EATON VANCE MUNICIPALS TRUST
EV TRADITIONAL CALIFORNIA MUNICIPALS FUND
SUPPLEMENT TO PROSPECTUS DATED NOVEMBER 25, 1994
1. Effective immediately, all purchases of shares of the Fund of $1 million or
more will be subject to a contingent deferred sales charge ("CDSC") of 0.50%
in the event of certain redemptions within twelve months after the purchase.
Such purchases continue to bear no initial sales charge. (Such purchases made
before March 27, 1995 will continue to be subject to a CDSC of 1% in the event
of certain redemptions made within eighteen months of purchase.) The Principal
Underwriter will compensate Authorized Firms responsible for such purchases at
the rate of 0.50% of the amount invested, and any CDSC incurred will be
retained by the Principal Underwriter.
The CDSC will be imposed on an amount equal to the lesser of the current
market value or the original purchase price of the shares redeemed.
Accordingly, no CDSC will be imposed on increases in account value above the
initial purchase price, including any dividends or distributions that have
been reinvested in additional shares. It will be assumed that redemptions are
made first from any shares in the shareholder's account that are not subject
to a CDSC. The CDSC is waived for redemptions involving certain liquidation,
merger or acquisition transactions involving other investment companies.
2. THE SHAREHOLDER TRANSACTION EXPENSES TABLE UNDER "SHAREHOLDER AND FUND
EXPENSES" IS REPLACED BY THE FOLLOWING TABLE:
SHAREHOLDER TRANSACTION EXPENSES
Maximum Sales Charge Imposed on Purchases
(as a percentage of offering price) 3.75%
Sales Charges Imposed on Reinvested Distributions None
Fees to Exchange Shares None
Contingent Deferred Sales Charges (on purchases of $1 million
or more) Imposed on Redemptions During the First Twelve
Months (as a percentage of redemption proceeds exclusive of
all reinvestments and capital appreciation in the account) 0.50%
Based on the Shareholder Transaction Expenses shown above and on the
total operating expenses shown in the Prospectus, an investor would pay
expenses $10 less than the expenses for one year and three years shown in
the Example under "Shareholder and Fund Expenses".
3. The Trustees of the Fund and the Portfolio have amended the nonfundamental
investment policy governing call options to read "neither the Fund nor the
Portfolio may engage in options, futures or forward transactions if more than
5% of its net assets, as measured by the aggregate of the premiums paid by the
Fund or the Portfolio, would be so invested". THE FOLLOWING DISCLOSURE IS
ADDED TO THE SECTION "HOW THE FUND AND THE PORTFOLIO INVEST THEIR ASSETS":
The Portfolio may purchase instruments that give the Portfolio the
option to purchase a municipal obligation when and if issued. In addition,
the Portfolio may temporarily borrow up to 5% of the value of its total
assets to satisfy redemption requests or settle securities transactions.
4. (I) THE SALES CHARGE AND DEALER COMMISSION TABLES UNDER "HOW TO BUY FUND
SHARES" ARE REPLACED BY THE FOLLOWING TABLE:
The current sales charges and dealer commissions are:
<TABLE>
<CAPTION>
SALES CHARGE SALES CHARGE DEALER COMMISSION
AS PERCENTAGE OF AS PERCENTAGE OF AS PERCENTAGE OF
AMOUNT OF PURCHASE OFFERING PRICE AMOUNT INVESTED OFFERING PRICE
<S> <C> <C> <C> <C>
Less than $50,000 3.75% 3.90% 4.00%
$50,000 but less than $100,000 2.75% 2.83% 3.00%
$100,000 but less than $250,000 2.25% 2.30% 2.50%
$250,000 but less than $500,000 1.75% 1.78% 2.00%
$500,000 but less than $1,000,000 1.25% 1.27% 1.50%
$1,000,000 or more 0.00% 0.00% 0.50%
</TABLE>
(II) THE FOLLOWING IS ADDED TO "HOW TO BUY FUND SHARES":
Fund shares may be sold at net asset value where the amount invested
represents redemption proceeds from a mutual fund unaffiliated with Eaton
Vance, if the redemption occurred no more than 60 days prior to the
purchase of Fund shares and the redeemed shares were subject to a sales
charge. Shares of the Fund may also be sold at net asset value to an
investor making an investment through an investment adviser, financial
planner, broker or other intermediary that charges a fee for its servces
and has entered into an agreement with the Fund or its Principal
Underwriter. An Authorized Firm may charge a fee in connection with
transactions executed by that Firm.
5. THE FOLLOWING IS ADDED TO "REPORTS TO SHAREHOLDERS":
Consistent with applicable law, duplicate mailings of shareholder
reports and certain other Fund information to shareholders residing at the
same address may be eliminated.
6. THE FIRST PARAGRAPH UNDER "THE EATON VANCE EXCHANGE PRIVILEGE" IS REPLACED
BY THE FOLLOWING PARAGRAPH:
Shares of the Fund may currently be exchanged for shares of any of the
following funds: Eaton Vance Cash Management Fund, Eaton Vance Income Fund
of Boston, Eaton Vance Municipal Bond Fund L.P., Eaton Vance Tax Free
Reserves and any fund in the Eaton Vance Traditional Group of Funds on the
basis of the net asset value per share of each fund at the time of the
exchange (plus, in the case of an exchange made within six months of the
date of purchase, an amount equal to the difference, if any, between the
sales charge previously paid on the shares being exchanged and the sales
charge payable on the shares being acquired). Such exchange offers are
available only in states where shares of the fund being acquired may be
legally sold. Shares of the Fund which are subject to a CDSC may be
exchanged into any of the funds listed under "The Eaton Vance Exchange
Privilege" without incurring the CDSC. The shares acquired in an exchange
may be subject to a CDSC upon redemption. For purposes of computing the
CDSC payable upon redemption of shares acquired in an exchange, the
holding period of the original shares is added to the holding period of
the shares acquired in the exchange.
7. THE FOLLOWING IS ADDED TO THE FIRST PARAGRAPH UNDER "PERFORMANCE
INFORMATION":
The Fund may quote total return for the period prior to the Fund's
commencement of operations which would reflect the Portfolio's total
return (and that of its predecessor) adjusted to reflect any applicable
Fund sales charge. The Fund's performance may be compared in publications
to the performance of various indices and investments for which reliable
data is available, and to averages, performance rankings, or other
information prepared by recognized mutual fund statistical services.
8. (I) THE FOLLOWING PARAGRAPH REPLACES THE PARAGRAPH UNDER THE CAPTION "EATON
VANCE SHAREHOLDER SERVICES -- REINVESTMENT PRIVILEGE":
Reinvestment Privilege: A shareholder who has repurchased or redeemed
shares may reinvest at net asset value any portion or all of the
repurchase or redemption proceeds (plus that amount necessary to acquire a
fractional share to round off the purchase to the nearest full share) in
shares of the Fund, or, provided that the shares repurchased or redeemed
have been held for at least 60 days, in shares or any of the other funds
offered by the Principal Underwriter subject to an initial sales charge,
provided that the reinvestment is effected within 60 days after such
repurchase or redemption, and the privilege has not been used more than
once in the prior 12 months. Shares are sold to a reinvesting shareholder
at the next determined net asset value following timely receipt of a
written purchase order by the Principal Underwriter or by the fund whose
shares are to be purchased (or by such fund's transfer agent). The
privilege is also available to holders of shares of the other funds
offered subject to an initial sales charge who wish to reinvest such
redemption or repurchase proceeds in shares of the Fund. If a shareholder
reinvests redemption proceeds within a 60-day period, the shareholder's
account will be credited with the amount of any CDSC paid on such redeemed
shares. To the extent that any shares of the Fund are sold at a loss and
the proceeds are reinvested in shares of the Fund (or other shares of the
Fund are acquired within the period beginning 30 days before and ending 30
days after the date of the redemption) some or all of the loss generally
will not be allowed as a tax deduction. See "Distributions and Taxes".
Shareholders should consult their tax advisers concerning the tax
consequences of reinvestments.
(II) IN THE DESCRIPTIONS OF THE STATEMENT OF INTENTION AND THE RIGHT OF
ACCUMULATION UNDER "EATON VANCE SHAREHOLDER SERVICES," THE $100,000 AMOUNTS
ARE REPLACED BY $50,000 AMOUNTS.
9. THE FOLLOWING TABLE REPLACES THE TABLE UNDER "THE FUND'S FINANCIAL
HIGHLIGHTS" ON PAGE THREE OF THE PROSPECTUS:
<TABLE>
<CAPTION>
SIX MONTHS
ENDED YEAR ENDED
MARCH 31, 1995 SEPTEMBER 30,
(UNAUDITED) 1994<F1>
-------------- -------------
<S> <C> <C>
NET ASSET VALUE, beginning of period $ 9.840 $10.000
------- -------
INCOME FROM OPERATIONS:
Net investment income $ 0.301 $ 0.209
Net realized and unrealized gain (loss) on
investments 0.271 (0.158)<F3>
------- -------
Total income from operations $ 0.572 $ 0.051
------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.301) $(0.209)
In excess of net investment income (0.001) (0.002)
------- -------
Total distributions $(0.302) $(0.211)
------- -------
NET ASSET VALUE, end of period $10.110 $ 9.840
======= =======
TOTAL RETURN<F5> 5.98% 0.50%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000s omitted) $ 3,664 $ 3,101
Ratio of net expenses to average
net assets<F4> 0.70%<F2> 0.54%<F2>
Ratio of net investment income to average
net assets 6.14%<F2> 5.60%<F2>
For the six months ended March 31, 1995 and the period from the start of business, May 27, 1994,
to September 30, 1994, the operating expenses of the Fund reflect an allocation of expenses to 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 $ 0.243 $ 0.158
------- -------
RATIOS (As a percentage of average net assets):
Expenses<F4> 1.90%<F2> 1.92%<F2>
Net investment income 4.94%<F2> 4.22%<F2>
<FN>
<F1> For the period from the start of business, May 27, 1994, to September 30, 1994.
<F2> Computed on an annualized basis.
<F3> The per share amount is not in accord with the net realized and unrealized gains and losses for
the period because of the timing of sales of Fund shares and the amount of per share realized and
unrealized gains and losses at such time.
<F4> Includes the Fund's share of California Tax Free Portfolio's allocated expenses.
<F5> 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.
</TABLE>
10. On September 29, 1995, EV Traditional California Municipals Fund was
reorganized and became a series of Eaton Vance Municipals Trust, a business
trust organized under the laws of the Commonwealth of Massachusetts. Prior to
the reorganization, the Fund had been a series of Eaton Vance Investment
Trust, which is also a Massachusetts business trust. Except for the fact that
the Fund is now a series of Eaton Vance Municipals Trust, shares of the Fund
represent the same interest in the Fund's assets, are of the same class, are
subject to the same terms and conditions, fees and expenses and confer the
same rights as when the Fund was a series of Eaton Vance Investment Trust.
THE DATE OF THE ATTACHED PROSPECTUS HAS BEEN CHANGED TO OCTOBER 1, 1995. ALL
REFERENCES IN THE PROSPECTUS TO EATON VANCE INVESTMENT TRUST OR THE TRUST ARE
DEFINED TO MEAN EATON VANCE MUNICIPALS TRUST.
November 9, 1995
T-CAPS2
