<PAGE> 1
EATON VANCE MUNICIPALS TRUST
FOR THE FUND:
* Massachusetts Municipal Bond Portfolio
- --------------------------------------------------------------------------------
[LOGO]
- --------------------------------------------------------------------------------
SEMI-ANNUAL SHAREHOLDER REPORT
MARCH 31, 1995
<PAGE> 2
TO SHAREHOLDERS
In the six months that ended March 31, 1995, Massachusetts Municipal Bond
Portfolio paid to its shareholders monthly income dividends of $0.271 per
share.
Based on the most recent dividend paid and the Fund's net asset value of $9.44
per share on March 31, 1995, the Fund's annualized distribution rate was 5.83
percent. To equal that rate in a taxable investment, a couple in the
combined 43.68 percent tax bracket would have to receive 10.35 percent.
During 1994 the economy remained stronger than economists and money managers
had anticipated at the start of the year. In response to this strength, and
in an attempt to keep inflation in check, the Federal Reserve raised
short-term interest rates six times in 1994 and once again in 1995. Long-term
rates moved upward as well and, as a result, the prices of municipal bonds
dropped.
But the market slide was not the only concern in 1994. Many shareholders of
Eaton Vance tax free mutual funds may have wondered whether the problems that
surfaced in Orange County, California, had in any way affected their
investment in our non-California tax free funds.
The answer is no, because the market realized that this was a local
situation. Eaton Vance non-California portfolios were not affected.
Despite the difficulties that beset the market in 1994, we feel optimistic
about prospects for 1995. The market now appears convinced that the Federal
Reserve is, in fact, keeping a tight watch on inflation. And, while it is
impossible to predict the outcomes of government initiatives, it appears that
proposals put forth by the new Congress to cut spending and taxes could have
an overall positive effect if enacted.
This report features some changes which we hope will help you to better
understand your investment, and how your Portfolio's holdings help provide the
means for the Federal government, as well as state and local governments, to
fund such projects as roads, bridges, hospitals and schools. The review
includes a Portfolio Overview, or snapshot, as well as comments from the
portfolio manager. In addition, we are profiling a specific bond holding.
Regardless of what lies ahead for the economy, the goal of your fund remains
the same:to provide you with a competitive distribution of tax free income
from a portfolio of high-quality municipal bonds.+
Sincerely,
/s/ Thomas J.Fetter
Thomas J.Fetter
President
May 19, 1995
+ A portion of the Portfolio's income could be subject to Federal alternative
minimum tax.
[Area graph with heading, "IN 1994, LONG-TERM INTERST RATES HIT THEIR HIGHEST
LEVEL IN 3 YEARS," depicting month-end 30-year Treasuries rate].
<TABLE>
<CAPTION>
30 Year Month
Treasuries Rate Ended
--------------- -----
<S> <C>
7.60% 3/92
6.65% 3/93
6.89% 3/94
8.04% 3/95
</TABLE>
2
<PAGE> 3
MANAGEMENT REPORT
Massachusetts has a diverse economy, and it is this diversity that helped the
Commonwealth weather the recession and recover at its current pace.
Employment rose steadily throughout 1994, and the state's 4.6 percent jobless
rate in March 1995 remained well below the national rate.
Manufacturing continued to register losses, but the services, trade and
construction sectors demonstrated continued strength.
However, the greatest single factor contributing to employment growth in
Massachusetts has been the strength of the financial services sector. The
Commonwealth has been a beneficiary of the nationwide boom in financial
services, particularly the mutual fund industry.
Debt levels in Massachusetts remain high, but the commonwealth's financial
outlook has benefited from political leadership that has demonstrated
increased fiscal responsibility in recent years, sharply reducing expenditures
and rebuilding the Commonwealth's financial reserves.
<TABLE>
- --------------------------------------------------------
[MAP] PORTFOLIO OVERVIEW
Based on market value as of March 31, 1995
<S> <C>
Number of issues............................... 101
Average quality................................ A+
Investment grade............................... 97.2%
Effective maturity (years)..................... 15.07
Largest sectors:
Housing.................................... 12.4
Water and sewer............................ 10.6
Transportation............................. 10.4
Hospitals.................................. 8.9
Insured hospitals.......................... 8.8*
<FN>
* Private insurance does not remove the market risks
associated with this investment.
- --------------------------------------------------------
</TABLE>
YOUR INVESTMENT AT WORK
MWRA
DEER ISLAND PROJECT
WATER AND SEWER BONDS
The Massachusetts Water Resources Authority provides water and wastewater
treatment services to 61 communities in eastern Massachusetts, primarily
around Boston.
The Authority is using the proceeds of these bonds for a variety of projects
to construct and rehabilitate wastewater collection and treatment facilities
that discharge into Boston Harbor.
The largest of these projects is the construction of new facilities for
primary and secondary wastewater treatment on Deer Island in Boston Harbor,
including a new nine-mile-long effluent tunnel.
When completed, it will be one of the largest public works projects ever
undertaken in New England and will be the second-largest sewage treatment
plant in the United States.
The Portfolio holds approximately $30 million of these bonds.
- --------------------------------------------------------------------------------
FROM THE PORTFOLIO MANAGER
"During the period from January through November, 1994, we put a great deal
of effort into selling relatively low-yield bonds and replacing them with
bonds having higher yields.
"We were able to do so without downgrading the quality of the Portfolio
because during the year's major market sell-off, some bonds of good quality
became available at attractive prices. In the process, we generated capital
losses which will be used to offset future capital gains.
"Our largest commitment is to the Massachusetts Water Resources Authority,
which is proceeding with major wastewater treatment facilities as part of the
Commonwealth's effort to clean up Boston Harbor.
"We continue to deemphasize health care in the Portfolio, based on the feeling
that revenue pressures and competition do not bode well for that industry."
- - Robert B. MacIntosh, Portfolio Manager
- --------------------------------------------------------------------------------
3
<PAGE> 4
Massachusetts Municipal Bond Portfolio
Financial Statements
<TABLE>
STATEMENT OF ASSETS AND LIABILITIES
- ----------------------------------------------------------------------------------------------------
March 31, 1995 (unaudited)
- ----------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment in Massachusetts Tax Free Portfolio, at value (Note 1A)
(Identified cost $6,929,001) $6,808,778
Receivable from the Administrator (Note 4) 15,360
Deferred organization expenses (Note 1D) 4,729
----------
Total assets $6,828,867
==========
LIABILITIES:
Dividends payable $17,393
Payable to affiliates--
Trustees' fees 40
Custodian fee 84
Accrued expenses 2,836
-------
Total liabilities 20,353
----------
NET ASSETS for 721,400 shares of beneficial interest outstanding $6,808,514
==========
SOURCES OF NET ASSETS:
Paid-in capital $7,633,876
Accumulated net realized loss on investment and financial futures
transactions (computed on the basis of identified cost) (699,379)
Accumulated distributions in excess of net investment income (5,760)
Unrealized depreciation of investments and financial futures
contracts from Portfolio (computed on the basis of identified cost) (120,223)
----------
Total $6,808,514
==========
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER SHARE
($6,808,514 / 721,400 shares of beneficial interest outstanding) $ 9.44
==========
</TABLE>
See notes to financial statements
4
<PAGE> 5
Financial Statements (continued)
<TABLE>
STATEMENT OF OPERATIONS
- -----------------------------------------------------------------------------------------
For the Six Months ended March 31, 1995 (unaudited)
- -----------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Investment income allocated from Portfolio $ 259,455
Expenses allocated from Portfolio (21,584)
---------
Net investment income from Portfolio $ 237,871
=========
EXPENSES:
Compensation of Trustees not members of the
Administrator's organization $ 438
Custodian Fee (Note 4) 1,451
Legal and accounting fees 6,072
Transfer and dividend disbursing agent fees 2,364
Amortization of organizational expenses (Note 1D) 1,995
Printing and postage 1,700
Registration costs 1,085
Miscellaneous 341
---------
Total expenses $ 15,446
Deduct-preliminary allocation of expenses to the
Administrator (Note 4) 15,360
---------
Net expenses 86
---------
Net investment income $ 237,785
---------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) from Portfolio--
Investment transactions (identified cost basis) $(397,173)
Financial futures contracts 64
---------
Net realized loss on investments $(397,109)
Change in unrealized depreciation of investments 480,352
---------
Net realized and unrealized gain on investments $ 83,243
---------
Net increase in net assets from operations $ 321,028
=========
</TABLE>
See notes to financial statements
5
<PAGE> 6
Financial Statements (continued)
<TABLE>
STATEMENT OF CHANGES IN NET ASSETS
- ---------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1995 (UNAUDITED) SEPTEMBER 30, 1994
-------------------------- -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 237,785 $ 501,835
Net realized loss on investments (397,109) (300,911)
Change in unrealized depreciation of investments 480,352 (656,269)
----------- -----------
Net increase (decrease) in net assets from operations $ 321,028 $ (455,345)
----------- -----------
Distributions to shareholders (Note 2) -
From net investment income $ (235,229) $ (501,835)
In excess of net realized gain on investments - (7,899)
In excess of net investment income - (3,565)
----------- -----------
Total distributions to shareholders $ (235,229) $ (513,299)
----------- -----------
Transactions in shares of beneficial interest (Note 3) -
Proceeds from sales of shares $ 723,581 $ 7,345,742
Net asset value of shares issued to shareholders in payment
distributions declared 49,191 113,009
Cost of shares redeemed (3,388,509) (2,214,217)
----------- -----------
Increase (decrease) in net assets from Fund shares transactions $(2,615,737) $ 5,244,534
----------- -----------
Net increase (decrease) in net assets $(2,529,938) $ 4,275,890
NET ASSETS:
At beginning of period 9,338,452 5,062,562
----------- -----------
At end of period (including accumulated distributions in excess
of net investment income of $5,760 and $8,316) $ 6,808,514 $ 9,338,452
=========== ===========
</TABLE>
See notes to financial statements
6
<PAGE> 7
Financial Statements (continued)
<TABLE>
FINANCIAL HIGHLIGHTS
- --------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30
------------------------------------------
1995** 1994 1993*
------- ------- -------
<S> <C> <C> <C>
NET ASSET VALUE, beginning of year $ 9.220 $10.260 $10.000
------- ------- -------
INCOME (LOSS) FROM OPERATIONS:
Net investment income $ 0.275 $ 0.548 $ 0.141
Net realized and unrealized gain (loss) on investments 0.219 (1.026) 0.284
------- ------- -------
Total income (loss) from operations $ 0.494 $(0.478) $ 0.425
------- ------- -------
LESS DISTRIBUTIONS:
From net investment income $(0.274) $(0.548) $(0.141)
In excess of net realized gain on investments - (0.010) -
In excess of net investment income - (0.004) (0.024)
------- ------- -------
Total distributions $(0.274) $(0.562) $(0.165)
------- ------- -------
NET ASSET VALUE, at end of year $ 9.440 $ 9.220 $10.260
======= ======= =======
TOTAL RETURN (2) 5.49% (4.79%) 4.04%
RATIOS/SUPPLEMENTAL DATA:
Net assets, end of period (000 omitted) $ 6,809 $ 9,338 $ 5,063
Ratio of net expenses to average net assets (1) 0.56%+ 0.60% 1.21%+
Ratio of net investment income to average net assets 6.18%+ 5.65% 4.80%+
<FN>
For the six months ended March 31, 1995 and the year ended September 30, 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: $ 0.257 $ 0.498
======= =======
RATIOS (As a percentage of average net assets):
Expenses (1) 0.96%+ 1.12%
Net investment income 5.78%+ 5.13%
+ Computed on an annualized basis.
(1) Includes the Fund's share of Massachusetts Tax Free Portfolio's allocated expenses.
(2) 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.
* For the period from the start of business, June 17, 1993, to September 30, 1993.
** For the six months ended March 31, 1995 (unaudited).
</TABLE>
See notes to financial statements
7
<PAGE> 8
Notes to Financial Statements
(Unaudited)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Massachusetts Municipal Bond Portfolio (the Fund) is a 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 (2.2% at March 31, 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,
1994, net capital losses of $256,345 attributable to security transactions
incurred after October 31, 1993, are treated as arising on the first day of
the Fund's current 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.
F. INTERIM FINANCIAL INFORMATION - The interim financial statements relating to
March 31, 1995, and the six-month period then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management reflect all adjustments, consisting only of normal recurring
adjustments necessary for the fair presentation of the financial statements.
8
<PAGE> 9
- --------------------------------------------------------------------------------
(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 distribution 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.
<TABLE>
- -------------------------------------------------------------------------------------------------------
(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:
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1995 (UNAUDITED) SEPTEMBER 30, 1994
-------------------------- -------------------
<S> <C> <C>
Sales 82,817 733,241
Issued to shareholders electing to receive payments of
distributions in Fund shares 5,429 11,633
Redemptions (379,298) (225,793)
-------- -------
Net increase (decrease) (291,052) 519,081
======== =======
- ---------------------------------------------------------------------------------------------------------
</TABLE>
(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,
$15,360 of expenses related to the operation of the Fund were allocated, on a
preliminary basis, 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.
- ------------------------------------------------------------------------------
(5) INVESTMENT TRANSACTIONS
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended March 31, 1995, aggregated $769,720 and $3,592,988, respectively.
9
<PAGE> 10
Massachusetts Tax Free Portfolio
<TABLE>
Portfolio of Investments - March 31, 1995 (Unaudited)
- ----------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS- 100%
- ----------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
EDUCATION - 6.0%
Aa1 AA+ $1,625 Massachusetts Health
and Educational Facilities
Authority, Amherst
College, 6.80%, 11/1/21 $ 1,708,769
A1 A+ 250 Massachusetts Health
and Educational Facilities
Authority, Tufts University,
7.75%, 8/1/13 270,910
NR BBB- 3,800 Massachusetts Health and
Educational Facilities Author-
ity, Merrimack College,
7.125%, 7/1/12 3,930,454
NR AAA 2,900 Massachusetts Health and
Educational Facilities
Authority, Wentworth Institute,
(Connie Lee), 5.50%,
10/1/23 2,594,630
NR BBB- 2,250 Massachusetts Health and
Educational Facilities
Authority, Smith College,
5.75%, 7/1/24 2,139,998
Aa1 AA 3,000 Massachusetts Industrial
Finance Agency, Phillips
Academy,
5.375%, 9/1/23 2,715,420
NR NR 2,000 The New England Educa-
tion Loan Marketing
Corporation, 6.90%,
11/1/09 2,134,880
NR BBB- 1,300 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Control
Authority, Polytechnic
University, 5.50%,
8/1/24 1,094,938
NR BBB- 1,000 Puerto Rico Industrial, Tourist,
Educational, Medical
and Environmental Control
Authority, Polytechnic
University, 6.50%, 8/1/24 973,090
A A 250 University of Massachusetts
Building Authority
Refunding Revenue
Bonds, Series 1991-A,
7.20%, 5/1/04 279,854
-----------
$17,842,943
-----------
ESCROWED - 0.1%
Baa BBB $ 225 Massachusetts Health
and Educational Facilities
Authority Holyoke
Hospital, 9.50%
7/1/15 $ 232,283
-----------
GENERAL OBLIGATIONS - 4.9%
Baa1 NR $1,000 City of Lowell,
6.375%, 8/15/01 $ 1,044,130
A1 A+ 3,900 Commonwealth of
Massachusetts, 5.00%,
1/1/12 3,479,970
A1 A+ 1,775 Commonwealth of
Massachusetts, 5.00%,
1/1/14 1,553,196
A NR 3,375 Town of Nantucket,
6.80%, 12/1/11 3,601,665
Baa1 A 3,000 Commonwealth of
Puerto Rico, 6.50%,
7/1/23 3,066,780
Baa1 A 100 Puerto Rico Public
Buildings Authority,
5.50%, 7/1/21 90,140
Baa1 A 1,900 Puerto Rico Aqueduct
and Sewer Authority,
7.00%, 7/1/19 1,967,659
-----------
$14,803,540
-----------
HEALTH CARE - 1.7%
NR AA $1,495 Massachusetts Health and
Educational Facilities
Authority, Deutsches
Altenheim, Incorporated,
7.70%, 11/1/31 (2) $ 1,598,514
NR NR 9,000 Massachusetts Industrial
Finance Agency, Massachusetts
Biomedical Research
Corporation, 0%,
8/1/19 3,566,970
-----------
$ 5,165,484
-----------
HOSPITALS - 8.9%
A1 A $3,000 Massachusetts Health and
Educational Facilities
Authority, Beth Israel
Hospital, 7.00%,
7/1/14 $ 3,139,440
</TABLE>
10
<PAGE> 11
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
- ----------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS (CONTINUED)
- ----------------------------------------------------------------------------------
<CAPTION>
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
HOSPITALS (CONTINUED)
A A- 3,000 Massachusetts Health and
Educational Facilities
Authority, Charlton Memorial
Hospital, 7.25%,
7/1/13 3,154,920
A1 A 530 Massachusetts Health and
Educational Facilities
Authority, Spaulding
Rehabilitation
Hospital, 7.625%,
7/1/21 563,973
Baa1 BBB+ 2,000 Massachusetts Health and
Educational Facilities
Authority, New England
Baptist Hospital, 7.35%,
7/1/17 2,030,440
Aa NR 3,100 Massachusetts Health
and Educational Facilities
Authority, Daughters of
Charity Health System,
6.10%, 7/1/14 3,048,013
A1 A+ 1,000 Massachusetts Health and
Educational Facilities
Authority,Dana-Farber Cancer
Institute, 6.65%,
12/1/15 1,019,890
A A 4,250 Massachusetts Health and
Educational Facilities
Authority, The Medical
Center of Central
Massachusetts, 7.10%,
7/1/21 4,443,035
Baa BBB 1,825 Massachusetts Health and
Educational Facilities
Authority, Sisters of
Providence Health System,
6.50%, 11/15/08 1,798,957
NR A- 1,470 Massachusetts Health and
Educational Facilities
Authority, Jordan Hospital,
Series C, 6.875%,
10/1/221,475,542
NR AAA 2,625 Massachusetts Health and
Educational Facilities Authority,
Winchester Hospital,
(Connie Lee), 5.75%,
7/1/14 2,484,589
NR AAA 3,650 Massachusetts Health and
Educational Facilities
Authority, Winchester
Hospital, (Connie Lee),
5.75%, 7/1/24 3,369,242
-----------
$26,528,041
-----------
HOUSING - 12.4%
NR AAA $2,750 Framingham Housing
Authority, (GNMA), 6.65%,
2/20/32 $ 2,767,215
A1 A+ 6,000 Massachusetts Housing
Finance Agency, 6.375%,
4/1/21 5,958,480
Aa A+ 400 Massachusetts Housing
Finance Agency, 7.35%,
12/1/16 426,668
Aa A+ 160 Massachusetts Housing
Finance Agency, 6.30%,
6/1/25 155,774
Aaa AAA 2,750 Massachusetts Housing
Finance Agency, (FNMA),
6.90%, 11/15/21 2,858,900
Aaa AAA 1,000 Massachusetts Housing
Finance Agency, (FNMA),
6.875%, 11/15/11 1,049,180
Aa A+ 2,795 Massachusetts Housing
Finance Agency, (AMT),
7.125%, 6/1/25 2,894,250
Aa A+ 1,500 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 12/1/21 1,582,395
Aa A+ 2,330 Massachusetts Housing
Finance Agency, (AMT),
8.10%, 6/1/20 2,447,995
Aa A+ 7,250 Massachusetts Housing
Finance Agency, (AMT),
6.60%, 12/1/26 7,249,130
Aa A+ 6,400 Massachusetts Housing
Finance Agency, (AMT),
6.60%, 12/1/26 6,399,232
Aaa AAA 3,150 Puerto Rico Housing
Finance Corporation,
"RIBS", (AMT),
(GNMA), Variable,
8/4/25 (1) 3,260,250
-----------
$37,049,469
-----------
</TABLE>
11
<PAGE> 12
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
TAX-EXEMPT INVESTMENTS (CONTINUED)
<CAPTION>
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INDUSTRIAL DEVELOPMENT/
POLLUTION CONTROL - 8.2%
Baa1 BBB $14,185 City of Boston Harbor Electric
Energy Company Project,
(AMT), 7.375%,
5/15/15 $14,892,405
Baa2 BBB 8,500 Massachusetts Industrial
Finance Agency, Eastern
Edison Company,
5.875%, 8/1/08 7,994,420
Aa3 AA 1,550 Puerto Rico Industrial,
Medical and Environmental
Pollution Control Authority,
The Upjohn Company,
7.50%, 12/1/23 1,693,019
-----------
$24,579,844
-----------
INSURED EDUCATION - 3.1%
Aaa AAA $345 Massachusetts Educational
Finance Authority, (MBIA),
(AMT), 7.25%,
1/1/09 $ 362,833
Aaa AAA 2,000 Massachusetts Educational
Finance Authority,
(AMBAC), (AMT),
7.30%, 1/1/12 2,142,680
Aaa AAA 250 Massachusetts Health and
Educational Facilities
Authority, Northeastern
University, (AMBAC), 7.50%,
10/1/08 271,448
Aaa AAA 400 Massachusetts Health and
Educational Facilities
Authority, Boston University
"RIBS", (MBIA), Variable,
10/1/31 (1) 432,576
Aaa AAA 3,000 Massachusetts Health and
Educational Facilities Authority,
Tufts University, (FGIC),
5.95%, 8/15/18 2,966,160
Aaa AAA 3,500 Southeastern Massachusetts
University Building
Authority, (AMBAC),
5.75%, 5/1/16 3,371,655
-----------
$ 9,547,352
-----------
INSURED GENERAL
OBLIGATION - 1.9%
Aaa AAA $1,795 City of Boston,
(FSA), 4.875%, 9/1/09 $ 1,586,152
Aaa AAA 1,000 Commonwealth of
Puerto Rico "RIBS",
(AMBAC), Variable,
7/1/15 (1) 959,310
Aaa AAA 300 Commonwealth of Puerto
Rico, (MBIA), 5.25%,
7/1/18 271,617
Aaa AAA 2,500 Commonwealth of Puerto
Rico, (MBIA), 5.00%,
7/1/21 2,153,800
Aaa AAA 600 Town of Tyngsborough,
(AMBAC), 6.90%,
5/15/08 656,268
-----------
$ 5,627,147
-----------
INSURED HOSPITALS - 8.8%
Aaa AAA $300 Massachusetts Health and
Educational Facilities Authority,
Berkshire Health Systems,
(MBIA), 7.60%,
10/1/14 $ 323,595
Aaa AAA 1,250 Massachusetts Health and
Educational Facilities
Authority, Beth Israel
Hospital, Inverse Floaters,
(AMBAC), Variable,
7/1/25 (1) 1,213,950
Aaa AAA 1,500 Massachusetts Health and
Educational Facilities
Authority, Capital Asset
Program, (MBIA), 7.20%,
7/1/09 1,597,695
AAA AAA 2,050 Massachusetts Health and
Educational Facilities
Authority Fallon Healthcare
System (CGIC), 6.75%,
6/1/20 2,130,360
AAA AAA 4,500 Massachusetts Health and
Educational Facilities
Authority, Fallon Healthcare
System (CGIC), 6.875%,
6/1/11 4,804,155
Aaa AAA 2,040 Massachusetts Health and
Educational Facilities
Authority, Beverly Hospital,
(MBIA), 7.30%,
7/1/13 2,182,780
</TABLE>
12
<PAGE> 13
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
TAX-EXEMPT INVESTMENTS (CONTINUED)
<CAPTION>
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
INSURED HOSPITALS (CONTINUED)
Aaa AAA 1,000 Massachusetts Health and
Educational Facilities
Authority, Baystate Medical
Center, (FGIC), 5.00%,
7/1/20 845,570
Aaa AAA 3,000 Massachusetts Health and
Educational Facilities
Authority, The Medical
Center of Central Massachusetts,
(AMBAC), "CARS",
Variable, 6/23/22 (1) 3,298,470
Aaa AAA 2,000 Massachusetts Health and
Educational Facilities
Authority, St. Elizabeth
Hospital Issue, "LEVRRS",
(FSA), Variable,
8/15/21 (1) 2,175,480
Aaa AAA 2,600 Massachusetts Health and
Educational Facilities
Authority, Saint Luke's
Hospital, "Yield Curve
Notes", (MBIA), Variable,
8/15/13 (1) 2,434,848
Aaa AAA 1,200 Massachusetts Health and
Educational Facilities
Authority, University Hospital,
(MBIA), 7.25%,
7/1/19 1,283,976
Aaa AAA 4,430 Massachusetts Health and
Educational Facilities
Authority, Lahey Clinic,
(MBIA), 5.375%,
7/1/23 3,994,044
-----------
$26,284,923
-----------
INSURED HOUSING - 0.7%
Aaa AAA $2,000 Massachusetts Housing
Finance Agency, (AMBAC),
(AMT), 6.65%, 7/1/19 $ 2,020,200
-----------
INSURED TRANSPORTATION - 3.1%
Aaa AAA $5,860 Massachusetts Port Authority,
(AMT), (FGIC), 7.50%,
7/1/20 $ 6,324,053
Aaa AAA 3,060 Massachusetts Bay
Transportation Authority,
(MBIA), 5.50%, 3/1/22 2,833,774
-----------
$ 9,157,827
-----------
INSURED UTILITIES - 1.9%
Aaa AAA $6,000 Massachusetts Municipal
Wholesale Electric Company,
(AMBAC), 4.70%,
7/1/02 $ 5,688,720
-----------
CERTIFICATE OF
PARTICIPATION - 2.7%
NR A $7,800 Plymouth County,
Massachusetts Correctional
Facility Project, 7.00%,
4/1/22 $ 8,061,534
-----------
SOLID WASTE - 3.5%
Baa1 BBB $8,970 Massachusetts Industrial
Finance Agency,
Massachusetts Refusetech,
Inc. Project, 6.30%,
7/1/05 $ 9,087,776
NR NR 1,340 City of Pittsfield, Vicon
Recovery Associates
Project, 7.95%,
11/1/14 1,386,096
-----------
$10,473,872
-----------
SPECIAL TAX - 5.0%
A1 A+ $9,700 Commonwealth of
Massachusetts, Special
Obligation Revenue
Bonds, 6.00%,
6/1/13 $9,726,966
A1 A+ 4,060 Commonwealth of
Massachusetts, Special
Obligation Revenue
Bonds, 5.80%,
6/1/14 3,967,919
NR NR 1,350 Virgin Islands Public
Finance Authority, 7.25%,
10/1/18 1,401,462
-----------
$15,096,347
-----------
TRANSPORTATION - 10.4%
NR BBB $5,850 Guam Airport Authority,
(AMT), 6.70%,
10/1/23 $ 5,813,087
A1 A+ 3,250 Massachusetts Bay
Transportation Authority,
5.50%, 3/1/21 2,981,745
</TABLE>
13
<PAGE> 14
<TABLE>
MASSACHUSETTS TAX FREE PORTFOLIO (CONTINUED)
TAX-EXEMPT INVESTMENTS (CONTINUED)
<CAPTION>
PRINCIPAL
AMOUNT
STANDARD (000
MOODY'S & POOR'S OMITTED) SECURITY VALUE
- ----------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
TRANSPORTATION (CONTINUED)
A A+ 2,500 Massachusetts Bay
Tranportation Authority,
"Inverse Floaters",
Variable, 3/1/23 (1) 2,398,500
A1 A+ 3,500 Massachusetts Bay
Transportation Authority,
5.90%, 3/1/12 3,448,305
Aa AA- 7,300 Massachusetts Port
Authority, 6.00%,
7/1/23 7,191,741
Aa AA- 575 Massachusetts Port
Authority, (AMT), 7.75%,
7/1/18 590,514
A1 A+ 7,585 Massachusetts Turnpike
Authority, 5.00%,
1/1/20 6,551,847
Baa1 A 2,000 Puerto Rico Highway
and Transportation
Authority, 6.625%,
7/1/18 2,057,400
-----------
$31,033,139
-----------
UTILITIES - 6.1%
NR BBB $4,265 Guam Power Authority,
5.25%, 10/1/23 $ 3,460,195
A BBB+ 3,500 Massachusetts Municipal
Wholesale Electric
Company, 6.75%,
7/1/11 3,655,855
A BBB+ 2,610 Massachusetts Municipal
Wholesale Electric
Company, 6.00%,
7/1/18 2,542,740
A BBB+ 5,560 Massachusetts Municipal
Wholesale Electric
Company, 6.625%,
7/1/18 5,739,310
Baa1 A- 1,000 Puerto Rico Electric
Power Authority, 7.00%,
7/1/07 1,056,900
Baa1 A- 150 Puerto Rico Electric
Power Authority, 5.50%,
7/1/20 135,441
BR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,579,635
-----------
$18,170,076
-----------
WATER AND SEWER - 10.6%
A A $2,500 Massachusetts Water
Resources Authority,
5.25%, 3/1/13 $ 2,308,925
A A 5,300 Massachusetts Water
Resources Authority,
5.00%, 3/1/22 4,472,352
A A 18,500 Massachusetts Water
Resources Authority,
4.75%, 12/1/23 14,861,420
A A 3,915 Massachusetts Water
Resources Authority,
5.25%, 12/1/15 3,514,182
A A 1,500 Massachusetts Water
Resources Authority,
5.25%, 3/1/13 1,353,105
A A 3,650 Massachusetts Water
Resources Authority,
5.25%, 12/1/20 3,194,503
NR NR 2,000 Virgin Islands Water
and Power Authority,
7.60%, 1/1/12 2,135,900
-----------
$31,840,387
-----------
TOTAL TAX-EXEMPT INVESTMENTS
(identified cost $285,245,169) $299,203,128
============
<FN>
(1) The above security has been issued as an inverse floater bond.
(2) At March 31, 1995, the market value of securities segregated to cover
margin requirements on open financial futures contracts amounted to
$3,728,874.
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
March 31, 1995, 19.5% of the securities in the portfolio of investments are
backed by bond insurance of various financial instititutions and financial
guarenty assurance agencies. The aggregate percentage by financial
institution ranged from 3.4% to 6.6% of total investments.
</TABLE>
See notes to financial statements
14
<PAGE> 15
<TABLE>
Massachusetts Tax Free Portfolio
Financial Statements
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------------------------------------------
March 31, 1995 (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investment at value (Note 1A) (identified cost $285,245,169) $ 299,203,128
Cash 2,414,141
Interest receivable 5,398,767
Deferred organization expenses (Note 1D) 15,044
-------------
Total assets $ 307,031,080
=============
LIABILITIES:
Payable for investments purchased $ 3,972,100
Payable to affiliates--
Trustees' fees 4,105
Custodian fee 3,045
Accrued expenses 3,964
Total liabilities $ 3,983,214
-------------
NET ASSETS applicable to investors' interest in Portfolio $ 303,047,866
=============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $ 289,385,057
Unrealized appreciation of investments and financial futures
contracts (computed on the basis of identified cost) 13,662,809
-------------
Total $ 303,047,866
=============
</TABLE>
See notes to financial statements
15
<PAGE> 16
<TABLE>
Financial Statements (continued)
STATEMENT OF OPERATIONS
- ------------------------------------------------------------------------------------------------------------------------------------
For the Six Months ended March 31, 1995 (unaudited)
- ------------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME (NOTE 1B):
Interest income $ 9,893,926
EXPENSES:
Investment adviser fee $ 690,340
Compensation of Trustees not members of Investment
Adviser's organization 8,207
Custodian fees (Note 2) 25,625
Interest expense (Note 5) 48,989
Legal and accounting fees 28,343
Bond pricing 7,106
Amortization of organizational expenses (Note 1D) 2,597
Miscellaneous 2,559
-------------
Total expenses 813,766
------------
Net investment income $ 9,080,160
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss)--
Investment transactions (identified cost basis) $ (14,098,913)
Financial futures contracts (144,826)
-------------
Net realized loss on investments $(14,243,739)
Change in unrealized appreciation (depreciation)--
Intestments $ 20,904,253
Financial futures contracts (673,925)
-------------
Net unrealized appreciation of investments 20,230,328
------------
Net realized and unrealized gain on investments $ 5,986,589
------------
Net increase in net assets from operations $ 15,066,749
============
</TABLE>
See notes to financial statements
16
<PAGE> 17
<TABLE>
Financial Statements (continued)
STATEMENT CHANGES IN NET ASSETS
- -----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1995 (UNAUDITED) SEPTEMBER 30, 1994
-------------------------- ------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations -
Net investment income $ 9,080,160 $ 17,598,654
Net realized loss on investments (14,243,739) (5,575,616)
Change in unrealized appreciation (depreciation) of investments 20,230,328 (26,955,377)
------------- -------------
Net increase (decrease) in net assets from operations $ 15,066,749 $ (14,932,339)
------------- -------------
Capital transactions -
Contributions $ 14,914,251 $ 73,999,994
Withdrawals (35,472,914) (41,140,572)
------------- -------------
Increase (decrease) in net assets from capital transactions $ (20,558,663) $ 32,859,422
------------- -------------
Net increase (decrease) in net assets $ (5,491,914) $ 17,927,083
NET ASSETS:
At beginning of period 308,539,780 290,612,697
------------- -------------
At end of period $ 303,047,866 $ 308,539,780
============= =============
</TABLE>
<TABLE>
SUPPLEMENTARY DATA
- ----------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30
-------------------------------------------------------
1995** 1994 1993*
------------ ------------ ------------
<S> <C> <C> <C>
RATIOS (As a percentage of average daily net assets)*:
Net Expenses 0.55%+ 0.51% 0.49%+
Net investment income 6.18%+ 5.74% 5.72%+
PORTFOLIO TURNOVER .57% .53% .38%
<FN>
+ Computed on an annualized basis.
* For the period from the start of business, February 1, 1993, to September 30, 1993.
** For the six months ended March 31, 1995 (unaudited).
</TABLE>
See notes to financial statements
17
<PAGE> 18
Notes to Financial Statements
(unaudited)
- --------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
Massachusetts Tax Free Portfolio (the "Portfolio") is registered under the
Investment Company Act of 1940 as a diversified, open end 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 marked daily and begin earning interest on
settlement date.
G. OTHER - Investment transactions are accounted for on a trade date basis.
H. INTERIM FINANCIAL INFORMATION - The interim financial statements relating
to March 31, 1995, and the six-month period then ended have not been audited
by independent certified public accountants, but in the opinion of the
Portfolio's management reflect all adjustments, consisting only of normal
recurring adjustments necessary for the fair presentation of the financial
statements.
18
<PAGE> 19
- --------------------------------------------------------------------------------
(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 six months ended March 31, 1995, the fee was equivalent to 0.47% of
the Portfolio's average net assets for such period and amounted to $690,340.
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, 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. 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 six months ended March 31, 1995,
no significant amounts have been deferred.
- --------------------------------------------------------------------------------
<TABLE>
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $165,571,563 and $172,376,591, respectively.
- --------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned by the Portfolio at March 31, 1995, as computed on a federal income tax
basis, are as follows:
<S> <C>
Aggregate cost $ 285,245,169
================
Gross unrealized appreciation $ 15,164,325
Gross unrealized depreciation 1,206,366
----------------
Net unrealized appreciation $ 13,957,959
================
</TABLE>
- --------------------------------------------------------------------------------
(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. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. 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, 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 discretionary facility is allocated among the
participating funds and portfolios at the end of each quarter. During the six
months ended March 31, 1995, the Portfolio had an average daily balance
outstanding pursuant to this line of credit of $969,000, with an average
interest rate of 7.15%. During the six months ended March 31, 1995, the
Portfolio had a maximum outstanding month-end balance under the line of credit
of $11,261,000.
- --------------------------------------------------------------------------------
(6) FINANCIAL INSTRUMENTS
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of their investing activities to assist in managing
exposure to various market risks. These financial instruments include 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.
<TABLE>
A summary of obligations under these financial instruments at March 31, 1995
is as follows:
FUTURES CONTRACTS NET UNREALIZED
EXPIRATION DATE CONTRACTS POSITION DEPRECIATION
- ----------------- --------- -------- --------------
<S> <C> <C> <C>
6/95 360 U.S. Treasury Bonds Short $295,150
========
</TABLE>
At March 31, 1995, the Portfolio had sufficient cash and/or securities to
cover margin requirements on open financial futures contracts.
19
<PAGE> 20
INVESTMENT MANAGEMENT
- --------------------------------------------------------------------------------
FUND OFFICERS
THOMAS J. FETTER
President
JAMES B. HAWKES
Vice President, Trustee
ROBERT MACINTOSH
Vice President
JAMES L. O'CONNOR
Treasurer
DOUGLAS C. MILLER
Assistant Treasurer
THOMAS OTIS
Secretary
JANET E. SANDERS
Assistant Treasurer and
Assistant Secretary
INDEPENDENT TRUSTEES
DONALD R. DWIGHT
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, 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
Director, Fiduciary Trust Company
JACK L. TREYNOR
Investment Adviser and Consultant
- --------------------------------------------------------------------------------
PORTFOLIO OFFICERS
THOMAS J. FETTER
President
JAMES B. HAWKES
Vice President, Trustee
ROBERT MACINTOSH
Vice President and Portfolio Manager
JAMES L. O'CONNOR
Treasurer
DOUGLAS C. MILLER
Assistant Treasurer
THOMAS OTIS
Secretary
JANET E. SANDERS
Assistant Treasurer and
Assistant Secretary
INDEPENDENT TRUSTEES
DONALD R. DWIGHT
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, 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
Director, Fiduciary Trust Company
JACK L. TREYNOR
Investment Adviser and Consultant
20
<PAGE> 21
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
21
<PAGE> 22
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
