23,987,414
------------
Net realized and unrealized
gain on investments $ 8,319,980
------------
Net increase in net assets
from operations $ 26,235,834
============
See notes to financial statements
<PAGE>
- ------------------------------------------------------------------------------
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FOR THE YEAR ENDED SEPTEMBER 30,
---------------------------------------------
1995 1994
---------------- ---------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations-
Net investment income $ 17,915,854 $ 17,598,654
Net realized loss on investments (15,667,434) (5,575,616)
Change in unrealized appreciation (depreciation) of investments 23,987,414 (26,955,377)
------------ ------------
Net increase (decrease) in net assets from operation $ 26,235,834 $(14,932,339)
------------ ------------
Capital transactions-
Contributions $ 27,917,577 $ 73,999,994
Withdrawals (60,522,944) (41,140,572)
------------ ------------
Increase (decrease) in net assets resulting from capital transactions $(32,605,367) $ 32,859,422
------------ ------------
Total increase (decrease) in net assets $ (6,369,533) $ 17,927,083
NET ASSETS:
At beginning of year 308,539,780 290,612,697
------------ ------------
At end of year $302,170,247 $308,539,780
============ ============
</TABLE>
- ------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------
1995 1994 1993*
------ ------ ------
RATIOS (As a percentage of average daily
net assets):
Expenses 0.56% 0.51% 0.49%+
Net investment income 6.00% 5.74% 5.72%+
PORTFOLIO TURNOVER 87% 53% 38%
NET ASSETS, end of period (000 omitted): $302,170 $308,540 $290,613
+ Annualized
* For the period from the start of business, February 1, 1993, to September 30,
1993.
See notes to financial statements
<PAGE>
- ------------------------------------------------------------------------------
Notes to Financial Statements
- ------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Massachusetts Tax Free Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 as a non-diversified, open-end management
investment company which was organized as a trust under the laws of the State of
New York on May 1, 1992. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of the significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A. INVESTMENT VALUATIONS - Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on commodity
exchanges are valued at closing settlement prices. Short-term obligations,
maturing in sixty days or less, are valued at amortized cost, which approximates
value. Investments for which valuations or market quotations are unavailable are
valued at fair market value using methods determined in good faith by or at the
direction of the Trustees.
B. INCOME - Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for Federal
income tax purposes.
C. INCOME TAXES - The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for Federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
individually responsible for the payment of any taxes on its share of such
income. Since some of the Portfolio's investors are regulated investment
companies that invest all or substantially all of their assets in the Portfolio,
the Portfolio normally must satisfy the applicable source of income and
diversification requirements, (under the Internal Revenue Code), in order for
its investors to satisfy them. The Portfolio will allocate, at least annually
among its investors, each investor's distributive share of the Portfolio's net
taxable (if any) and tax exempt investment income, net realized capital gains,
and any other items of income, gain, loss, deduction or credit. Interest income
received by the Portfolio 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 Portfolio's
investors. The portion of such interest, if any, earned on private activity
bonds issued after August 7, 1986, may be considered a tax preference item for
investors.
D. DEFERRED ORGANIZATION EXPENSES - Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line basis
over five years.
E. FINANCIAL FUTURES CONTRACTS - Upon the entering of a financial futures
contract, the Portfolio is required to deposit ("initial margin") either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by the Portfolio ("margin maintenance") each day, dependent on daily
fluctuations in the value of the underlying security, and are recorded for book
purposes as unrealized gains or losses by the Portfolio. The Portfolio's
investment in financial futures contracts is designed only to hedge against
anticipated future changes in interest rates. Should interest rates move
unexpectedly, the Portfolio may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss.
F. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS - The Portfolio may engage in
when-issued and delayed delivery transactions. The Portfolio 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 earning interest on settlement date.
G. OTHER - Investment transactions are
accounted for on a trade date basis.
- ------------------------------------------------------------------------------
(2) INVESTMENT ADVISER FEE AND OTHER TRANSACTIONS WITH AFFILIATES
The investment adviser fee is earned by Boston Management and Research (BMR), a
wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation for
management and investment advisory services rendered to the Portfolio. The fee
is based upon a percentage of average daily net assets plus a percentage of
gross income (i.e., income other than gains from the sale of securities). For
the year ended September 30, 1995, the fee was equivalent to 0.46% of the
Portfolio's average net assets for such period and amounted to $1,383,407.
Except as to Trustees of the Portfolio who were not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services to
the Portfolio out of such investment adviser fee. Investors Bank &Trust Company
(IBT), an affiliate of EVM and BMR, serves as custodian of the Portfolio.
Pursuant to the custodian agreement, IBT receives a fee reduced by credits which
are determined based on the average daily cash balances the Portfolio maintains
with IBT. Credit balances used to reduce the Portfolio's custodian fee are
reported as a reduction of expenses in the statement of operations. Certain of
the officers and Trustees of the Portfolio are officers or directors/trustees of
the above organizations. Trustees of the Portfolio that are not affiliated with
the Investment Adviser may elect to defer receipt of all or a portion of their
annual fees in accordance with the terms of the Trustee Deferred Compensation
Plan. For the year ended September 30, 1995, no significant amounts have been
deferred.
- -------------------------------------------------------------------------------
(3) INVESTMENTS
For the year ended September 30, 1995, purchases and sales of investments, other
than U.S. Government securities and short-term obligations, aggregated
$256,567,304 and $272,646,745, respectively.
- -------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned by the Portfolio at September 30, 1995, as computed on a federal income
tax basis, are as follows:
Aggregate cost $277,979,560
============
Gross unrealized appreciation $ 17,673,126
Gross unrealized depreciation 149,131
------------
Net unrealized appreciation $ 17,523,995
============
- ------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. The Portfolio may temporarily borrow up to 5% of its
total assets to satisfy redemption requests or settle securities transactions.
Interest is charged to each portfolio or fund based on its borrowings at an
amount above either the bank's adjusted certificate of deposit rate, a variable
adjusted certificate of deposit rate, or a Federal funds effective rate. In
addition, a fee computed at an annual rate of 1/4 of 1% on the $20 million
committed facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. At September 30, 1995, the Portfolio had a balance
outstanding pursuant to this line of credit of $2,018,000. The Portfolio did not
have any significant borrowings or allocated fees during the year ended
September 30, 1995.
- ------------------------------------------------------------------------------
(6) FINANCIAL INSTRUMENTS
The Portfolio 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 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 Portfolio has in particular classes of financial instruments and does not
necessarily represent the amounts potentially subject to risk. The measurement
of the risks associated with these instruments is meaningful only when all
related and offsetting transactions are considered. A summary of obligations
under these financial instruments at September 30, 1995 is as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS NET UNREALIZED
EXPIRATION DATE CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C>
12/95 45 Municipal Bonds Short $104,100
========
</TABLE>
At September 30, 1995, the Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
<PAGE>
- -------------------------------------------------------------------------------
Independent Auditors' Report
- -------------------------------------------------------------------------------
TO THE TRUSTEES AND INVESTORS OF
MASSACHUSETTS TAX FREE PORTFOLIO
We have audited the accompanying statement of assets and liabilities, including
the portfolio of investments, of Massachusetts Tax Free Portfolio as of
September 30, 1995, and the related statement of operations for the year then
ended, the statements of changes in net assets for each of the two years in the
period ended September 30, 1995 and the supplementary data for each of the two
years in the period ended September 30, 1995 and for the period from the start
of business February 1, 1993 to September 30, 1993. These financial statements
and supplementary data are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits to obtain
reasonable assurance about whether the financial statements and supplementary
data 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 owned at
September 30, 1995, by correspondence with the custodians and brokers. 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 supplementary data present fairly,
in all material respects, the financial position of the Massachusetts Tax Free
Portfolio at September 30, 1995, the results of its operations, the changes in
its net assets, and its supplementary data for the respective stated periods in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
BOSTON, MASSACHUSETTS
OCTOBER 27, 1995
<PAGE>
- -------------------------------------------------------------------------------
Investment Management
- ------------------------------------------------------------------------------
<TABLE>
<CAPTION>
FUND OFFICERS INDEPENDENT TRUSTEES
<C> <S> <S>
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
JAMES B. HAWKES Chairman, Newspaper of New England, Inc.
Vice President, Trustee SAMUEL L. HAYES, III
ROBERT B. MACINTOSH Jacob H. Schiff Professor of Investment
Vice President Banking, Harvard University Graduate School
JAMES L. O'CONNOR of Business Administration
Treasurer NORTON H. REAMER
THOMAS OTIS President and Director, United Asset
Secretary Management Corporation
JOHN L. THORNDIKE
Director, Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
<CAPTION>
PORTFOLIO OFFICERS INDEPENDENT TRUSTEES
<C> <S> <S>
THOMAS J. FETTER DONALD R. DWIGHT
President President, Dwight Partners, Inc.
JAMES B. HAWKES Chairman, Newspaper of New England, Inc.
Vice President, Trustee SAMUEL L. HAYES, III
ROBERT B. MACINTOSH Jacob H. Schiff Professor of Investment
Vice President and Portfolio Manager Banking, Harvard University Graduate School
JAMES L. O'CONNOR of Business Administration
Treasurer NORTON H. REAMER
THOMAS OTIS President and Director, United Asset
Secretary Management Corporation
JOHN L. THORNDIKE
Director, Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
</TABLE>
<PAGE>
PORTFOLIO INVESTMENT ADVISER
Boston Management and Research
24 Federal Street
Boston, MA 02110
FUND ADMINISTRATOR
Eaton Vance Management
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
24 Federal Street
Boston, MA 02110
TRANSFER AGENT
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
INDEPENDENT AUDITORS
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
<PAGE>
- ------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Funds, including distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
EATON VANCE MUNICIPALS TRUST
24 FEDERAL STREET
BOSTON, MA 02110
MMBSRC
