Eaton Vance Municipals Trust
For the Funds:
(bullet) EV Classic California Municipals Fund
(bullet) EV Classic Florida Municipals Fund
(bullet) EV Classic New York Municipals Fund
(bullet) EV Classic Rhode Island Municipals Fund
[LOGO: HOUSE]
Annual Shareholder Report
September 30, 1996
Table of Contents
Item Page
Year-end results, listed by state 2
President's letter to shareholders 3
Management Reports:
EV Classic California Municipals Fund 4
EV Classic Florida Municipals Fund 5
EV Classic New York Municipals Fund 6
EV Classic Rhode Island Municipals Fund 7
Financial Results 8
<TABLE>
<CAPTION>
[GRAPHICS TABLE OMITTED: Information about your mutual fund investment]
Information about your mutual fund investment
Financial data: Tax data:
- -------------------------------------------------------------------------------------------------------------------------------
Results for the year ended
September 30,1996
- -------------------------------------------------------------------------------------------------------------------------------
The after-tax
NAV per Fund's If your combined equivalent
Total return Dividends paid share distribution Federal & distribution
(excl. sales by Fund at rate at State tax you will Tax
charge) (during period) 9/30/96 9/30/96 rate is... need is... information*
- -------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C>
EV Classic California
Municipals Fund 6.3% $0.461 $9.44 4.82% 43.04% 8.42% 98.72%
EV Classic Florida
Municipal Fund 5.4% $0.453 $9.39 4.74% 42.09% 8.13% 98.36%
EV Classic New York
Municipal Fund 5.8% $0.455 $9.50 4.68% 40.56% 7.85% 99.05%
EV Classic Rhode Island
Municipal Fund 6.0% $0.439 $9.31 4.55% 42.34% 7.88% 99.37%
[GRAPHICS OF THE STATES OF CALIFORNIA, FLORIDA, NEW YORK, and RHODE ISLAND
OMITTED FROM SIXTH COLUMN OF TABLE]
Footnote reads:
*Percentages represent the amounts of the total dividends paid by the Funds from net investment income during
the year ended September 30, 1996 that have been designated as exempt-interest dividends. Tax legislation
eliminated the exception 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.
Fund shares are not guaranteed by the FDIC and are not deposits or
other obligations of, or guaranteed by, any depository institution. Shares are subject to investment risks,
including possible loss of principal invested.
</TABLE>
To Shareholders
Following an upbeat year in 1995, the bond market encountered
difficulty in the first half of 1996. The year started favorably
enough, with the Federal Reserve lowering the Federal Funds Rate --
the rate banks charge each other for overnight loans and a key
short-term interest rate barometer -- to 5.25%. Investors' optimism
was short-lived, however, as Fed Chairman Alan Greenspan suggested
in his Spring Congressional testimony that, in light of current
economic growth, the next move in rates could possibly be higher. By
mid-summer, employment data showed that job creation was exceeding
market estimates, and that the labor market was indeed tightening.
The fall brought news that job growth had cooled from the blistering
pace set early in the year, and that inflation was still not a
threat. However, the economic data still have failed to give a clear
indication of the economy's future direction. Accordingly, the
Federal Reserve effectively put its monetary policy on hold until
after the November elections.
An investment in municipal bonds continues to represent good value
for tax-conscious investors for several reasons. First, while
turning in somewhat faster growth than expected, the nation's
economy remains subdued. GDP grew at a revised 4.8% rate in the
second quarter - a relatively strong showing, but one not likely to
be sustained over the balance of the year. Recent indicators suggest
a possible slowdown in the second half of the year, and, more
importantly, inflation remains well under control.
Second, whatever the outcome of the various tax cut proposals that
have marked the campaign of both major political parties, it is
certain that the tax structure will remain sharply progressive. That
means that municipal bonds should retain their relative value.
Third, on the budget front, the deficit has been reduced
significantly. At present, the deficit as a percentage of GDP is the
smallest of all industrialized nations, alleviating near-term
borrowing needs.
[GRAPHIC OMITTED: Tax-exempt bonds yield 81% of Treasury yields
chart]
Tax-exempt bonds yield 81%
of Treasury yields
30-yr. AAA General Obligation (GO) Bonds* 5.61%
Taxable equivalent yield of investment
for couple in 36% tax bracket 8.77%
30-year Treasury Bonds 6.92%
Principal and interest payments of Treasury securities are
guaranteed by the U.S. government.
*GO yield is a compilation of a representative variety of general
obligation bonds and is not necessarily represented by the Fund's
yield. Statistics as of September 30, 1996.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
Finally, and perhaps most important of all, the tax burden of our
citizens is still extraordinarily high. Municipal bonds remain one
of the better ways for most individuals to relieve that burden and
keep more of what they work so hard to earn.We believe that, despite
the occasional market fluctuations, a steadfast, long-term outlook
is the best way to reap the advantages of tax-free investing.
Sincerely
/S/ Thomas J. Fetter
Thomas J. Fetter
President
November 4, 1996
Included in the pages that follow are performance charts that
compare 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 maximum sales charge, which the charts refer to,
is 4.75% and is deducted at the time of initial investment. 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 is composed
principally of bonds solely 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. It is not possible to
invest directly in the Lehman Brothers Municipal Bond Index.
EV Classic California Municipals Fund
[GRAPHIC OF WATER PIPE OMITTED]
Your investment at work
Moulton Niguel Water District
General Obligation Bonds
The proceeds from this bond issue will help maintain and upgrade the
water supply facilities of the Moulton Niguel Water District, a
23,135 acre area located in southwestern Orange County and including
the cities and towns such as Alisa Viego, Laguna Niguel, Mission
Viejo, Laguna Hills, and Dana Point. The District's sale of water
provides a reliable source of cash flow for repayment in addition to
serving a vital need.
The District imports all of its water from the Metropoli-tan Water
District of Southern California (MWD). The MWD, in turn, is supplied
primarily by water from the Colorado River and from the Sacramento-
San Joachin Delta via the 444-mile long California Aqueduct.
Portfolio Overview
[GRAPHIC OF CALIFORNIA OMITTED]
Based on market value as of September 30, 1996
Number of issues 94
Average quality A+
Investment grade 89.9%
Effective maturity 14.12 yrs.
Largest sectors:
Lease/certificate of participation 21.8%
Escrowed 17.1
Special tax 12.8
Housing 7.7
Transportation 6.8
Cogeneration 6.0
The State of the State: California
California's economy has had a difficult time since it was hit by
the recession of 1991-1992. Total state employment just recently
reached the pre-recession peak of 14.5 million recorded in mid-1990.
Employment growth, however, has been sporadic. Annualized growth
this year has ranged from 2.0% to 2.5%. In 1994, the state added
256,000 jobs, while only 89,000 were added in 1995. Much of the job
growth has taken place in the San Francisco Bay Area, where
unemployment dropped to 4.3% in July of 1996, a decline of 1.5% over
the preceding 12 months. By contrast, unemployment in the Los
Angeles Area was 7.25%, a slight increase over the same 12-month
period. Overall, the state's unem-ployment was 7.1% in June, 1996,
which was above the national average. Wages have also fallen,
indicating the continuing effects of the declining aerospace
industry.
Financially, California's tax revenues have improved with the
recovery, but the state remains burdened with structural budget
problems - most notably, an increase in school funding and mandatory
criminal sentencing. Should revenues decline, these legislated
programs could have an adverse effect on the budget.
Nevertheless, the overall economic picture in California has
brightened enough to warrant a rating increase from "A" to "A+" by
Standard & Poor's.
[GRAPHIC WORM CHART OMITTED: Comparison of Change in Value of a $10,000
Investment in EV Classic California Municipals Fund (Including Sales Charge)
and the Lehman Brothers Municipal Bond Index From December 31, 1993, through
September 30, 1996]
- ------------------------------------------------
1 Life
Average Annual Returns Year of Fund*
- ------------------------------------------------
With CDSC 5.3% 3.2%
- ------------------------------------------------
Without CDSC 6.3% 3.2%
- ------------------------------------------------
EV Classic California Municipals Fund vs
Lehman Brothers 7-Year Municipal Bond Index
Date Fund Index
-------- ------- -------
12/31/93 $10,000 $10,000
1/31/94 $10,159 $10,114
2/28/94 $9,920 $9,852
3/31/94 $9,494 $9,451
4/30/94 $9,498 $9,531
5/31/94 $9,544 $9,614
6/30/94 $9,444 $9,558
7/31/94 $9,612 $9,730
8/31/94 $9,648 $9,764
9/30/94 $9,497 $9,621
10/31/94 $9,294 $9,450
11/30/94 $9,054 $9,279
12/31/94 $9,207 $9,483
1/31/95 $9,548 $9,754
2/28/95 $9,856 $10,038
3/31/95 $9,958 $10,153
4/30/95 $9,949 $10,165
5/31/95 $10,279 $10,490
6/30/95 $10,082 $10,398
7/31/95 $10,126 $10,496
8/31/95 $10,211 $10,630
9/30/95 $10,287 $10,697
10/31/95 $10,485 $10,852
11/30/95 $10,716 $11,032
12/31/95 $10,859 $11,138
1/31/96 $10,902 $11,223
2/28/96 $10,800 $11,147
3/31/96 $10,627 $11,004
4/30/96 $10,581 $10,973
5/31/96 $10,578 $10,969
6/30/96 $10,671 $11,088
7/31/96 $10,779 $11,189
8/31/96 $10,777 $11,186
9/30/96 $10,939 $11,343
Footnote reads:
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: Tower Data Systms, Bethesda, MD. *Investment operations
commenced 12/7/93. +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.
From the Portfolio Manager:
"Growth in the California economy, though not outstanding, has been
sufficient to warrant a rating increase in the state's general
obligation bonds. As a result, the California-backed bonds that this
Portfolio holds, such as California Public Works, have appreciated
nicely.
"To increase the yield of the Portfolio, I have added positions in
San Bernadino Community Hospital bonds, as well as those of the
Sacramento Power Authority Cogeneration Project. To help the Fund's
total return, I continually focus on Portfolio structure, which
includes increasing call protection and choosing the appropriate
coupon and maturity characteristics."
- - Cynthia J. Clemson
[PHOTO OF CYNTHIA J. CLEMSON OMITTED]
EV Classic Florida Municipals Fund
[GRAPHIC OF POWER LINES OMITTED]
Your investment at work
Florida Municipal Power
Agency - Stanton II Project
The proceeds from this bond issue are being used to fund the Florida
Municipal Power Agency's partial ownership interest in the Stanton
II Project, a 420 megawatt, coal-fired electric generating facility.
This power facility, which will provide power to cities and towns
throughout the state of Florida, was scheduled to be in service in
June, 1996. The Stanton II project is operated by the Orlando
Utilities Commission (OUC), which was also responsible for its
construction.
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 125
Average quality AA-
Investment grade 79.7%
Effective maturity 15.97 yrs.
Largest sectors:
Housing 13.6%
Utilities 12.9
General obligations 10.0
Special tax revenue 7.7
Escrowed 7.4
Insured hospitals 6.8*
*Private insurance does not remove the market risks that are
associated with these investments.
The State of the State: Florida
Florida's economy has grown steadily since 1993, led by a strong
service sector which comprises over one-third of the state's
employment and consists mainly of health and business services.
Total employment increased by 5% from 1993 to 1995, and the
unemployment rate decreased from 8.2% in 1992 to 5.3% at the end of
last year. Other strong sectors include construction and trade
which, along with service, account for two-thirds of employment in
Florida. Tourism was hit hard by the recession in the early 1990s,
but has rebounded strongly in the past few years. The tourism
industry provides the foundation for much of the state's economy and
is expected to grow by 4.3% through fiscal 1997, according to
Standard & Poor's.
Though dependent on a cyclical 6% sales and use tax, Florida's
finances are well managed and the state maintains a healthy working
capital reserve. Governor Chiles has proposed bond issuance
totalling $1.14 billion for fiscal 1997 which will provide funding
in four main areas: Public Education, Environmental Preservation,
Right-of-Way Acquisition, and Prison and Detention. As required by
law, all bond issues must be backed by a specific revenue stream to
receive the "full faith and credit" approval from the Florida state
government.
[GRAPHIC WORM CHART OMITTED: Comparison of Change in Value of a $10,000
Investment in EV Classic Florida Municipals Fund (Including Sales Charge)
and the Lehman Brothers Municipal Bond Index From December 31, 1993, through
September 30, 1996]
- ------------------------------------------------
1 Life
Average Annual Returns Year of Fund*
- ------------------------------------------------
With CDSC 4.4% 2.8%
- ------------------------------------------------
Without CDSC 5.4% 2.8%
- ------------------------------------------------
EV Classic Florida Municipals Fund vs
Lehman Brothers 7-Year Municipal Bond Index
Date Fund Index
------- ------- -------
12/31/93 $10,000 $10,000
1/31/94 $10,148 $10,114
2/28/94 $9,848 $9,852
3/31/94 $9,332 $9,451
4/30/94 $9,375 $9,531
5/31/94 $9,410 $9,614
6/30/94 $9,329 $9,558
7/31/94 $9,516 $9,730
8/31/94 $9,520 $9,764
9/30/94 $9,326 $9,621
10/31/94 $9,081 $9,450
11/30/94 $8,853 $9,279
12/31/94 $9,144 $9,483
1/31/95 $9,461 $9,754
2/28/95 $9,819 $10,038
3/31/95 $9,888 $10,153
4/30/95 $9,888 $10,165
5/31/95 $10,162 $10,490
6/30/95 $9,977 $10,398
7/31/95 $10,031 $10,496
8/31/95 $10,125 $10,630
9/30/95 $10,233 $10,697
10/31/95 $10,418 $10,852
11/30/95 $10,668 $11,032
12/31/95 $10,809 $11,138
1/31/96 $10,852 $11,223
2/28/96 $10,694 $11,147
3/31/96 $10,522 $11,004
4/30/96 $10,487 $10,973
5/31/96 $10,449 $10,969
6/30/96 $10,552 $11,088
7/31/96 $10,681 $11,189
8/31/96 $10,632 $11,186
9/30/96 $10,780 $11,343
Footnote reads:
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: Tower Data Systms, Bethesda, MD. *Investment operations
commenced 12/3/93. +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.
From the Portfolio Manager:
"This Fund is broadly diversified and maintains a high average
investment rating, with almost 50% invested in triple-A bonds.
Moreover, the Fund has significant positions in essential community
needs such as hospitals, electric utilities, and education.
"I am positioning the Portfolio to perform by including some
discount bonds in my purchases and, as always, by managing for call
protection. At times, I can increase call protection without a
significant hit on the yield or net asset value because
institutional buyers like Eaton Vance often get first pick at new
bonds and can sometimes buy them at lower prices. In addition, I
increased the weighting in federal alternative minimum tax (AMT)
bonds to 24% from 18% last year, which is a way to increase yield
without increasing risk."
- - Thomas J. Fetter
[PHOTO OF THOMAS J. FETTER OMITTED]
EV Classic New York Municipals Fund
[GRAPHIC OF POWER LINES OMITTED]
Your investment at work
New York State Energy Research
and Development Authority -
Brooklyn Union Gas Company
Brooklyn Union Gas Company - one of the premier utilities in New
York - distributes gas to retail customers in the metropolitan New
York City area. Proceeds from this issue have been used for general
plant improvements and expansions.
These bonds were issued in late January, 1996, at attractive price
levels and provided a good opportunity to swap out of other New York
bonds that had weaker trading values without sacrificing yield.
These bonds are insured by MBIA, resulting in a triple-A Standard &
Poor's rating.
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 155
Average quality A+
Investment grade 98.3%
Effective maturity 13.35 yrs.
Largest sectors:
Healthcare 16.8%
Education 15.1
Special tax revenue 11.8
Lease/certificate of participation 11.2
Escrowed 9.6
The State of the State: New York
New York's economy has continued its relatively slow rate of growth
in 1996, with mediocre economic results for the state offset by a
Wall Street-led recovery in New York City. The securities industry,
concentrated primarily in New York City, has emerged as a key part
of the state's overall economy, accounting for 2.5% of the state's
private sector employment and over 5% for that of New York City.
Average wages for the securities industry, at $127,800 in 1995, are
among the highest in the state. By comparison, average wages
excluding this industry were $32,300 in 1995. Overall, employment in
the state is up 1% over the previous year, and this rate of growth
is not expected to change significantly through 1997. The
unemployment rate, at 6.5% in July of this year, was a full
percentage point higher than that of the nation. New York is still
one of the wealthiest states in the country, with a personal income
that is 118% of the nation, but the rate of growth in personal
income has slowed considerably since the 1990-1991 recession.
New York's budget has been balanced due to higher-than-expected
revenues from the securities industry, but problems remain. Though
the governor's three-year income tax cut was implemented for the
1996-97 budget, spending cuts have been slow to materialize. And
with the enactment of the new federal welfare bill, New York's
costly social programs could become especially burdensome if not
brought under stricter control.
[GRAPHIC WORM CHART OMITTED: Comparison of Change in Value of a $10,000
Investment in EV Classic New York Municipals Fund (Including Sales Charge)
and the Lehman Brothers Municipal Bond Index From December 31, 1993, through
September 30, 1996]
- ------------------------------------------------
1 Life
Average Annual Returns Year of Fund*
- ------------------------------------------------
With CDSC 4.8% 3.3%
- ------------------------------------------------
Without CDSC 5.8% 3.3%
- ------------------------------------------------
EV Classic New York Municipals Fund vs
Lehman Brothers 7-Year Municipal Bond Index
Date Fund Index
-------- ------- -------
12/31/93 $10,000 $10,000
1/31/94 $10,131 $10,114
2/28/94 $9,852 $9,852
3/31/94 $9,368 $9,451
4/30/94 $9,413 $9,531
5/31/94 $9,508 $9,614
6/30/94 $9,399 $9,558
7/31/94 $9,565 $9,730
8/31/94 $9,621 $9,764
9/30/94 $9,398 $9,621
10/31/94 $9,165 $9,450
11/30/94 $8,854 $9,279
12/31/94 $9,166 $9,483
1/31/95 $9,483 $9,754
2/28/95 $9,819 $10,038
3/31/95 $9,920 $10,153
4/30/95 $9,910 $10,165
5/31/95 $10,204 $10,490
6/30/95 $10,030 $10,398
7/31/95 $10,106 $10,496
8/31/95 $10,233 $10,630
9/30/95 $10,286 $10,697
10/31/95 $10,471 $10,852
11/30/95 $10,688 $11,032
12/31/95 $10,795 $11,138
1/31/96 $10,838 $11,223
2/28/96 $10,714 $11,147
3/31/96 $10,565 $11,004
4/30/96 $10,541 $10,973
5/31/96 $10,538 $10,969
6/30/96 $10,651 $11,088
7/31/96 $10,735 $11,189
8/31/96 $10,709 $11,186
9/30/96 $10,880 $11,343
Footnote reads:
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: Tower Data Systms, Bethesda, MD. *Investment operations
commenced 12/6/93. +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.
From the Portfolio Manager:
"As the market sold off in the spring of 1996, the Portfolio fared
better because of defensive coupon swaps that I had entered in late
1995 when prices were high. I gradually reversed these swaps back
into low coupon, 'bullish' bonds during this sell-off.
"Because of the exceptionally strong year on Wall Street, it became
clear that New York would end its 1995-1996 fiscal year with a
moderate surplus. Based on this news, I began to rebuild the
Portfolio's exposure to higher-yielding state appropriation debt.
Since June, the bond markets have been caught in a volatile trading
range, and I have kept the Portfolio in a neutral interest rate
posture relative to its peer group."
- - Nicole Anderes
[PHOTO OF NICOLE ANDERES OMITTED]
EV Classic Rhode Island Municipals Fund
[GRAPHIC OF GRADUATION CAP OMITTED]
Your investment at work
Rhode Island Health and
Educational Building Corporation
Rhode Island School of Design
Rhode Island School of Design is one of the country's leading art and
design schools. Located on the east side of Providence, it provides
undergraduate and graduate programs in studio art, design, and
architecture.
Proceeds from this issue were used to refinance outstanding higher
coupon debt issued in 1992, and to finance capital projects, including a
new facility for the Department of Industrial Design and improvements at
the school's Museum of Art.
[GRAPHIC OF RHODE ISLAND OMITTED]
Portfolio Overview
Based on market value as of September 30, 1996
Number of issues 46
Average quality AA
Investment grade 99.3%
Effective maturity 15.65 yrs.
Largest sectors:
Insured general obligations 17.0%*
Housing 16.3
Insured colleges and universities 13.7*
Hospitals 7.8
Insured special tax 6.4*
* Private insurance does not remove the market risks that are associated
with these investments.
The State of the State: Rhode Island
Rhode Island has emerged from the early 1990s, a very difficult economic
period, in an improved financial condition. The state's economic decline
was led by the collapse of 45 financial institutions, while significant
revenue shortfalls led to a depletion of state reserves and an increase
in taxes. Rhode Island has coped with this problem by creating the
Depositors Economic Protection Corp. (DEPCO) - funded in part by a
portion of the state sales tax - to aid the failing banks. The
government has also curbed spending and has a five-year capital plan to
reduce overall debt.
Rhode Island's economy has been dependent historically on manufacturing.
Through the 1980s and '90s, however, it has become reliant on the
service sector. Manufacturing now accounts for 21% of the economy, down
over 23% since the 1980s, while services constitute 30% of the economy.
The growth in the service sector - led primarily by financial companies
such as Fleet Bank and Fidelity Mutual Funds - should help the state
weather economic cycles more easily.
Looking ahead, Rhode Island's employment is expected to grow modestly
through the end of the decade, while the unemployment rate is forecast
to remain between 6.5% and 6.8% during this same period.
[GRAPHIC WORM CHART OMITTED: Comparison of Change in Value of a $10,000
Investment in EV Classic Rhode Island Municipals Fund (Including Sales Charge)
and the Lehman Brothers Municipal Bond Index From December 31, 1993, through
September 30, 1996]
- ------------------------------------------------
1 Life
Average Annual Returns Year of Fund*
- ------------------------------------------------
With CDSC 5.0% 2.5%
- ------------------------------------------------
Without CDSC 6.0% 2.5%
- ------------------------------------------------
EV Classic Rhode Island Municipals Fund vs
Lehman Brothers 7-Year Municipal Bond Index
Date Fund Index
-------- ------- -------
12/31/93 $10,000 $10,000
1/31/94 $10,138 $10,114
2/28/94 $9,757 $9,852
3/31/94 $9,140 $9,451
4/30/94 $9,223 $9,531
5/31/94 $9,338 $9,614
6/30/94 $9,237 $9,558
7/31/94 $9,444 $9,730
8/31/94 $9,457 $9,764
9/30/94 $9,243 $9,621
10/31/94 $8,976 $9,450
11/30/94 $8,737 $9,279
12/31/94 $9,028 $9,483
1/31/95 $9,386 $9,754
2/28/95 $9,700 $10,038
3/31/95 $9,790 $10,153
4/30/95 $9,757 $10,165
5/31/95 $9,997 $10,490
6/30/95 $9,779 $10,398
7/31/95 $9,865 $10,496
8/31/95 $10,001 $10,630
9/30/95 $10,075 $10,697
10/31/95 $10,248 $10,852
11/30/95 $10,431 $11,032
12/31/95 $10,549 $11,138
1/31/96 $10,613 $11,223
2/28/96 $10,476 $11,147
3/31/96 $10,326 $11,004
4/30/96 $10,323 $10,973
5/31/96 $10,341 $10,969
6/30/96 $10,453 $11,088
7/31/96 $10,535 $11,189
8/31/96 $10,518 $11,186
9/30/96 $10,675 $11,343
Footnote reads:
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: Tower Data Systms, Bethesda, MD. *Investment operations
commenced 12/7/93. +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.
From the Portfolio Manager:
"One of the continuing themes in the municipal bond market has been
'call protection.' New issues typically offer investors 10 years of call
protection against having their bonds called and retired early. The
better the call protection, the more potential a bond has for price
appreciation.
"In the Rhode Island Portfolio, recent trading activity has focused on
improving call protection. The market sell-off last spring also created
buying opportunities for deeper discount bonds, which have the potential
to improve the Fund's total return."
- - Nicole Anderes
[PHOTO OF NICOLE ANDERES OMITTED]
EV Classic Municipals Funds
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
September 30, 1996
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investment in Portfolio --
Identified cost $ 1,877,421 $ 4,735,709 $ 4,982,720 $ 2,465,466
Unrealized appreciation (depreciation) 57,924 (20,525) 140,724 (36,314)
------------ ------------ ------------ ------------
Total investment in Portfolio, at value (Note 1A) $ 1,935,345 $ 4,715,184 $ 5,123,444 $ 2,429,152
Receivable for Fund shares sold 165 -- 10,011 --
Receivable from the Administrator (Note 4) 21,833 15,808 19,716 17,127
Deferred organization expenses (Note 1D) 6,012 3,298 4,469 4,473
------------ ------------ ------------ ------------
Total assets $ 1,963,355 $ 4,734,290 $ 5,157,640 $ 2,450,752
------------ ------------ ------------ ------------
Liabilities:
Dividends payable $ 1,809 $ 4,283 $ 4,759 $ 2,121
Payable to affiliate --
Trustees' fees (Note 4) -- -- 42 --
Accrued expenses 1,882 2,433 2,656 1,954
------------ ------------ ------------ ------------
Total liabilities $ 3,691 $ 6,716 $ 7,457 $ 4,075
------------ ------------ ------------ ------------
Net Assets $ 1,959,664 $ 4,727,574 $ 5,150,183 $ 2,446,677
============ ============ ============ ============
Sources of Net Assets:
Paid-in capital $ 2,080,975 $ 5,477,447 $ 5,163,313 $ 2,782,058
Accumulated net realized loss from Portfolio
(computed on the basis of identified cost) (184,696) (728,833) (154,423) (302,741)
Accumulated undistributed (distributions in excess of)
net investment income 5,461 (515) 569 3,674
Unrealized appreciation (depreciation) from Portfolio
(computed on the basis of identified cost) 57,924 (20,525) 140,724 (36,314)
------------ ------------ ------------ ------------
Total $ 1,959,664 $ 4,727,574 $ 5,150,183 $ 2,446,677
============ ============ ============ ============
Shares of Beneficial Interest Outstanding 207,680 503,263 542,061 262,686
============ ============ ============ ============
Net Asset Value, Offering Price and Redemption
Price Per Share (Note 6)
(net assets (divided by) shares of
beneficial interest outstanding) $ 9.44 $ 9.39 $ 9.50 $ 9.31
====== ====== ====== ======
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended September 30, 1996
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment Income (Note 1B):
Interest income allocated from Portfolio $ 119,423 $ 322,131 $ 321,110 $ 151,781
Expenses allocated from Portfolio (10,298) (25,678) (25,588) (6,259)
------------ ------------ ------------ ------------
Net investment income from Portfolio $ 109,125 $ 296,453 $ 295,522 $ 145,522
------------ ------------ ------------ ------------
Expenses --
Compensation of Trustees not members of the
Administrator's organization (Note 4) $ -- $ 120 $ 121 $ --
Distribution costs (Note 5) 18,621 49,622 49,847 24,445
Custodian fee (Note 1G) 3,000 2,739 2,884 3,430
Transfer and dividend disbursing agent fees 1,664 3,404 3,389 2,354
Printing and postage 9,588 7,552 7,880 6,843
Legal and accounting services 5,208 6,818 6,686 4,641
Amortization of organization expenses (Note 1D) 2,976 1,527 2,104 2,057
Miscellaneous 972 1,309 1,172 1,098
------------ ------------ ------------ ------------
Total expenses $ 42,029 $ 73,091 $ 74,083 $ 44,868
------------ ------------ ------------ ------------
Deduct --
Allocation of expenses to the Administrator (Note 4) $ 21,833 $ 15,808 $ 19,716 $ 17,127
Reduction of custodian fee (Note 1G) -- 1,989 -- --
------------ ------------ ------------ ------------
Total $ 21,833 $ 17,797 $ 19,716 $ 17,127
------------ ------------ ------------ ------------
Net expenses $ 20,196 $ 55,294 $ 54,367 $ 27,741
------------ ------------ ------------ ------------
Net investment income $ 88,929 $ 241,159 $ 241,155 $ 117,781
------------ ------------ ------------ ------------
Realized and Unrealized Gain
(Loss):
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $ 25,736 $ (23,258) $ 56,905 $ (31,872)
Financial futures contracts (6,321) (15,016) (12,124) (12,927)
------------ ------------ ------------ ------------
Net realized gain (loss) $ 19,415 $ (38,274) $ 44,781 $ (44,799)
Change in unrealized appreciation 21,922 51,217 13,879 93,931
------------ ------------ ------------ ------------
Net realized and unrealized gain $ 41,337 $ 12,943 $ 58,660 $ 49,132
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 130,266 $ 254,102 $ 299,815 $ 166,913
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended September 30, 1996
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 88,929 $ 241,159 $ 241,155 $ 117,781
Net realized gain (loss) 19,415 (38,274) 44,781 (44,799)
Change in unrealized appreciation 21,922 51,217 13,879 93,931
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 130,266 $ 254,102 $ 299,815 $ 166,913
------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) --
From net investment income $ (90,449) $ (249,213) $ (249,517) $ (120,844)
In excess of net investment income -- (515) -- --
------------ ------------ ------------ ------------
Total distributions to shareholders $ (90,449) $ (249,728) $ (249,517) $ (120,844)
------------ ------------ ------------ ------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 545,332 $ 655,704 $ 1,402,362 $ 256,808
Net asset value of shares issued to shareholders in
payment of distributions declared 51,676 93,534 200,789 72,771
Cost of shares redeemed (1,437,260) (1,286,653) (1,952,648) (963,255)
------------ ------------ ------------ ------------
Decrease in net assets from
Fund share transactions $ (840,252) $ (537,415) $ (349,497) $ (633,676)
------------ ------------ ------------ ------------
Net decrease in net assets $ (800,435) $ (533,041) $ (299,199) $ (587,607)
Net Assets:
At beginning of year 2,760,099 5,260,615 5,449,382 3,034,284
------------ ------------ ------------ ------------
At end of year $ 1,959,664 $ 4,727,574 $ 5,150,183 $ 2,446,677
============ ============ ============ ============
Accumulated undistributed (distributions in
excess of) net investment income included
in net assets at end of year $ 5,461 $ (515) $ 569 $ 3,674
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended September 30, 1995
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 142,253 $ 304,061 $ 275,225 $ 168,073
Net realized loss (138,296) (461,060) (141,825) (172,461)
Change in unrealized appreciation 203,944 629,276 381,603 261,324
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 207,901 $ 472,277 $ 515,003 $ 256,936
------------ ------------ ------------ ------------
Distributions to shareholders (Note 2) --
From net investment income $ (142,253) $ (304,061) $ (275,225) $ (168,073)
In excess of net investment income (3,147) (13,024) (7,088) (4,045)
In excess of net realized gain (5,291) -- -- --
------------ ------------ ------------ ------------
Total distributions to shareholders $ (150,691) $ (317,085) $ (282,313) $ (172,118)
------------ ------------ ------------ ------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 785,921 $ 899,398 $ 2,176,868 $ 315,949
Net asset value of shares issued to shareholders in
payment of distributions declared 56,477 139,236 229,427 114,621
Cost of shares redeemed (1,032,948) (3,996,087) (2,326,154) (1,399,657)
------------ ------------ ------------ ------------
Increase (decrease) in net assets from
Fund share transactions $ (190,550) $ (2,957,453) $ 80,141 $ (969,087)
------------ ------------ ------------ ------------
Net increase (decrease) in net assets $ (133,340) $ (2,802,261) $ 312,831 $ (884,269)
Net Assets:
At beginning of year 2,893,439 8,062,876 5,136,551 3,918,553
------------ ------------ ------------ ------------
At end of year $ 2,760,099 $ 5,260,615 $ 5,449,382 $ 3,034,284
============ ============ ============ ============
Accumulated undistributed net
investment income included
in net assets at end of year $ 6,981 $ 8,054 $ 8,931 $ 6,737
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Classic California Fund Classic Florida Fund
---------------------------------------------- ----------------------------------
Year Ended September 30, March 31, Year Ended September 30,
-------------------------------- ------------ ----------------------------------
1996 1995 1994++ 1994*** 1996 1995 1994**
-------- -------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 9.320 $ 9.080 $ 9.340 $ 10.000 $ 9.350 $ 8.970 $ 10.000
-------- -------- -------- -------- -------- -------- --------
Income (loss) from operations:
Net investment income 0.441[2 $0.460 $ 0.227 $ 0.140 $ 0.437 $ 0.444 $ 0.351
DGRS.]
Net realized and unrealized gain (loss) 0.138[2 0.267 (0.224) (0.635) 0.055 0.399 (0.967)
DGRS.]
-------- -------- -------- -------- -------- -------- --------
Total income (loss) from operations $ 0.579 $ 0.727 $ 0.003 $ (0.495) $ 0.492 $ 0.843 $ (0.616)
-------- -------- -------- -------- -------- -------- --------
Less distributions:
From net investment income $ (0.459) $ (0.460) $ (0.227) $ (0.140) $ (0.451) $ (0.444) $ (0.351)
In excess of net investment income -- (0.010) (0.036) (0.025) (0.001) (0.019) (0.063)
In excess of net realized gain -- (0.017) -- -- -- -- --
-------- -------- -------- -------- -------- -------- --------
Total distributions $ (0.459) $ (0.487) $ (0.263) $ (0.165) )$ (0.452) $ (0.463) $ (0.414)
-------- -------- -------- -------- -------- -------- --------
Net asset value, end of year $ 9.440 $ 9.320 $ 9.080 $ 9.340 $ 9.390 $ 9.350 $ 8.970
======== ======== ======== ======== ======== ======== ========
Total Return (2) 6.33% 8.32% 0.03% (5.16%) 5.35% 9.72% (6.36%)
Ratios/Supplemental Data*:
Net assets, end of year (000 omitted) $ 1,960 $ 2,761 $ 2,893 $2,095 $ 4,728 $ 5,261 $ 8,063
Ratio of net expenses to average daily
net assets (1)(3) 1.65% 1.67% 1.73%+ 1.64%+ 1.62% 1.59% 1.63%+
Ratio of net expenses to average
daily net assets after custodian fee
reduction (1) 1.64% 1.66% -- -- 1.55% 1.54% --
Ratio of net investment income to
average daily net assets 4.79% 5.11% 4.89%+ 4.17%+ 4.62% 4.99% 4.51%+
* The operating expenses of the Funds and the Portfolios reflect a reduction of expenses by the Administrator. Had
such actions not been taken, net investment income per share and the ratios would have been as follows:
Net investment income per share $ 0.332 $ 0.335 $ 0.120 $ 0.123 $ 0.409 $ 0.408 $ 0.331
======== ======== ======== ======== ======== ======== ========
Ratios (As a percentage of average
daily net assets):
Expenses (1)(3) 2.83% 3.07% 4.03%+ 2.15%+ 1.92% 1.99% 1.88%+
Expenses after custodian
fee reduction (1) 2.82% 3.06% -- -- 1.85% 1.94% --
Net investment income 3.61% 3.71% 2.59%+ 3.66%+ 4.32% 4.59% 4.26%+
+ Annualized.
(1) Includes each Fund's share of its corresponding 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. Total return is computed on a non-annualized basis.
(3) The expense ratios for the years ended September 30, 1996 and 1995 have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Fund to increase its expense ratio by the effect
of any expense offset arrangements with its service providers.. The expense ratios for each of the periods ended on
or before September 30, 1994, have not been adjusted to reflect this change.
** For the period from the start of business, December 3, 1993, to September 30, 1994.
*** For the period from the start of business, December 3, 1993, to March 31, 1994.
++ For the six months ended September 30, 1994.
[2 DGRS] Per share amounts have been calculated using average shares outstanding.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Classic New York Fund Classic Rhode Island Fund
-------------------------------------- ------------------------------------
Year Ended September 30, Year Ended September 30,
-------------------------------------- ------------------------------------
1996 1995 1994* 1996 1995 1994*
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of year $ 9.420 $ 9.060 $ 10.000 $ 9.21 $ 8.890 $ 10.000
-------- -------- -------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.438 $ 0.454 $ 0.344 $ 0.431 $ 0.442 $ 0.347
Net realized and unrealized gain (loss) 0.095 0.372 (0.869) 0.106 0.331 (1.046)
-------- -------- -------- -------- -------- --------
Total income (loss) from operations $ 0.533 $ 0.826 $ (0.525) $ 0.537 $ 0.773 $ (0.699)
-------- -------- -------- -------- -------- --------
Less distributions:
From net investment income $ (0.453) $ (0.454) $ (0.344) $ (0.437) $ (0.442) $ (0.347)
In excess of net investment income -- (0.012) (0.071) -- (0.011) (0.064)
-------- -------- -------- -------- -------- --------
Total distributions $ (0.453) $ (0.466) $ (0.415) $ (0.437) $ (0.453) $ (0.411)
-------- -------- -------- -------- -------- --------
Net asset value, end of year $ 9.500 $ 9.420 $ 9.060 $ 9.310 $ 9.210 $ 8.890
======== ======== ======== ======== ======== ========
Total Return (2) 5.77% 9.45% (5.45%) 5.95% 9.00% (7.29%)
Ratios/Supplemental Data**:
Net assets, end of year (000 omitted) $ 5,150 $ 5,449 $ 5,137 $ 2,447 $ 3,034 $ 3,919
Ratio of net expenses to average
daily net assets (1)(3) 1.56% 1.57% 1.64%+ 1.35% 1.29% 1.23%+
Ratio of net expenses to average
daily net assets after custodian
fee reduction (1) 1.53% 1.48% -- 1.32% 1.23% --
Ratio of net investment income to
average daily net assets 4.60% 4.96% 4.41%+ 4.58% 5.00% 4.50%+
** The operating expenses of the Funds and the Portfolios may reflect a reduction of the investment advisory fee
and an allocation of expenses to the Administrator or Investment Adviser. Had such actions not been taken, net
investment income per share and the ratios would have been as follows:
Net investment income per share $ 0.403 $ 0.414 $ 0.293 $ 0.356 $ 0.377 $ 0.299
======== ======== ======== ======== ======== ========
Ratios (As a percentage of
average daily net assets):
Expenses (1)(3) 1.93% 2.01% 2.29%+ 2.15% 2.03% 1.85%+
Expenses after custodian fee reduction (1) 1.90% 1.92% -- 2.12% 1.97% --
Net investment income 4.23% 4.52% 3.76%+ 3.78% 4.26% 3.88%+
+ Annualized.
(1) Includes each Fund's share of its corresponding 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. Total return is computed on a non-annualized basis.
(3) The expense ratios for the years ended September 30, 1996 and 1995, have been adjusted to reflect a change
in reporting requirements. The new reporting guidelines require each Fund to increase its expense ratio by
the effect of any expense offset arrangements with its service providers. The expense ratios for the period
ended September 30, 1994 have not been adjusted to reflect this change.
* For the Classic New York and Classic Rhode Island Funds, the Financial Highlights are for the period from the
start of business, December 6, 1993 and December 7, 1993, respectively, to September 30, 1994.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
Eaton Vance Municipals 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 (1940 Act), as amended, as
an open-end management investment company. The Trust presently
consists of sixty-six Funds, four of which are included in these
financial statements. They include EV Classic California Municipals
Fund, ("Classic California Fund"), EV Classic Florida Municipals
Fund ("Classic Florida Fund"), EV Classic New York Municipals Fund
("Classic New York Fund"), and EV Classic Rhode Island Municipals
Fund ("Classic Rhode Island Fund"), each of which is registered
under the 1940 Act as a non-diversified management investment
company. Each Fund invests all of its investable assets in interests
in a separate corresponding open-end management investment company
(a "Portfolio"), a New York Trust, having the same investment
objective as its corresponding Fund. The Classic California Fund
invests its assets in the California Municipals Portfolio, the
Classic Florida Fund invests its assets in the Florida Municipals
Portfolio, the Classic New York Fund invests its assets in the New
York Municipals Portfolio and the Classic Rhode Island Fund invests
its assets in the Rhode Island Municipals Portfolio. The value of
each Fund's investment in its corresponding Portfolio reflects the
Fund's proportionate interest in the net assets of that Portfolio,
(0.5%, 0.8%, 0.9%, and 5.8% at September 30, 1996 for the Classic
California Fund, Classic Florida Fund, Classic New York Fund and
Classic Rhode Island Fund, respectively). The performance of each
Fund is directly affected by the performance of its corresponding
Portfolio. The financial statements of each Portfolio, including the
portfolio of investments, are included elsewhere in this report and
should be read in conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies
consistently followed by the Trust in the preparation of its
financial statements. The policies are in conformity with generally
accepted accounting principles.
A. Investment Valuation - Valuation of securities by the Portfolios
is discussed in Note 1A of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report.
B. Income - Each Fund's net investment income consists of each
Fund's pro rata share of the net investment income of its
corresponding Portfolio, less all actual and accrued expenses of
each Fund determined in accordance with generally accepted
accounting principles.
C. Federal Taxes - Each Fund's policy is to comply with the
provisions of the Internal Revenue Code applicable to regulated
investment companies and to distribute to shareholders each year all
of its taxable and tax-exempt income, including any net realized
gain. Accordingly, no provision for federal income or excise tax is
necessary. At September 30, 1996, the Funds, for federal income tax
purposes, had capital loss carryovers which will reduce taxable
income arising from future net realized gain, if any, to the extent
permitted by the Internal Revenue Code, and thus will reduce the
amount of the distributions which would otherwise be necessary to
relieve the Funds of any liability for federal income or excise tax.
The amounts and expiration dates of the capital loss carryovers
are as follows:
Fund Amount Expires
- -----------------------------------------------------------------
Classic California Fund $116,821 September 30, 2004
4,833 September 30, 2003
59,053 September 30, 2002
Classic Florida Fund 377,617 September 30, 2004
19,484 September 30, 2003
166,878 September 30, 2002
Classic New York Fund 81,018 September 30, 2004
16,076 September 30, 2003
46,131 September 30, 2002
Classic Rhode Island Fund 176,324 September 30, 2004
85,223 September 30, 2002
Additionally, at September 30, 1996, net capital losses of $18,802,
and $24,850 for the Classic Florida Fund and Classic Rhode Island
Fund, respectively, attributable to security transactions incurred
after October 31, 1995, are treated as arising on the first day of
the Fund's next taxable year.
Dividends paid by each Fund from net tax-exempt interest on
municipal bonds allocated from its corresponding Portfolio are not
includable by shareholders as gross income for federal income tax
purposes because each Fund and Portfolio intend to meet certain
requirements of the Internal Revenue Code applicable to regulated
investment companies which will enable the Funds to pay exempt-
interest dividends. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986, may be
considered a tax preference item to shareholders.
D. Deferred Organization Expenses - Costs incurred
by each Fund in connection with its organization, including
registration costs, are being amortized on the straight-line
basis over five years.
E. Use of Estimates - The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expense
during the reporting period. Actual results could differ from those
estimates.
F. Other - Investment transactions are accounted for on a trade date
basis.
G. Expense Reduction - Investors Bank & Trust Company (IBT) serves
as custodian to the Funds and the Portfolios. Prior to November 10,
1995, IBT was an affiliate of EVM. Pursuant to the respective
custodian agreements. IBT receives a fee reduced by credits which
are determined based on the average cash balances the Funds or the
Portfolios maintain with IBT. All significant credit balances used
to reduce each Fund's custodian fee are reported as a reduction of
expenses on the statements of operations.
(2) Distributions to Shareholders
The net income of each Fund is determined daily and substantially
all of the net income so determined is declared as a dividend to
shareholders of record at the time of declaration. 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 Funds distinguish 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, 1997 and will be based
on tax accounting methods which may differ from amounts determined
for financial statement purposes.
(3) Shares of Beneficial Interest
<TABLE>
<CAPTION>
The Funds' 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:
Classic California Fund Classic Florida Fund
-------------------------------------- --------------------------------------
Year Ended Year Ended
September 30, September 30,
-------------------------------------- --------------------------------------
1996 1995 1996 1995
---------------- ---------------- ---------------- ----------------
<S> <C> <C> <C> <C>
Sales 57,670 86,883 68,136 100,863
Issued to shareholders electing to receive
payments of distributions in Fund shares 5,470 6,267 9,873 15,557
Redemptions (151,613) (115,522) (137,110) (452,681)
------- ------- ------- -------
Net decrease (88,473) (22,372) (59,101) (336,261)
======= ======= ======= =======
Classic New York Fund Classic Rhode Island Fund
-------------------------------------- --------------------------------------
Year Ended Year Ended
September 30, September 30,
-------------------------------------- --------------------------------------
1996 1995 1996 1995
---------------- ---------------- ---------------- ----------------
Sales 147,451 242,369 27,790 35,648
Issued to shareholders electing to receive
payments of distributions in Fund shares 21,074 25,207 7,816 12,896
Redemptions (204,827) (255,881) (102,549) (159,886)
------- ------- ------- -------
Net increase (decrease) (36,302) 11,695 (66,943) (111,342)
======= ======= ======= =======
(4) Transactions with Affiliates
Eaton Vance Management (EVM) serves as the Administrator of each
Fund, but receives no compensation. The Portfolios have engaged
Boston Management and Research (BMR), a subsidiary of EVM, to render
investment advisory services. See Note 2 of the Portfolios' Notes to
Financial Statements which are included elsewhere in this report. To
enhance the net income of the Funds, $21,833, $15,808, $19,716 and
$17,127 of expenses related to the operation of the Classic
California Fund, Classic Florida Fund, Classic New York Fund and
Classic Rhode Island Fund, respectively, were allocated to EVM.
Except as to Trustees of the Funds and the Portfolios who are not
members of EVM's or BMR's organization, officers and Trustees
receive remuneration for their services to each Fund out of the
investment adviser fee earned by BMR.
Certain of the officers and Trustees of the Funds and Portfolios are
officers and directors/trustees of the above organizations.
(5) Distribution Plan
Each Fund has adopted a distribution plan (the Plans) pursuant to
Rule 12b-1 under the Investment Company Act of 1940. The Plans
require the Funds to pay the principal underwriter, Eaton Vance
Distributors, Inc. (EVD), amounts equal to 1/365 of 0.75% of each
Fund's daily net assets, for providing ongoing distribution services
and facilities to the respective Fund. A Fund will automatically
discontinue payments to EVD during any period in which there are no
outstanding Uncovered Distribution Charges, which are equivalent to
the sum of (i) 6.25% of the aggregate amount received by the Fund
for shares sold plus (ii) distribution fees calculated by applying
the rate of 1% over the prevailing prime rate to the outstanding
balance of Uncovered Distribution Charges of EVD, reduced by the
aggregate amount of contingent deferred sales charges (see Note 6)
and amounts theretofore paid to EVD. The amount payable to EVD with
respect to each day is accrued on such day as a liability of each
Fund and, accordingly, reduces the Fund's net assets. For the year
ended September 30, 1996, Classic California Fund, Classic Florida
Fund, Classic New York Fund, and Classic Rhode Island Fund, paid or
accrued $13,965, $39,175, $39,353, and $19,299, respectively, to or
payable to EVD representing 0.75% (annualized) of average daily net
assets. At September 30, 1996, the amount of Uncovered Distribution
Charges of EVD calculated under the Plans for Classic California
Fund, Classic Florida Fund, Classic New York Fund and Classic Rhode
Island Fund were approximately $370,000, $771,000, $550,000 and
$362,000, respectively.
In addition, the Plans permit the Funds to make monthly payments of
service fees to the Principal Underwriter, in amounts not exceeding
0.25% of each Fund's average daily net assets for any fiscal year.
The Trustees have initially implemented the Plans by authorizing the
Funds to make monthly service fee payments to the Principal
Underwriter in amounts not expected to exceed 0.20% (0.25% for the
Classic California Fund) of each Fund's average daily net assets for
each fiscal year. For the year ended September 30, 1996, Classic
California Fund, Classic Florida Fund, Classic New York Fund, and
Classic Rhode Island Fund paid or accrued service fees to EVD in the
amount of $4,656, $10,447, $10,494 and $5,146, respectively. During
the first year after a purchase of Fund shares, EVD will retain the
service fee as reimbursement for the service fee payment made to the
Authorized Firm at the time of sale. Thereafter, EVD is expected to
make monthly service fee payments to Authorized Firms equal to 0.20%
(0.25% for the Classic California Fund) per annum of the Fund's
average daily net assets based on the value of the Fund's shares
sold by such authorized firm and remaining outstanding for at least
one year. Service fee payments are made for personal services and/or
maintenance of shareholder accounts. Service fees paid to EVD and
Authorized Firms are separate and distinct from the sales
commissions and distribution fees payable by a fund to EVD, and as
such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD.
Certain of the officers and Trustees of the Funds are officers or
directors of EVD.
(6) Contingent Deferred Sales Charges
A contingent deferred sales charge (CDSC) of 1% is imposed on any
redemption of Fund shares made within one year of purchase.
Generally, the CDSC is based upon the lower of the net asset value
at date of redemption or date of purchase. No charge is levied on
shares acquired by reinvestment of dividends or capital gains
distributions. No CDSC is levied on shares which have been sold to
EVD or its affiliates or to their respective employees. CDSC charges
are paid to EVD to reduce the amount of Uncovered Distribution
Charges calculated under the Funds' Distribution Plans. CDSC
received when no Uncovered Distribution Charges exist will be
credited to the Funds. For the year ended September 30, 1996, EVD
received approximately $10, $400, $1,600 and $300, of CDSC paid by
shareholders for the Classic California Fund, Classic Florida Fund,
Classic New York Fund and Classic Rhode Island Fund, respectively.
(7) Investment Transactions
</TABLE>
<TABLE>
<CAPTION>
Increases and decreases in each Fund's investment in its corresponding Portfolio for
the year ended September 30, 1996 were as follows:
Classic Classic Classic Classic
California Florida New York Rhode Island
Fund Fund Fund Fund
-------------- -------------- ------------- --------------
<S> <C> <C> <C> <C>
Increases $ 610,962 $ 735,067 $1,485,018 $ 322,064
Decreases 1,543,759 1,568,479 2,127,726 1,100,480
Independent Auditors' Report
To the Trustees and Shareholders of
Eaton Vance Municipals Trust:
We have audited the accompanying statements of assets and
liabilities of EV Classic California Municipals Fund, EV Classic
Florida Municipals Fund, EV Classic New York Municipals Fund, and EV
Classic Rhode Island Municipals Fund (the Funds) (certain of the
series constituting Eaton Vance Municipals Trust) as of September
30, 1996, the related statements of operations for the year then
ended, and the statements of changes in net assets for each of the
years ended September 30, 1996 and 1995, and the financial
highlights for each of the years in the three-year period ended
September 30, 1996 and for the EV Classic California Municipals
Fund, the period from the start of business to March 31, 1994. 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 audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
An audit 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
each of the aforementioned funds of Eaton Vance Municipals Trust at
September 30, 1996, the results of their operations, the changes in
their net assets, and their financial highlights for the respective
stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 1, 1996
California Municipals Portfolio
Portfolio of Investments - September 30, 1996
Tax-Exempt Investments - 100%
</TABLE>
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Ratings (Unaudited)
- ------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Cogeneration - 6.0%
NR BBB- $4,985 Central Valley Financing
Authority, Carson Ice,
6.20%, 7/1/20 $4,965,957
NR BBB- 10,900 Sacramento Cogeneration
Authority, Procter & Gamble,
6.50%, 7/1/21 11,126,611
NR BBB- 6,000 Sacramento Power Authority,
Cogeneration Project,
6.00%, 7/1/22 5,823,420
------------
$21,915,988
------------
Escrowed - 17.1%
NR NR 1,575 Fontana Public Financing
Authority, 7.75%, 12/1/20 1,829,347
NR NR 4,000 Huntington Beach Public
Financing Authority,
8.375%, 5/1/18 4,333,480
NR BBB 3,190 Orange Cove Irrigation
District COP, 6.625%,
2/1/17 3,493,018
Aaa AAA $6,400 Port of Oakland, (BIG)
0%, 11/1/15 3,955,264
NR AAA 3,000 Poway Redevelopment
Agency, 7.75%, 12/15/21 3,494,880
NR BBB 2,000 City of Rancho Mirage,
Joint Power Financing
Authority, 7.50%, 4/1/17 2,270,040
NR A- 2,360 Richmond Joint Power
Financing Authority,
7.00%, 5/15/07 2,599,092
Aaa AAA 8,000 County of Sacramento,
SFMR, (AMT), (GNMA)
8.125%, 7/1/16 (2) 10,058,640
Aaa AAA 14,285 County of Sacramento,
SFMR, (AMT), (GNMA)
8.50%, 11/1/16 18,721,492
Aaa AAA 6,000 County of Sacramento,
SFMR, (AMT), (GNMA)
8.25%, 1/1/21 7,758,600
Aaa AAA 3,000 City and County of
San Francisco Sewer System,
(AMBAC), Variable,
10/1/21 (1) 3,450,540
------------
61,964,393
------------
General Obligation - 1.3%
Aa AA $5,000 East Bay Municipal Utilities
District, 5.00%, 4/1/15 4,592,350
------------
Hospitals - 2.3%
Ba NR $1,000 City of San Bernadino,
San Bernadino Community
Hospital, 7.875%, 12/1/08 $1,009,700
Ba NR 3,000 City of San Bernadino,
San Bernadino Community
Hospital, 7.875%, 12/1/19 $3,029,100
NR BBB+ 2,700 City of Stockton,
Dameron Hospital
Association, 8.30%, 12/1/14 2,812,509
NR BBB- 1,500 City of Woodland,
Woodland Memorial
Hospital, 8.20%, 8/1/15 1,585,725
------------
8,437,034
------------
Housing - 7.7%
NR NR 2,000 Los Angeles County,
Corporate Fund Housing
Authority, 10.50%, 12/1/29 2,044,680
NR A+ 1,785 City of Oakland, Housing
Finance Agency (HFA),
7.10%, 1/1/10 1,829,286
Aa AA- 2,500 California HFA, 8.20%,
8/1/17 2,594,550
Aa AA- $1,270 California HFA, (AMT),
8.60%, 8/1/19 1,326,490
Aa AA- 3,575 California HFA, (AMT),
7.375%, 8/1/11 3,724,542
Aa AA- 6,345 California HFA, (AMT),
(FHA) 7.65%, 8/1/23 6,629,066
Aa AA- 4,730 California HFA, (AMT),
7.40%, 8/1/26 4,987,738
Aa AA- 3,845 California HFA, (AMT),
7.50%, 8/1/25 4,080,391
A1 NR 795 Los Angeles County,
SFMR, 7.875%, 8/1/16 808,077
------------
28,024,820
------------
Insured Education - 0.8%
Aaa AAA 3,330 University of California,
Multiple Purpose Project,
(MBIA) 4.75%, 9/1/21 2,868,162
------------
Insured Lease/Certificate of
Participation - 5.0%
Aaa AAA $3,300 California Statewide
Communities Development
Authority, Motion Picture
and Television Fund,
(AMBAC), Variable,
1/1/24 (1) $2,991,153
Aaa AAA 7,700 Moulton Niguel Water
District, (AMBAC)
4.80%, 9/1/17 6,765,143
Aaa AAA 4,350 City of Stockton,
Wastewater Treatment Plant,
(FGIC) 6.80%, 9/1/24 4,806,533
Aaa AAA 13,985 Visalia Unified School
District, (MBIA)
0%, 12/1/17 3,501,284
------------
18,064,113
------------
Insured Special Tax - 2.3%
Aaa AAA 4,850 City of San Jose
Redevelopment Agency,
(MBIA) 4.75%, 8/1/24 4,174,298
Aaa AAA 2,000 Thousand Oaks
Redevelopment Agency,
(MBIA) 5.375%, 12/1/25 $1,891,660
Aaa AAA 2,500 Los Angeles County Metro
Trans Authority, (AMBAC)
5.25%, 7/1/23 2,326,875
------------
$8,392,833
------------
Insured Transportation - 3.9%
Aaa AAA 8,000 City and County of
San Francisco Airport,
(MBIA) 6.75%, 5/1/13 8,745,440
Aaa AAA 3,500 City and County of
San Francisco Airport,
(AMT), (MBIA)
5.625%, 5/1/21 3,415,615
Aaa AAA 10,000 Port of Oakland, (AMT),
(BIG), 0%, 11/1/19 1,866,400
------------
$14,027,455
------------
Insured Utilities - 5.7%
Aaa AAA 8,000 Northern California Power
Agency, (MBIA), Variable,
8/1/25 (1) 8,969,360
Aaa AAA 3,500 Sacramento Municipal
Utilities District, (MBIA)
6.375%, 8/15/22 $3,679,445
Aaa AAA 2,000 Southern California Public
Power Authority, (FGIC),
Variable, 7/1/12 (1) 1,844,580
Aaa AAA 6,915 Southern California Public
Power Authority, (MBIA),
5.00%, 1/1/20 6,245,697
------------
20,739,082
------------
Insured Solid Waste - 0.4%
Aaa AAA 1,500 Inland Empire Solid
Waste Finance Authority
(FSA) 6.25%, 8/1/11 1,562,265
------------
Insured Water & Sewer - 3.4%
Aaa AAA $5,000 East Bay Municipal Utility
District, (MBIA), Variable,
6/1/08 (1) $4,799,850
Aaa AAA $5,000 San Diego Public Finance
Authority, (FGIC) 5.00%,
5/15/25 $4,502,100
Aaa AAA 3,000 San Diego County Water
Authority, (FGIC), Variable,
4/22/09 (1) 3,119,850
------------
$12,421,800
------------
Lease/Certificate of
Participation - 21.8%
A1 A- 8,000 California Public Works,
University of California,
5.50%, 6/1/14 7,736,240
A1 A- 6,500 California Public Works,
University of California,
5.00%, 6/1/23 5,671,185
A1 A- 3,000 California Public Works,
University of California,
5.50%, 6/1/10 2,977,560
A A- 3,500 California Public Works,
Susanville Prison, 5.375%,
6/1/18 3,236,415
A A- 2,800 California Public Works,
State Prison System, 5.375%,
6/1/12 2,634,464
A1 A- 5,000 California Public Works,
University of California,
5.25%, 6/1/20 4,587,850
A1 A- 14,025 California Public Works,
University of California,
5.50%, 6/1/19 13,144,651
Aaa AAA 6,850 California Statewide Public
Works, J. Paul Getty Trust,
5.00%, 10/1/23 6,115,543
A BBB 2,750 City of Inglewood, Civic
Center Improvement,
7.00%, 8/1/19 2,862,860
Baa1 BBB 3,100 County of Los Angeles,
Disney Parking Project,
0%, 3/1/20 649,295
Baa1 BBB 5,115 County of Los Angeles,
Disney Parking Project,
0%, 3/1/16 1,412,558
Baa1 BBB 1,925 County of Los Angeles,
Disney Parking Project,
0%, 3/1/17 492,627
Baa1 BBB 5,000 County of Los Angeles,
Disney Parking Project,
0%, 9/1/17 1,237,550
Baa1 BBB 5,370 County of Los Angeles,
Disney Parking Project,
0%, 3/1/18 1,285,471
Baa1 BBB 6,925 County of Los Angeles,
Disney Parking Project,
0%, 9/1/20 1,402,867
Baa1 BBB 1,000 County of Los Angeles,
Disney Parking Project,
6.50%, 3/1/23 1,010,230
NR NR 7,000 County of Los Angeles,
Marina Del Rey, 6.50%,
7/1/08 7,054,740
A1 A+ 5,000 Pasadena Parking Facility
Project, 6.25%, 1/1/18 5,228,400
Aa A+ 4,000 City of Sacramento
Financing Authority,
5.40%, 11/1/20 3,793,560
A A 3,000 San Bernadino Joint Power
Financing Authority,
5.50%, 12/1/20 2,846,250
Aa AA 4,425 Orange County Water
District, 5.00%, 8/15/18 3,879,883
------------
79,260,199
------------
Nursing Home - 0.9%
NR NR 3,170 City of Banning,
San Gorgonio Pass
Convalescent, (AMT),
9.50%, 12/1/11 3,269,538
------------
Special Tax - 12.8%
NR NR $3,000 Lincoln Unified School
District, 7.625%, 9/1/21 3,449,850
NR NR $3,000 Riverside County
Community Facilities
District, 7.55%, 9/1/17 3,046,080
NR NR 910 City of Fairfield,
North Cordelia District,
8.00%, 9/2/11 938,492
NR NR $2,060 City of Fairfield,
North Cordelia District,
7.375%, 9/2/18 2,106,123
NR NR 2,915 City of Commerce,
Joint Power Financing
Authority, 8.00%, 3/1/22 3,061,683
NR BBB 5,000 Contra Costa County,
Public Financing
Authority, 7.10%, 8/1/22 5,212,250
NR BBB 3,910 City of Fontana,
Public Financing
Authority, 7.00%, 9/1/21 3,986,675
NR BBB 8,220 Fontana Redevelopment
Agency, Jurupa Hills,
7.00%, 10/1/14 8,431,912
NR BBB 2,500 City of Pittsburgh
Redevelopment Agency,
7.40%, 8/15/20 2,624,650
NR BBB 600 City of Rancho Mirage,
Joint Power Financing
Authority, 7.50%, 4/1/17 634,704
NR BBB 2,500 Riverside County
Redevelopment Agency,
7.50%, 10/1/26 2,632,975
NR BBB 5,605 San Carlos Redevelopment
Agency, 7.10%, 9/1/17 5,828,247
NR NR 1,400 City of Simi Valley
Community Development,
Sycamore Plaza II,
8.20%, 9/1/12 1,405,670
Baa BBB+ 3,000 Westminster Redevelopment
Agency, Community
Redevelopment Project,
7.30%, 8/1/21 3,237,570
------------
46,596,881
------------
Transportation - 6.8%
NR BBB 3,050 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 3,105,571
Aa AA- 2,000 City of Long Beach Harbor
Revenue Bonds, (AMT),
7.25%, 5/15/19 2,109,980
A1 A- 1,400 County of Orange,
California Airport Revenue
Bonds, 8.125%, 7/1/16 1,448,244
NR NR $12,000 San Joaquin Hills
Transportation Corridor
Agency, Toll Road
Revenue Bonds, 0%, 1/1/14 3,916,200
NR NR 5,765 San Joaquin Hills
Transportation Corridor
Agency, Toll Road
Revenue Bonds, 0%, 1/1/26 853,393
NR NR 35,975 San Joaquin Hills
Transportation Corridor
Agency, Toll Road
Revenue Bonds, 0%, 1/1/27 4,988,653
NR NR 4,940 San Joaquin Hills
Transportation Corridor
Agency, Toll Road Revenue
Bonds, 7.00%, 1/1/30 5,168,722
Baa1 BBB 1,500 Stockton Port District,
7.95%, 1/1/05 1,567,755
Baa1 BBB 1,500 Stockton Port District,
8.10%, 1/1/14 1,579,334
------------
24,737,852
------------
Utilities - 1.8%
A2 A 4,100 California PCR Finance
Authority, San Diego Gas
and Electric, 5.90%, 6/1/14 4,222,467
Aa A+ 7,070 Southern California Public
Power Authority, 0%, 7/1/15 $2,296,409
------------
$6,518,876
------------
Total Tax-Exempt
Investments (identified
cost, $337,396,359) $363,393,641
============
(1) Security has been issued as an inverse floater bond.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
AMT - Interest earned from these securities may be considered a
tax preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio primarily invests in debt securities issued by California municipalities.
The ability of the issuers of the debt securities to meet their obligations may be affected
by economic developments in a specific industry or municipality. In order to reduce the risk
associated with such economic developments, at September 30, 1996, 31.2% of the securities in
the portfolio of investments are backed by bond insurance of financial institutions and financial
guaranty assurance agencies. The aggregate percentage insured by financial institution ranged
from 0.4% to 10.3% of total investments.
See notes to financial statements
</TABLE>
Florida Municipals Portfolio
Portfolio of Investments - September 30, 1996
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living - 0.6%
NR NR $3,445 North Miami, Florida
Health Care Facilities -
The Imperial Club
Project 9.25%, 1/1/13 $3,750,020
------------
Cogeneration - 3.2%
Baa3 BBB- $7,275 Martin County, Indian
Town Project, (AMT),
7.875%, 12/15/25 $8,241,993
NR NR 3,100 Palm Beach County,
Okeelanta Power L.P.
Project (AMT),
6.85%, 2/15/21 2,749,948
NR NR 9,250 Palm Beach County,
Osceola Power L.P. Project
(AMT), 6.95%, 1/1/22 8,247,485
------------
$19,239,426
------------
Education - 1.0%
NR AAA $5,500 Volusia County Educational
Facilities, Embry-Riddle
Aeronautical University
Project (CLEE),
6.625%, 4/15/22 $5,875,210
------------
Escrowed - 7.4%
Aaa AAA 9,225 Dade County, Baptist
Hospital of Miami Project,
5.75%, 5/1/21 9,285,055
Aaa AAA 5,000 Florida Municipal Power
Agency Stanton II Project
(AMBAC), Variable,
10/1/20 (1) 6,048,900
NR NR $1,675 Mid-Bay Bridge Authority,
6.875%, 10/1/22 1,902,901
A A 7,255 Hillsborough FL Capital
Improvement - Museum
of Science, 6.45%, 1/1/22 7,779,754
Aaa AAA 2,000 Orlando & Orange County
Expressway Authority
(FGIC), 8.25%, 7/1/14 2,623,300
Aaa AAA 5,600 St. Lucie FL Utility System,
6.00%, 10/1/20 5,818,176
A NR 9,810 City of Venice Health
Facilities, 5.75%, 12/1/24 10,428,422
------------
$43,886,508
------------
General Obligation - 10.0%
Aa AA $22,000 Florida Board of Education,
4.75%, 6/1/22 $18,986,220
Aa AA 15,235 Florida Board of Education,
5.00%, 6/1/20 13,894,471
Aa AA 8,000 Florida Board of General
Services, 6.60%, 7/1/17 8,679,200
NR BBB 5,700 Guam Government,
5.40%, 11/15/18 5,167,335
Baa1 A 3,000 Puerto Rico, 6.50%, 7/1/23 3,202,650
Baa1 A 3,235 Puerto Rico Public
Building Authority,
5.50%, 7/1/21 3,059,340
Baa1 A 7,350 Puerto Rico Public
Building Authority,
5.70%, 7/1/09 7,369,037
------------
$60,358,253
------------
Hospital Revenue - 3.1%
NR BBB+ $3,600 Escambia County Health
Facilities Authority, Baptist
Hospital, Inc. and The
Baptist Manor, Inc.,
6.75%, 10/1/14 $3,702,456
NR BBB+ 9,995 Escambia County
Health Facilities Authority,
Baptist Hospital, Inc.,
6.00%, 10/1/14 9,550,722
NR AA+ 4,750 Jacksonville Health
Facilities Finance Authority,
St. Luke's Hospital
Association Project,
6.75%, 11/15/13 5,085,445
------------
$18,338,623
------------
Housing - 13.6%
NR AAA $630 Broward County HFA
SFMR (GNMA), (AMT),
7.35%, 3/1/23 652,327
NR AAA 1,300 Clay County HFA MFMR
(GNMA), 7.40%, 12/1/25 1,373,021
Aaa NR 2,750 Clay County HFA SFMR
(GNMA), (AMT),
6.55%, 3/1/28 2,770,405
Aaa NR 290 Dade County HFA SFMR
(GNMA), 7.10%, 3/1/17 301,678
Aaa NR 1,090 Dade County HFA SFMR
(AMT), 7.75%, 9/1/22 1,142,843
Aaa NR 1,160 Dade County HFA SFMR
(GNMA), (AMT),
7.25%, 9/1/23 1,213,569
Aaa NR 75 Dade County HFA SFMR
(GNMA), 7.00%, 3/1/24 77,888
NR AAA $5,100 Dade County HFA SFMR
(GNMA), (AMT)
6.55%, 10/1/27 $5,185,017
NR AAA 5,850 Dade County HFA SFMR
(GNMA), (AMT)
6.70%, 4/1/28 6,041,237
Aaa NR 2,540 Escambia County HFA
SFMR (GNMA), (AMT),
7.40%, 10/1/23 2,636,418
Aaa AAA 7,500 Escambia County HFA
SFMR (GNMA), (AMT),
6.85%, 10/1/17 7,589,400
Aaa AAA 5,000 Escambia County HFA
SFMR (GNMA), (AMT),
6.90%, 10/1/21 5,059,450
Aaa AAA 6,250 Escambia County HFA
SFMR (GNMA), (AMT),
6.95%, 10/1/27 6,324,125
Aaa AAA 9,245 Escambia County HFA
SFMR (GNMA), (AMT),
6.20%, 4/1/22 9,301,579
NR AAA 1,125 Florida HFA (FHA),
6.35%, 6/1/14 1,169,651
Aa AA 2,500 Florida HFA (AMT),
6.35%, 7/1/28 2,546,575
Aaa NR 910 Hillsborough County HFA
SFMR (GNMA), (AMT),
7.875%, 5/1/23 965,301
NR AAA 1,695 Orange County HFA
SFMR (GNMA), (AMT),
7.375%, 9/1/24 1,780,987
Aaa NR 12,000 Orange County HFA
SFMR (GNMA), (AMT),
6.85%, 10/1/27 12,483,840
NR AAA 8,000 Orange County HFA
SFMR (GNMA), (AMT),
6.60%, 4/1/28 8,200,720
Aaa NR 845 Palm Beach County HFA
SFMR (GNMA),
7.60%, 3/1/23 887,394
Aaa NR 1,455 Polk County HFA SFMR
(GNMA), 7.15%, 9/1/23 1,524,753
Baa BBB 1,400 Puerto Rico Urban
Renewal & Housing
Corp, 7.875%, 10/1/04 1,538,908
Aaa AAA 770 Puerto Rico Housing
Finance Corp SFMR
(GNMA), 7.65%, 10/15/22 810,372
------------
$81,577,458
------------
Industrial Development/
Pollution Control Revenue - 1.9%
Baa1 NR $2,000 Escambia County -
Champion International
(AMT), 6.40%, 9/1/30 $2,011,440
NR NR 6,000 NJ EDA - Holt Hauling
Project (AMT),
9.75%, 12/15/16 6,174,720
Baa1 BBB+ 3,000 Puerto Rico Port
Authority, 6.25% 6/1/26 3,034,350
------------
$11,220,510
------------
Insured Healthcare - 0.1%
Aaa AAA $500 Alachua County Health
Facility, Mental Health
Services Project (CGIC),
7.75%, 7/1/10 $557,225
------------
Insured Hospitals - 6.8%
Aaa AAA $8,000 Charlotte County Health
Care, Bon-Secours Health
System Project (FSA),
Variable, 8/30/27 (1) $8,138,080
Aaa AAA 23,355 Jacksonville Florida Health
Authority, Daughters of
Charity (MBIA),
5.00%, 11/15/15 21,464,647
Aaa AAA 2,000 Lee County, Memorial
Hospital (MBIA), Variable,
4/1/20 (1) 2,228,860
Aaa AAA 5,265 Orange County Health
Facilities Finance Authority,
Pooled Hospital Loan
Program - Orlando
Regional Medical Center
& Indian River Memorial
Hospital (FGIC),
7.875%, 12/1/25 5,496,449
Aaa AAA 3,000 Orange County
Health Facilities Authority
(MBIA), Variable,
10/1/21 (1) 3,320,370
------------
$40,648,406
------------
Insured Housing - 2.7%
Aaa AAA 1,205 Brevard County HFA
SFMR (FSA),
7.00%, 3/1/13 $1,266,708
Aaa AAA 1,720 Duval County HFA SFMR
(FGIC), 7.35%, 7/1/24 1,843,771
Aaa AAA 6,530 Florida HEFA, Maitland
Club Apartment Project
(AMBAC) (AMT),
6.875%, 8/1/26 6,806,088
Aaa AAA 3,000 Florida HFA, Brittany of
Rosemont Project
(AMBAC) (AMT),
6.875%, 8/1/26 3,115,290
Aaa AAA 2,675 Lee County SCA MFMR
(FSA) (AMT),
7.05%, 1/1/30 $2,797,676
------------
$15,829,533
------------
Insured Pollution
Control Revenue - 1.5%
Aaa AAA $8,200 Citrus County
(MBIA), 6.35%, 2/1/22 $8,616,396
------------
Insured Miscellaneous - 0.5%
Aaa AAA $2,000 Escambia County (MBIA),
7.20%, 1/1/15 $2,134,080
Aaa AAA 799 Osceola County IDA
Community Provider
Pooled Loan Program,
(CGIC), 7.75%, 7/1/10 846,093
------------
$2,980,173
------------
Insured Solid Waste - 0.3%
Aaa AAA $1,500 St. John's County Solid
Waste Disposal (FGIC),
7.25%, 11/1/10 $1,664,595
------------
Insured Special Tax Revenue - 2.8%
Aaa AAA $3,835 Dade, Professional
Sports Franchise (MBIA),
0%, 10/1/23 $804,430
Aaa AAA 2,250 Dade Convention
Center (AMBAC),
5.00%, 10/1/35 2,004,548
Aaa AAA 1,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/10 448,650
Aaa AAA 1,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/11 420,610
Aaa AAA 2,000 City of Jacksonville (FGIC)
(AMT), 0%, 10/1/12 787,860
Aaa AAA 1,185 City of Opa-Locka (FGIC),
7.0%, 1/1/14 1,338,588
Aaa AAA 5,000 St. Petersburg Excise Tax
(FGIC), 5.00%, 10/1/16 4,579,950
Aaa AAA 2,000 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/10 915,800
Aaa AAA 1,760 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/12 709,667
Aaa AAA 2,840 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/14 $1,022,201
Aaa AAA 4,000 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/15 1,347,720
Aaa AAA $4,140 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/16 1,317,264
Aaa AAA 2,525 Sunrise Florida Public
Facilities (MBIA),
0%, 10/1/17 758,687
------------
16,455,975
------------
Insured Transportation - 6.7%
Aaa AAA 4,000 Dade County Aviation
Facilities (MBIA)
(AMT), 6.55%, 10/1/13 $4,288,880
Aaa AAA 2,150 Dade County Aviation
Facilities (MBIA) (AMT),
6.60%, 10/1/23 2,298,157
Aaa AAA 5,775 Dade County Aviation
Facilities (MBIA) (AMT),
6.00%, 10/1/24 5,853,829
Aaa AAA 8,455 Florida State Turnpike
Authority (FGIC),
6.35%, 7/1/22 8,835,136
Aaa AAA 8,600 Greater Orlando Aviation
Authority, Orlando Airport
Facilities (FGIC), (AMT),
6.375%, 10/1/21 (2) 8,979,690
Aaa AAA 10,170 Orlando & Orange County
Expressway Authority
(FGIC), 5.125%, 7/1/20 9,413,250
------------
$39,668,942
------------
Insured Utilities - 3.8%
Aaa AAA $8,000 Florida Municipal Power
Agency Stanton II Project
(AMBAC), 4.50%, 10/1/27 $6,453,200
Aaa AAA 7,770 Florida Municipal Power
Agency Stanton II Project
(AMBAC), 4.50%, 10/1/16 6,649,333
Aaa AAA 4,000 Lakeland Electric & Water
(FGIC), 6.00%, 10/1/13 4,264,720
Aaa AAA 1,540 Manatee County Public
Utility (FGIC), 0%, 10/1/12 617,109
Aaa AAA 2,150 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/02 (1) 2,308,605
Aaa AAA 2,200 Puerto Rico Electric Power
Authority (FSA), Variable,
7/1/03 (1) 2,385,790
------------
22,678,757
------------
Insured Water & Sewer - 4.2%
Aaa AAA $11,450 Broward County Water &
Sewer (AMBAC),
5.125%, 10/1/15 10,729,910
Aaa AAA 9,500 Dade County Water and
Sewer System (FGIC),
5.00%, 10/1/13 8,909,955
Aaa AAA 2,000 City of Fort Myers Utility
(FGIC), 5.00%, 10/1/16 $1,845,420
Aaa AAA 4,000 Sanford Water and Sewer
(AMBAC), 4.50%, 10/1/21 3,350,520
------------
$24,835,805
------------
Life Care - 1.2%
NR NR $6,895 Atlantic Beach, Fleet
Landing Project,
8.00%, 10/1/24 $7,144,737
------------
Nursing Homes - 4.3%
NR NR $300 Broward County Industrial
Development Authority,
Beverly Enterprises -
Florida, Inc. Project,
9.80%, 11/1/10 332,166
NR NR 450 Charlotte County
Industrial Development
Authority, Beverly
Enterprises, 10.00%, 6/1/11 $507,812
NR NR 6,520 Citrus County Industrial
Development Authority,
Beverly Enterprises,
7.25%, 4/1/03 6,597,784
NR AAA 4,285 Dade IDA - Club Care
Center Project (GNMA)
6.60%, 1/20/18 4,399,410
NR AAA 5,075 Dade IDA - Gramercy
Park Nursing Care Project
(FHA) 6.60%, 8/1/23 5,315,352
NR NR 2,045 Highlands County
Industrial Development
Authority, Beverly
Enterprises - Florida, Inc.
Project, 9.25%, 7/1/07 2,250,073
Baa1 NR 3,750 Jacksonville FL Health -
Cypress Village Project,
7.00%, 12/01/22 3,900,525
NR NR 410 Okaloosa County, Beverly
Enterprises,
10.75%, 10/1/03 436,087
NR NR 680 Orange County Industrial
Development Authority,
Beverly Enterprises,
9.25%, 8/1/10 749,496
NR NR 1,000 Winter Garden, Beverly
Enterprises, 8.75%, 7/1/12 1,089,190
------------
25,577,895
------------
Pooled Loans - 0.9%
NR NR $5,000 Osceola County IDA
Community Pooled Loan,
7.75%, 7/1/17 $5,052,700
------------
Solid Waste - 0.7%
A A $3,745 Broward County Waste
Energy Company, L.P.
North Project,
7.95%, 12/1/08 $4,125,155
------------
Special Tax Revenue - 7.7%
A1 A+ $8,020 Orange County
5.375%, 1/1/24 $7,462,129
A1 NR 3,000 City of Orlando,
6.00%, 10/1/22 3,047,850
Baa1 A 7,410 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/19 7,085,368
Baa1 A 10,135 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/22 8,995,117
Baa1 A 10,560 Puerto Rico Highway &
Transportation Authority,
5.25%, 7/1/21 9,735,897
Baa1 A 4,750 Puerto Rico Highway &
Transportation Authority,
5.00%, 7/1/36 4,148,745
Baa1 A 5,750 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/36 5,465,605
------------
$45,940,711
------------
Transportation - 1.7%
NR NR $10,140 Mid-Bay Bridge Authority,
6.125%, 10/1/22 10,157,238
------------
Utilities - 12.9%
Aa AA $7,125 Gainesville Utility System,
5.20%, 10/1/22 $6,718,519
NR BBB 27,825 Guam Power Authority,
5.25%, 10/1/23 24,283,156
Aa1 AA 34,005 Jacksonville Electric
Authority, Bulk Power
Supply System, Scherer
4 Project, 5.25%, 10/1/21 31,892,948
Aa1 AA 2,850 Orlando Utilities
Commission Water and
Electric, 5.125%, 10/1/19 2,627,729
Aa AA- 1,750 Orlando Utilities
Commission Water and
Electric, 5.25%, 10/1/23 1,623,983
Aa AA- 2,965 Orlando Utilities
Commission Water and
Electric, 5.50%, 10/1/26 $2,847,349
Baa1 BBB+ $6,000 Puerto Rico Electric
Power Authority,
0%, 7/1/17 $1,749,540
Baa1 BBB+ 185 Puerto Rico Electric
Power Authority,
7.125%, 7/1/14 198,205
A1 AA- 2,515 St. Lucie County Solid
Waste Disposal, Florida
Power & Light
Company (AMT),
6.70%, 5/1/27 2,644,196
NR NR 2,000 Virgin Islands Water &
Power Authority,
7.40%, 7/1/11 2,117,680
------------
$76,703,305
------------
Water & Sewer - 0.4%
Baa1 BBB+ $2,500 Hillsborough County
Utility, 6.625%, 8/1/11 $2,636,250
------------
Total Tax-Exempt
Investments (identified
cost, $560,837,654) $595,519,806
============
(1) Security has been issued as an inverse floater bond.
(2) Security has been segregated to cover margin requirements on open
financial futures contracts.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Florida municipalities.
The ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In order
to reduce the risk associated with such economic developments, at September 30, 1996,
43.9% 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 insured by financial institution ranged from 0.2% to 13.4% of
total investments.
See notes to financial statements
</TABLE>
New York Municipals Portfolio
Portfolio of Investments - September 30, 1996
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Assisted Living - 0.3%
NR NR $1,970 Village of North Syracuse
Housing Authority, (AJM
Senior Housing, Inc. Janus
Park Project),
8.00%, 6/1/24 $1,959,007
------------
Education - 15.1%
A NR $1,000 Dutchess County IDA,
Bard College,
7.00%, 11/1/17 $1,084,560
A1 NR 6,170 Monroe County IDA,
Wilmur Assoc.,
7.25%, 12/1/16 6,378,855
Baa BBB- 1,660 City of New Rochelle
IDA Civic Facilities,
College of New
Rochelle, 6.75%, 7/1/22 1,698,877
Baa1 BBB+ 1,300 Dormitory Authority,
State University Educational
Facilities, 7.50%, 5/15/11 1,518,517
Aaa AA+ 6,895 Dormitory Authority,
State University Educational
Facilities, 4.75%, 7/1/14 6,140,825
Baa1 BBB+ 415 Dormitory Authority, State
University Educational
Facilities, 7.375%, 5/15/14 452,421
Baa1 BBB+ 9,850 Dormitory Authority,
State University Educational
Facilities, 5.25%, 5/15/15 9,089,875
Baa1 BBB+ 24,605 Dormitory Authority,
State University
Educational Facilities,
5.25%, 5/15/19 22,505,701
Baa1 BBB+ 6,805 Dormitory Authority,
State University
Educational Facilities,
5.25%, 5/15/21 6,160,430
Baa1 BBB+ 32,000 Dormitory Authority,
State University Educational
Facilities, 5.50%,
5/15/13 30,751,680
NR AA 1,300 Dormitory Authority,
New York Medical College
(Asset Guaranty),
6.875%, 7/1/21 1,402,570
Aa AA 2,650 Dormitory Authority, Vassar
College, 5.00%, 7/1/15 2,452,178
------------
$89,636,489
------------
Electric Utilities - 4.5%
A1 A 2,500 New York State Energy
Research & Development
Authority, Brooklyn Union
Gas (RIBS)(AMT),
Variable, 7/1/26 (1) $2,952,600
A1 A+ 500 New York State Energy
Research & Development
Authority, Consolidated
Edison (AMT),
7.75%, 1/1/24 524,500
A1 A+ 2,365 New York State Energy
Research & Development
Authority, Consolidated
Edison (AMT),
7.50%, 7/1/25 2,537,148
A1 A+ 1,000 New York State Energy
Research & Development
Authority, Consolidated
Edison (AMT),
7.50%, 1/1/26 1,076,510
Aa AA- 17,445 Power Authority of the
State of New York,
5.25%, 1/1/18 16,280,023
NR NR 3,000 Virgin Islands Water and
Power Authority,
7.40%, 7/1/11 3,176,520
------------
$26,547,301
------------
Escrowed - 9.6%
Aaa AAA $725 Albany Municipal Water
(MBIA), 7.50%, 12/1/17 $787,915
Aaa BBB 1,000 Dormitory Authority, City
University, 7.625%, 7/1/20 1,123,410
Aaa BBB+ 1,530 Dormitory Authority, State
University Educational
Facilities, 7.70%, 5/15/12 1,717,670
Baa1 BBB+ 2,000 Dormitory Authority, State
University Educational
Facilities, 5.50%, 5/15/19 1,891,120
Baa1 BBB- 2,250 Dormitory Authority,
Upstate Community
College, 7.20%, 7/1/21 2,527,718
Baa1 NR 2,000 Dormitory Authority,
Upstate Community
College, 7.30%, 7/1/21 2,255,280
Aaa AAA $500 Erie County Water
Authority, Water Works
System, (AMBAC)
6.00%, 12/1/08 531,960
Aaa AAA $500 Metropolitan Transportation
Authority Commuter
Facilities Bonds,
7.50%, 7/1/19 557,455
Aaa AAA 1,000 New York Local
Government Assistance
Corporation (LGAC),
7.00%, 4/1/16 1,112,750
Aaa AAA 1,500 New York, LGAC,
6.75%, 4/1/21 1,670,610
Aaa BBB 1,000 New York State Housing
Finance Agency (HFA),
Service Contracts,
7.80%, 9/15/01 1,143,750
Aaa AAA $1,775 New York State HFA,
Service Contracts,
7.375%, 9/15/21 $2,028,452
Aaa BBB+ 90 New York State Medical
Care Facilities Finance
Agency, (MCFFA),
Mental Health Services
Facilities, 7.75%, 8/15/10 $100,586
Aaa AAA 450 New York State MCFFA,
Mental Health Services
Facilities, 7.875%, 8/15/08 510,889
Aaa AAA 3,320 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 3,751,135
Aaa NR 8,100 New York State Urban
Development Corporation
(UDC), Correctional
Facilities, 6.50%, 1/1/21 8,686,521
Baa1 BBB 4,750 New York State Thruway
Authority, Local Highway
and Bridge Service
Contract Bonds,
7.25%, 1/1/10 (2) 5,288,650
Baa1 BBB $500 New York State UDC,
Alfred Technology,
7.875%, 1/1/20 $559,015
Baa1 BBB 750 New York State UDC,
Clarkson Center,
7.80%, 1/1/20 852,308
Baa1 BBB 750 New York State UDC,
Clarkson Center,
8.00%, 1/1/20 854,903
Aaa AAA 5,350 New York State UDC,
Onondaga Co. Convention
Center, 7.875, 1/1/10 6,106,222
Aaa AAA 500 Oyster Bay (FGIC),
6.60%, 2/15/12 $548,360
Aaa AAA 450 Oyster Bay (FGIC),
6.60%, 2/15/13 493,524
NR AA- 500 Power Authority of the
State of New York,
8.00%, 1/1/17 532,560
NR AAA $1,760 Puerto Rico Highway &
Transportation Authority,
6.625%, 7/1/18 $1,958,282
Baa1 AAA 3,750 Puerto Rico Aqueduct &
Sewer Authority,
7.875%, 7/1/17 4,062,113
Baa1 AAA 4,840 Puerto Rico Highway and
Transportation Authority,
6.625%, 7/1/18 5,385,274
------------
$57,038,432
------------
General Obligations - 1.3%
Baa1 BBB+ 120 New York City,
8.25%, 11/15/16 $137,923
Baa1 BBB+ 4,000 New York City,
7.50%, 2/1/18 4,394,040
Aa AA $1,700 Onondaga County,
5.875%, 2/15/11 1,776,381
Aa AA 1,600 Onondaga County,
5.875%, 2/15/12 1,654,832
------------
$7,963,176
------------
Health Care - 16.8%
NR AAA $6,705 Dormitory Authority,
United Health Services,
FHA Insured Mortgage,
7.35%, 8/1/29 $7,222,760
NR AA 1,000 Dormitory Authority,
St. Johns, FHA Insured
Nursing Home
6.05%, 2/1/16 1,019,610
Baa1 BBB+ 10,000 Dormitory Authority,
Mental Health Facilities
5.375%, 2/15/26 8,964,200
Aa AA 750 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.35%, 2/15/29 805,725
NR AAA 3,395 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.125%, 2/15/14 3,513,248
NR AA 9,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.70%, 8/15/23 $9,458,640
Aa AA 6,600 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.20%, 2/15/31 7,132,422
Aa AA 1,500 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.95%, 2/15/32 1,597,650
Aa AA 2,190 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 7.00%, 8/15/32 $2,350,220
Health Care (continued)
Aa AA $1,050 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.75%, 2/15/12 $1,116,119
Aa AA 1,000 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.55%, 8/15/12 1,044,180
NR AA+ 2,670 New York State MCFFA,
Hospital and Nursing
Insured Mortgage
(FHA), 6.10%, 8/15/15 2,720,169
Aa AA 3,500 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/14 3,619,700
Aa AA $6,550 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.25%, 8/15/15 6,781,805
Aa AA 6,625 New York State MCFFA,
Insured Mortgage Project
(FHA), 6.20%, 8/15/15 6,798,244
Aa AA 950 New York State MCFFA,
Insured Mortgage Project
(FHA), 7.45%, 8/15/31 $1,038,388
Baa1 BBB+ 1,610 New York State MCFFA,
Mental Health Services
Facilities, 7.625%, 8/15/17 1,797,951
Baa1 BBB+ 145 New York State MCFFA,
Mental Health Services
Facilities, 7.75%, 8/15/10 $159,326
Baa1 BBB+ 495 New York State MCFFA,
Mental Health Services
Facilities, 7.875%, 8/15/08 552,237
Baa1 BBB+ 1,230 New York State MCFFA,
Mental Health Services
Facilities, 7.50%, 2/15/21 $1,360,823
Baa NR 5,540 New York State MCFFA,
Secured Hospital,
7.35%, 8/15/11 5,929,296
Baa BBB 19,700 New York State MCFFA,
Secured Hospital
(Brookdale),
6.80%, 8/15/12 20,500,214
Baa1 BBB+ 4,785 New York State MCFFA,
Mental Health Services
Facilities, Series 1994 A,
5.25%, 8/15/23 4,199,220
------------
$99,682,147
------------
Hospitals - 0.8%
Aa AAA $1,500 Dormitory Authority,
Long Island Jewish Medical
Center (FHA),
7.75%, 8/15/27 $1,588,305
NR AAA 1,000 Dormitory Authority,
St. Francis Hospital (FHA),
7.65%, 8/1/30 1,101,470
Baa1 BBB+ 1,800 Syracuse Industrial
Development Agency
(IDA), St. Joseph's Hospital
Health Center,
7.50%, 6/1/18 1,909,800
------------
$4,599,575
------------
Housing - 5.9%
NR NR $4,662 New York City Housing
Development Corporation
(HDC), Allerville Project,
6.50%, 11/15/18 $4,772,466
NR NR 2,044 New York City HDC,
Dayton Project,
6.50% 11/15/18 2,068,286
NR AAA 2,550 New York City HDC,
Multi-Unit Management,
7.35%, 6/1/19 2,683,620
Baa A 4,750 New York City HDC,
General Housing,
6.50%, 5/1/22 4,750,000
Aa AAA 235 New York State Housing
Finance Agency, Baytown,
7.10%, 8/15/35 248,942
Aa NR 510 New York State Mortgage
Agency, 7.70%, 10/1/12 545,924
Aa NR 8,750 New York State Mortgage
Agency, 6.90%, 4/1/15 9,316,563
Aa NR 500 New York State Mortgage
Agency, 6.65%, 4/1/22 518,770
Aa NR 1,000 New York State Mortgage
Agency, 7.50%, 4/1/15 1,081,050
Aa NR 1,600 New York State Mortgage
Agency (AMT),
7.95%, 10/1/21 1,712,832
Aa NR 6,350 New York State Mortgage
Agency (AMT),
6.40%, 10/1/20 6,433,122
Baa BBB 350 Puerto Rico
Commonwealth Urban
Renewal & Housing
Corporation,
7.875%, 10/1/04 384,727
Aaa AAA 365 Puerto Rico Housing
Financial Corporation
Single-Family (GNMA),
7.65%, 10/15/22 384,137
------------
$34,900,439
------------
Industrial Development
Revenue - 0.5%
Baa3 BB+ $2,800 Port Authority of
New York and New Jersey,
Delta Airlines
LaGuardia Airport,
6.95%, 6/1/08 $2,983,932
------------
Insured Colleges &
Universities - 0.4%
Aaa AAA $2,000 Dormitory Authority,
New York University
(MBIA), 5.00%, 7/1/11 $1,872,820
Aaa AAA 450 Dormitory Authority,
Colgate University
(MBIA), 6.00%, 7/1/16 471,843
------------
$2,344,663
------------
Insured General Obligation - 0.0%
Aaa AAA $1,035 Erie County Water
Authority (AMBAC),
0%, 12/1/17 $226,955
------------
Insured General
Obligations (Local) - 1.7%
Aaa AAA $465 Chautauqua County
Unlimited Tax (FGIC),
7.30%, 4/1/07 $544,445
Aaa AAA 520 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/08 571,594
Aaa AAA 770 Chautauqua County
Unlimited Tax (FGIC),
6.40%, 9/15/09 843,304
Aaa AAA 725 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/07 831,684
Aaa AAA 600 Jamestown, (Secondary
AMBAC), 7.00%, 3/15/08 688,920
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/09 809,585
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/10 811,986
Aaa AAA 700 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/11 813,687
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/12 785,639
Aaa AAA 675 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/13 786,078
Aaa AAA 515 Jamestown, (Secondary
AMBAC), 7.10%, 3/15/14 599,671
Aaa AAA 2,000 New York City (AMBAC),
7.00%, 8/1/17 2,218,080
------------
$10,304,673
------------
Insured General
Obligations (School District) - 0.3%
Aaa AAA $700 Bethlehem Central School
District (AMBAC),
7.10%, 11/1/08 $814,709
Aaa AAA 700 Bethlehem Central School
District (AMBAC),
7.10%, 11/1/09 814,135
------------
$1,628,844
------------
Insured General
Obligations (Territory) - 0.8%
Aaa AAA $4,500 Commonwealth of
Puerto Rico Public
Improvement Residual
Interest Tax Exempt
Securities (FSA), Variable,
7/1/22 (1) $4,628,340
------------
Insured Health Care - 3.5%
Aaa AAA $12,630 New York State Dormitory
Authority, Mental Health
Facilities (MBIA)
5.125%, 8/15/21 $11,622,758
Aaa AAA 1,500 New York State MCFFA,
Long Term Health Care
(FSA), 6.80%, 11/1/14 1,602,690
Aaa AAA 1,300 New York State MCFFA,
New York Hospital FHA
Insured Mortgage
(AMBAC), 6.60%, 2/15/11 1,419,522
Aaa AAA 5,400 New York State MCFFA,
New York Hospital FHA
Insured Mortgage
(AMBAC), 6.75%, 8/15/14 5,889,240
------------
$20,534,210
------------
Insured Housing - 0.1%
Aaa AAA $500 New York City HDC,
Charter Oaks (MBIA),
7.375% 4/1/17 $518,075
------------
Insured Miscellaneous - 0.1%
Aaa AAA $500 New York City IDA,
(USTA National Tennis
Center Incorporated
Project) (FSA),
6.375%, 11/15/14 $530,770
------------
Insured Municipal Electric - 2.0%
Aaa AAA $12,150 New York State Energy
Research & Development
Authority, Brooklyn
Union Gas, (MBIA),
5.50%, 1/1/21 $11,815,997
------------
Insured Solid Waste - 1.5%
Aaa AAA $1,650 Dutchess County Resource
Recovery Solid Waste
(FGIC), 7.50%, 1/1/09 $1,788,666
Aaa AAA $6,795 Islip Resource Recovery
Agency (MBIA),
6.50%, 7/1/09 7,390,106
------------
$9,178,772
------------
Insured Toll & Turnpike - 1.1%
NR AAA $3,000 Triborough Bridge &
Tunnel Authority, (TBTA),
Residual Interest
Tax Exempt Securities
(MBIA), Variable, 1/1/19 (1) $3,042,750
Aaa AAA 3,000 TBTA, Residual Interest
Tax Exempt Securities
(AMBAC) Variable,
1/1/12 (1) 3,221,730
------------
$6,264,480
------------
Insured Utility Other - 0.8%
Aaa AAA $5,000 Puerto Rico Telephone
Authority, MBIA, Variable,
1/25/07 (1) $4,954,050
------------
Insured Water & Sewer - 0%
Aaa AAA $275 Albany Municipal Water
Financial Authority
(MBIA), 7.50%, 12/1/17 $295,243
------------
Lease/Certificate of
Participation - 11.2%
Baa1 BBB $5,100 Dormitory Authority,
City University,
7.00%, 7/1/09 5,655,084
Baa1 BBB 4,325 Dormitory Authority,
City University,
7.50%, 7/1/10 4,978,681
Baa1 BBB 15,815 Dormitory Authority,
City University,
5.75%, 7/1/13 15,612,726
Baa1 BBB 5,500 Dormitory Authority,
City University,
5.625%, 7/1/16 5,305,740
Baa1 BBB+ $13,380 New York State HFA
Health Facilities,
6.00%, 5/1/06 13,505,237
Baa1 BBB 250 Dormitory Authority,
City University,
6.375%, 7/1/08 260,895
NR BBB 5,865 New York State Thruway
Authority, 0%, 1/1/01 4,648,951
NR BBB 2,350 New York State Thruway
Authority, 0%, 1/1/03 1,649,418
Baa1 BBB 12,200 New York State UDC,
5.70%, 4/1/20 11,861,694
A A $1,825 Syracuse - Hancock
International Airport,
6.625%, 1/1/12 $1,913,914
NR BBB 1,000 Dormitory Authority,
City University, (Cross-over
Refunded '98)
8.125%, 7/1/08 1,083,850
------------
66,476,190
------------
Miscellaneous - 1.7%
Aa AA- $200 City of New York
Municipal Assistance
Corporation,
7.50%, 7/1/08 $213,778
Aa AA- 485 City of New York
Municipal Assistance
Corporation,
7.625%, 7/1/08 519,420
Aa AA- 635 City of New York
Municipal Assistance
Corporation,
7.625%, 7/1/08 $695,655
NR NR 1,300 New York City IDA,
(YMCA of Greater
New York), 8.00%, 8/1/16 1,385,787
Aaa AAA $7,000 VRDC-IVRC Trust,
(NY MTA), Variable,
6/26/02 (1) 7,128,450
------------
$9,943,090
------------
Solid Waste - 2.1%
A NR $2,665 Hempstead IDA
Resource Recovery,
American Refunding
Fuel Co., 7.40%, 12/1/10 $2,727,494
Baa NR 9,530 New York State EFC
Resource Recovery,
Huntington Project,
7.50%, 10/1/12 10,033,184
------------
$12,760,678
------------
Special Tax Revenue - 11.8%
A A $4,750 New York State LGAC,
5.25%, 4/1/16 $4,516,395
A A 5,225 New York State LGAC,
5.50%, 4/1/17 5,118,096
A A 3,300 New York State LGAC,
6.875%, 4/1/19 3,594,459
A A 4,000 New York State LGAC,
5.50%, 4/1/21 3,834,000
A A 26,170 New York State LGAC,
5.00%, 4/1/23 23,288,945
A A 5,000 New York State LGAC,
5.00%, 4/1/21 4,528,700
A A $21,000 New York State LGAC,
5.00%, 4/1/21 $18,766,860
NR BBB+ 2,630 New York State Municipal
Bond Bank Agency,
6.875%, 3/15/06 2,811,943
Baa1 BBB 3,335 TBTA Convention
Center, 6.00%, 1/1/11 3,382,524
------------
$69,841,922
------------
Transportation - 2.7%
A1 AA- $1,500 Port Authority of
New York and New Jersey
(AMT), Variable,
1/15/27 (1) 1,551,960
Aa A+ 11,580 TBTA General Purpose,
5.50%, 1/1/17 11,592,854
Aa A+ 2,500 TBTA General Purpose,
6.125%, 1/1/21 2,676,125
------------
$15,820,939
------------
Water & Sewer Revenue - 3.4%
Aa A $11,050 New York State EFC,
State Water Pollution
Control, 6.875%, 6/15/10 $12,101,850
Aa A+ 4,545 New York State EFC,
State Water Pollution
Control, 7.20%, 3/15/11 4,948,323
Aa A 2,750 New York State EFC,
State Water Pollution
Control, 7.00%, 6/15/12 3,030,912
Aa A 150 New York State EFC,
State Water Pollution
Control, 7.50%, 6/15/12 $165,705
------------
$20,246,790
------------
Total Tax-Exempt
Investments (identified
cost, $559,321,735) $593,625,179
------------
(1) Security has been issued as an inverse floater bond.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
AMT - Interest earned from these securities may be considered a tax preference item
for purposes of the Federal Alternative Minimum Tax.
The Portfolio primarily invests in debt securities issued by New York municipalities.
The ability of the issuers of the debt securities to meet their obligations may be affected
by economic developments in a specific industry or municipality. In order to reduce the risk
associated with such economic developments, at September 30, 1996, 22.5% 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 insured by financial
institution ranged from 0.1% to 9.9% of total investments.
See notes to financial statements
</TABLE>
Rhode Island Municipals Portfolio
Portfolio of Investments - September 30, 1996
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
- -------------------
Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 5.2%
Aa1 AA $1,500 Rhode Island Health and
Educational Building
Corporation, Brown
University, 5.375%,
9/1/23 $1,413,585
A NR $750 Rhode Island Student
Loan Authority, (AMT),
5.60%, 12/1/12 $715,433
-----------
$2,129,018
-----------
Electric Utility - 1.6%
Baa1 BBB+ $710 Puerto Rico Electric
Power Authority,
5.00%, 7/1/12 $655,259
-----------
Escrowed - 2.0%
Aaa AAA $550 Rhode Island Depositors
Economic Protection
Corporation, (MBIA),
5.25%, 8/1/21 $533,791
NR NR 270 Rhode Island Depositors
Economic Protection
Corporation, 5.75%, 8/1/21 268,210
-----------
$802,001
-----------
General Obligation (Local) - 0.5%
Baa NR $210 West Warwick,
6.80%, 7/15/98 $212,986
-----------
General Obligations
(Territory) - 4.4%
NR BBB $750 Government of Guam,
5.40%, 11/15/18 $679,913
Baa1 A 1,250 Puerto Rico Aqueduct &
Sewer Authority,
5.00%, 7/1/19 1,128,812
-----------
$1,808,725
-----------
Hospitals - 7.8%
NR AA $1,500 Rhode Island Health and
Educational Building
Corporation, Landmark
Medical Center,
5.875%, 10/1/19 $1,473,090
NR A 1,015 Rhode Island Health and
Educational Building
Corporation, Butler
Hospital, 5.125%, 1/1/08 965,316
Baa BBB 830 Rhode Island Health and
Educational Building
Corporation, Westerly
Hospital, 6.00%, 7/1/14 772,547
-----------
$3,210,953
-----------
Housing - 16.3%
Aa AA+ $1,550 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
6.60%, 10/1/25 $1,594,888
Aa AA+ $100 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
6.70%, 10/1/12 104,458
Aa AA+ 270 Rhode Island Housing and
Mortgage Finance
Corporation, 6.70%,
10/1/14 283,130
Aa AA+ 875 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
6.80%, 10/1/25 (2) 910,954
Aa AA+ 1,000 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
7.10%,10/1/23 1,038,970
Aa AA+ 2,000 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
7.55%, 10/1/22 2,123,500
Aa AA+ 35 Rhode Island Housing and
Mortgage Finance
Corporation, (AMT),
7.875%, 10/1/22 36,608
Aa AA+ 500 Rhode Island Housing and
Mortgage Finance
Corporation, (MBIA),
6.20%, 10/1/06 515,915
Aa AA+ 95 Rhode Island Housing and
Mortgage Finance
Corporation,
6.85%, 4/1/27 99,188
-----------
$6,707,611
-----------
Industrial Development
Revenue - 1.2%
Baa3 BB+ $500 Puerto Rico Port
Authority, American
Airlines, Inc.(AMT),
6.30%, 6/1/23 $506,260
-----------
Insured Colleges and
Universities - 13.7%
Aaa AAA $1,000 Rhode Island Health and
Educational Building,
Providence College
Issue (MBIA),
5.60%, 11/1/15 $970,310
Aaa AAA 730 Rhode Island Health and
Educational Building,
Providence College
Issue (MBIA),
5.60%, 11/1/22 700,048
Aaa AAA 2,200 Rhode Island Health and
Educational Building,
University of Rhode Island
(MBIA), 5.25%, 9/15/23 2,005,366
NR AAA 500 Rhode Island Health and
Educational Building,
Johnson & Wales, (CLEE)
6.00%, 4/1/17 504,540
Aaa AAA 1,500 Rhode Island Health and
Educational Building,
RISD, (MBIA),
5.625%, 6/1/26 1,446,465
-----------
$5,626,729
-----------
Insured General Obligations - 17.0%
Aaa AAA $1,500 Kent County Water
Authority, (MBIA),
6.35%, 7/15/14 $1,592,985
Aaa AAA 1,000 Rhode Island Depositors
Economic Protection
Corporation, (MBIA),
5.80%, 8/1/09 1,032,840
Aaa AAA 1,000 Rhode Island Depositors
Economic Protection
Corporation
5.80%, 8/1/12 1,016,510
Aaa AAA 2,000 Rhode Island Clean Water
Revolving Fund Series A,
(MBIA), 5.875%, 10/1/15 2,017,280
Aaa AAA 1,480 Rhode Island Port
Authority and Economic
Development Corporation
Airport, (FSA),
5.25%, 7/1/23 1,329,291
-----------
$6,988,906
-----------
Insured General
Obligations (Local) - 2.5%
Aaa AAA $1,000 Cranston, Rhode Island,
(MBIA), 6.10%, 6/15/15 $1,040,290
-----------
Insured General
Obligation (Territory) - 0.6%
Aaa AAA $250 Puerto Rico, Public
Improvement Bonds of
1992, Yield Curve
Notes (AMBAC),
Variable, 7/1/15 (1) $254,125
-----------
Insured Housing - 6.2%
Aaa AAA $850 Providence Housing
Development Corporation
Mortgage, (Barbara
Jordan Apartments)
(MBIA), 6.50%, 7/1/09 $880,915
Aaa AAA 1,075 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA),
6.75%, 1/1/19 1,125,622
Aaa AAA 500 Villa Excelsior Housing
Development Corporation
Mortgage (MBIA),
6.85%, 1/1/24 525,305
-----------
$2,531,842
-----------
Insured Lease/Certificate
of Participation - 4.8%
Aaa AAA $800 City of Pawtucket, Public
Building Authority, (FSA),
5.75%, 3/15/14 $805,184
Aaa AAA 590 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/13 559,845
Aaa AAA 630 Providence Rhode Island
Public Building Authority,
Feinstein School (MBIA),
5.25%, 12/15/14 596,723
-----------
$1,961,752
-----------
Insured Water & Sewer - 4.0%
Aaa AAA $350 Rhode Island Clean Water,
Water Pollution Control,
(MBIA), 5.40%,10/1/15 $340,281
Aaa AAA 500 Rhode Island Clean Water,
Water Pollution Control
(MBIA), 5.85%, 10/1/09 511,000
Aaa AAA 750 Rhode Island Clean Water,
Safe Drinking Water
(AMBAC), 6.70%, 1/1/15 813,307
-----------
$1,664,588
-----------
Insured Special Tax - 6.4%
Aaa AAA $3,000 Convention Center
Authority of Rhode Island,
(MBIA), 5.80%, 5/15/20 $2,651,130
-----------
Miscellaneous - 1.8%
Baa1 A- $230 Rhode Island Depositors
Economic Protection
Corporation,
5.75%, 8/1/21 $213,930
NR BBB 500 Guam Airport Authority,
(AMT), Series 93-B,
6.70%,10/1/23 509,110
-----------
$723,040
-----------
Special Tax - 4.0%
Baa BBB- $1,500 City of Providence, Special
Obligation Tax Increment
Bonds, 7.65%, 6/1/16 $1,637,236
-----------
Total Tax-Exempt
Investments (identified
cost, $40,355,643) $41,112,451
===========
(1) Security has been issued as an inverse floater bond.
(2) Security has been segregated to cover margin requirements on open financial
futures contracts.
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The Portfolio primarily invests in debt securities issued by Rhode Island
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, 1996, 54.1% 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 insured by financial institution ranged
from 2.6% to 46.3% of total investments.
See notes to financial statements
</TABLE>
Municipals Portfolios
Financial Statements
Statements of Assets and Liabilities
September 30, 1996
<TABLE>
<CAPTION>
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Assets:
Investments --
Identified cost $337,396,359 $560,837,654 $559,321,735 $ 40,355,643
Unrealized appreciation 25,997,282 34,682,152 34,303,444 756,808
------------ ------------ ------------ ------------
Total investments, at value (Note 1A) $363,393,641 $595,519,806 $593,625,179 $ 41,112,451
Cash 1,251,461 10,859,556 382,818 232,372
Receivable for daily variation margin on open
financial futures contracts (Note 1E) 84,375 223,875 145,969 13,500
Receivable for investments sold -- 13,871,030 80,000 --
Interest receivable 5,874,698 13,150,484 10,316,594 810,371
Deferred organization expenses (Note 1D) 8,923 12,242 8,608 1,107
------------ ------------ ------------ ------------
Total assets $370,613,098 $633,636,993 $604,559,168 $ 42,169,801
------------ ------------ ------------ ------------
Liabilities:
Payable for investments purchased $ -- $ 9,245,000 $ -- $ --
Payable to affiliate --
Trustees' fees (Note 2) 4,213 5,213 5,213 417
Accrued expenses 18,690 12,779 24,435 2,205
------------ ------------ ------------ ------------
Total liabilities $ 22,903 $ 9,262,992 $ 29,648 $ 2,622
------------ ------------ ------------ ------------
Net Assets applicable to investors'
interest in Portfolio $370,590,195 $624,374,001 $604,529,520 $ 42,167,179
============ ============ ============ ============
Sources of Net Assets:
Net proceeds from capital contributions
and withdrawals $345,003,950 $591,109,319 $570,585,516 $ 41,443,615
Unrealized appreciation of investments and financial
futures contracts (computed on the basis
of identified cost) 25,586,245 33,264,682 33,944,004 723,564
------------ ------------ ------------ ------------
Total $370,590,195 $624,374,001 $604,529,520 $ 42,167,179
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended September 30, 1996
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Investment Income:
Interest income (Note 1B) $ 25,401,268 $ 41,738,135 $ 38,971,505 $ 2,535,637
------------ ------------ ------------ ------------
Expenses --
Investment adviser fee (Note 2) $ 1,942,811 $ 3,123,150 $ 2,932,032 $ 108,803
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 17,811 20,749 20,749 1,543
Custodian fee (Note 1J) 173,498 208,454 195,496 23,340
Legal and accounting services 43,579 41,453 41,684 24,437
Amortization of organization expenses (Note 1D) 5,640 8,853 6,313 637
Miscellaneous 54,538 133,570 83,059 10,971
------------ ------------ ------------ ------------
Total expenses $ 2,237,877 $ 3,536,229 $ 3,279,333 $ 169,731
------------ ------------ ------------ ------------
Deduct --
Reduction of investment adviser fee (Note 2) $ -- $ -- $ -- $ 53,561
Reduction of custodian fee (Note 1J) 41,453 208,454 169,999 11,507
------------ ------------ ------------ ------------
Total $ 41,453 $ 208,454 $ 169,999 $ 65,068
------------ ------------ ------------ ------------
Net expenses $ 2,196,424 $ 3,327,775 $ 3,109,334 $ 104,663
------------ ------------ ------------ ------------
Net investment income $ 23,204,844 $ 38,410,360 $ 35,862,171 $ 2,430,974
------------ ------------ ------------ ------------
Realized and Unrealized Gain (Loss):
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 5,804,250 $ 7,700,894 $ 5,500,573 $ 40,116
Financial futures contracts (1,261,311) (1,995,643) (1,445,211) (167,078)
------------ ------------ ------------ ------------
Net realized gain (loss) $ 4,542,939 $ 5,705,251 $ 4,055,362 $ (126,962)
------------ ------------ ------------ ------------
Change in unrealized appreciation (depreciation) --
Investments $ 1,694,189 $ 874,146 $ 2,600,470 $ 705,345
Financial futures contracts (237,538) (1,417,469) 3,422 4,227
------------ ------------ ------------ ------------
Net unrealized appreciation (depreciation) $ 1,456,651 $ (543,323) $ 2,603,892 $ 709,572
------------ ------------ ------------ ------------
Net realized and unrealized gain $ 5,999,590 $ 5,161,928 $ 6,659,254 $ 582,610
------------ ------------ ------------ ------------
Net increase in net assets from operations $ 29,204,434 $ 43,572,288 $ 42,521,425 $ 3,013,584
============ ============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended September 30, 1996
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 23,204,844 $ 38,410,360 $ 35,862,171 $ 2,430,974
Net realized gain (loss) 4,542,939 5,705,251 4,055,362 (126,962)
Change in unrealized appreciation (depreciation) 1,456,651 (543,323) 2,603,892 709,572
------------ ------------- ------------ ------------
Net increase in net assets from operations $ 29,204,434 $ 43,572,288 $ 42,521,425 $ 3,013,584
------------ ------------- ------------ ------------
Capital transactions --
Contributions $ 20,317,562 $ 35,149,563 $ 36,583,799 $ 5,557,065
Withdrawals (89,601,939) (166,550,986) (127,312,013) (9,309,437)
------------ ------------- ------------ ------------
Decrease in net assets resulting from
capital transactions $(69,284,377) $(131,401,423) $(90,728,214) $ (3,752,372)
------------ ------------- ------------ ------------
Total decrease in net assets $(40,079,943) $ (87,829,135) $(48,206,789) $ (738,788)
Net Assets:
At beginning of year 410,670,138 712,203,136 652,736,309 42,905,967
------------ ------------- ------------ ------------
At end of year $370,590,195 $624,374,001 $604,529,520 $ 42,167,179
============ ============= ============ ============
<CAPTION>
- -----------------------------------------------------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- -----------------------------------------------------------------------------------------------------------------------------
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 26,176,138 $ 43,615,848 $ 38,506,539 $ 2,410,958
Net realized loss (23,050,795) (22,866,182) (19,277,660) (1,392,005)
Change in unrealized appreciation 33,475,523 54,420,669 43,043,554 2,874,743
------------ ------------- ------------ ------------
Net increase in net assets from operations $ 36,600,866 $ 75,170,335 $ 62,272,433 $ 3,893,696
------------ ------------- ------------ ------------
Capital transactions --
Contributions $ 39,676,667 $ 64,327,943 $ 61,423,633 $ 9,514,698
Withdrawals (110,738,796) (199,418,295) (126,606,533) (8,622,345)
------------ ------------- ------------ ------------
Increase (decrease) in net assets resulting
from capital transactions $(71,062,129) $(135,090,352) $(65,182,900) $ 892,353
------------ ------------- ------------ ------------
Total increase (decrease) in net assets $(34,461,263) $(59,920,017) $ (2,910,467) $ 4,786,049
Net Assets:
At beginning of year 445,131,401 772,123,153 655,646,776 38,119,918
------------ ------------- ------------ ------------
At end of year $410,670,138 $712,203,136 $652,736,309 $ 42,905,967
============ ============= ============ ============
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
California Portfolio Florida Portfolio
---------------------------------------- -------------------------------------------
Year Ended Year Ended
---------------------------------------- -------------------------------------------
September 30, March 31, September 30,
------------------------------ ------------ ------------------------------------
1996 1995 1994**** 1994*** 1996 1995 1994 1993*
-------- -------- -------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net assets):
Net expenses (1) 0.57% 0.59% 0.57%+ 0.55%+ 0.52% 0.55% 0.48% 0.47%+
Net expenses after
custodian fee reduction 0.56% 0.58% -- -- 0.49% 0.52% -- --
Net investment income 5.93% 6.22% 6.09%+ 5.72%+ 5.67% 5.94% 5.65% 5.53%+
Net assets, end of year (000 omitted) $370,590 $410,763 $445,131 $467,259 $624,374 $712,203 $772,123 $772,422
Portfolio Turnover 14% 58% 40% 91% 51% 61% 57% 55%
<CAPTION>
New York Portfolio Rhode Island Portfolio
---------------------------------------- ----------------------------------------
Year ended September 30, Year ended September 30,
---------------------------------------- ----------------------------------------
1996 1995 1994 1993* 1996 1995 1994 1993**
-------- -------- -------- -------- ------- ------- ------- --------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
Ratios (As a percentage
of average daily net assets):++
Net expenses (1) 0.52% 0.54% 0.48% 0.48%+ 0.27% 0.29% 0.12% 0.00%+
Net expenses after
custodian fee reduction 0.49% 0.51% -- -- 0.24% 0.25% -- --
Net investment income 5.64% 5.97% 5.70% 5.64%+ 5.69% 5.96% 5.64% 4.86%+
Net assets, end of year (000 omitted) $604,530 $652,736 $655,647 $648,807 $42,167 $42,906 $38,120 $16,981
Portfolio Turnover 47% 55% 47% 37% 25% 42% 42% 23%
++ The operating expenses of the Rhode Island Portfolio may reflect a reduction of the investment adviser fee and/or an
allocation of expenses to the Investment Adviser. Had such actions not been taken, the ratios would have been
as follows:
Ratios (As a percentage of average
daily net assets):
Expenses (1) 0.40% 0.41% 0.33% 0.26%+
Expenses after custodian fee reduction 0.37% 0.37% -- --
Net investment income 5.56% 5.80% 5.43% 4.60%+
+ Annualized.
* For the period from the start of business, February 1, 1993, to September 30, 1993.
** For the period from the start of business, June 11, 1993, to September 30, 1993.
*** For the period from the start of business, May 3, 1993, to March 31, 1994.
**** For the six months ended September 30, 1994. The portfolio changed its fiscal year from March 31 to
September 30, effective September 30, 1994.
(1) The expense ratios for the years ended September 30, 1996 and 1995 have been adjusted to reflect a change in
reporting requirements. The new reporting guidelines require each Portfolio to increase its expense ratio by the
effect of any expense offset arrangements with its service providers. The expense ratios for each of the periods
ended on or before September 30, 1994 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
California Municipals Portfolio (California Portfolio), Florida
Municipals Portfolio (Florida Portfolio), New York Municipals
Portfolio (New York Portfolio) and Rhode Island Municipals Portfolio
(Rhode Island Portfolio), collectively the Portfolios, are
registered under the Investment Company Act of 1940 as non-
diversified open-end management investment companies. The Portfolios
were organized as trusts under the laws of the State of New York on
May 1, 1992. The Declarations of Trust permit the Trustees to issue
interests in the Portfolios. The following is a summary of
significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements. 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 and options on futures contracts
listed on commodity exchanges are valued at closing settlement
prices. Options on futures contracts which are traded over the
counter are valued at the mean between the latest bid and asked
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 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 Portfolios are treated as partnerships for
Federal tax purposes. No provision is made by the Portfolios for
federal or state taxes on any taxable income because each investor
in the Portfolios is ultimately responsible for the payment of any
taxes. Since some of the Portfolios' investors are regulated
investment companies that invest all or substantially all of their
assets in the Portfolios, the Portfolios normally must satisfy the
applicable source of income and diversification requirements (under
the Internal Revenue Code) in order for their respective investors
to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share
of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income,
gain, loss, deductions or credit. Interest income received by the
Portfolios 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
each 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 Organizational Expenses-- Costs incurred by a 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, a 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 a Portfolio
("margin maintenance") each day, dependent on the daily fluctuations
in the value of the underlying security, and are recorded for book
purposes as unrealized gains or losses by a Portfolio. A 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 Portfolios may not achieve the
anticipated benefits of the financial futures contracts and may
realize a loss.
F. Options on Financial Futures Contracts-- Upon the purchase of a
put option on a financial futures contract by a Portfolio, the
premium paid is recorded as an investment, the value of which is
marked-to-market daily. When a purchased option expires, a Portfolio
will realize a loss in the amount of the cost of the option. When a
Portfolio enters into a closing sale transaction, the Portfolio will
realize a gain or loss depending on whether the sales proceeds from
the closing sale transactions are greater or less than the cost of
the option. When a Portfolio exercises a put option, settlement is
made in cash. The risk associated with purchasing options is limited
to the premium originally paid.
G. When-issued and Delayed Delivery Transactions-- The Portfolios
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 payments for the securities purchased. Securities
purchased on a when-issued or delayed delivery basis are marked-to-
market daily and begin earning interest on settlement date.
H. Use of Estimates-- The preparation of financial statements in
conformity with generally accepted accounting principles requires
management to make estimates and assumptions that affect the
reported amounts of assets and liabilities at the date of the
financial statements and the reported amounts of revenue and expense
during the reporting period. Actual results could differ from those
estimates.
I. Other-- Investment transactions are accounted for on a trade date
basis.
J. Expense Reduction-- Investors Bank & Trust Company (IBT) serves
as custodian of the Portfolios. Prior to November 10, 1995, IBT was
an affiliate of EVM. Pursuant to the custodian agreements, IBT
receives a fee reduced by credits which are determined based on the
average daily cash balances each Portfolio maintains with IBT. All
significant credit balances used to reduce each Portfolio's
custodian fees are reported as a reduction of expenses in the
statements of operations.
(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 each 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, 1996, each Portfolio paid advisory
fees as follows:
Portfolio Amount Effective Rate*
- ---------- ---------- ----------------
California $1,942,811 0.50%
Florida 3,123,150 0.46%
New York 2,932,032 0.46%
Rhode Island 108,803 0.25%
*Advisory fees paid as a percentage of average daily net assets.
To enhance the net income of the Rhode Island Portfolio, BMR made a
reduction in its fee in the amount of $53,561, for the year ended
September 30, 1996.
Except as to Trustees of the Portfolios who are not members of EVM's
or BMR's organization, officers and Trustees receive remuneration
for their services to the Portfolios out of such investment adviser
fee.
Certain of the officers and Trustees of the Portfolios are officers
and 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 percentage of their annual fees
in accordance with the terms of the Trustees Deferred Compensation
Plan. For the year ended September 30, 1996, no significant amounts
have been deferred.
(3) Investments
<TABLE>
<CAPTION>
Purchases and sales of investments, other than U.S. Government securities, purchased option transactions and short-term
obligations, for the year ended September 30, 1996, were as follows:
California Portfolio Florida Portfolio New York Portfolio Rhode Island Portfolio
-------------------- ----------------- ------------------ ----------------------
<S> <C> <C> <C> <C>
Purchases $54,079,902 $342,367,214 $301,869,050 $10,268,065
Sales 106,027,565 450,625,807 359,091,966 11,564,173
</TABLE>
(4) Federal Income Tax Basis of Investments
<TABLE>
<CAPTION>
The cost and unrealized appreciation (depreciation) in value of the investments owned by each
Portfolio at September 30, 1996, as computed on a federal income tax basis are as follows:
California Florida New York Rhode Island
Portfolio Portfolio Portfolio Portfolio
------------ ------------ ------------ ------------
<S> <C> <C> <C> <C>
Aggregate Cost $337,396,359 $560,837,654 $559,386,220 $ 40,355,643
------------ ------------ ------------ ------------
Gross unrealized appreciation $ 26,461,163 $ 36,660,431 $ 35,018,432 $ 1,111,293
Gross unrealized depreciation 463,881 1,978,279 779,473 354,485
------------ ------------ ------------ ------------
Net unrealized appreciation $ 25,997,282 $ 34,682,152 $ 34,238,959 $ 756,808
============ ============ ============ ============
</TABLE>
(5) Line of Credit
The Portfolios participate 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. Each 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 portfolios and funds at the end of each
quarter.
The Portfolios did not have any significant borrowings or allocated
fees during the year ended September 30, 1996.
(6) Financial Instruments
The Portfolios regularly trade in financial instruments with off-
balance sheet risk in the normal course of their investing
activities to assist in managing exposure to various market risks.
These financial instruments include 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 a 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>
<CAPTION>
A summary of obligations under these financial instruments at
September 30, 1996, were as follows:
Futures
Contracts Net Unrealized
Portfolio Expiration Date Contracts Position Depreciation
- ------------ -------------- ---------- -------- ------------
<S> <C> <C> <C> <C>
California 12/96 300 U.S. Treasury Bonds Short $ 411,037
Florida 12/96 796 U.S. Treasury Bonds Short 1,417,470
New York 12/96 519 U.S. Treasury Bonds Short 359,440
Rhode Island 12/96 48 U.S. Treasury Bonds Short 33,244
At September 30, 1996, each Portfolio had sufficient cash and/or securities to cover
margin requirements on open futures contracts.
</TABLE>
Independent Auditors' Report
To the Trustees and Investors of:
California Municipals Portfolio
Florida Municipals Portfolio
New York Municipals Portfolio
Rhode Island Municipals Portfolio
We have audited the accompanying statements of assets and
liabilities, including the portfolios of investments, of California
Municipals Portfolio, Florida Municipals Portfolio, New York
Municipals Portfolio and Rhode Island Municipals Portfolio as of
September 30, 1996, and the related statements of operations for the
year then ended, the statements of changes in net assets for each of
the years ended September 30, 1996 and 1995, and the supplementary
data for each of the years in the four-year period ended September
30, 1996 (for the California Municipals Portfolio, the supplementary
data is for each of the years in the three-year period ended
September 30, 1996 and the period from the start of business, May 3,
1993, to March 31, 1994). These financial statements and
supplementary data are the responsibility of the Trusts' 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 audit 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, 1996, 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
California Municipals Portfolio, Florida Municipals Portfolio, New
York Municipals Portfolio, and Rhode Island Municipals Portfolio at
September 30, 1996, the results of their operations, the changes in
their net assets, and their supplementary data for the respective
stated periods in conformity with generally accepted accounting
principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 1, 1996
Investment Management
Funds
Officers
Thomas J. Fette
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Portfolios
Officers
Thomas J. Fetter
President, Portfolio Manager
of Florida Municipals Portfolio
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President and Portfolio Manager
of California Municipals Portfolio
Nicole Anderes
Vice President and Portfolio Manager
of New York and Rhode Island
Municipals Portfolios
James L. O'Connor
Treasurer
Thomas Otis
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 Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
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
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investors Services Group, Inc.
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
[THIS PAGE INTENTIONALLY LEFT BLANK]
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
C-4TFCSRC-11/96
