Eaton Vance Municipals Trust
For the Funds:
(bullet) EV Classic Connecticut Municipals Fund
(bullet) EV Classic New Jersey Municipals Fund
(bullet) EV Classic Pennsylvania Municipals Fund
[LOGO]
Annual Shareholder Report
July 31, 1996
Table of Contents
Item Page
One-year results 2
President's letter to shareholders 3
Management Reports:
EV Classic Connecticut Municipals Fund 4
EV Classic New Jersey Municipals Fund 5
EV Classic Pennsylvania Municipals Fund 6
Financial Results 7
<TABLE>
<CAPTION>
Information About your mutual fund investment:
Results for the six months Dividends If your The after-tax
ending July 31, 1996 paid Fund's combined equivalent
Total return by Fund NAV distribution Federal & distribution
(excl. sales (during per share rate state tax rate you would Tax
charge) period) at 7/31/96 at 7/31/96 rate is... need is... Information*
<S> <C> <C> <C> <C> <C> <C> <C>
EV Classic
Connecticut Municpals Fund 6.5% $0.434 $9.33 4.56% 38.88% 7.44% 99.50%
EV Classic
New Jersey Municipals Fund 5.6% $0.454 $9.34 4.84% 40.08% 8.06% 99.37%
EV Classic
Pennsylvania Municipals Fund 6.0% $0.446 $9.28 4.83% 43.09% 8.47% 99.71%
[GRAPHIC IN COL. 5 OF CONN, N.J., PENN. OMITTED]
* Percentages represent the amounts of the total dividends paid by the Funds, from net investment income during the year that
ended July 31, 1996, that have been designated as tax-exempt interest dividends. Tax legislation eliminated the exception to
the market discount rules applicable to tax-exempt obligations. As a result, certain tax-exempt obligations acquired by the
Portfolio at market discounts may generate a small amount of ordinary taxable income.
</TABLE>
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.
To Shareholders:
Following an upbeat year in 1995, the bond market encountered
difficulty in the first half of 1996, as the investment climate
changed dramatically.
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 would
likely be higher. Subsequent employment data showed that job
creation was exceeding market estimates and that the labor market
was indeed tightening.
While job growth has cooled in recent months from the blistering
pace set early in the year, the economy has nonetheless failed to
give a clear indication of its long-term direction. Accordingly, the
Federal Reserve has effectively put its monetary policy on hold,
while maintaining a bias toward higher rates.
Despite the uncertainty in the market, there are several reasons we
believe an investment in municipal bonds continues to represent good
value for tax-conscious investors. 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. Interestingly, recent indicators, including the Federal
Reserve's "beige book," an anecdotal regional economic survey,
suggest a possible slowdown in the second half of the year. By most
measures, 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 will retain their relative value.
[GRAPHIC OMITTED: Tax exempt bonds yield 85% of Treasury yields chart]
30-yr. AAA General Obligation (GO) Bonds* 5.89%
Taxable equivalent yield of investment for
couple in 36% tax bracket 9.20%
30-year Treasury Bonds 6.94%
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 July 31, 1996.
Past Performance is no guarantee of future results.
Source: Bloomberg, L.P.
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.
Finally, and perhaps most important of all, the tax burden of our
citizens is still extraordinarily high. Municipal bonds remain the
best way for many 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
September 10, 1996
[PHOTO OF THOMAS J. FETTER OMITTED]
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 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.
EV Classic Connecticut Municipals Fund
[GRAPHIC OF CAP OMITTED]
Your investment at work
University of Connecticut
General Obligations, Series 96A
These bonds represented an attractive buying opportunity when added
to the portfolio in late May. At the time, bond market psychology
was still relatively negative, and, with their 5% discount coupon,
these bonds were not as aggressively priced as they would have been
in a bullish environment. The Series 1996A bond issue represented
the first debt sale by the University under its new comprehensive
capital program ("UConn 2000"). The ten-year, $1.25 billion capital
plan is designed to modernize, rehabilitate and expand the
University's physical plant. The 1996A bonds are essentially backed
by the State of Connecticut and further enhanced by FGIC insurance.
Portfolio Overview
[GRAPHIC OF CONNETICUT OMITTED]
Based on market value as of July 31, 1996
Number of issues 91
Average quality A+
Investment grade 98.7%
Effective maturity 13.5 yrs.
Largest sectors:
Health care (Non-hospital programs) 12.5%
Housing 12.4
Insured hospitals 9.8*
Solid waste 8.4
Education 8.2
* Private insurance does not remove the risk of loss of principal
due to changes in market conditions that is associated with this
investment.
The State of the State: Connecticut
Unemployment in Connecticut has fallen sharply in the past year, as
employment growth has outpaced that of the nation as a whole. The
unemployment rate declined in each of the first five months of the
year, with 8,400 fewer people on the state's jobless rolls. Non-farm
job growth has resulted in a gain of more than 13,000 jobs during
that period, with the largest increases in the services and trade
areas. The construction, retail and finance sectors were
particularly strong, with govern-ment hiring also adding to the
state's momentum. The construction sector has enjoyed a rebound,
with the number of construction contracts more than doubling in the
past year and reaching their highest level since 1987. Manufacturing
employment continued to register a loss, marking the twelfth
consecutive year of decline. Personal income for state residents is
up 1.9%, according to the state's Department of Labor. The improved
economy has eased some of the state's fiscal pressures. Total tax
collect-ions are running more than 9% above the FY 1995 level of
$6.8 billion, driven primarily by an increase in personal income tax
collections. However, the state's accumulated GAAP deficit must
still be addressed.
[GRAPHIC OMITTED WORM CHART PLOT POINTS]
Comparison of Change in Value of a $10,000 Investment in
EV Classic Connecticut Municipals Fund (Including Sales
Charge) and the Lehman Brothers Municipal Bond Index
From December 31, 1993, through July 31, 1996
Average One Life of
Annual Returns Year Fund*
- -------------- ------ --------
With CDSC 5.5% 2.3%
Without CDSC 6.5% 2.3%
Date Fund Index
- -------- ------- --------
12/31/93+ $10,000 $10,000
1/31/94 $10,086 $10,114
2/28/94 $9,854 $9,852
3/31/94 $9,348 $9,451
4/30/94 $9,370 $9,531
5/31/94 $9,444 $9,614
6/30/94 $9,343 $9,558
7/31/94 $9,529 $9,730
8/31/94 $9,531 $9,764
9/30/94 $9,337 $9,621
10/31/94 $9,070 $9,450
11/30/94 $8,747 $9,279
12/31/94 $9,037 $9,483
1/31/95 $9,373 $9,754
2/28/95 $9,687 $10,038
3/31/95 $9,765 $10,153
4/30/95 $9,764 $10,165
5/31/95 $10,015 $10,490
6/30/95 $9,860 $10,398
7/31/95 $9,956 $10,496
8/31/95 $10,092 $10,630
9/30/95 $10,176 $10,697
10/31/95 $10,326 $10,852
11/30/95 $10,520 $11,032
12/31/95 $10,615 $11,138
1/31/96 $10,678 $11,223
2/28/96 $10,564 $11,147
3/31/96 $10,391 $11,004
4/30/96 $10,387 $10,973
5/31/96 $10,394 $10,969
6/30/96 $10,505 $11,088
7/31/96 $10,598 $11,189
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: Towers Data Systems, Bethesda, MD. * Investment operations
commenced 12/9/93. +Index information is available only at month-
end; therefor, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
From the Portfolio Manager:
"Portfolio activity during the period was characterized by an
emphasis on relative value, opportune trades to maintain the
Portfolio's high book yield, and continuing adjustments to improve
call protection. Early in the period, I swapped Puerto Rico bonds
for Guam airport bonds, a trade that offered not only higher yields,
but also some potential for credit improvement. In March, I added
housing bonds subject to the Alternative Minimum Tax, which also
typically provide higher yields. Finally, I continued the
Portfolio's emphasis on improving call protection. The market
treated bonds with inadequate call protection harshly in recent
months. By improving the Portfolio's call characteristics, we've
improved the Fund's upside potential."
Nicole Anderes
[PHOTO OF NICHOLE ANDERES OMITTED]
EV Classic New Jersey Municipals Fund
[GRAPHIC OF AIRPLANE OMITTED}
Your investment at work
Port Authority of NY & NJ
Kennedy International Airport
Special Obligation Revenue Bonds
The Port Authority of New York and New Jersey is a joint authority
that oversees the administration of the area's metropolitan
airports, sea terminals, tunnels, and highways. This special
obligation issue provided funding for a power plant that generates
electricity and steam for the Kennedy airport facility. The bond -
with ten years of call protection - is a good example of our ongoing
efforts to improve the Portfolio's average call protection while
finding good value in non-rated issues. The bond has a very
compelling 6.75% coupon.
Portfolio Overview
[GRAPHIC OF NEW JERSEY OMITTED]
Based on market value as of July 31, 1996
Number of issues 121
Average quality A
Investment grade 84.3%
Effective maturity 12.8 yrs.
Largest sectors:
General obligations 13.9%
Transportation 12.4
Industrial develop./pollution control 9.6
Hospitals 7.5
Cogeneration 5.3
The State of the State: New Jersey
The New Jersey economy has showed signs of improvement, but
continues to lag the national trends. The state's July unemployment
rate of 6.1% was some-what higher than the national rate. The bulk
of new jobs produced in New Jersey during the six-month period has
been in the services sector, including business services,
healthcare, and retail trade. The construction sector has presented
a mixed picture. Through the first four months of 1996, residential
construction permits declined 11% from the same period a year ago,
in part due to unfavorable weather conditions. Highway and other
infrastructure projects, however, increased significantly. The
administration's regulatory reforms have helped draw businesses to
the state, which has boosted job growth. New Jersey's budget
continues to enjoy a healthy surplus, although payments to the state
pension fund have been reduced. The state's three-year, 30% tax cut
and continuing cost controls continue to give New Jersey a high
profile among states seeking to lift economic growth. New Jersey
revenues rose to $4.7 billion in 1995 from $4.5 billion in 1994.
[GRAPHIC OMITTED: WORM CHART PLOT POINTS]
Comparison of Change in Value of a $10,000 Investment in
EV Classic New Jersey Municipals Fund (Including Sales
Charge) and the Lehman Brothers Municipal Bond Index
From December 31, 1993, through July 31, 1996
Average One Life of
Annual Returns Year Fund*
- -------------- ------ --------
With CDSC 4.6% 2.5%
Without CDSC 5.6% 2.5%
Date Fund Index
- -------- ------- --------
12/31/93+ $10,000 $10,000
1/31/94 $10,086 $10,114
2/28/94 $9,854 $9,852
3/31/94 $9,348 $9,451
4/30/94 $9,370 $9,531
5/31/94 $9,444 $9,614
6/30/94 $9,343 $9,558
7/31/94 $9,529 $9,730
8/31/94 $9,531 $9,764
9/30/94 $9,337 $9,621
10/31/94 $9,070 $9,450
11/30/94 $8,747 $9,279
12/31/94 $9,037 $9,483
1/31/95 $9,373 $9,754
2/28/95 $9,687 $10,038
3/31/95 $9,765 $10,153
4/30/95 $9,764 $10,165
5/31/95 $10,015 $10,490
6/30/95 $9,860 $10,398
7/31/95 $9,956 $10,496
8/31/95 $10,092 $10,630
9/30/95 $10,176 $10,697
10/31/95 $10,326 $10,852
11/30/95 $10,520 $11,032
12/31/95 $10,615 $11,138
1/31/96 $10,678 $11,223
2/28/96 $10,564 $11,147
3/31/96 $10,391 $11,004
4/30/96 $10,387 $10,973
5/31/96 $10,394 $10,969
6/30/96 $10,505 $11,088
7/31/96 $10,598 $11,189
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: Towers Data Systems, Bethesda, MD. * Investment operations
commenced 12/9/93. +Index information is available only at month-
end; therefor, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
From the Portfolio Manager:
" The New Jersey market was characterized by relatively tight supply
during this period. I generally focused on upgrading the quality of
the Portfolio and increasing call protection. Our largest single
holding was the Port Authority of New York and New Jersey, a major
entity in the metropolitan area. I generally avoided local general
obligations, because local communities may be faced with higher
spending as a result of the state tax cuts. Meanwhile, I remained
very selective with respect to the hospital sector due to an
increasingly competitive environment. Finally, I pared back our
solid waste bond holdings. That sector has become increasingly
difficult to evaluate because of adverse court rulings."
Robert B. MacIntosh
[PHOTO OF ROBERT B. MACINTOSH OMITTED]
EV Classic Pennsylvania Municipals Fund
[GRAPHIC OF CAP OMITTED]
Your investment at work
Pennsylvania Health/Education
Finance Authority
Cedar Crest College
Located in Allentown, PA, Cedar Crest College has, like many other
small colleges, faced the challenge of changing demographics and
declining admissions. While that represented a threat to revenues
earlier in the decade, the college now appears to have surmounted
that crisis and is well along the road to stability. This lower
investment-grade issue has an attractive coupon of 6.7%, which helps
enhance the Fund's yield. This issue is a good example of the
Portfolio's efforts to add selective, lower-rated, investment-grade
bonds for their yield advantage over other long-term Pennsylvania
issues.
Portfolio Overview
[GRAPHIC OF PENNSYLVANIA OMITTED]
Based on market value as of July 31, 1996
Number of issues 135
Average quality A+
Investment grade 88.7%
Effective maturity 12.5 yrs.
Largest sectors:
Hospitals 19.0%
Industrial develop./pollution control 10.5
Insured general obligations 9.3*
Housing 7.7
Escrowed 6.8
* Private insurance does not remove the risk of loss of principal
due to changes in market conditions that is associated with this
investment.
The State of the State: Pennsylvania
While the national economy continues to register growth, progress in
Pennsylvania has been uneven, with the lower-cost, centrally located
areas continuing to outpace the Pittsburgh and Philadelphia
metropolitian areas. Mirroring the job growth at the national level,
Pennsylvania experienced a surge in employment gains in the early
summer months. In June, the commonwealth's unemployment rate fell to
5.1% from 5.9% in May. The dramatic improvement was a result of
strong job growth, with 50,000 jobs added in June alone, pushing
total employment to its highest level in seven years. The
construction industry was responsible for the bulk of new jobs added
during the summer, as the industry saw a surge in housing starts
that exceeded most expectations. Retail trade, services and
government also added significantly to the job picture. Personal
income levels for commonwealth residents continued to rise in recent
months, fueling the improvement in the retail sector. Pennsylvania's
fiscal outlook continues to improve, having benefited from tax
reforms, government cost controls, and a slowly improving economy.
[GRAPHIC OMITTED worm chart PLOT POINTS]
Comparison of Change in Value of a $10,000 Investment in
EV Classic Pennsylvania Municipals Fund (Including Sales
Charge) and the Lehman Brothers Municipal Bond Index
From December 31, 1993, through July 31, 1996
Average One Life of
Annual Returns Year Fund*
- -------------- ------ --------
With CDSC 5.0% 2.3%
Without CDSC 6.0% 2.3%
Date Fund Index
- -------- ------- --------
12/31/93+ $10,000 $10,000
1/31/94 $10,111 $10,114
2/28/94 $9,831 $9,852
3/31/94 $9,314 $9,451
4/30/94 $9,348 $9,531
5/31/94 $9,423 $9,614
6/30/94 $9,322 $9,558
7/31/94 $9,468 $9,730
8/31/94 $9,502 $9,764
9/30/94 $9,350 $9,621
10/31/94 $9,125 $9,450
11/30/94 $8,823 $9,279
12/31/94 $9,062 $9,483
1/31/95 $9,368 $9,754
2/28/95 $9,651 $10,038
3/31/95 $9,762 $10,153
4/30/95 $9,752 $10,165
5/31/95 $10,047 $10,490
6/30/95 $9,925 $10,398
7/31/95 $9,979 $10,496
8/31/95 $10,073 $10,630
9/30/95 $10,147 $10,697
10/31/95 $10,320 $10,852
11/30/95 $10,504 $11,032
12/31/95 $10,622 $11,138
1/31/96 $10,687 $11,223
2/28/96 $10,595 $11,147
3/31/96 $10,445 $11,004
4/30/96 $10,431 $10,973
5/31/96 $10,416 $10,969
6/30/96 $10,485 $11,088
7/31/96 $10,580 $11,189
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: Towers Data Systems, Bethesda, MD. * Investment operations
commenced 12/9/93. +Index information is available only at month-
end; therefor, the line comparison begins at the next month-end
following the commencement of the Fund's investment operations.
From the Portfolio Manager:
"I've employed a barbell approach, which lessened volatility in a
declining market. This barbell structure balances high-coupon issues
- - attractive for their relatively strong income component and good
defensive characteristics - with discount bonds that are typically
more sensitive to rate changes and may provide upside potential. Because
the Pennsylvania market is very heavily weighted in hospitals, I've
concentrated on the high-quality institutions that our research suggests
will likely emerge as the winners in an increasingly competitive marketplace.
To further improve liquidity, I've added more insured issues to the Fund.
Finally, I've focused on maintaining good call protection as the
market has been more punitive in recent months towards bonds with
poor call characteristics."
Timothy T. Browse
[PHOTO OF TIMOTHY T. BROWSE OMITTED]
EV Classic Municipals Funds
Financial Statements
<TABLE>
<CAPTION>
Statements of Assets and Liabilities
July 31, 1996
Classic Classic Classic
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------- --------------- -------------
Assets:
Investments --
<S> <C> <C> <C>
Identified cost $ 3,612,074 $ 2,989,469 $ 2,488,512
Unrealized appreciation (depreciation) 46,044 24,333 (96,139)
------------- ------------- -------------
Total investment in Portfolio, at value (Note 1A) $ 3,658,118 $ 3,013,802 $ 2,392,373
Receivable for Fund shares sold 110 -- 9
Receivable from the Administrator (Note 4) 24,568 20,705 16,831
Deferred organization expenses (Note 1D) 5,367 7,050 6,217
------------- ------------- -------------
Total assets $ 3,688,163 $ 3,041,557 $ 2,415,430
------------- ------------- -------------
Liabilities:
Dividends payable $ 4,134 $ 3,617 $ 2,882
Payable for Fund shares redeemed -- 20,000 --
Accrued expenses 2,965 2,216 1,485
------------- ------------- -------------
Total liabilities $ 7,099 $ 25,833 $ 4,367
------------- ------------- -------------
Net Assets $ 3,681,064 $ 3,015,724 $ 2,411,063
============= ============= =============
Sources of Net Assets:
Paid-in capital $ 3,747,627 $ 3,176,969 $ 2,797,748
Accumulated net realized loss on investment and financial
futures transactions (computed on the basis of identified cost) (109,419) (189,148) (298,751)
Accumulated undistributed (distributions in excess of) net investment income (3,188) 3,570 8,205
Unrealized appreciation (depreciation) of investments and financial futures
contracts from Portfolio (computed on the basis of identified cost) 46,044 24,333 (96,139)
------------- ------------- -------------
Total $ 3,681,064 $ 3,015,724 $ 2,411,063
============= ============= =============
Shares of Beneficial Interest Outstanding 394,535 322,792 259,905
============= ============= =============
Net Asset Value, Offering Price and Redemption
Price Per Share (Note 6)
(net assets (divided by) shares of beneficial interest outstanding) $9.33 $9.34 $9.28
============= ============= =============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended July 31, 1996
Classic Classic Classic
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------- -------------- --------------
Investment Income (Note 1B):
<S> <C> <C> <C>
Interest income allocated from Portfolio $ 277,651 $ 202,805 $ 170,728
Expenses allocated from Portfolio (23,395) (16,582) (13,220)
------------ ------------ ------------
Net investment income from Portfolio $ 254,256 $ 186,223 $ 157,508
------------ ------------ ------------
Expenses --
Distribution costs (Note 5) $ 44,072 $ 30,516 $ 25,575
Custodian fees (Note 1F) 3,499 3,446 3,000
Transfer and dividend disbursing agent fees 3,281 2,020 1,889
Printing and postage 5,452 7,021 7,011
Legal and accounting services 7,718 5,632 5,646
Amortization of organization expenses (Note 1D) 2,291 3,031 2,681
Miscellaneous 2,327 1,610 1,539
------------ ------------ ------------
Total expenses $ 68,640 $ 53,276 $ 47,341
------------ ------------ ------------
Deduct --
Allocation of expenses to the Administrator (Note 4) $ 24,568 $ 20,705 $ 16,831
Reduction of custodian fee (Note 1F) -- -- 2,500
------------ ------------ ------------
Total $ 24,568 $ 20,705 $ 19,331
------------ ------------ ------------
Net expenses $ 44,072 $ 32,571 $ 28,010
------------ ------------ ------------
Net investment income $ 210,184 $ 153,652 $ 129,498
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) from Portfolio --
Investment transactions (identified cost basis) $ 15,982 $ (8,598) $ (25,850)
Financial futures contracts (6,455) 1,901 8,585
------------ ------------ ------------
Net realized gain (loss) on investments $ 9,527 $ (6,697) $ (17,265)
Change in unrealized appreciation (depreciation) of investments
and financial futures contracts 47,524 35,776 47,869
------------ ------------ ------------
Net realized and unrealized gain $ 57,051 $ 29,079 $ 30,604
------------ ------------ ------------
Net increase in net assets from operations $ 267,235 $ 182,731 $ 160,102
============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended July 31, 1996
Classic Classic Classic
Connecticut New Jersey Pennsylvania
Fund Fund Fund
--------------- --------------- ---------------
Increase (Decrease) in Net Assets:
From operations --
<S> <C> <C> <C>
Net investment income $ 210,184 $ 153,652 $ 129,498
Net realized gain (loss) on investments 9,527 (6,697) (17,265)
Change in unrealized appreciation (depreciation) of investments 47,524 35,776 47,869
------------- ------------- -------------
Net increase in net assets from operations $ 267,235 $ 182,731 $ 160,102
------------- ------------- -------------
Distributions to shareholders (Note 2) --
From net investment income $ (213,282) $ (155,713) $ (129,280)
In excess of net investment income (3,188) -- --
------------- ------------- -------------
Total distributions to shareholders $ (216,470) $ (155,713) $ (129,280)
------------- ------------- -------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 642,761 $ 547,297 $ 609,738
Net asset value of shares issued to shareholders in payment
of distributions declared 175,114 94,752 89,736
Cost of shares redeemed (1,801,236) (960,739) (940,066)
------------- ------------- -------------
Decrease in net assets from Fund share transactions $ (983,361) $ (318,690) $ (240,592)
------------- ------------- -------------
Net decrease in net assets $ (932,596) $ (291,672) $ (209,770)
Net Assets:
At beginning of year 4,613,660 3,307,396 2,620,833
------------- ------------- -------------
At end of year $ 3,681,064 $ 3,015,724 $ 2,411,063
============= ============= =============
Accumulated undistributed (distributions in excess of) net
investment income included in net assets at end of year $ (3,188) $ 3,570 $ 8,205
============= ============= =============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended July 31, 1995
Classic Classic Classic
Connecticut New Jersey Pennsylvania
Fund Fund Fund
-------------- -------------- --------------
Increase (Decrease) in Net Assets:
From operations --
<S> <C> <C> <C>
Net investment income $ 183,487 $ 178,835 $ 168,860
Net realized loss on investments (119,234) (169,012) (226,542)
Change in unrealized appreciation of investments 103,779 149,685 162,979
------------- ------------- -------------
Net increase in net assets from operations $ 168,032 $ 159,508 $ 105,297
------------- ------------- -------------
Distributions to shareholders (Note 2) --
From net investment income $ (183,487) $ (178,835) $ (168,860)
In excess of net investment income (10,948) (9,613) (7,552)
------------- ------------- -------------
Total distributions to shareholders $ (194,435) $ (188,448) $ (176,412)
------------- ------------- -------------
Transactions in shares of beneficial interest (Note 3) --
Proceeds from sales of shares $ 2,108,441 $ 646,496 $ 694,753
Net asset value of shares issued to shareholders in payment
of distributions declared 154,657 112,416 128,368
Cost of shares redeemed (837,950) (1,139,533) (2,833,146)
------------- ------------- -------------
Increase (decrease) in net assets from Fund share transactions $ 1,425,148 $ (380,621) $ (2,010,025)
------------- ------------- -------------
Net increase (decrease) in net assets $ 1,398,745 $ (409,561) $ (2,081,140)
Net assets:
At beginning of year 3,214,915 3,716,957 4,701,973
------------- ------------- -------------
At end of year $ 4,613,660 $ 3,307,396 $ 2,620,833
============= ============= =============
Accumulated undistributed net investment income
included in net assets at end of year $ 3,098 $ 5,631 $ 7,987
============= ============= ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Financial Highlights
Classic Connecticut Fund Classic New Jersey Fund
------------------------------------------- ----------------------------------------------
Year Ended July 31, Year Ended July 31
------------------------------------------ ------------------------------------------
1996 1995 1994* 1996 1995 1994*
---------- ---------- ---------- --------- --------- --------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $ 9.180 $ 9.250 $10.000 $ 9.280 $ 9.300 $10.000
-------- -------- -------- -------- -------- --------
Income (loss) from operations:
Net investment income $ 0.423 $ 0.431 $ 0.246 $ 0.450 $ 0.452 $ 0.276
Net realized and unrealized gain
(loss) on investments 0.163 (0.044) 0.683 0.066 0.004++ (0.640)
-------- -------- -------- -------- -------- --------
Total income (loss) from operations $ 0.586 $ 0.387 $ 0.437 $ 0.516 $ 0.456 $ (0.364)
-------- -------- -------- -------- -------- --------
Less distributions:
From net investment income $ (0.430) $ (0.431) $ (0.246) $ (0.456) $ (0.452) $ (0.276)
In excess of net investment income (0.006) (0.026) (0.067) -- (0.024) (0.060)
-------- -------- -------- -------- -------- --------
Total distributions $ (0.436) $ (0.457) $ (0.313) $ (0.456) $ (0.476) $ (0.336)
-------- -------- -------- -------- -------- --------
Net asset value, end of period $ 9.330 $ 9,180 $ 9.250 $ 9.340 $ 9.280 $ 9.300
======== ======== ======== ======== ======== ========
Total Return (2) 6.45% 4.49% (4.53%) 5.61% 5.20% (3.82%)
Ratios/Supplemental Data**:
Net assets, end of period (000 omitted) $ 3,681 $ 4,614 $ 3,215 $ 3,016 $ 3,307 $ 3,717
Ratio of net expenses to average
daily net assets (1)(3) 1.48% 1.48% 1.64%+ 1.54% 1.47% 1.64%+
Ratio of net expenses to
average daily net assets,
after custodian fee reduction (1) 1.46% -- -- 1.53% -- --
Ratio of net investment income to average
daily net assets 4.54% 4.76% 4.07%+ 4.79% 5.01% 4.30%+
** The operating expenses of the Funds and Portfolios may reflect a reduction of expenses by 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 $ 0.374 $ 0.379 $ 0.141 $ 0.390 $ 0.396 $ 0.184
======= ======= ======= ======= ======= =======
Ratios (As a percentage of average
daily net assets):
Expenses (1)(3) 2.01%+ 2.05% 3.37%+ 2.19% 2.09% 3.08%+
Expenses, after custodian
fee reduction (1) 1.99%+ -- -- 2.18% -- --
Net investment income 4.01%+ 4.19% 2.34%+ 4.14% 4.39% 2.86%+
+ Annualized.
* For the Classic Connecticut and Classic New Jersey Funds, the Financial Highlights are for the period from the start of
business, December 9, 1993 and December 3, 1993, respectively, to July 31, 1994.
++ The per share amount is not in accord with the net realized and unrealized gain for the period because of the timing of
sales of Fund shares and the amount of per share realized and unrealized gains and losses at such time.
(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 year ended July 31, 1996 have been adjusted to reflect a change in reporting requirements. The
new reporting guidelines require each Fund, as well as its corresponding 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 July 31, 1995 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION
Financial Highlights
Classic Pennsylvania Fund
------------------------------------------
Year Ended July 31,
------------------------------------------
1996 1995 1994*
--------- --------- ---------
<S> <C> <C> <C>
Net asset value, beginning of year $ 9.180 $ 9.180 $ 10.000
--------- --------- ---------
Income (loss) from operations:
Net investment income $ 0.452 $ 0.447 $ 0.279
Net realized and unrealized gain (loss) on investments 0.096 0.020 (0.766)
--------- --------- ---------
Total income (loss) from operations $ 0.548 $ 0.467 $ (0.487)
--------- --------- ---------
Less distributions:
From net investment income $ (0.448) $ (0.447) $ (0.279)
In excess of net investment income -- (0.020) (0.054)
--------- --------- ---------
Total distributions $ (0.448) $ (0.467) $ (0.333)
--------- --------- ---------
Net asset value, end of year $ 9.280 $ 9.180 $ 9.180
========= ========= =========
Total Return (2) 6.03% 5.40% (5.04%)
Ratios/Supplemental Data**:
Net assets, end of year (000 omitted) $ 2,411 $ 2,621 $ 4,702
Ratio of net expenses to average daily net assets (1)(3) 1.66% 1.48% 1.66%+
Ratio of net expenses to average daily net assets after
custodian fee reduction (1) 1.53% -- --
Ratio of net investment income to average daily net assets 4.82% 5.10% 4.43%+
** The operating expenses of the Fund reflect an allocation of expenses to the Administrator. Had such actions not been taken,
net investment income per share and the ratios would have as follows:
Net investment income per share $ 0.393 $ 0.395 $ 0.235
========= ========= =========
Ratios (As a percentage of average daily net assets):
Expenses (1)(3) 2.29% 2.07% 2.36%+
Expenses after custodian fee reduction (1) 2.16% -- --
Net investment income 4.19% 4.51% 3.73%+
+ Annualized.
* For the Classic Pennsylvania Fund, the Financial Highlights are for the period from the start of business, December 3, 1993
to July 31, 1994.
(1) Includes the 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 year ended July 31, 1996 have been adjusted to reflect a change in reporting requirements. The
new reporting guidelines require the Fund, as well as its corresponding 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 July 31, 1995 have not been adjusted to reflect this change.
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, as amended, as an open-end
management investment company. The Trust presently consists of
sixty-three Funds, three of which are included in these financial
statements. They include EV Classic Connecticut Municipals Fund,
("Classic Connecticut Fund"), EV Classic New Jersey Municipals Fund
("Classic New Jersey Fund") and EV Classic Pennsylvania Municipals
Fund ("Classic Pennsylvania Fund"). 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 Connecticut Fund invests its assets in the Connecticut
Municipals Portfolio, the Classic New Jersey Fund invests its assets
in the New Jersey Municipals Portfolio and the Classic Pennsylvania
Fund invests its assets in the Pennsylvania 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 (1.9%, 0.8%, and 0.5% at July 31, 1996 for the Classic
Connecticut Fund, Classic New Jersey Fund and Classic Pennsylvania
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 Valuations - Valuation of securities by the Portfolios
is discussed in Note 1 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 on investments. Accordingly, no provision for federal income or
excise tax is necessary. At July 31, 1996, the Funds, for federal
income tax purposes, had capital loss carryovers which will reduce
taxable income arising from future net realized gain on investments,
if any, to the extent permitted by the Internal Revenue Code, and
thus will reduce the amount of distributions to shareholders 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 Connecticut Fund $ 96,000 July 31, 2004
4,986 July 31, 2002
Classic New Jersey Fund 156,881 July 31, 2004
499 July 31, 2003
15,446 July 31, 2002
Classic Pennsylvania Fund 186,766 July 31, 2004
17,477 July 31, 2003
66,690 July 31, 2002
At July 31,1996, net capital losses of $892 for the Classic New
Jersey Fund 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 interest on tax exempt
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 a Fund in connection with its organization, including
registration costs, are being amortized on the straight-line
basis over five years.
E. Other - Investment transactions are accounted for on a trade date
basis.
F. Expense Reductions - Investors Bank & Trust Company (IBT), serves
as custodian of the Funds and Portfolios. Prior to November 10,
1995, IBT was an affiliate of EVM. Pursuant to their respective
service agreements, IBT receives a fee reduced by credits which are
determined based on the average daily cash balance the Funds and the
Portfolios maintains with IBT. All significant credits used to
reduce each Fund's custodian fees are reported as a reduction of
expenses in the statement of operations.
G. 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.
(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 Classic Classic
Connecticut Fund New Jersey Fund Pennsylvania Fund
------------------------------- -------------------------- -----------------------
Year Ended July 31, Year Ended July 31, Year Ended July 31,
------------------------------ --------------------------- -----------------------
1996 1995 1996 1995 1996 1995
----------- ----------- --------- --------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
Sales 68,281 233,930 57,562 71,024 65,108 76,889
Issued to shareholders electing to receive
payment of distributions in Fund shares 18,708 17,289 10,070 12,393 9,602 14,424
Redemptions (195,228) (95,969) (101,427) (126,356) (100,228) (318,020)
-------- -------- -------- -------- -------- --------
Net decrease (108,239) (155,250) (33,795) (42,939) (25,518) (226,707)
======== ======== ======== ======== ======== ========
</TABLE>
(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, $24,568, $20,705 and $16,831 of
expenses related to the operation of the Classic Connecticut Fund,
Classic New Jersey Fund and Classic Pennsylvania 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 (Note 5).
(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 July 31, 1996, Classic Connecticut Fund, Classic New Jersey
Fund and Classic Pennsylvania Fund paid or accrued $34,794, $24,092
and $20,190, respectively, to or payable to EVD representing 0.75%
(annualized) of average daily net assets. At July 31, 1996, the
amount of Uncovered Distribution Charges of EVD calculated under the
Plans for Classic Connecticut Fund, Classic New Jersey Fund, and
Classic Pennsylvania Fund, were approximately $374,000, $326,000,
and $539,000, respectively.
In addition, the Plans permit the Funds to make monthly payments of
service fees to the Principal Underwriter, in amounts not expected
to exceed 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% of
each Fund's average daily net assets for any fiscal year. For the
year ended July 31, 1996, Classic Connecticut Fund, Classic New
Jersey Fund, and Classic Pennsylvania Fund paid or accrued service
fees to or payable to EVD in the amount of $9,278, $6,424, and
$5,385, 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.
EVD is expected to make service fee payments to Authorized Firms
equal to 0.20% per annum of the Fund's average daily net assets
based on the value of the Funds 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 to 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
For shares purchased on or after January 30, 1995, 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 the 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 or clients.
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 July 31, 1996, EVD
received approximately $1,400, $300, and $1,900 of CDSC paid by
shareholders of Classic Connecticut Fund, Classic New Jersey Fund,
and Classic Pennsylvania Fund, respectively.
(7) Investment Transactions
<TABLE>
<CAPTION>
Increases and decreases in each Fund's investment in its corresponding Portfolio for the year ended July 31, 1996 were
as follows:
Classic Classic Classic
Connecticut Fund New Jersey Fund Pennsylvania Fund
------------------------ ------------------------ --------------------------
<S> <C> <C> <C>
Increases $ 675,326 $ 603,739 $ 652,920
Decreases 1,920,382 1,090,138 1,084,700
</TABLE>
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 Connecticut Municipals Fund, EV Classic
New Jersey Municipals Fund and EV Classic Pennsylvania Municipals
Fund (the Funds) (certain of the series of Eaton Vance Municipals
Trust) as of July 31, 1996, the related statements of operations for
the year then ended, the statements of changes in net assets for the
years ended July 31, 1996 and 1995, and the financial highlights for
the years ended July 31, 1996 and 1995 and for the period from the
start of business to July 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 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, the financial statements and financial highlights
referred to above present fairly, in all material respects, the
financial position of the aforementioned Funds of Eaton Vance
Municipals Trust at July 31, 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
August 23, 1996
Connecticut Municipals Portfolio
Portfolio of Investments - July 31, 1996
<TABLE>
<CAPTION>
Tax-Exempt Investments - 100%
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------------------------------------------------------------------
Airports - 1.1%
<S> <C> <C> <C> <C>
NR BBB $2,000 Guam Airport Authority
Revenue Bonds, AMT,
6.70%, 10/1/23 $ 2,031,160
------------
Education - 8.2%
Baa BBB $1,000 Connecticut Health and
Educational Facilities
Authority, (HEFA)
University of Hartford,
6.75%, 7/1/12 $ 1,009,650
Baa BBB 5,500 Connecticut HEFA, University
of Hartford, 6.80%, 7/1/22 5,526,125
NR BBB- 4,775 Connecticut HEFA,
Quinnipiac College, 6.00%,
7/1/23 4,450,157
NR BBB- 1,000 Connecticut HEFA,
Sacred Heart University,
5.80%, 7/1/23 888,400
Aaa AAA 3,400 Connecticut HEFA,
Yale University, Variable
6/10/30 (1) 3,404,182
------------
$ 15,278,514
------------
Escrowed/Prerefunded - 5.4%
NR AA- $ 650 State of Connecticut General
Obligations Bonds, 6.875%,
7/15/10 $ 714,122
NR AAA 800 Connecticut Special Tax
Obligation Bonds,
Transportation
Infrastructure Purposes,
6.75%, 6/1/11 890,752
Aaa AA- 645 Connecticut Special Tax
Obligation Bonds,
Transportation
Infrastructure Purposes,
6.50%, 7/1/09 695,104
A1 NR 300 Amity RSD No. 5 Bonds,
6.80%, 6/15/08 320,307
NR A- 1,630 City of Stratford, 7.30%,
3/1/12 1,830,262
NR AAA 1,000 Puerto Rico Industrial Medical
& Environmental Pollution
Control Facilities, Dr. Pila
Hospital, 7.85%, 8/1/28 1,091,780
Baa A 1,000 Connecticut HEFA, Sacred
Heart University, 6.80%,
7/1/12 1,115,200
A AA- 2,000 City of Bridgeport, 6.125%,
3/1/05 2,115,760
Aaa AAA 1,200 Connecticut HEFA, Yale-New
Haven Hospital (MBIA),
7.10%, 7/1/25 1,289,052
------------
$ 10,062,339
------------
General Obligations - 3.2%
Aa AA- $1,750 State of Connecticut, Capital
Appreciation Bonds, 0%,
11/1/09 $ 853,248
A1 AA- 1,475 Connecticut Development
Authority, Special Obligation,
5.55%, 12/15/15 1,422,343
Aa AA- 500 State of Connecticut, 5.50%,
3/15/11 501,460
Aa AA 1,270 City of Danbury, 4.50%,
2/1/14 1,095,083
Aa1 NR 650 City of Farmington, 5.70%,
1/15/11 670,020
NR BBB 500 Government of Guam, 5.40%,
11/15/18 438,335
NR NR 1,000 Virgin Islands PFA Revenue
Bonds, 7.25%, 10/1/18 1,057,130
------------
$ 6,037,619
------------
Health Care
(Non-Hospital Program) - 12.5%
A1 AA- $ 655 Connecticut HEFA,
(St. Camillus),6.25%,
11/1/18 $ 667,314
A1 AA- 3,250 Connecticut HEFA,
St. Joseph's Manor, 6.25%,
11/1/16 3,323,580
A1 AA- 1,305 Connecticut HEFA,
Sharon Healthcare, 6.25%,
11/1/14 1,344,633
A1 AA- 720 Connecticut HEFA,
Highland View, 7.00%, 11/1/07 798,890
A1 AA- 335 Connecticut HEFA,
Wadsworth Glen, AMT, 7.00%,
11/1/07 371,706
A1 AA- 2,000 Connecticut HEFA,
Wadsworth Glen, AMT,
7.50%, 11/1/16 2,284,600
A1 AA- 3,000 Connecticut HEFA,
Windsor, 7.125%, 11/1/14 3,342,660
A1 AA- 500 Connecticut HEFA,
Windsor, 7.125%, 11/1/24 557,110
NR NR 1,240 Connecticut Dev.
Auth., Baptist Homes,
9.00%, 9/1/22 1,351,464
A2 NR 9,000 Connecticut Development
Authority Health Care Bonds,
Duncaster, 6.75%, 9/1/15 9,373,770
------------
$ 23,415,727
------------
Hospitals - 5.9%
NR A- $3,770 Connecticut HEFA, William
W. Backus Hospital, 6.375%,
7/1/22 $ 3,787,078
Baa1 NR 5,900 Connecticut HEFA, Griffin
Hospital, 5.75%, 7/1/23 5,211,706
NR BBB- 2,000 Connecticut HEFA, New
Britain Memorial Hospital,
7.75%, 7/1/22 2,109,520
------------
$ 11,108,304
------------
Housing (Mortgage and
Revenue Bonds) - 12.4%
Aa NR $ 100 Connecticut HFA,
7.40%, 11/15/99 $ 102,960
Aa AA 200 Connecticut HFA,
7.00%, 11/15/09 210,066
Aa AA 6,200 Connecticut HFA,
6.70%, 11/15/12 6,545,278
Aa AA 210 Connecticut HFA,
6.55%, 11/15/13 218,952
Aa AA+ 140 Connecticut HFA,
7.625%, 11/15/17 144,529
Aa AA 1,700 Connecticut HFA,
6.35%, 5/15/07 1,752,207
Aa AA 2,490 Connecticut HFA,
6.60%, 11/15/23 2,586,039
Aa AA 2,000 Connecticut HFA,
6.75%, 11/15/23 2,096,480
Aa AA 3,000 Connecticut HFA,
6.20%, 5/15/14 3,040,140
Aa AA 95 Connecticut HFA,
6.70%, 11/5/22 97,164
Aa AA 250 Connecticut HFA,
7.10%, 11/15/00 260,490
Aa AA 1,340 Connecticut HFA,
6.90%, 5/15/20 1,394,471
Aa AA 4,750 Connecticut HFA,
AMT, 6.20%, 11/15/22 4,757,267
------------
$ 23,206,043
------------
Industrial Development/
Pollution Control
Revenues - 3.7%
Aaa AAA $1,000 Connecticut Development
Authority PCR, Pfizer Inc.,
6.55%, 2/15/13 $1,077,150
Aa AA- 2,000 Connecticut Development
Authority, Economic
Development Projects, Revenue
Bonds, 6.00%, 11/15/08 2,088,040
NR NR 3,065 Connecticut Development
Authority Airport Facility,
Signature Flight 6.625%,
12/1/14 3,018,320
Baa3 BB+ 700 Puerto Rico Port Authority,
American Airlines, AMT,
6.30%, 6/1/23 702,268
------------
$ 6,885,778
------------
Insured Airports - 5.0%
Aaa AAA $8,200 Connecticut Airport
Revenue Bonds, Bradley
International Airport, (FGIC),
7.65%, 10/1/12 $ 9,385,802
------------
Insured Colleges and
Universities - 2.4%
Aaa AAA $ 725 Connecticut HEFA, Fairfield
University (MBIA), 5.00%,
7/1/18 $ 656,038
Aaa AAA 1,200 Connecticut HEFA,
Connecticut College
(MBIA), 6.625%, 7/1/11 1,292,868
Aaa AAA 1,000 University Of Connecticut
(FGIC) 5.00%, 2/1/16 911,670
Aaa AAA 1,555 Connecticut HEFA, Choate
Rosemary College (MBIA),
6.80%, 7/1/15 (2) 1,695,292
------------
$ 4,555,868
------------
Insured Municipal Electric - 1.8%
Aaa AAA $3,660 Connecticut Municipal Electric
Energy Cooperative Bonds
(MBIA), 5.00%, 1/1/18 $ 3,303,406
------------
Insured General Obligations - 2.3%
Aaa AAA $1,220 Town of Bethel, (MBIA),
6.50%, 2/15/09 $ 1,355,127
Aaa AAA 740 Town of Stratford, (MBIA),
6.60%, 3/1/11 831,945
Aaa AAA 1,000 City of New Britain, (MBIA),
6.00%, 3/1/12 1,051,800
Aaa AAA 1,000 Town of Plainfield, (MBIA),
6.375%, 8/1/11 1,061,740
------------
$ 4,300,612
------------
Insured Healthcare - 0.8%
Aaa AAA $1,735 Connecticut HEFA, NHP,
St. Joseph's Living Center,
(AMBAC) 5.10%, 11/1/19 $ 1,587,091
------------
Insured Hospitals - 9.8%
Aaa AAA $1,000 Connecticut HEFA, Bridgeport
Hospital (MBIA), 6.625%,
7/1/18 $ 1,058,790
Aaa AAA 6,750 Connecticut HEFA, St. Francis
Hospital (FGIC), 5.00%,
7/1/23 5,960,115
Aaa AAA 1,500 Connecticut HEFA, Lawrence
and Memorial Hospital (MBIA),
5.00%, 7/1/13 1,377,780
Aaa AAA 5,750 Connecticut HEFA, Lawrence
and Memorial Hospital (MBIA),
5.00%, 7/1/22 5,080,872
Aaa AAA 1,000 Connecticut HEFA, Hospital
of St. Raphael (AMBAC),
6.50%, 7/1/11 1,108,310
Aaa AAA 1,500 Connecticut HEFA, Hospital
of St. Raphael (AMBAC), 6.625%,
7/1/14 1,587,825
Aaa AAA 2,000 Connecticut HEFA, Yale-New
Haven Hospital (MBIA), 6.50%,
7/1/12 2,122,740
------------
$ 18,296,432
------------
Insured Housing - 0.2%
NR AA $ 305 Puerto Rico Housing Finance
Corp (SEC. AMBAC), 7.50%,
10/1/11 $ 315,544
------------
Insured Solid Waste - 1.0%
Aaa AAA $2,000 Connecticut Resources Recovery
Authority Mid-Connecticut
System Bonds (MBIA), 5.50%,
11/15/12 (2) $ 1,961,880
------------
Solid Waste - 8.4%
A NR $2,500 Bristol Resource Recovery
Facility Operating Committee,
(Ogden Martin Systems),
6.50%, 7/1/14 $ 2,582,625
Baa1 A 1,000 Connecticut Resources
Recovery Authority, American
REF-FUEL Company, AMT,
8.10%, 11/15/15 1,086,510
Baa1 AA- 450 Connecticut Resources
Recovery Authority, American
REF-FUEL Company, AMT,
8.00%, 11/15/15 487,980
A2 A 4,250 Connecticut Resources Recovery
Authority, American REF-FUEL
Company, AMT, 6.45%,
11/15/22 4,322,888
NR A- 7,970 Eastern Connecticut
Resource Recovery Authority,
Wheelabrator Lisbon, AMT,
5.50%, 1/1/20 7,122,869
------------
$ 15,602,872
------------
Special Tax - 6.0%
A1 AA- $1,000 State of Connecticut
Special Tax Obligation,
(STOB), 5.00%, 10/1/13 $916,760
A1 AA- 2,000 State of Connecticut, (STOB),
6.50%, 10/1/12 2,191,780
A1 AA- 3,180 State of Connecticut, (STOB),
6.125%, 9/1/12 3,358,684
Baa1 A 4,965 Puerto Rico Highway &
Transportation Authority,
5.50%, 7/1/15 4,800,510
------------
$ 11,267,734
------------
Student Loans - 2.5%
A1 NR $ 430 Connecticut Higher Education
Supplemental Loan Authority
Revenue Bonds, AMT,
7.375%, 11/15/05 $ 451,560
A1 NR 2,695 Connecticut Higher Education
Supplemental Loan Authority
Revenue Bonds, AMT,
7.50%, 11/15/10 2,834,277
A1 NR 1,310 Connecticut Higher Education
Supplemental Loan Authority
Revenue Bonds, AMT,
6.20%, 11/15/09 1,332,742
------------
$ 4,618,579
------------
Utilities - 5.6%
A1 A+ $2,000 Connecticut State Development
Authority, New England Power,
7.25%, 10/15/15 $ 2,141,960
NR BBB 3,625 Guam Power Authority
Revenue Bonds, 6.30%,
10/1/22 3,569,828
NR BBB 1,100 Guam Power Authority
Revenue Bonds, 6.625%,
10/1/14 1,124,739
NR NR 3,500 Virgin Islands Water and
Power Authority, Electric
Revenue System Bonds,
7.40%. 7/1/11 3,696,560
------------
$ 10,533,087
------------
Water & Sewer Revenue - 1.8%
Aaa AA+ $1,250 State of Connecticut Clean
Water Fund Revenue Bonds,
6.00%, 10/1/12 $ 1,309,387
NR A+ 2,225 Connecticut Development
Authority Water Facilities,
Stamford Water Company,
5.30%, 9/1/28 2,021,835
------------
$ 3,331,222
------------
Total tax-exempt investments
(identified cost, $185,036,490) $187,085,613
============
(1) The above designated securities have been issued as inverse
floater bonds.
(2) The above securities have 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
Connecticut 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 July
31, 1996, 23.4% 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 2.5% to 12.9% of total
investments.
See notes to financial statements
</TABLE>
New Jersey Municipals Portfolio
Portfolio of Investments - July 31, 1996
Tax-Exempt Investments - 100%
<TABLE>
<CAPTION>
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------------------------------------------------------------------
Assisted Living - 0.9%
<S> <C> <C> <C> <C>
NR NR $ 3,630 New Jersey Economic
Development Authority,
Forsgate, 8.625%, 6/1/25 $ 3,630,545
------------
Cogeneration - 5.3%
NR BB+ $12,750 New Jersey Economic
Development Authority,
Vineland Cogeneration
Limited Partnership, (AMT),
7.875%, 6/1/19 $ 13,666,215
NR BBB- 1,725 New Jersey Economic
Development Authority,
Trigen Trenton Project,
6.20%, 12/1/07 1,700,039
NR NR 5,000 Port Authority of New York
and New Jersey, KIAC,
6.75%, 10/1/19 5,007,600
------------
$ 20,373,854
------------
Education - 2.5%
Baa1 BBB $ 2,480 New Jersey Educational
Facilities Authority, Seton Hall
University, 7.00%, 7/1/21 $ 2,570,173
Aa1 AA+ 1,000 New Jersey Educational
Facilities Authority, Princeton
Theological Seminary, 6.375%,
7/1/22 1,034,700
NR NR 8,800 New Jersey Higher Educational
Student Loan Bonds, (AMT),
7/1/10 3,348,752
A1 AA 2,500 Rutgers, The State University of
New Jersey, 6.85%, 5/1/21 2,699,250
------------
$ 9,652,875
------------
Escrowed/Prerefunded - 4.0%
Aaa AAA $ 870 The City of Newark, (AMBAC),
Prerefunded to 10/1/99,
7.375%, 10/1/07 $ 961,115
NR NR 2,000 County of Passaic, Prerefunded
to 9/1/99, 6.70%, 9/1/13 2,169,960
Baa1 A 5,645 Puerto Rico Aqueduct and
Sewer Authority, Prerefunded
to 7/1/98, 7.875%, 7/1/17 6,159,993
Aa AAA 1,205 New Jersey Health Care
Facilities Financing Authority,
Barnett Hospital, (FHA),
Prerefunded to 8/1/01,
6.80%, 8/1/19 1,329,501
Aa AA 1,040 New Jersey Wastewater
Treatment Trust,
Prerefunded to 5/15/98,
7.25%, 5/15/08 1,116,180
Baa1 A 2,100 Puerto Rico Highway and
Transportation Authority,
Prerefunded to 7/1/02,
6.625%, 7/1/18 2,326,737
A AA 1,000 University of Medicine and
Dentistry, Prerefunded to
12/1/99, 7.20%,12/1/19 1,100,270
------------
$ 15,163,756
------------
General Obligations - 13.9%
NR BBB $9,745 Government of Guam, 5.40%,
11/15/18 $ 8,543,148
NR A+ 5,000 The Hudson County
Improvement Authority,
6.625%, 8/1/25 5,212,050
Aa1 NR 3,000 Mercer County Improvement
Authority Solid Waste,
0%, 4/1/10 1,392,540
Baa1 A 200 Commonwealth of Puerto
Rico, 5.40%, 7/1/25 184,894
Baa1 A 1,990 Commonwealth of Puerto
Rico, 6.45%, 7/1/17 2,083,232
Baa1 A 5,000 Commonwealth of Puerto
Rico, 6.50%, 7/1/23 5,245,200
Baa1 A 10,200 Puerto Rico Aqueduct and
Sewer Authority, 5.00%,
7/1/19 8,915,310
Baa1 A 3,750 Puerto Rico Public Buildings
Authority, Public Education and
Health Facilities, 5.75%,
7/1/15 3,648,713
Baa1 A 2,000 Puerto Rico Public Buildings
Authority, Public Education
and Health Facilities, 5.50%,
7/1/21 1,861,680
Baa1 A 2,075 Puerto Rico Public Buildings
Authority, Public Education and
Health Facilities, 5.75%,
7/1/16 2,010,364
NR NR 13,350 Virgin Islands Public Finance
Authority, 7.25%, 10/1/18 14,112,684
------------
$ 53,209,815
------------
Hospitals - 7.5%
Aa AAA $9,585 New Jersey Health Care
Facilities Financing Authority,
Barnett Hospital, (FHA),
6.80%, 8/1/19 $ 10,123,581
A A- 2,300 New Jersey Health Care
Facilities Financing Authority,
Atlantic City Medical Center,
6.80%, 7/1/11 2,430,594
Baa1 NR 5,875 New Jersey Health Care
Facilities Financing Authority,
Deborah Heart and Lung
Center, 6.30%, 7/1/23 5,836,871
Baa NR 2,000 New Jersey Health Care Facilities
Financing Authority, Southern
Ocean County Hospital, 6.25%,
7/1/23 1,907,440
A A 9,425 New Jersey Health Care
Facilities Financing Authority,
Chilton Memorial Hospital,
5.00%, 7/1/13 8,376,752
------------
$ 28,675,238
------------
Housing - 3.9%
NR AAA $3,700 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
7.00%, 5/1/30 $ 3,872,235
NR AAA 2,000 New Jersey Housing and
Mortgage Finance Agency,
Presidential Plaza, (FHA),
6.95%, 5/1/13 2,111,180
NR AA+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/12 1,054,100
NR AA+ 1,975 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 7.10%, 11/1/11 2,081,847
NR AA+ 1,250 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.25%, 11/1/22 1,303,088
NR A+ 1,000 New Jersey Housing and
Mortgage Finance Agency,
Rental Housing, (AMT),
7.10%, 5/1/22 1,044,540
NR A+ 3,000 New Jersey Housing and
Mortgage Finance Agency,
Section 8, 6.60%, 11/1/14 3,089,760
Aaa AAA 195 Puerto Rico Housing Finance
Corporation Mortgage
Revenue (GNMA),
6.85%, 10/15/23 204,313
------------
$ 14,761,063
------------
Industrial Development/Pollution
Control - 9.6%
NR NR $2,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation,
7.875%, 6/1/22 $ 2,208,700
NR NR 4,000 Middlesex County Pollution
Control Financing Authority,
Amerada Hess Corporation,
6.875%, 12/1/22 4,131,040
Aa1 NR 3,000 New Jersey Economic
Development Authority,
Garden State Paper Company,
(AMT), 7.125%, 4/1/22 3,041,010
NR NR 2,000 New Jersey Economic
Development Authority,
The Seeing Eye, Inc., 7.30%,
4/1/11 2,100,480
NR NR 5,640 New Jersey Economic
Development Authority,
Holt Hauling, (AMT), 8.95%,
12/15/18 5,887,427
NR NR 1,160 New Jersey Economic
Development Authority, National
Association of Accountants, Inc.
7.65%, 7/1/09 1,227,883
NR AA- 3,300 New Jersey Economic
Development Authority,
Oak Grove Associates,
6.125%, 12/1/06 3,435,960
Baa1 BBB+ 2,135 New Jersey Economic
Development Authority,
GATX Terminals Corporation,
7.30%, 9/1/19 2,364,897
Aa3 AA- 1,700 Puerto Rico Industrial,
Medical and Environmental
Pollution Control Authority,
Motorola, Inc., 6.75%, 1/1/14 1,812,149
Baa3 BB+ 7,750 Puerto Rico Port Authority,
American Airlines, (AMT),
6.30%, 6/1/23 7,775,110
Baa3 BB+ 3,000 Puerto Rico Port Authority,
American Airlines, (AMT),
6.25%, 6/1/26 2,999,640
------------
$ 36,984,296
------------
Insured Education - 0.6%
Aaa AAA $2,000 New Jersey State Educational
Facilities Authority,
Seton Hall University, (BIGI),
6.85%, 7/1/19 $2,145,820
------------
Insured Hospitals - 1.0%
Aaa AAA $2,000 New Jersey Health Care
Facilities Financing Authority,
Hackensack Medical Center,
(FGIC), 6.25%, 7/1/21 $ 2,042,080
Aaa AAA 1,570 New Jersey Health Care Facilities
Financing Authority, Cathedral
Health Services, (MBIA),
7.25%, 2/15/21 1,724,551
------------
$ 3,766,631
------------
Insured Housing - 1.2%
Aaa AAA $1,410 New Jersey Housing and
Mortgage Finance Agency,
(MBIA), 7.375%, 10/1/17 $ 1,464,384
Aaa AAA 1,435 New Jersey Housing and
Mortgage Finance Agency,
(AMT), (MBIA), 7.70%,
10/1/29 1,500,938
Aaa AAA 1,685 Pennsauken Township Housing
Finance Corporation,
(MBIA), 8.00%, 4/1/11 1,765,829
------------
$ 4,731,151
------------
Insured Lease Revenue - 5.1%
Aaa AAA $3,900 County of Atlantic, New Jersey,
Public Facilities Lease
Agreement, (FGIC),
6.00%, 3/1/13 $ 4,140,707
Aaa AAA 1,750 County of Hudson, New Jersey
Correctional Facility,
(MBIA), 6.50%, 12/1/11 1,877,768
Aaa AAA 6,240 County of Hudson, New Jersey
Correctional Facility,
(MBIA), 6.60%, 12/1/21 6,604,042
Aaa AAA 2,500 County of Hudson, New Jersey
Improvement Authority,
Secondary Yield Curve Notes,
(FGIC), Variable, 12/1/25 (1) 2,546,700
Aaa AAA 1,800 County of Middlesex, New Jersey
Certificates of Participation,
(MBIA), 6.125%, 2/15/19 1,864,962
Aaa AAA 2,225 University of Medicine and
Dentistry Certificates of
Participation, (MBIA),
6.75%, 12/1/09 2,394,590
------------
$ 19,428,769
------------
Insured Solid Waste - 0.4%
Aaa AAA $1,500 The Mercer County
Improvement Authority, Solid
Waste Revenue, (AMT),
(FGIC), 6.70%, 4/1/13 $ 1,544,070
------------
Insured Transportation - 5.0%
Aaa AAA $2,750 Delaware River Port Authority,
(FGIC), 5.50%, 1/1/26 $ 2,645,308
Aaa AAA 3,500 Delaware River and Bay
Authority, (MBIA), 4.75%,
1/1/24 2,994,145
Aaa AAA 5,000 New Jersey Turnpike Authority
"RITES", (MBIA), Variable,
1/1/16 (1) 5,921,100
Aaa AAA 6,950 New Jersey Turnpike Authority,
(MBIA), 6.50%, 1/1/16 7,623,107
------------
$ 19,183,660
------------
Insured Utilities - 3.0%
Aaa AAA $2,750 New Jersey Economic
Development Authority,
New Jersey American Water
Co., (AMT), (FGIC), 6.875%,
11/1/34 $ 2,981,110
Aaa AAA 8,930 Salem County, New Jersey,
Public Service Electric and
Gas, (MBIA), 5.55%,
11/1/33 8,371,071
------------
$ 11,352,181
------------
Insured Water & Sewer - 1.2%
Aaa AAA $2,500 Middlesex County Utilities
Authority, Sewer Revenue
(MBIA), Variable,
8/15/10 (1) $ 2,704,400
Aaa AAA 1,850 West New York, New Jersey
Utility Authority, (FGIC),
5.125%, 12/15/17 1,715,117
------------
$ 4,419,517
------------
Lease/Certificate of
Participation - 3.9%
Baa1 A- $ 720 County of Atlantic, New Jersey
Public Facilities Lease
Agreement, 8.875%,
1/15/14 $ 945,684
Baa1 A- 785 County of Atlantic, New Jersey
Public Facilities Lease
Agreement, 8.875%,
1/15/15 1,028,350
A1 NR 1,000 Township of Bedminster,
New Jersey Board of
Education, 7.125%,9/1/10 1,101,800
Aa AA- 2,000 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/15 2,002,340
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/16 $ 1,501,455
Aa AA- 1,500 Mercer County Improvement
Authority, Richard J. Hughes
Justice Complex, 6.05%,
1/1/17 1,501,455
Aa AA- 1,250 New Jersey Building Authority,
7.20%, 6/15/13 1,331,688
Aa AA- 2,591 New Jersey Building Authority,
Garden State Savings Bonds, 0%,
6/15/10 1,196,912
NR A+ 1,000 New Jersey Economic
Development Authority,
Performing Arts Center Site
Acquisition, 6.75%, 6/15/12 1,057,100
A1 A+ 1,650 New Jersey Economic
Development Authority,
Economic Recovery Fund, 0%,
9/15/09 789,690
A1 A+ 5,500 New Jersey Economic
Development Authority,
Economic Recovery
Fund, 0%, 3/15/13 2,124,155
NR BBB 400 Puerto Rico Industrial, Tourist,
Educational, Medical and
Environmental Control
Authority, Guaynabo Lease,
5.625%, 7/1/22 361,472
------------
$ 14,942,101
------------
Life Care - 1.9%
NR NR $ 615 New Jersey Economic
Development Authority,
Cadbury Corporation,
7.50%, 7/1/21 $ 610,135
NR NR 300 New Jersey Economic
Development Authority,
Cadbury Corporation,
8.70%, 7/1/07 322,272
NR NR 2,000 New Jersey Economic
Development Authority,
Cadbury Corporation,
8.0%, 7/1/15 2,058,660
NR NR 4,000 New Jersey Economic
Development Authority,
Keswick Pines, 8.75%,
1/1/24 4,165,680
------------
$ 7,156,747
------------
Miscellaneous - 2.1%
NR NR $7,600 New Jersey Sports and
Exposition Authority,
Monmouth Park,
8.00%, 1/1/25 $ 8,226,848
------------
Nursing Homes - 1.0%
NR NR $1,400 New Jersey Economic
Development Authority,
Claremont Health System,
9.17%, 9/1/22 $ 1,471,274
NR NR 2,500 New Jersey Economic
Development Authority,
Victoria Health, 7.65%,
1/1/14 2,345,125
------------
$ 3,816,399
------------
Solid Waste - 4.3%
Ba NR $ 650 Mercer County Improvement
Authority, Solid Waste System
Revenue, 6.80%, 4/1/05 $ 630,942
Ba NR 5,975 Mercer County Improvement
Authority, Solid Waste System
Revenue, (AMT), 0%, 4/1/14 1,536,949
Ba NR 6,000 Mercer County Improvement
Authority, Solid Waste System
Revenue, (AMT), 0%, 4/1/15 1,429,140
Ba NR 3,000 Mercer County Improvement
Authority, Solid Waste System
Revenue, (AMT), 0%, 4/1/16 661,680
NR A- 11,930 Union County, New Jersey
Utilities Authority, Solid Waste
Revenue, (AMT), 7.20%,
6/15/14 12,049,300
------------
$ 16,308,011
------------
Special Tax - 2.9%
Baa1 A $7,725 Puerto Rico Highway and
Transportation Authority,
5.50%, 7/1/36 $ 7,174,439
Baa1 A 4,000 Puerto Rico Highway and
Transportation Authority,
5.00%, 7/1/36 3,411,960
Baa1 BBB+ 550 Puerto Rico Infrastructure
Financing Authority, 7.90%,
7/1/07 590,288
------------
$ 11,176,687
------------
Transportation - 12.4%
NR BBB $1,700 Guam Airport Authority,
(AMT), 6.60%, 10/1/10 $ 1,720,740
NR BBB 1,400 Guam Airport Authority,
6.50%, 10/1/23 1,412,320
NR BBB 2,000 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 2,031,160
A1 AA- 9,500 The Port Authority of
New York and New Jersey,
7.35%, 10/1/27 (2)x 10,831,615
A1 AA- 2,645 The Port Authority of
New York and New Jersey,
6.75%, 8/1/26 2,801,769
A1 AA- 5,000 The Port Authority of
New York and New Jersey,
(AMT), 6.25%, 1/15/27 5,056,000
A1 AA- 9,000 The Port Authority of
New York and New Jersey,
6.125%, 6/1/2094 9,174,870
A1 AA- 5,450 The Port Authority of
New York and New Jersey,
5.375%, 3/1/28 5,064,086
Baa2 BB+ 5,100 The Port Authority of
New York and New Jersey,
Delta Air Lines Inc.,
6.95%, 6/1/08 5,401,614
Baa3 BB+ 3,900 New Jersey Economic
Development Authority,
American Airlines, (AMT),
7.10%, 11/1/31 4,044,222
------------
$ 47,538,396
------------
Utilities - 4.0%
NR BBB $ 100 Guam Power Authority,
5.25%, 10/1/13 $ 88,882
NR BBB 750 Guam Power Authority,
5.25%, 10/1/23 637,823
NR BBB 5,000 Guam Power Authority,
6.75%, 10/1/24 5,139,900
Baa2 BBB 625 New Jersey Economic
Development Authority,
Elizabethtown Gas Co.,
(AMT), 6.75%, 10/1/21 632,644
A2 A 1,455 New Jersey Economic
Development Authority,
Natural Gas Facilities,
7.05%, 3/1/16 1,525,277
Baa1 A- 2,000 Puerto Rico Electric Power
Authority, 5.50%, 7/1/16 1,911,400
NR NR 5,105 Virgin Islands Water and
Power Authority,
7.40%, 7/1/11 5,391,696
------------
$ 15,327,622
------------
Water & Sewer - 2.4%
A1 AA- $2,000 Gloucester County Utilities
Authority, 6.50%, 1/1/21 $ 2,076,240
A3 A 4,500 New Jersey Economic
Development Authority,
Elizabethtown Water Revenue,
(AMT), 6.70%, 8/1/21 4,732,560
Aa AA 360 New Jersey Wastewater
Treatment Trust, 7.25%,
5/15/08 382,201
Aa AA 1,000 New Jersey Wastewater
Treatment Trust,
6.875%, 6/15/09 1,093,740
Aa AA 250 New Jersey Wastewater
Treatment Trust,
7.00%, 6/15/10 273,595
A1 AA 500 The Somerset Raritan Valley
Sewerage Authority
6.75%, 7/1/10 535,040
------------
$ 9,093,376
------------
Total Tax-Exempt Investments
(identified cost, $364,577,774) $382,609,428
------------
<CAPTION>
- -------------------------------------------------------------------------------
Put Options on Financial Futures Contracts - 0%
- -------------------------------------------------------------------------------
Contracts Security Value
- -------------------------------------------------------------------------------
<S> <C> <C>
600 30-year U.S. Treasury Bond,
American, expiration 9/19/96,
Strike Price $106.00
(identified cost $425,817) $ 196,875
------------
Total Investments
(identified cost, $365,003,591) $382,806,303
============
(1) The above designated securities have been issued as inverse
floater bonds.
(2) The above designated securities have 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
Jersey 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 July
31, 1996, 22.2% of the securities in the portfolio of investments are
backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage
insured by financial institution ranged from 0.3% to 12.2% of total
investments.
See notes to financial statements.
</TABLE>
Pennsylvania Municipals Portfolio
Portfolio of Investments - July 31, 1996
<TABLE>
<CAPTION>
Tax-Exempt Investments - 99.9%
Ratings (Unaudited)
- -------------------- Principal
Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- --------------------------------------------------------------------------------------------
Assisted Living - 2.9%
<S> <C> <C> <C> <C>
NR NR $2,680 Chester, Pennsylvania IDA
Senior Lifechoice of Paoli,
8.05%, 1/1/24 $ 2,667,913
NR NR 5,000 Chester, Pennsylvania IDA
Senior Lifechoice of Kimberton,
8.50%, 9/1/25 5,093,850
NR NR 5,000 Delaware, Pennsylvania IDA
Senior Quarters Project,
8.625%, 9/1/25 5,001,250
------------
$ 12,763,013
------------
Cogeneration - 5.8%
NR NR $12,000 Pennsylvania EDA,
Northampton Generation
Project (AMT), 6.50%,
1/1/13 $ 11,396,640
NR BBB- 9,000 Pennsylvania EDA, Colver
Project, (AMT), 7.125%,
12/1/15 9,219,870
NR BBB- 5,000 Pennsylvania EDA, Colver
Project, (AMT), 7.15%,
12/1/18 5,112,700
------------
$ 25,729,210
------------
Education - 3.0%
NR BBB $4,865 Erie Higher Education
Building Authority,
Mercyhurst College,
5.75%, 3/15/20 $ 4,320,315
Baa1 NR 1,500 Latrobe, Pennsylvania Saint
Vincent College, 6.75%,
5/1/24 1,514,700
NR AAA 2,000 Lehigh, Pennsylvania
Allentown College of St. Francis,
6.75%, 12/15/12 2,137,040
NR BBB- 1,100 Lehigh, Pennsylvania
Cedar Crest College,
6.70%, 4/1/26 1,083,159
NR A- 4,225 Scranton-Lackawanna,
Pennsylvania, University of
Scranton, 6.40%, 3/1/07 4,386,184
------------
$ 13,441,398
------------
Escrowed - 6.8%
Aaa AAA $5,600 Berks, Pennsylvania General
Obligation, (FGIC), Variable,
11/15/20, (1) $ 6,284,600
Aaa A- 1,750 Chester, Pennsylvania HEFA,
Bryn Mar Hospitals, 6.75%,
7/1/14 1,951,932
Aaa AAA 2,000 Doylestown, Pennsylvania
Hospital Authority, (AMBAC),
6.90%, 7/1/19 2,174,120
Aaa AAA 1,405 Lycoming, Pennsylvania
General Obligation, (FGIC),
6.40%, 8/15/11 1,512,117
Aaa AAA 945 Lycoming, Pennsylvania
General Obligation, (FGIC),
6.40%, 8/15/11 1,017,047
NR A- 1,000 PA HEFA, Elizabeth College,
7.25%, 6/15/11 1,124,150
NR A- 6,900 PA IDA, Economic
Development, 7.00%,
1/1/11 7,687,911
NR A- 5,155 PA Hospital & Higher
Education, Presbyterian
Medical Center,
6.50%, 12/1/11 5,683,594
Baa1 AAA 1,000 Puerto Rico Aqueduct &
Sewer, 7.90%, 7/1/07 1,091,680
Aaa AAA 5,000 Westmoreland, Pennsylvania
Muni Authority (FGIC),
0%, 8/15/20 1,208,000
Aaa AAA 500 York, Pennsylvania Hospital
Authority, (AMBAC), 7.00%,
7/1/21 553,825
------------
$30,288,976
------------
General Obligations - 3.0%
NR A $3,000 Chester Upland, Pennsylvania
School Distict, 6.375%,
9/1/21 $3,050,280
NR A 3,000 Dauphin, Pennsylvania
6.90%, 6/2/26 3,212,760
A1 A+ 2,050 Lower Providence Township,
Pennsylvania Sewer Authority,
6.75%, 5/1/22 2,239,666
NR A 1,950 McKeesport Area,
Pennsylvania School District,
5.00%, 4/1/13 1,794,429
A1 AA- 465 Pennsylvania 6.75%, 1/1/07 507,608
A1 AA- 500 Pennsylvania 6.75%, 1/1/08 545,815
A1 AA- 2,000 Pennsylvania 6.375%,
9/15/12 2,093,640
------------
$13,444,198
------------
Hospitals - 19.0%
NR AAA $2,420 Allegheny, Pennsylvania IDA,
Presbyterian Medical Center,
6.75%, 2/1/26 $2,508,983
Baa BBB 2,000 Dauphin, Pennsylvania
Community General
Osteopathic Hospital,
7.375%, 6/1/16 2,093,240
NR A- 10,250 Delaware, Pennsylvania
Riddle Memorial Hospital,
6.50%, 1/1/22 9,964,025
NR NR 4,620 Hazelton Luzerne,
Pennsylvania Saint Joseph
Medical Center, 8.375%,
7/1/12 4,780,961
A NR 2,670 Indiana, Pennsylvania Indiana
Hospital, 7.125%, 7/1/23 2,793,461
NR BBB+ 3,500 Lebanon, Pennsylvania Good
Samaritan Hospital,
6.00%, 11/15/18 3,199,280
A A 3,250 Lehigh, Pennsylvania
Muhlenberg Hospital,
6.60%, 7/15/22 3,265,730
NR BBB- 1,905 McKean, Pennsylvania
Bradford Hospital, 6.10%,
10/1/20 1,737,189
NR BBB- 3,500 McKean, Pennsylvania
Bradford Hospital, 6.00%,
10/1/13 3,218,600
Baa1 BBB+ 2,550 Monroeville, Pennsylvania
Forbes Health System,
6.25%, 10/1/15 2,475,005
NR BBB+ 2,615 Montgomery, Pennsylvania
Pottstown Medical Center,
6.875%, 11/15/20 2,624,231
Baa NR 1,375 Montgomery, Pennsylvania
Hospital, 6.60%, 7/1/10 1,381,628
A1 A+ 500 PA Hospital and Higher
Education, Allegheny General
Hospital, 7.25%, 9/1/17 535,495
A BBB+ 8,500 PA Hospital and Higher
Education, Albert Einstein Medical
Center, 7.625%, 4/1/11 9,015,270
Baa1 BBB+ 5,650 PA Hospital and Higher
Education, Graduate Health
System, 6.625%, 7/1/21 5,459,369
Baa1 BBB+ 7,115 PA Hospital and Higher
Education, Graduate Health
System, 7.25%, 7/1/18 7,246,770
Baa1 A- 10,015 PA Hospital and Higher
Education, Temple University
Hospital, 6.625%, 11/15/23 10,120,656
Aa AA 1,000 PA Hospital and Higher
Education, Children's
Hospital, 5.00%, 2/15/21 874,720
Baa NR 4,115 Somerset, Pennsylvania
Community Hospital Project,
6.75%, 3/1/11 3,924,311
A NR 7,000 Washington, Pennsylvania
Monongahela Valley Hospital
6.75%, 12/1/08 7,343,840
------------
$ 84,562,764
------------
Housing - 7.7%
Aaa NR $2,175 Allegheny, Pennsylvania
SFMR, (GNMA), 7.15%,
6/1/17 $ 2,200,361
NR AAA 2,900 Allegheny, Pennsylvania SFMR,
Ladies Grand Army Project,
(FHA), 6.35%, 10/1/36 2,941,847
NR AAA 1,000 Bucks, Pennsylvania Mortgage
Revenue Bonds, Warminster
Heights Project, 1,039,290
(FHA), Section 8-A,
6.80%, 8/1/12
Aa AA+ 3,730 Pennsylvania HFA SFMR,
6.90%, 4/1/17 3,891,434
Aa AA+ 4,000 Pennsylvania HFA SFMR,
6.85%, 4/1/16 4,161,040
Aa AA 1,000 Pennsylvania HFA SFMR,
(AMT), Variable, 10/1/23, (1) 1,072,820
Aa AA+ 8,350 Pennsylvania HFA SFMR,
(AMT), 7.50%, 10/1/25 9,019,837
Aaa NR 3,000 Philadelphia, Pennsylvania
Redevelopment Authority
MF, 6.95%, 5/15/24 3,144,090
A1 A 4,235 Urban Redevelopment
Authority of Pittsburgh
Mortgage, (AMT),
7.10%, 4/1/24 4,344,390
A1 A 265 Urban Redevelopment
Authority of Pittsburgh
Mortgage, 7.45%, 4/1/10 278,247
A1 A 1,000 Urban Redevelopment
Authority of Pittsburgh
Mortgage, 7.125%, 4/1/15 1,052,480
A1 A 1,055 Urban Redevelopment
Authority of Pittsburgh
Mortgage, (AMT), 7.40%,
4/1/24 1,096,282
------------
$ 34,242,118
------------
Industrial Development Revenue /
Pollution Control Revenue - 10.5%
A3 A $6,950 Butler, Pennsylvania IDA,
Witco Corporation Project,
5.85%, 12/1/23 $ 6,746,574
NR B+ 1,005 Clearfield, Pennsylvania IDA,
KMart Corporation, 6.80%,
5/15/07 955,594
NR A 4,000 Franklin, Pennsylvania IDA,
Corning Incorporated,
6.25%, 8/1/05 4,260,080
A2 A 12,000 New Morgan, Pennsylvania
IDA, New Morgan Landfill,
(AMT), 6.50%, 4/1/19 12,283,560
Baa2 BBB- 5,000 Pennsylvania IDA,
Macmilliam Project, (AMT),
7.60%,12/1/20 5,497,250
Baa1 BBB+ 4,450 Pennsylvania IDA, Sun
Company Project, (AMT),
7.60%, 12/1/24 4,921,656
NR NR 6,500 Philadelphia IDA Refrigerated
Enterprises Project, (AMT),
9.05%, 12/1/19 6,875,570
Baa3 BB+ 4,000 Puerto Rico Port Authority
American Airlines (AMT),
6.25%, 6/1/26 3,999,520
NR B+ 1,105 Shamokin, Pennsylvania
IDA, KMart Corporation,
6.70%, 7/1/07 1,042,180
------------
$ 46,581,984
------------
Insured Education - 3.0%
Aaa AAA $2,000 Alleghany, Pennsylvania
Duquesne University Project,
(AMBAC), 5.00%, 3/1/21 $ 1,779,760
Aaa AAA 5,000 Cumberland, Pennsylvania
Messiah College Project,
5.125%, 10/1/15 4,628,650
Aaa AAA 1,000 PA Higher Education
Facilities, (AMBAC),
5.625%, 6/15/19 965,640
Aaa AAA 2,500 PA Higher Education
Student Loan, (AMBAC),
(AMT), 7.15%, 9/1/21 2,672,350
Aaa AAA 1,500 PA Higher Education
Student Loan, (AMBAC),
(AMT), Variable, 3/1/22, (1) 1,472,475
Aaa AAA 700 PA Higher Education
Student Loan, (AMBAC),
(AMT), Variable, 9/1/26, (1) 740,586
Aaa AAA 1,000 Union, Pennsylvania
Bucknell University, (MBIA),
5.50%, 4/1/16 966,140
------------
$ 13,225,601
------------
Insured General Obligation - 9.3%
Aaa AAA $2,500 Berks, Pennsylvania (FGIC),
0%, 5/15/18 $ 685,550
Aaa AAA 5,400 Conrad Weiser Area,
Pennsylvania School District,
(MBIA), 5.25%, 12/15/14 5,089,986
Aaa AAA 2,170 Elizabeth Forward,
Pennsylvania School District,
(MBIA), 0%, 9/1/20 539,028
Aaa AAA 2,170 Elizabeth Forward,
Pennsylvania School District,
(MBIA), 0%, 9/1/21 502,572
Aaa AAA 2,170 Elizabeth Forward,
Pennsylvania School
District, (MBIA), 0%, 9/1/22 474,080
Aaa AAA 2,170 Elizabeth Forward,
Pennsylvania School
District, (MBIA), 0%, 9/1/23 447,215
Aaa AAA 4,345 Elizabeth Forward,
Pennsylvania School District,
(MBIA), 0%, 9/1/24 844,711
Aaa AAA 10,000 Erie, Pennsylvania School
District, (MBIA), 5.75%,
5/1/26 9,956,600
Aaa AAA 2,500 Erie, Pennsylvania School
District, (MBIA), 0%, 5/1/19 663,425
Aaa AAA 2,625 Erie, Pennsylvania School
District, (MBIA), 0%, 5/1/20 657,116
Aaa AAA 2,625 Erie, Pennsylvania School
District, (MBIA), 0%, 5/1/21 612,491
Aaa AAA 3,625 Erie, Pennsylvania School
District, (MBIA), 0%, 5/1/22 797,500
Aaa AAA 7,500 Keystone Oaks, Pennsylvania
School District, (AMBAC),
Variable, 9/01/16, (1) 7,438,650
Aaa AAA 1,430 Mars Area, Pennsylvania School
District, (MBIA), 0%, 3/1/14 512,112
Aaa AAA 1,900 Philadelphia, Pennsylvania
(MBIA),
5.00%, 5/15/15 1,737,474
Aaa AAA 3,200 Philadelphia, Pennsylvania
(MBIA),
5.00%, 5/15/20 2,871,680
Aaa AAA 4,435 Philadelphia, Pennsylvania
School District, (AMBAC),
5.50%, 9/1/25 4,248,907
Aaa AAA 655 Rochester Area, Pennsylvania
School District, (AMBAC),
0%, 5/1/10 302,618
Aaa AAA 2,795 Venango, Pennsylvania
(AMBAC), 6.30%,
12/01/19 2,866,300
------------
$ 41,248,015
------------
Insured Hospital - 5.2%
Aaa AAA $1,170 Allegheny, Pennsylvania
Children's Hospital of
Pittsburgh, (MBIA), 6.75%,
7/1/08, (2) $ 1,236,655
Aaa AAA 3,750 Allegheny, Pennsylvania
Magee-Womens Hospital,
(FGIC), 0%, 10/1/15 1,203,938
Aaa AAA 1,400 Armstrong, Pennsylvania
Saint Francis Health Care,
(AMBAC), 6.25%, 6/1/13 1,447,908
Aaa AAA 2,500 Armstrong, Pennsylvania
Saint Francis Health Care,
(AMBAC), 6.00%, 8/15/08 2,573,450
Aaa AAA 775 Carbon, Pennsylvania Gnaden
Memorial Hospital, (AMBAC),
7.00%, 11/15/14 826,382
Aaa AAA 750 Erie, Pennsylvania Harlot
Medical Center, (AMBAC),
7.10%, 2/15/10 813,322
Aaa AAA 230 Lehigh, Pennsylvania Health
East, Incorporated, (MBIA),
7.00%, 7/1/15 244,847
Aaa AAA 5,000 Lehigh, Pennsylvania St. Luke's
Hospital, (AMBAC), 6.25%,
7/1/22 5,112,100
Aaa AAA 1,000 Montgomery, Pennsylvania
Abington Memorial, (AMBAC),
Variable, 6/1/11 (1) 1,106,350
Aaa AAA 5,000 Philadelphia Hospital & Higher
Education, PA Hospital, (FGIC),
Variable, 2/15/12 (1) 4,530,950
Aaa AAA 1,500 Scranton-Lackawanna,
Pennsylvania Mercy Health,
(MBIA), 6.90%, 1/1/23 1,580,145
Aaa AAA 2,550 Washington, Pennsylvania
Shadyside Hospital, (AMBAC),
5.75%, 12/15/14 2,526,973
------------
$ 23,203,020
------------
Insured IDR / IDB - 0.2%
Aaa AAA $1,000 Delaware, Pennsylvania IDR
Philadelphia Water, (FGIC),
6.35%, 8/15/25 $ 1,030,350
------------
Insured Lease - 3.4%
Aaa AAA $4,595 Harrisburg-Dauphin,
Pennsylvania Lease Revenue,
(CGIC), 6.25%, 6/1/10 $ 4,894,548
Aaa AAA 3,000 Northumberland, Pennsylvania
Lease Revenue, (MBIA),
0%, 10/15/12 1,194,120
Aaa AAA 10,000 Commonwealth of
Pennsylvania, Lease Revenue,
(AMBAC), 5.00%,
7/1/15 (2) $ 9,013,700
------------
$ 15,102,368
------------
Insured Special Tax - 0.9%
Aaa AAA $4,295 PA Intergovernmental
Special Tax, (MBIA), 5.00%,
6/15/22 $ 3,790,295
------------
Insured Utilities - 5.6%
Aaa AAA $4,000 Beaver, Pennsylvania IDA,
Ohio Edison Company, (FGIC),
7.00%, 6/1/21 $ 4,282,360
Aaa AAA 10,000 Beaver, Pennsylvania IDA,
Ohio Edison Company,
(FGIC), 7.05%, 10/1/20 10,818,500
Aaa AAA 3,800 Puerto Rico Electric Power
Authority, (FSA), Variable,
7/1/02, (1) 4,109,890
Aaa AAA 5,550 Lehigh, Pennsylvania IDA,
PA Power & Light Company,
(MBIA), 6.15%, 8/1/29 5,643,018
------------
$ 24,853,768
------------
Insured Water & Sewer - 2.5%
Aaa AAA $2,235 Bethlehem, Pennsylvania Water
Authority, (MBIA), 5.20%,
11/15/21 $2,041,516
Aaa AAA 2,500 Philadelphia, Pennsylvania
Water & Wastewater, (FGIC),
Variable, 6/15/12 (1) 2,416,950
Aaa AAA 3,500 Philadelphia, Pennsylvania
Water & Wastewater, (MBIA),
5.00%, 6/15/17 3,116,855
Aaa AAA 3,960 Philadelphia, Pennsylvania
Water & Wastewater, (CGIC),
5.00%, 6/15/16 3,558,773
------------
$ 11,134,094
------------
Life Care - 0.9%
NR NR $4,050 Delaware, Pennsylvania
White Horse Village, 7.50%,
7/1/18 $ 4,062,191
------------
Nursing Homes - 2.2%
NR NR $3,500 Montgomery, Pennsylvania
IDA Geriatric Health, 8.375%,
7/1/23 $ 3,629,325
NR NR 1,190 Philadelphia, Pennsylvania
Hospital - Protestant Homes,
8.625%, 7/1/21 1,229,354
NR NR 1,460 Westmoreland, Pennsylvania
Highland Health, 9.25%,
6/1/22 1,536,854
NR NR 2,750 Wilkins Area, Pennsylvania
IDA Fairview Extended Care,
10.25%, 1/1/21 3,118,555
------------
$ 9,514,088
------------
Pooled Loan - 4.2%
NR AA+ $870 Pennsylvania Infrastructure
Investment Authority, Pennvest,
6.80%, 9/1/10 $ 956,774
NR A 16,950 Pennsylvania Finance
Authority, Beaver County,
6.60%, 11/1/09 17,870,046
------------
$ 18,826,820
------------
Special Tax Revenue - 0.1%
Baa1 BBB+ $500 Puerto Rico Special Tax
Revenue, 7.50%, 7/1/09 $ 533,025
------------
Utilities - 3.7%
Baa3 BB+ $500 Beaver, Pennsylvania IDA,
Ohio Edison Company,
7.75%, 9/1/24 $ 528,480
Baa1 BBB+ 3,250 Delaware, Pennsylvania IDA,
Philadelphia Electric Company,
7.375%, 4/1/21 3,467,230
Baa1 BBB+ 4,070 Montgomery, Pennsylvania
IDA, Philadelphia Electric
Co, (AMT), 7.60%, 4/1/21 4,342,812
Baa1 A- 3,370 Puerto Rico Electric Power
Authority Power Revenue,
0%, 7/1/17 967,392
NR NR 1,500 Virgin Islands Water and
Power Authority, 7.40%,
7/1/11 1,584,240
A2 A 5,500 Washington, Pennsylvania
IDA West Penn Power
Company, 6.05%, 4/1/14 5,555,385
------------
$ 16,445,539
------------
Total Tax-Exempt Investments
(identified cost,
$428,564,003) $444,022,835
------------
<CAPTION>
Contracts Security Value
- --------------------------------------------------------------------------------------------
<S> <C> <C>
408 30-year U.S. Treasury Bond,
American, expiration 9/19/96,
Strike Price $104.00 $ 38,063
451 30-year U.S. Treasury Bond,
American, expiration 9/19/96,
Strike Price $106.00 147,984
------------
Total Put Options on
Financial Futures Contracts
(identified cost, $695,941) $ 186,047
------------
Total Investments
(identified cost,
$429,259,944) $444,208,882
============
(1) The above designated securities have been issued as inverse
floater bonds.
(2) Security has been segregated to cover margin requirements for 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
Pennsylvania 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, July 31,
1996, 37.8% 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 0.9% to 10.9% of total
investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Municipals Portfolios
Financial Statements
Statements of Assets and Liabilities
July 31, 1996
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
-------------- -------------- --------------
Assets:
Investments-
<S> <C> <C> <C>
Identified cost $ 185,036,490 $ 365,003,591 $ 429,259,944
Unrealized appreciation 2,049,123 17,802,712 14,948,938
------------- ------------- -------------
Total investments, at value (Note 1A) $ 187,085,613 $ 382,806,303 $ 444,208,882
Cash 110,267 955,112 309
Receivable for investments sold -- 2,809,723 548,341
Interest receivable 2,495,183 4,978,076 6,376,451
Deferred organization expenses (Note 1D) 4,195 6,794 8,266
------------- ------------- -------------
Total assets $ 189,695,258 $ 391,556,008 $ 451,142,249
------------- ------------- -------------
Liabilities:
Payable for investments purchased $ 1,906,920 $5,038,716 $ 1,365,540
Payable for daily variation margin on open
financial futures contracts (Note 1E) 156,750 252,188 419,375
Demand note payable (Note 5) -- -- 1,169,000
Payable to affiliate-
Trustees' fees (Note 2) 942 1,435 1,610
Accrued expenses 13,761 19,328 4,863
------------- ------------- -------------
Total liabilities $ 2,078,373 $ 5,311,667 $ 2,960,388
------------- ------------- -------------
Net Assets applicable to investors' interest in Portfolio $ 187,616,885 $ 386,244,341 $ 448,181,861
============= ============= =============
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $ 185,675,627 $ 368,629,668 $ 434,444,969
Unrealized appreciation of investments and financial
futures contracts (computed on the basis of identified cost) 1,941,258 17,614,673 13,736,892
------------- ------------- -------------
Total $ 187,616,885 $ 386,244,341 $ 448,181,861
============= ============= =============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Operations
For the Year Ended July 31, 1996
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
-------------- -------------- --------------
<S> <C> <C> <C>
Investment Income (Note 1B):
Interest income $ 11,705,682 $ 25,580,109 $ 30,695,125
------------ ------------ ------------
Expenses --
Investment adviser fee (Note 2) $ 841,092 $ 1,878,801 $ 2,262,320
Compensation of Trustees not members of the
Investment Adviser's organization (Note 2) 11,414 19,671 19,137
Custodian fees (Note 1I) 103,536 174,839 202,018
Legal and accounting services 31,899 40,228 43,328
Amortization of organization expenses (Note 1D) 2,628 4,476 5,292
Miscellaneous 24,076 41,571 48,193
------------ ------------ ------------
Total expenses $ 1,014,645 $ 2,159,586 $ 2,580,288
Deduct -- Reduction of custodian fee (Note 1I) 30,601 67,792 202,018
------------ ------------ ------------
Net expenses $ 984,044 $ 2,091,794 $ 2,378,270
------------ ------------ ------------
Net investment income $ 10,721,638 $ 23,488,315 $ 28,316,855
------------ ------------ ------------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 317,050 $ (586,976) $ 4,460,770
Financial futures contracts (317,864) 270,248 1,531,445
------------ ------------ ------------
Net realized gain (loss) on investments $ (814) $ (316,728) $ 5,992,215
------------ ------------ ------------
Change in unrealized appreciation (depreciation) --
Investments $ 3,603,459 $ 4,160,055 $ 967,735
Financial futures contracts (219,324) (233,343) (1,212,046)
------------ ------------ ------------
Net unrealized appreciation (depreciation) of investments $ 3,384,135 $ 3,926,712 $ (244,311)
------------ ------------ ------------
Net realized and unrealized gain on investments $ 3,383,321 $ 3,609,984 $ 5,747,904
------------ ------------ ------------
Net increase in net assets from operations $ 14,104,959 $ 27,098,299 $ 34,064,759
============ ============ ============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statements of Changes in Net Assets
For the Year Ended July 31, 1996
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
-------------- -------------- --------------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 10,721,638 $ 23,488,315 $ 28,316,855
Net realized gain (loss) on investment transactions (814) (316,728) 5,992,215
Change in unrealized appreciation (depreciation) of investments 3,384,135 3,926,712 (244,311)
------------- ------------- -------------
Net increase in net assets from operations $ 14,104,959 $ 27,098,299 $ 34,064,759
------------- ------------- -------------
Capital transactions --
Contributions $ 11,976,667 $ 25,074,635 $ 20,910,102
Withdrawals (33,740,530) (76,967,015) (109,043,304)
------------- ------------- -------------
Decrease in net assets resulting from capital transactions $ (21,763,863) $ (51,892,380) $ (88,133,202)
------------- ------------- -------------
Total decrease in net assets $ (7,658,904) $ (24,794,081) $ (54,068,443)
Net Assets:
At beginning of year 195,275,789 411,038,422 502,250,304
------------- ------------- -------------
At end of year $ 187,616,885 $ 386,244,341 $ 448,181,861
============= ============= =============
- --------------------------------------------------------------------------------------------------------------------------
For the Year Ended July 31, 1995
- --------------------------------------------------------------------------------------------------------------------------
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
-------------- -------------- --------------
Increase (Decrease) in Net Assets:
From operations --
Net investment income $ 11,005,611 $ 24,622,808 $ 30,623,550
Net realized loss on investment transactions (5,335,034) (17,774,510) (20,294,984)
Change in unrealized appreciation of investments 4,533,624 16,631,954 19,002,225
------------- ------------- -------------
Net increase in net assets from operations $ 10,204,201 $ 23,480,252 $ 29,330,791
------------- ------------- -------------
Capital transactions --
Contributions $ 25,911,862 $ 43,487,001 $ 38,709,755
Withdrawals (32,878,239) (79,782,847) (102,576,381)
------------- ------------- -------------
Decrease in net assets resulting from capital transactions $(6,966,377) $ (36,295,846) $ (63,866,626)
------------- ------------- -------------
Total increase (decrease) in net assets $ 3,237,824 $ (12,815,594) $ (34,535,835)
Net Assets:
At beginning of year 192,037,965 423,854,016 536,786,139
------------- ------------- -------------
At end of year $ 195,275,789 $ 411,038,422 $ 502,250,304
============= ============= =============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
Connecticut Portfolio
------------------------------------------------------------------------
Year ended July 31, 1996
-------------------------------------------------- Year Ended
1996 1995 1994* Sept. 30, 1993**
------------- -------------- ------------ ----------------
Ratios (As a percentage of
average daily net assets):
<S> <C> <C> <C> <C>
Net expenses (1) 0.52% 0.53% 0.47%+ 0.46%+
Net expenses after custodian fee reduction 0.50% -- -- --
Net investment income 5.49% 5.77% 5.40%+ 5.45%+
Portfolio Turnover 23% 29% 10% 10%
Net Assets, end of year (000 omitted) $187,617 $195,276 $192,038 $159,848
<CAPTION>
New Jersey Portfolio
------------------------------------------------------------------------
Year ended July 31, 1996
-------------------------------------------------- Year Ended
1996 1995 1994* Sept. 30, 1993**
------------- -------------- ------------ ----------------
Ratios (As a percentage of
average daily net assets):
Net expenses (1) 0.53% 0.52% 0.50%+ 0.50%+
Net expenses after custodian fee reduction 0.52% -- -- --
Net investment income 5.82% 5.96% 5.62%+ 5.67%+
Portfolio Turnover 39% 54% 25% 12%
Net Assets, end of year (000 omitted) $386,244 $411,038 $423,854 $393,677
<CAPTION>
Pennsylvania Portfolio
------------------------------------------------------------------------
Year ended July 31, 1996
-------------------------------------------------- Year Ended
1996 1995 1994* Sept. 30, 1993**
------------- -------------- ------------ ----------------
Ratios (as a percentage of
average daily net assets):
Net expenses (1) 0.54% 0.49% 0.48%+ 0.50%+
Net expenses after custodian fee reduction 0.50% -- -- --
Net investment income 5.90% 6.02% 5.66%+ 5.71%+
Portfolio Turnover 30% 44% 21% 17%
Net Assets, end of year (000 omitted) $448,182 $502,250 $536,786 $497,001
+ Annualized.
* For the ten months ended July 31, 1994.
** For the period from the start of business, February 1, 1993, to September 30, 1993.
(1) The expense ratios for the year ended July 31, 1996 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 their service providers. The expense ratios for each of the periods
ended on or before July 31, 1995 have not been adjusted to reflect this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
Connecticut Municipals Portfolio ("Connecticut Portfolio"), New
Jersey Municipals Portfolio ("New Jersey Portfolio") and
Pennsylvania Municipals Portfolio ("Pennsylvania Portfolio"),
collectively the Portfolios, are registered under the Investment
Company Act of 1940 as non-diversified, open-end management
investment companies which 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 of the
Portfolios. 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. Over-the-counter options on financial futures are normally
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 of the Portfolios
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 Organization 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 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. 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, a Portfolio 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 transaction 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
Portfolios record 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 accruing interest on settlement date.
H. Other - Investment transactions are accounted for on a trade date
basis.
I. 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 respective 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 reflected as a reduction of
operating expense on the statements of operations.
J. 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 financial
statements and the reported amounts of revenue and expense during
the reporting period. Actual results could differ from those
estimates.
(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 sales of securities).
For the year ended July 31, 1996 the fee for the Connecticut
Portfolio, New Jersey Portfolio and Pennsylvania Portfolio was
equivalent to 0.43%, 0.47% and 0.47%, respectively, of each
Portfolio's average net assets for the year and amounted to
$841,092, $1,878,801 and $2,262,320, respectively.
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.
Trustees of the Portfolios 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 July 31, 1996, no
significant amounts have been deferred.
Certain of the officers and Trustees of the Portfolios are officers
and directors/trustees of the above organizations.
(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 July 31, 1996, were as follows:
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
----------------- ------------------- -------------------
<S> <C> <C> <C>
Purchases $45,400,072 $155,358,451 $140,759,536
Sales 53,177,005 181,497,593 194,013,159
</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 July 31, 1996, as computed on
a federal income tax basis, were as follows:
Connecticut New Jersey Pennsylvania
Portfolio Portfolio Portfolio
----------------- ------------------- -------------------
<S> <C> <C> <C>
Aggregate Cost $185,036,490 $365,003,591 $429,259,944
------------ ------------ ------------
Gross unrealized appreciation $ 4,199,150 $ 18,724,771 $ 17,321,842
Gross unrealized depreciation 2,150,027 922,059 2,372,904
------------ ------------ ------------
Net unrealized appreciation $ 2,049,123 $ 17,802,712 $ 14,948,938
============ ============ ============
</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 investment transactions. Interest is
charged to each Portfolio or Fund based on its borrowings at an
amount above either the bank's adjusted certificate of deposit rate,
a variable adjusted certificate of deposit rate, or a federal funds
effective rate. In addition, a fee computed at an annual rate of 1/4
of 1% on the $20 million committed facility and on the daily unused
portion of the $100 million discretionary facility is allocated
among the participating funds and portfolios at the end of each
quarter. At July 31, 1996, the Pennsylvania Portfolio had a balance
outstanding pursuant to this line of credit of $1,169,000. The
Portfolios did not have any significant borrowings or allocated fees
during the year ended July 31, 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 July
31, 1996 is as follows:
Futures
Contracts Net Unrealized
Portfolio Expiration Date Contracts Position Depreciation
- ---------- -------------------- ------------ ---------- ----------------
<S> <C> <C> <C> <C>
Connecticut 9/96 228 U.S. Treasury Bonds Short $ (107,865)
New Jersey 9/96 365 U.S. Treasury Bonds Short (188,039)
Pennsylvania 9/96 610 U.S. Treasury Bonds Short (1,212,046)
At July 31, 1996, the Portfolios had sufficient cash and/or
securities to cover margin requirements on open financial futures
contracts.
</TABLE>
Independent Auditors' Report
To the Trustees and Investors of
Connecticut Municipals Portfolio
New Jersey Municipals Portfolio
Pennsylvania Municipals Portfolio:
We have audited the accompanying statements of assets and
liabilities including the portfolios of investments, of Connecticut
Municipals Portfolio, New Jersey Municipals Portfolio and
Pennsylvania Municipals Portfolio as of July 31, 1996, the related
statements of operations for the year then ended, the statements of
changes in net assets for the years ended July 31, 1996 and 1995 and
supplementary data for the years ended July 31, 1996 and 1995, the
ten months ended July 31, 1994 and for the period from the start of
business, February 1, 1993, to September 30, 1993. These financial
statements and supplementary data are the responsibility of each
Portfolio's management. Our responsibility is to express an opinion
on these financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with generally accepted
auditing standards. Those standards require that we plan and perform
the audits to obtain reasonable assurance about whether the
financial statements and supplementary data are free of material
misstatement. An audit includes examining, on a test basis, evidence
supporting the amounts and disclosures in the financial statements.
Our procedures included confirmation of securities owned at July 31,
1996 by correspondence with the custodian and brokers: where replies
were not received from brokers, we performed other audit procedures.
An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits
provide a reasonable basis for our opinion.
In our opinion, the financial statements and supplementary data
present fairly, in all material respects, the financial position of
the Connecticut Municipals Portfolio, New Jersey Municipals
Portfolio and the Pennsylvania Municipals Portfolio at July 31,
1996, and 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
August 23, 1996
Investment Management
Funds
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President
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
Portfolios
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President of Connecticut, New Jersey and
Pennsylvania Municipals Portfolios;
Portfolio Manager of
New Jersey Municipals Portfolio
Nicole Anderes
Vice President and Portfolio Manager
of Connecticut Municipals Portfolio
Timothy T. Browse
Vice President and Portfolio Manager
of Pennsylvania Municipals Portfolio
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
Attn: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
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-3CSRC-9/96
