<PAGE>
[EATON VANCE LOGO] MUTUAL FUNDS
FOR PEOPLE
WHO PAY [PICTURE OF
TAXES BRICK WALL]
[EDUCATION]
Semiannual Report March 31, 1999
EATON VANCE
[HIGHWAY AT NIGHT] MUNICIPALS California
TRUST
Florida
Massachusetts
Mississippi
New York
Ohio
Rhode Island
[SUSPENSION BRIDGE] West Virginia
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
LETTER TO SHAREHOLDERS
[PHOTO]
Thomas J. Fetter
President
Through much of 1998, the Treasury bond market advanced strongly, amid
continued low inflation and fears that an Asian financial crisis could
provoke an economic slowdown. However, in the fourth quarter of 1998, the
economy proved far more resilient than expected. Gross Domestic Product (GDP)
grew 6.1%, the fastest quarterly pace in nearly 15 years. In the first
quarter of 1999, GDP surged 4.5%. Meanwhile, as energy prices - a key
ingredient of inflation - edged higher, the bond market gave up some of its
earlier gains.
Municipal bonds trailed the Treasury market through much of 1998, but gained
ground in the first quarter of 1999. A heavy new issue calendar produced
supply pressures for the tax-exempt market, with more than $300 billion in
new municipal issues coming to market in 1998. However, in the first three
months of 1999, supply eased somewhat. For the year ended March 31, 1999, the
Lehman Brothers Municipal Bond Index*- a widely recognized, unmanaged index
of municipal bonds - posted a return of 6.2%.
MUNICIPAL BONDS REMAIN AMONG
THE MOST UNDERVALUED ASSET CLASSES...
At the end of 1998, municipal bonds represented one of the most undervalued
asset classes in the financial markets. Historically, municipal bond yields
have averaged around 85% of Treasury bond yields. However, in the flight to
Treasuries that characterized the bond market in late 1998, that ratio rose
significantly and has remained unusually high. By March 31, 1999, those
ratios had narrowed, but only slightly. Representative 30-year tax-exempt
bonds were yielding 5.2%, or nearly 93% of 30-year Treasury yields. By any
measure of historical valuation, municipal bonds today represent an excellent
bargain, especially, considering their tax-exempt status.
[GRAPH]
Municipal bonds yield nearly 93% of Treasury yields
5.21% 8.14%
30-Year AAA-rated Taxable equivalent yield
General Obligation (GO) Bonds* in 36% tax bracket
5.62%
30-Year Treasury bond
Principal and interest payments of Treasury securities are guaranteed
by the U.S. government.
*GO yields are a compilation of a representative variety of general
obligations and are not necessarily representative of a Fund's yield.
Statistics as of March 31, 1999.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
TAXES REMAIN HIGH, WHILE TAX REFORM
IS AGAIN STALLED IN CONGRESS...
The election year promises of tax cuts appear to have reached a roadblock in
Washington. Meanwhile, it is estimated that the average American worked until
May 10 to pay his or her taxes in 1998, according to the Tax Foundation. That
poses an enormous financial burden - and an increasing challenge for those who
may be simultaneously paying for college tuition, caring for elderly parents, or
trying to plan for their own retirement.
Amid low inflation and growing federal budget surpluses, we believe that the
outlook for bonds remains favorable. At their recent levels, municipal bonds
are especially attractive. Moreover, municipal bonds remain an excellent
fixed-income alternative - to diversify one's investment portfolio and to
lower one's tax burden.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 10, 1999
*It is not possible to invest directly in an Index.
MUTUAL FUND SHARES ARE NOT INSURED 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.
2
<PAGE>
EATON VANCE CALIFORNIA MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- The California economy enjoyed 3% job growth in 1998, with southern
California registering especially strong momentum. Orange and Los Angeles
Counties led the way, with strong progress in non-durable manufacturing.
The state's unemployment rate was 5.1% in March, down from 6.0% a year
earlier.
- The construction sector remained a primary source of new jobs. Reversing the
out-migration seen earlier in the decade, California registered a 1.5% rise
in population in 1998. The increased demand for housing resulted in an
average of 11,500 monthly residential construction permits, a 25% rise from
a year ago.
- The Los Angeles area has witnessed a surge in the financial services
sector. Job gains in brokerage, finance, and real estate management
have more than offset job losses in commercial banking.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Management continued its strategy of structuring the Portfolio in a
"barbell approach," which balances lower coupon performance bonds with
higher coupon income bonds. This strategy can help increase returns in
a flat interest rate environment.
- Bond calls have picked up in the past year, making our emphasis on call
protection that much more important. We continually strive to improve
the call characteristics of issues in the Portfolio whenever possible,
especially in a declining interest rate environment.
- Credit quality spreads continued to narrow in the second half of 1998.
Management took the opportunity to selectively reduce credit risk and
to diversify and improve credit quality in the Portfolio by swapping
into higher-grade credits.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and
Class B shares had total returns of 0.5% and 0.3%, respectively.(1) For
Class A, this return resulted from a change in net asset value (NAV)
per share to $11.12 on March 31, 1999 from $11.34 on September 30,
1998, and the reinvestment of $0.278 per share in tax-free income.(2)
For Class B, this return resulted from a change in NAV to $10.24 from
$10.42, and the reinvestment of $0.210 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 4.99% for Class A and 4.10% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were 4.25% and
4.04%, respectively.(4)
PORTFOLIO STATISTICS*
- ------------------------------------------------------------------------------
- Number of Issues: 75
- Average Maturity: 20.8 years
- Average Rating: AA-
- Average Call: 10.4 years
- Average Dollar Price: $100.14
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
AAA 48.0%
AA 10.2%
A 8.6%
BBB 13.2%
BB 1.4%
Non-rated 18.6%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
<S> <C> <C>
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 5.6% 5.0%
Five Years N.A. 6.7
Ten Years N.A. 6.6
Life of Fund+ 8.1 6.6
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 0.6% 0.0%
Five Years N.A. 6.4
Ten Years N.A. 6.6
Life of Fund+ 7.1 6.6
</TABLE>
+Inception date: Class A: 5/27/94; Class B: 12/19/85
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Escrowed 29.0%
Lease 19.6%
Special Tax Revenue 7.2%
Insured Water & Sewer 7.1%*
Insured Electric Utilities 5.8%*
*Private insurance does not remove the interest rate risks associated with
these investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 68.7% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
3
<PAGE>
EATON VANCE FLORIDA MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- Florida's economy experienced continued growth in late 1998 and early
1999. Favorable conditions fueling the economic expansion included
personal income and expenditure increases, low overall price levels and
interest rates, and high consumer confidence. Florida's consumer
confidence level, a leading indicator of consumer spending, reached a
record high in February before declining slightly in March.
- Florida is currently one of the nation's strongest job markets. Recent
data show that the seasonally adjusted unemployment rate for February,
at 4.4%, outpaced the nation's by 0.2%. According to the most recent
comparative state figures, Florida remained the top state for
over-the-year percentage job growth. Services, the state's largest
industry, grew 5.7% from February 1998 to February 1999, adding the
highest number of new jobs.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- In addition to the Portfolio's primary objective of income, management
focused on an overall structure that combined lower-coupon performance
bonds with higher-coupon, more defensive bonds.
- Bond calls have picked up in the past year, making our emphasis on call
protection that much more important. We continually strive to improve
the call characteristics of issues in the Portfolio whenever possible,
especially in a declining interest rate environment.
- Credit quality spreads continued to narrow in the second half of 1998.
Management took the opportunity to reduce credit risk selectively, and to
diversify and improve credit quality in the Portfolio by swapping into
higher-grade credits.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and
Class B shares had total returns of 0.4% and 0.0%, respectively.(1) For
Class A, this return resulted from a change in net asset value (NAV)
per share to $10.93 on March 31, 1999 from $11.15 on September 30,
1998, and the reinvestment of $0.264 per share in tax-free income.(2) For
Class B, this return resulted from a change in NAV to $11.19 from
$11.42, and the reinvestment of $0.226 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 4.85% for Class A and 4.07% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were 4.56%
and 3.96%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 105
- Average Maturity: 23.0 years
- Average Rating: AA
- Average Call: 8.0 years
- Average Dollar Price: $101.38
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 55.6%
AA 20.1%
A 7.6%
BBB 6.8%
Non-rated 9.9%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 5.0% 4.1%
Five Years N.A. 6.1
Life of Fund+ 7.5 7.1
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -0.1% -0.9%
Five Years N.A 5.8
Life of Fund+ 6.5 7.1
</TABLE>
+Inception date: Class A: 4/5/94; Class B: 8/28/90
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Housing 10.4%
Escrowed/Prerefunded 9.6%
Transportation 8.7%
Electric Utilities 8.2%
Insured Special Tax 7.7%*
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax. (3)The Fund's distribution rate represents
actual distributions paid to shareholders and is calculated daily by dividing
the last distribution per share (annualized) by the net asset value (NAV).
(4)The Fund's SEC yield is calculated by dividing the net investment income
per share for the 30-day period by the offering price at the end of the
period and annualizing the result. (5)Returns are historical and are
calculated by determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect a sales charge of
4.75% and for Class B reflect applicable CDSC based on the following
schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year;
1% - 6th year. (6)Based on market value as of 3/31/99. May not represent the
Portfolio's current or future investments. Five largest sectors represent
76.2% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
4
<PAGE>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- Massachusetts' economic activity continued to grow in late 1998 and
early 1999. Strong job data figures, thriving high-tech and financial
sectors, and ongoing consumer demand are some of the factors that
contributed to the expansion. The unemployment rate as of February 1999
was 2.9%, down 0.6% from a year ago.
- As is the case in other states, manufacturing has had mixed
performance. The automotive, furniture, office supplies, and health
care areas continued to perform well, while sales of electronics and
industrial machinery are reported to be down.
- Massachusetts is one of corporate America's favorite places to do
business. According to Inc. magazine, the state is home to more of the
nation's fastest-growing companies, especially in the high-tech area,
than any other state except Texas or California.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Massachusetts Turnpike Authority bonds remain the Portfolio's largest
holdings, all of which are either insured or fully escrowed. These
bonds have attractive structural qualities, such as being non-callable,
and thus have higher resale potential.
- Although the hospital sector has experienced some setbacks, management
has identified a number of hospitals that we expect will be able to
flourish in the new competitive healthcare environment. We have also
found appealing names in secondary schools and colleges, as well as the
resource recovery sector.
- - Credit quality spreads continued to narrow in the second half of 1998
and early 1999. Management took the opportunity to reduce credit risk
selectively, and to diversify and improve credit quality in the
Portfolio by swapping into higher-grade credits.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A, Class
B, and Class I shares had total returns of 0.7%, 0.2% and 0.7%,
respectively.(1) For Class A, this return resulted from a change in net
asset value (NAV) per share to $9.75 on March 31, 1999 from $9.94 on
September 30, 1998, and the reinvestment of $0.254 per share in
tax-free income;(2) for Class B, a change in NAV to $10.86 from $11.07,
and the reinvestment of $0.232 per share;(2) and for Class I, a change in
NAV to $10.07 from $10.26, and to reinvestment of $0.262 per share.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 5.19% for Class A, 4.28% for Class B, and
5.21% for Class I.(3)
- The SEC 30-day yields for Class A, B, and I shares at March 31 were 4.24%,
3.55%, and 4.49%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 73
- Average Maturity: 21.3 years
- Average Rating: AA-
- Average Call: 8.7 years
- Average Dollar Price: $97.33
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 38.8%
AA 17.2%
A 7.7%
BBB 25.3%
Non-rated 11.0%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B Class I
- -------------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.9% 4.2% 5.1%
Five Years 6.7 6.1 7.0
Life of Fund+ 5.1 6.7 5.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -0.1% -0.8% 5.1%
Five Years 5.7 5.8 7.0
Life of Fund+ 4.1 6.7 5.8
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 4/18/91; Class I: 6/17/93
5 LARGEST SECTORS(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Hospital 18.6%
Escrowed 17.4%
Insured Hospital 10.0%*
Education 9.7%
Water & Sewer 8.9%
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge 4.75% and for Class B reflect applicable CDSC based on
the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99. May not
represent the Portfolio's current or future investments. Five largest sectors
represent 64.6% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
5
<PAGE>
EATON VANCE MISSISSIPPI MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- Mississippi's seasonally adjusted unemployment rate for February 1999 was
4.3%, a significant drop from the previous February's rate of 5.5%, and down
from January's 5.2%. Average hourly earnings were on the rise as well,
increasing from $10.66 in January 1998 to $10.89 in January 1999.
- The casino industry continues to thrive and to power the state economy.
Casino revenues had a record year in 1998, exceeding 1997's earnings by
10%. The outlook remains positive so far in 1999; the Beau Rivage, a new
casino in Biloxi, should be completed by the end of March 1999 and will
create 4,200 jobs.
- Like other states, Mississippi has recently had mixed performance in
the manufacturing sector. For example, while an auto components
producer with plants in Mississippi and Louisiana is closing and laying
off 635 workers, plans have recently been announced to open two new
computer plants in Mississippi.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Credit quality spreads continued to narrow in the second half of 1998.
Management took the opportunity to selectively reduce credit risk and
to diversify and improve credit quality in the Portfolio by swapping
into higher-grade credits.
- In addition to the Portfolio's primary objective of providing income,
management focused on an overall structure that combined lower-coupon
performance bonds with higher-coupon, more defensive bonds.
- Bond calls have picked up in the past year, making our emphasis on call
protection that much more important. We continually strive to improve
the call characteristics of issues in the Portfolio whenever possible,
especially in a declining interest rate environment.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and
Class B shares had total returns of 0.6% and 0.2%, respectively.(1) For
Class A, this return resulted from a change in net asset value (NAV)
per share to $9.88 on March 31, 1999 from $10.06 on September 30, 1998,
and the reinvestment of $0.241 per share in tax-free income.(2) For
Class B, this return resulted from a change in NAV to $10.11 from $10.30,
and the reinvestment of $0.209 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999, the
distribution rates were 4.86% for Class A and 4.07% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at 31 were 4.18% and 3.60%,
respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 32
- Average Maturity: 19.0 years
- Average Rating: AA
- Average Call: 9.0 years
- Average Dollar Price: $103.19
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 55.9%
AA 6.6%
A 21.0%
BBB 13.7%
Non-rated 2.8%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 5.0% 4.1%
Five Years 6.9 6.6
Life of Fund+ 4.9 5.0
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 0.0% -0.9%
Five Years 5.9 6.3
Life of Fund+ 3.9 4.8
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 6/11/93
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Escrowed 16.0%
Insured Hospital 14.2%*
Housing 13.9%
Industrial Development Revenue 12.5%
Lease 11.1%
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 67.7% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
6
<PAGE>
EATON VANCE NEW YORK MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Thomas J. Fetter
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- While the New York economy posted gains in the past year, the state
suffered from tumult in the financial markets and declining exports to
Asia and emerging markets. The state's job growth continued to lag the
nation, rising 2.0% versus 2.6% for the nation as a whole. The state's
unemployment rate declined to 5.3% in March from 5.8% a year earlier.
- The Mid-Hudson region was New York's pacesetter for job creation.
Computer-related areas, metals, and temporary services were among the
fastest-growing industry groups.
- New York City's financial markets were deeply affected by last year's global
financial crisis. Securities underwriting volumes declined sharply and
several large brokerage firms announced layoffs amid market volatility and
fears of declining profits.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Credit quality spreads continued to narrow in the second half of 1998.
Management took the opportunity to reduce credit risk selectively, and to
diversify and improve credit quality in the Portfolio by swapping into
higher-grade credits.
- Bond calls have picked up in the past year, making our emphasis on call
protection that much more important. We continually strive to improve the
call characteristics of issues in the Portfolio whenever possible,
especially in a declining interest rate environment.
- In addition to the Portfolio's primary objective of providing income,
management focused on bonds that sell at a discount, selectively adding
lower and zero coupon bonds in order to increase upside trading potential.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and Class B
shares had total returns of 0.6% and 0.2%, respectively.(1) For Class A, this
return resulted from a change in net asset value (NAV) per share to $10.56 on
March 31, 1999 from $10.92 on September 30, 1998, and the reinvestment of
$0.268 per share in tax-free income.(2) For Class B, this return resulted
from a change in NAV to $11.39 from $11.76, and the reinvestment of $0.240
per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999, the
distribution rates were 5.02% for Class A and 4.19% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were 4.39% and
3.78%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 101
- Average Maturity: 19.7 years
- Average Rating: A
- Average Call: 11.6 years
- Average Dollar Price: $122.27
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 15.0%
AA 12.8%
A 36.0%
BBB 25.2%
Non-rated 11.0%
* As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
<S> <C> <C>
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 5.5% 4.7%
Five Years N.A. 6.5
Life of Fund+ 7.4 7.6
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 0.5% -0.2%
Five Years N.A. 6.2
Life of Fund+ 6.4 7.6
</TABLE>
+Inception date: Class A: 4/15/94; Class B: 8/30/90
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Education 24.3%
Lease 9.4%
Electric Utilities 9.1%
Hospital 7.8%
Transportation 7.2%
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 57.8% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
7
<PAGE>
EATON VANCE OHIO MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
THE ECONOMY
- -------------------------------------------------------------------------------
[PHOTO]
Thomas J. Fetter
Portfolio Manager
- The Ohio economy made further progress in 1998 and early 1999, with the
service and trade sectors responsible for most employment gains. In
contrast, the economic woes of Asia and the strong U.S. dollar hurt the
manufacturing sector, an important element of the Ohio economy. The
state's March unemployment rate was 4.2%.
- Despite a difficult climate for manufacturers, Ohio's steelmakers fared
well in 1998, reflecting a strong industry trend. According to the
Cleveland-based Steel Service Center Institute, nationwide shipments
totalled 28.9 million tons, a 3% increase over 1997.
- The Ohio labor market suffered the General Motors auto strike and some
temporary, weather-related layoffs elsewhere. Nonetheless, according to
the Ohio Bureau of Employment Services, the state saw 156,000 more
Ohians employed during the course of the year.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- In addition to the Portfolio's primary objective of providing income,
management focused on bonds that sell at a discount, selectively adding
lower and zero coupon bonds in order to increase upside trading
potential.
- Credit quality spreads continued to narrow in the second half of 1998.
Management took the opportunity to selectively reduce credit risk and
to diversify and improve credit quality in the Portfolio by swapping
into higher-grade credits.
- Bond calls have picked up in the past year, making our emphasis on call
protection that much more important. We generally strive to improve the
call characteristics of issues in the Portfolio whenever possible,
especially in a declining interest rate environment.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and Class B
shares had total returns of 1.3% and 0.9%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.72 on March 31, 1999 from $9.93 on September 30, 1998, and the
reinvestment of $0.256 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $10.98 from $11.21, and the
reinvestment of $0.245 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 5.28% for Class A and 4.51% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were 4.44%
and 3.81%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 103
- Average Maturity: 21.3 years
- Average Rating: A+
- Average Call: 7.1 years
- Average Dollar Price: $105.13
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 33.9%
AA 22.0%
A 17.4%
BBB 8.6%
BB 4.9%
Non-rated - I.G. 7.2%
Non-rated B.I.G. 6.0%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
<S> <C> <C>
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 5.1% 4.3%
Five Years 6.9 6.4
Life of Fund+ 5.0 6.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year 0.1% -0.7%
Five Years 5.9 6.1
Life of Fund+ 4.0 6.8
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 4/18/91
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Hospital 17.8%
Industrial Development Revenue 13.8%
Housing 10.9%
Insured Hospital 9.5%*
General Obligation 8.3%
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 59.1% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
8
<PAGE>
EATON VANCE RHODE ISLAND MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- In February, the unemployment rate in Rhode Island fell below 4.0% for
the first time in nearly 10 years. The seasonally adjusted rate of 3.9%
represented a decline of 0.6% from the prior month and 1.4% from the
year-ago period. All major industries, except manufacturing, posted job
gains in February from the year before.
- Employment in the services fields expanded by 3,500 jobs for the
year ended February 1999, a reflection of growth in engineering, accounting,
and other service industries. Health services added 1,100 jobs, and trade
jobs increased by 2,200, with the largest gains coming from food stores and
auto dealerships.
- Other economic indicators were also positive. Housing permits increased
by 20.7% between February 1998 and February 1999, while median
household income grew 8%. Gross State Product was up a healthy 2.3% in
the same period.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Rhode Island is a low-supply state and as a result, there is not a lot of
trading activity in its municipal bond issues. To supplement the R.I. exempt
bonds, the Portfolio owns a number of bonds issued by Puerto Rico, which are
also exempt in R.I. and offer attractive structural characteristics.
- With its recent fiscal success, the state has been able to generate
enough cash to pay off some of its debt ahead of schedule, or to retire
it through escrow. Although this means there are fewer issues for the
Portfolio to choose from, it is quite encouraging from a credit
perspective.
- Management has identified new investment opportunities in the areas of
education (Johnson & Wales University, the culinary institute) and
healthcare (St. Joseph's Health Services).
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and
Class B shares had total returns of 0.6% and 0.1%, respectively.(1) For
Class A, this return resulted from a change in net asset value (NAV)
per share to $9.76 on March 31, 1999 from $9.94 on September 30, 1998,
and the reinvestment of $0.237 per share in tax-free income.(2) For
Class B, this return resulted from a change in NAV to $9.98 from
$10.17, and the reinvestment of $0.203 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 4.81% for Class A and 4.03% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were 4.25% and
3.65%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 44
- Average Maturity: 22.9 years
- Average Rating: AA+
- Average Call: 8.8 years
- Average Dollar Price: $101.93
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 56.4%
AA 17.3%
A 12.7%
BBB 9.6%
Non-rated 4.0%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
<S> <C> <C>
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.9% 4.1%
Five Years 6.7 6.4
Life of Fund+ 4.6 4.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -0.1% -0.9%
Five Years 5.7 6.1
Life of Fund+ 3.6 4.7
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 6/11/93
5 Largest Sectors(6)
- -------------------------------------------------------------------------------
By total NET ASSETS
Housing 14.9%
Insured Special Tax Revenue 14.4%*
Insured Hospital 14.1%*
Insured General Obligations 13.7%*
Hospital 11.2%
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 68.3% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
return and principal value will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
9
<PAGE>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PHOTO]
Timothy T. Browse
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- The West Virginia seasonally adjusted unemployment rate dropped to 5.7%
in February. While still higher than the national average of 4.4%, the
figure reflects a continuing trend of lower unemployment in the state
and is the lowest rate recorded for any month since 1978. Most of the
1,800 job gains were in the services sector.
- In 1998, more than 10,000 new jobs were created in West Virginia,
exceeding the record number set in 1997. Significant gains were posted
in services, trade, and construction, offset by losses of 1,900 mining
jobs and 1,100 manufacturing jobs.
- More than $1.2 billion in total capital was invested in new business
projects in 1998, with 158 companies announcing new facilities or the
expansion of existing facilities in West Virginia. Such new projects
accounted for more than half of 1998's job growth.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- Management has maintained a diverse Portfolio, containing a number of
issues with characteristics that would be appealing to retail
investors. Management has generated capital for the Portfolio by
selling these high-demand issues at an above-average price.
- When a new issue of an existing bond owned by the Portfolio was offered
recently, we sold the old bond and "swapped into" the new one. Without
changing the credit quality of the Portfolio, we were able to buy a
bond with more attractive characteristics at a lower dollar price.
- The Portfolio also bought some "bank-qualified" bonds. Banks, being
restricted to these specialty issues, create a demand for the bonds,
causing them to trade at higher levels and with greater liquidity.
Thus, these bonds are attractive purchases for the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- During the six months ended March 31, 1999, the Fund's Class A and
Class B shares had total returns of 0.7% and 0.2%, respectively.(1) For
Class A, this return resulted from a change in net asset value (NAV)
per share to $9.95 on March 31, 1999 from $10.12 on September 30, 1998,
and the reinvestment of $0.242 per share in tax-free income.(2) For
Class B, this return resulted from a change in NAV to $10.14 from
$10.32, and the reinvestment of $0.204 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on March 31, 1999,
the distribution rates were 4.87% for Class A and 4.05% for Class B.(3)
- The SEC 30-day yields for Class A and B shares at March 31 were
4.00% and 3.38%, respectively.(4)
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
- Number of Issues: 41
- Average Maturity: 20.7 years
- Average Rating: AA
- Average Call: 7.2 years
- Average Dollar Price: $100.02
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[GRAPHIC]
AAA 67.8%
A 16.1%
BBB 11.0%
Non-Rated 5.1%
*As of March 31, 1999. May not represent the Portfolio's current or future
investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
Performance(5) Class A Class B
<S> <C> <C>
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year 4.8% 3.9%
Five Years 6.9 6.4
Life of Fund+ 5.1 5.0
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -0.2% -1.1%
Five Years 5.8 6.1
Life of Fund+ 4.1 4.8
</TABLE>
+Inception date: Class A: 12/13/93; Class B: 6/11/93
5 Largest Sectors(6)
- --------------------------------------------------------------------------------
By total NET ASSETS
Insured Water & Sewer 16.3%*
Insured Hospital 13.2%*
Insured Education 10.0%*
Industrial Development Revenue 9.1%
Electric Utilities 8.4%*
*Private insurance does not remove the interest rate risks associated with
these investments.
(1)These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2)A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized) by
the net asset value (NAV). (4)The Fund's SEC yield is calculated by dividing
the net investment income per share for the 30-day period by the offering
price at the end of the period and annualizing the result. (5)Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year. (6)Based on market value as of 3/31/99.
May not represent the Portfolio's current or future investments. Five largest
sectors represent 72.9% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
10
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $264,168,004 $ 378,716,706 $220,026,970 $18,084,940
Unrealized appreciation 36,979,792 30,301,332 20,191,221 1,657,738
- --------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $301,147,796 $ 409,018,038 $240,218,191 $19,742,678
- --------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 383,830 $ 164,520 $ 264,065 $ 300,314
Other assets 272 -- -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $301,531,898 $ 409,182,558 $240,482,256 $20,042,992
- --------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------
Dividends payable $ 545,384 $ 739,383 $ 465,365 $ 35,799
Payable for Fund shares redeemed 461,767 828,360 395,731 27,214
Payable to affiliate for Trustees' fees 64 -- 67 4
Other accrued expenses 230,293 300,431 145,138 12,951
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,237,508 $ 1,868,174 $ 1,006,301 $ 75,968
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $300,294,390 $ 407,314,384 $239,475,955 $19,967,024
- --------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------
Paid-in capital $282,729,556 $ 377,093,753 $229,354,752 $19,804,050
Accumulated undistributed net realized
gain (loss) from Portfolio (computed
on the basis of identified cost) (19,653,766) 724,826 (9,601,868) (1,522,631)
Accumulated undistributed (distributions
in excess of) net investment income 238,808 (805,527) (468,150) 27,867
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 36,979,792 30,301,332 20,191,221 1,657,738
- --------------------------------------------------------------------------------------------------------------------
TOTAL $300,294,390 $ 407,314,384 $239,475,955 $19,967,024
- --------------------------------------------------------------------------------------------------------------------
Class A Shares
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 13,148,013 $ 12,363,739 $ 15,454,028 $ 1,520,612
SHARES OUTSTANDING 1,182,125 1,131,108 1,584,381 153,850
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 11.12 $ 10.93 $ 9.75 $ 9.88
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 11.67 $ 11.48 $ 10.24 $ 10.37
- --------------------------------------------------------------------------------------------------------------------
Class B Shares
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $287,146,377 $ 394,950,645 $212,748,557 $18,446,412
SHARES OUTSTANDING 28,035,361 35,293,771 19,592,900 1,824,015
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.24 $ 11.19 $ 10.86 $ 10.11
- --------------------------------------------------------------------------------------------------------------------
Class I Shares
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ -- $ 11,273,370 $ --
SHARES OUTSTANDING -- -- 1,119,990 --
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ -- $ 10.07 $ --
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $424,347,877 $ 225,087,131 $41,426,488 $29,215,595
Unrealized appreciation 35,957,095 14,349,364 2,482,309 1,803,322
- -------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $460,304,972 $ 239,436,495 $43,908,797 $31,018,917
- -------------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 195,529 $ 6,689 $ 33,185 $ 2,313
Other assets 833 -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $460,501,334 $ 239,443,184 $43,941,982 $31,021,230
- -------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Dividends payable $ 844,423 $ 488,841 $ 78,757 $ 54,040
Payable for Fund shares redeemed 468,479 359,612 5,719 36,176
Payable to affiliate for Trustees' fees 74 -- 3 2
Other accrued expenses 312,950 171,907 22,500 22,200
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,625,926 $ 1,020,360 $ 106,979 $ 112,418
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS $458,875,408 $ 238,422,824 $43,835,003 $30,908,812
- -------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------
Paid-in capital $422,347,244 $ 222,066,156 $43,357,515 $30,230,317
Accumulated undistributed net realized
gain (loss) from Portfolio (computed
on the basis of identified cost) 604,032 1,724,800 (1,918,887) (1,087,313)
Accumulated undistributed (distributions
in excess of) net investment income (32,963) 282,504 (85,934) (37,514)
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 35,957,095 14,349,364 2,482,309 1,803,322
- -------------------------------------------------------------------------------------------------------------------
TOTAL $458,875,408 $ 238,422,824 $43,835,003 $30,908,812
- -------------------------------------------------------------------------------------------------------------------
Class A Shares
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS $ 14,213,464 $ 7,849,400 $ 2,544,946 $ 1,944,921
SHARES OUTSTANDING 1,345,992 807,293 260,868 195,518
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.56 $ 9.72 $ 9.76 $ 9.95
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 11.09 $ 10.20 $ 10.25 $ 10.45
- -------------------------------------------------------------------------------------------------------------------
Class B Shares
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS $444,661,944 $ 230,573,424 $41,290,057 $28,963,891
SHARES OUTSTANDING 39,048,621 21,003,240 4,136,380 2,855,972
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 11.39 $ 10.98 $ 9.98 $ 10.14
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 8,809,515 $ 11,973,321 $ 7,134,972 $ 571,338
Other income 75,492 -- -- --
Expenses allocated from Portfolio (831,033) (1,038,069) (621,209) (42,288)
- --------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 8,053,974 $ 10,935,252 $ 6,513,763 $ 529,050
- --------------------------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses $ 2,370 $ 2,382 $ 2,736 $ 137
Distribution and service fees
Class A 4,149 8,014 2,863 1,165
Class B 763,465 1,992,954 1,026,898 85,583
Custodian fee 15,280 -- 12,206 2,796
Transfer and dividend disbursing agent
fees 127,689 147,943 95,821 9,070
Legal and accounting services 15,649 13,992 15,225 13,372
Printing and postage 9,647 8,493 8,741 1,683
Registration fees 478 4,169 3,305 195
Amortization of organization expenses 964 -- -- --
Miscellaneous 10,935 12,288 7,895 906
- --------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 950,626 $ 2,190,235 $ 1,175,690 $ 114,907
- --------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 7,103,348 $ 8,745,017 $ 5,338,073 $ 414,143
- --------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 1,281,321 $ 6,016,956 $ 1,398,908 $ 92,323
Financial futures contracts 49,825 (295,422) 176,100 1,103
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,331,146 $ 5,721,534 $ 1,575,008 $ 93,426
- --------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(7,709,786) $ (14,930,620) $(6,314,695) $(466,320)
Financial futures contracts 376,199 398,880 32,260 22,936
- --------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(7,333,587) $ (14,531,740) $(6,282,435) $(443,384)
- --------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(6,002,441) $ (8,810,206) $(4,707,427) $(349,958)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 1,100,907 $ (65,189) $ 630,646 $ 64,185
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 13,409,674 $ 7,475,858 $1,171,984 $ 846,116
Expenses allocated from Portfolio (1,232,515) (685,985) (85,011) (66,879)
- ------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 12,177,159 $ 6,789,873 $1,086,973 $ 779,237
- ------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------
Trustees' fees and expenses $ 2,737 $ 2,430 $ 136 $ 115
Distribution and service fees
Class A 6,720 3,862 1,390 1,009
Class B 2,153,001 1,130,745 187,121 138,079
Custodian fee 14,378 13,927 3,449 3,137
Transfer and dividend disbursing agent
fees 189,438 94,761 17,248 11,876
Legal and accounting services 15,407 13,993 12,761 12,147
Printing and postage 17,567 5,826 1,862 1,825
Registration fees 482 2,590 204 --
Amortization of organization expenses 1,512 371 -- --
Miscellaneous 11,796 4,415 1,376 2,110
- ------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 2,413,038 $ 1,272,920 $ 225,547 $ 170,298
- ------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 9,764,121 $ 5,516,953 $ 861,426 $ 608,939
- ------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,098,895 $ 2,020,361 $ 116,258 $ 262,165
Financial futures contracts (468,986) (95,996) 28,580 22,094
- ------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,629,909 $ 1,924,365 $ 144,838 $ 284,259
- ------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(11,118,126) $ (5,278,439) $ (935,800) $(848,442)
Financial futures contracts 633,222 129,636 7,234 45,361
- ------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(10,484,904) $ (5,148,803) $ (928,566) $(803,081)
- ------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (8,854,995) $ (3,224,438) $ (783,728) $(518,822)
- ------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 909,126 $ 2,292,515 $ 77,698 $ 90,117
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 7,103,348 $ 8,745,017 $ 5,338,073 $ 414,143
Net realized gain 1,331,146 5,721,534 1,575,008 93,426
Net change in unrealized appreciation
(depreciation) (7,333,587) (14,531,740) (6,282,435) (443,384)
- --------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 1,100,907 $ (65,189) $ 630,646 $ 64,185
- --------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (294,812) $ (320,684) $ (370,096) $ (42,371)
Class B (6,041,055) (8,420,653) (4,669,570) (383,815)
Class I -- -- (293,732) --
In excess of net investment income
Class A -- -- -- (559)
Class B -- (36,732) -- --
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (6,335,867) $ (8,778,069) $ (5,333,398) $ (426,745)
- --------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 4,484,528 $ 5,226,353 $ 4,959,110 $ 130,251
Class B 8,571,257 9,391,248 7,311,868 1,029,431
Class I -- -- 84,238 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 138,900 133,153 160,090 30,759
Class B 2,513,564 2,917,072 2,284,608 169,948
Class I -- -- 45,804 --
Cost of shares redeemed
Class A (981,674) (4,495,882) (2,665,225) (544,346)
Class B (19,851,371) (51,641,933) (18,014,566) (1,034,001)
Class I -- -- (79,540) --
- --------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (5,124,796) $ (38,469,989) $ (5,913,613) $ (217,958)
- --------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,359,756) $ (47,313,247) $(10,616,365) $ (580,518)
- --------------------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------------------
At beginning of period $310,654,146 $ 454,627,631 $250,092,320 $20,547,542
- --------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $300,294,390 $ 407,314,384 $239,475,955 $19,967,024
- --------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- --------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 238,808 $ (805,527) $ (468,150) $ 27,867
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 9,764,121 $ 5,516,953 $ 861,426 $ 608,939
Net realized gain 1,629,909 1,924,365 144,838 284,259
Net change in unrealized appreciation
(depreciation) (10,484,904) (5,148,803) (928,566) (803,081)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 909,126 $ 2,292,515 $ 77,698 $ 90,117
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (303,236) $ (183,044) $ (56,355) $ (42,837)
Class B (9,578,767) (5,386,953) (805,664) (566,102)
In excess of net investment income
Class A (1,688) -- (1,050) (1,507)
Class B (14,636) -- (9,528) (25,066)
From net realized gain
Class A (162,322) (57,623) -- --
Class B (6,002,114) (1,824,977) -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(16,062,763) $ (7,452,597) $ (872,597) $ (635,512)
- -------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 5,055,877 $ 1,668,122 $ 422,043 $ 280,299
Class B 10,025,366 5,578,956 3,596,274 820,992
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 269,092 106,250 31,110 30,248
Class B 9,186,630 3,863,569 484,378 312,632
Cost of shares redeemed
Class A (2,432,932) (394,864) (63,808) (172,125)
Class B (33,190,584) (21,227,794) (1,797,840) (1,480,323)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $(11,086,551) $ (10,405,761) $ 2,672,157 $ (208,277)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $(26,240,188) $ (15,565,843) $ 1,877,258 $ (753,672)
- -------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------
At beginning of period $485,115,596 $ 253,988,667 $41,957,745 $31,662,484
- -------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $458,875,408 $ 238,422,824 $43,835,003 $30,908,812
- -------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (32,963) $ 282,504 $ (85,934) $ (37,514)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,359,647 $ 19,468,618 $ 10,803,854 $ 866,441
Net realized gain 5,489,144 10,921,955 5,581,339 569,757
Net change in unrealized appreciation
(depreciation) 7,605,440 12,853,837 3,418,128 113,458
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 26,454,231 $ 43,244,410 $ 19,803,321 $ 1,549,656
- ---------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (349,169) $ (512,609) $ (350,316) $ (68,227)
Class B (13,012,647) (18,956,009) (9,956,529) (819,630)
Class I -- -- (497,009) --
In excess of net investment income
Class A (12,345) (21,465) (26,643) (965)
Class B (552,883) (1,113,013) (340,071) --
Class I -- -- (2,843) --
- ---------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(13,927,044) $ (20,603,096) $(11,173,411) $ (888,822)
- ---------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 5,371,312 $ 8,306,136 $ 9,591,753 $ 955,390
Class B 16,997,546 14,487,842 9,728,032 717,755
Class I -- -- 3,463,796 --
Issued in reorganization of EV
Traditional Municipals Funds and
Massachusetts Municipal Bond
Portfolio
Class A 4,827,782 8,168,505 4,721,026 1,021,041
Class I -- -- 8,170,080 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 164,638 166,984 168,717 50,952
Class B 5,555,712 6,921,027 4,982,510 364,499
Class I -- -- 98,961 --
Cost of shares redeemed
Class A (930,390) (5,350,228) (1,482,737) (146,317)
Class B (55,016,987) (104,771,122) (37,177,268) (4,000,674)
Class I -- -- (640,646) --
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $(23,030,387) $ (72,070,856) $ 1,624,224 $(1,037,354)
- ---------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $(10,503,200) $ (49,429,542) $ 10,254,134 $ (376,520)
- ---------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------
At beginning of year $321,157,346 $ 504,057,173 $239,838,186 $20,924,062
- ---------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $310,654,146 $ 454,627,631 $250,092,320 $20,547,542
- ---------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ---------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (528,673) $ (772,475) $ (472,825) $ 40,469
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 21,421,296 $ 11,771,293 $ 1,735,187 $ 1,385,164
Net realized gain (loss) 16,834,383 3,940,353 (61,081) 409,392
Net change in unrealized appreciation
(depreciation) 3,990,621 2,570,828 1,421,267 666,665
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 42,246,300 $ 18,282,474 $ 3,095,373 $ 2,461,221
- -------------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (487,219) $ (280,325) $ (91,312) $ (89,354)
Class B (20,794,773) (11,526,840) (1,643,506) (1,250,905)
In excess of net investment income
Class A (7,839) -- -- --
Class B -- -- (16,617) --
From net realized gain
Class A (24,818) -- -- --
Class B (930,508) -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(22,245,157) $ (11,807,165) $(1,751,435) $(1,340,259)
- -------------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 3,561,941 $ 3,535,313 $ 494,239 $ 343,079
Class B 17,645,544 7,298,183 5,222,931 1,494,042
Issued in reorganization of EV
Traditional Municipals Funds
Class A 8,651,176 3,163,408 1,738,315 1,777,064
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 232,114 114,570 50,150 57,360
Class B 12,018,774 6,026,150 946,730 644,241
Cost of shares redeemed
Class A (1,121,100) (315,335) (149,368) (395,859)
Class B (93,267,140) (39,309,840) (5,923,048) (4,902,677)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $(52,278,691) $ (19,487,551) $ 2,379,949 $ (982,750)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $(32,277,548) $ (13,012,242) $ 3,723,887 $ 138,212
- -------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------
At beginning of year $517,393,144 $ 267,000,909 $38,233,858 $31,524,272
- -------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $485,115,596 $ 253,988,667 $41,957,745 $31,662,484
- -------------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 101,243 $ 335,548 $ (74,763) $ (10,941)
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND
-----------------------------------------------------------------------------------------------------
YEAR ENDED
-----------------------------------------------------------------------------
SEPTEMBER 30, MARCH 31,
SIX MONTHS ENDED --------------------------------------------------------------- ----------
MARCH 31, 1999
(UNAUDITED) 1998(1) 1997 1996 1995 1994(2) 1994
-------------------- ------------------- -------- -------- -------- -------- ----------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $11.340 $10.420 $10.900 $10.010 $ 9.540 $ 9.410 $ 9.290 $ 9.560 $10.200
- ----------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.280 $ 0.237 $ 0.556 $ 0.431 $ 0.451 $ 0.464 $ 0.475 $ 0.240 $ 0.480
Net realized and
unrealized gain
(loss) (0.222) (0.206) 0.468 0.428 0.477 0.135 0.253 (0.234) (0.395)
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME FROM
OPERATIONS $ 0.058 $ 0.031 $ 1.024 $ 0.859 $ 0.928 $ 0.599 $ 0.728 $ 0.006 $ 0.085
- ----------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.278) $(0.211) $(0.564) $(0.431) $(0.451) $(0.465) $(0.475) $(0.240) $(0.480)
In excess of net
investment income -- -- (0.020) (0.018) (0.007) (0.004) (0.016) (0.036) (0.092)
From net realized gain -- -- -- -- -- -- -- -- (0.153)
In excess of net
realized gain -- -- -- -- -- -- (0.117) -- --
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.278) $(0.211) $(0.584) $(0.449) $(0.458) $(0.469) $(0.608) $(0.276) $(0.725)
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF PERIOD $11.120 $10.240 $11.340 $10.420 $10.010 $ 9.540 $ 9.410 $ 9.290 $ 9.560
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 0.52% 0.29% 9.65% 8.80% 9.98% 6.49% 8.30% 0.06% 0.55%
- ----------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------
Net assets, end of
period (000's
omitted) $13,148 $287,146 $ 9,740 $300,914 $321,157 $361,255 $401,742 $439,591 $463,414
Ratios (As a
percentage of
average daily net
assets):
Expenses(4)(5) 0.75%(6) 1.20%(6) 0.79% 1.66% 1.69% 1.66% 1.65% 1.63%(6) 1.67%
Expenses after
custodian fee
reduction(4) 0.73%(6) 1.18%(6) 0.77% 1.64% 1.68% 1.65% 1.64% -- --
Net investment
income 5.02%(6) 4.63%(6) 5.02% 4.25% 4.66% 4.87% 5.19% 5.06%(6) 4.64%
Portfolio Turnover(7) -- -- -- -- -- -- -- -- 5%
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the six months ended September 30, 1994. The Fund changed its fiscal
year end from March 31 to September 30, effective September 30, 1994.
(3) 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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses for the period the Fund was investing in the Portfolio.
(5) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 prior periods have not been adjusted to reflect this
change.
(6) Annualized.
(7) Portfolio Turnover represents the rate of portfolio activity for the period
while the Fund was making investments directly in securities. The portfolio
turnover rate for the period since the Fund transferred all of its
investable assets to the Portfolio is shown in the Portfolio's financial
statements which are included elsewhere in this report.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)(1) 1998(1) 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $11.150 $11.420 $10.640 $10.900 $10.780 $10.720 $10.270 $11.700
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.267 $ 0.226 $ 0.528 $ 0.447 $ 0.488 $ 0.505 $ 0.514 $ 0.514
Net realized and
unrealized gain (loss) (0.223) (0.229) 0.532 0.546 0.136 0.067 0.469 (1.228)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.044 $(0.003) $ 1.060 $ 0.993 $ 0.624 $ 0.572 $ 0.983 $(0.714)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.264) $(0.226) $(0.528) $(0.447) $(0.488) $(0.506) $(0.514) $(0.514)
In excess of net
investment income -- (0.001) (0.022) (0.026) (0.016) (0.006) (0.019) (0.082)
In excess of net realized
gain -- -- -- -- -- -- -- (0.120)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.264) $(0.227) $(0.550) $(0.473) $(0.504) $(0.512) $(0.533) $(0.716)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.930 $11.190 $11.150 $11.420 $10.900 $10.780 $10.720 $10.270
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.40% (0.04)% 10.20% 9.30% 5.89% 5.43% 9.90% (6.34)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $12,364 $394,951 $11,764 $442,863 $504,057 $612,438 $701,565 $760,867
Ratios (As a percentage
of average daily net
assets):
Expenses(3)(4) 0.73%(5) 1.56%(5) 0.73% 1.55% 1.57% 1.55% 1.54% 1.44%
Expenses after
custodian fee
reduction(3) 0.69%(5) 1.52%(5) 0.69% 1.51% 1.53% 1.52% 1.51% --
Net investment income 4.86%(5) 4.02%(5) 4.82% 4.01% 4.50% 4.67% 4.97% 4.70%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 ratio
for the year ended September 30, 1994 has not been adjusted to reflect this
change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND
--------------------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)(1) 1998(1) 1997 1996 1995 1994
-------------------------------- ---------------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS I CLASS A CLASS B CLASS I CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $ 9.940 $11.070 $10.260 $ 9.620 $10.690 $ 9.890 $10.330 $10.270 $ 9.990 $11.250
- ----------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.254 $ 0.234 $ 0.264 $ 0.493 $ 0.468 $ 0.527 $ 0.487 $ 0.491 $ 0.499 $ 0.505
Net realized and
unrealized gain (loss) (0.190) (0.210) (0.191) 0.357 0.396 0.373 0.360 0.066 0.307 (1.108)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.064 $ 0.024 $ 0.073 $ 0.850 $ 0.864 $ 0.900 $ 0.847 $ 0.557 $ 0.806 $(0.603)
- ----------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.254) $(0.234) $(0.263) $(0.493) $(0.468) $(0.527) $(0.487) $(0.492) $(0.499) $(0.505)
In excess of net
investment income -- -- -- (0.037) (0.016) (0.003) -- (0.005) (0.027) (0.087)
In excess of net realized
gain -- -- -- -- -- -- -- -- -- (0.065)
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.254) $(0.234) $(0.263) $(0.530) $(0.484) $(0.530) $(0.487) $(0.497) $(0.526) $(0.657)
- ----------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.750 $10.860 $10.070 $ 9.940 $11.070 $10.260 $10.690 $10.330 $10.270 $ 9.990
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.65% 0.20% 0.71% 9.07% 8.28% 9.34% 8.41% 5.53% 8.38% (5.57)%
- ----------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $15,454 $212,749 $11,273 $13,282 $225,371 $11,439 $239,838 $267,398 $291,114 $295,011
Ratios (As a percentage
of average daily net
assets):
Expenses(3)(4) 0.68%(5) 1.59%(5) 0.65%(5) 0.74% 1.60% 0.66% 1.61% 1.59% 1.58% 1.50%
Expenses after
custodian fee
reduction(3) 0.66%(5) 1.57%(5) 0.63%(5) 0.72% 1.58% 0.64% 1.59% 1.58% 1.56% --
Net investment income 5.18%(5) 4.28%(5) 5.22%(5) 5.04% 4.32% 5.24% 4.70% 4.75% 5.00% 4.75%
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 ratio
for the year ended September 30, 1994 has not been adjusted to reflect this
change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)(1) 1998 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $10.060 $10.300 $ 9.740 $ 9.970 $ 9.610 $ 9.480 $ 9.110 $10.260
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.238 $ 0.203 $ 0.474 $ 0.419 $ 0.433 $ 0.451 $ 0.449 $ 0.453
Net realized and
unrealized gain (loss) (0.177) (0.183) 0.331 0.337 0.362 0.122 0.379 (1.072)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.061 $ 0.020 $ 0.805 $ 0.756 $ 0.795 $ 0.573 $ 0.828 $(0.619)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.238) $(0.210) $(0.478) $(0.426) $(0.435) $(0.443) $(0.449) $(0.453)
In excess of net
investment income (0.003) -- (0.007) -- -- -- (0.009) (0.071)
In excess of net realized
gain -- -- -- -- -- -- -- (0.007)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.241) $(0.210) $(0.485) $(0.426) $(0.435) $(0.443) $(0.458) $(0.531)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.880 $10.110 $10.060 $10.300 $ 9.970 $ 9.610 $ 9.480 $ 9.110
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.61% 0.19% 8.47% 7.75% 8.45% 6.17% 9.40% (6.20)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 1,521 $18,446 $ 1,932 $18,615 $20,924 $23,862 $26,756 $26,771
Ratios (As a percentage
of average daily net
assets):
Net expenses(3)(4) 0.84%(5) 1.63%(5) 0.72% 1.50% 1.60% 1.44% 1.36% 0.99%
Net expenses after
custodian fee
reduction(3) 0.82%(5) 1.61%(5) 0.70% 1.48% 1.59% 1.41% 1.33% --
Net investment income 4.78%(5) 4.00%(5) 4.77% 4.12% 4.39% 4.64% 4.89% 4.63%
- ------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or the Administrator, or both. Had such action not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage
of average daily net
assets):
Expenses(3)(4) 1.55% 1.49% 1.45%
Expenses after
custodian fee
reduction(3) 1.52% 1.46% --
Net investment income 4.53% 4.76% 4.17%
Net investment income per
share $ 0.440 $ 0.437 $ 0.407
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 the year ended September 30, 1994 have not been adjusted to reflect
this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)(1) 1998(1) 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $10.920 $11.760 $10.510 $11.300 $10.930 $10.830 $10.450 $11.880
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.266 $ 0.241 $ 0.538 $ 0.488 $ 0.506 $ 0.506 $ 0.523 $ 0.528
Net realized and
unrealized gain (loss) (0.207) (0.219) 0.446 0.478 0.375 0.116 0.406 (1.165)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.059 $ 0.022 $ 0.984 $ 0.966 $ 0.881 $ 0.622 $ 0.929 $(0.637)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.266) $(0.241) $(0.538) $(0.483) $(0.506) $(0.508) $(0.523) $(0.528)
In excess of net
investment income (0.002) --(2) (0.013) -- (0.005) (0.014) (0.026) (0.089)
From net realized gain -- -- (0.023) (0.023) -- -- -- --
In excess of net realized
gain (0.151) (0.151) -- -- -- -- -- (0.176)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.419) $(0.392) $(0.574) $(0.506) $(0.511) $(0.522) $(0.549) $(0.793)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.560 $11.390 $10.920 $11.760 $11.300 $10.930 $10.830 $10.450
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) 0.56% 0.18% 9.62% 8.76% 8.23% 5.87% 9.23% (5.62)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $14,213 $444,662 $11,720 $473,396 $517,393 $590,397 $640,605 $648,325
Ratios (As a percentage
of average daily net
assets):
Expenses(4)(5) 0.73%(6) 1.57%(6) 0.77% 1.58% 1.63% 1.54% 1.55% 1.46%
Expenses after
custodian fee
reduction(4) 0.73%(6) 1.57%(6) 0.75% 1.56% 1.63% 1.51% 1.51% --
Net investment income 4.96%(6) 4.13%(6) 5.03% 4.26% 4.56% 4.64% 4.99% 4.72%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Distributions in excess of net investment income are less than $0.001 per
share.
(3) 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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 ratio
for the year ended September 30, 1994 has not been adjusted to reflect this
change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED) 1998 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $ 9.930 $11.210 $ 9.680 $10.930 $10.590 $10.510 $10.070 $11.300
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.256 $ 0.245 $ 0.514 $ 0.495 $ 0.499 $ 0.494 $ 0.487 $ 0.494
Net realized and
unrealized gain (loss) (0.127) (0.145) 0.249 0.280 0.328 0.071 0.461 (1.081)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.129 $ 0.100 $ 0.763 $ 0.775 $ 0.827 $ 0.565 $ 0.948 $(0.587)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.256) $(0.247) $(0.513) $(0.495) $(0.487) $(0.485) $(0.487) $(0.494)
In excess of net
investment income -- -- -- -- -- -- (0.021) (0.084)
In excess of net realized
gain (0.083) (0.083) -- -- -- -- -- (0.065)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.339) $(0.330) $(0.513) $(0.495) $(0.487) $(0.485) $(0.508) $(0.643)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.720 $10.980 $ 9.930 $11.210 $10.930 $10.590 $10.510 $10.070
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 1.32% 0.89% 8.07% 7.24% 7.98% 5.48% 9.74% (5.39)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 7,849 $230,573 $ 6,622 $247,367 $267,001 $289,829 $315,891 $321,578
Ratios (As a percentage
of average daily net
assets):
Expenses(2)(3) 0.77%(4) 1.61%(4) 0.80% 1.62% 1.63% 1.63% 1.59% 1.50%
Expenses after
custodian fee
reduction(2) 0.77%(4) 1.61%(4) 0.78% 1.60% 1.62% 1.61% 1.57% --
Net investment income 5.23%(4) 4.44%(4) 5.25% 4.46% 4.65% 4.66% 4.80% 4.62%
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) 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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 ratio
for the year ended September 30, 1994 has not been adjusted to reflect this
change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED)(1) 1998 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $ 9.940 $10.170 $ 9.610 $ 9.840 $ 9.510 $ 9.400 $ 9.090 $10.330
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.233 $ 0.202 $ 0.471 $ 0.422 $ 0.427 $ 0.440 $ 0.452 $ 0.454
Net realized and
unrealized gain (loss) (0.176) (0.188) 0.328 0.334 0.334 0.125 0.332 (1.146)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.057 $ 0.014 $ 0.799 $ 0.756 $ 0.761 $ 0.565 $ 0.784 $(0.692)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.233) $(0.202) $(0.469) $(0.422) $(0.427) $(0.444) $(0.452) $(0.454)
In excess of net
investment income (0.004) (0.002) -- (0.004) (0.004) (0.011) (0.022) (0.078)
In excess of net realized
gain -- -- -- -- -- -- -- (0.016)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.237) $(0.204) $(0.469) $(0.426) $(0.431) $(0.455) $(0.474) $(0.548)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.760 $ 9.980 $ 9.940 $10.170 $ 9.840 $ 9.510 $ 9.400 $ 9.090
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.58% 0.13% 8.52% 7.87% 8.19% 6.14% 8.94% (6.91)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 2,545 $41,290 $ 2,200 $39,758 $38,234 $39,488 $39,864 $34,261
Ratios (As a percentage
of average daily net
assets):
Net expenses(3)(4) 0.72%(5) 1.53%(5) 0.69% 1.46% 1.40% 1.35% 1.33% 1.02%
Net expenses after
custodian fee
reduction(3) 0.69%(5) 1.50%(5) 0.66% 1.43% 1.35% 1.32% 1.29% --
Net investment income 4.81%(5) 4.00%(5) 4.83% 4.23% 4.43% 4.63% 4.92% 4.65%
- ------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or the Administrator, or both. Had such action not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage
of average daily net
assets):
Expenses(3)(4) 1.52% 1.47% 1.46% 1.38%
Expenses after
custodian fee
reduction(3) 1.47% 1.44% 1.42% --
Net investment income 4.31% 4.51% 4.79% 4.29%
Net investment income per
share $ 0.415 $ 0.429 $ 0.440 $ 0.418
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 the year ended September 30, 1994 have not been adjusted to reflect
this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND
--------------------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
SIX MONTHS ENDED --------------------------------------------------------------------
MARCH 31, 1999
(UNAUDITED) 1998 1997 1996 1995 1994
-------------------- -------------------- -------- -------- -------- --------
CLASS A CLASS B CLASS A CLASS B CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $10.120 $10.320 $ 9.790 $ 9.970 $ 9.620 $ 9.500 $ 9.130 $10.220
- ------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.234 $ 0.196 $ 0.504 $ 0.430 $ 0.419 $ 0.420 $ 0.436 $ 0.450
Net realized and
unrealized gain (loss) (0.162) (0.171) 0.325 0.336 0.351 0.147 0.393 (1.011)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.072 $ 0.025 $ 0.829 $ 0.766 $ 0.770 $ 0.567 $ 0.829 $(0.561)
- ------------------------------------------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.234) $(0.196) $(0.499) $(0.416) $(0.419) $(0.427) $(0.436) $(0.450)
In excess of net
investment income (0.008) (0.009) -- -- (0.001) (0.020) (0.023) (0.069)
In excess of net realized
gain -- -- -- -- -- -- -- (0.010)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.242) $(0.205) $(0.499) $(0.416) $(0.420) $(0.447) $(0.459) $(0.529)
- ------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.950 $10.140 $10.120 $10.320 $ 9.970 $ 9.620 $ 9.500 $ 9.130
- ------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) 0.72% 0.23% 8.68% 7.84% 8.18% 6.02% 9.39% (5.66)%
- ------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ------------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 1,945 $28,964 $ 1,839 $29,824 $31,524 $37,708 $39,569 $38,476
Ratios (As a percentage
of average daily net
assets):
Net expenses(2)(3) 0.76%(4) 1.59%(4) 0.66% 1.48% 1.53% 1.55% 1.40% 0.95%
Net expenses after
custodian fee
reduction(2) 0.74%(4) 1.57%(4) 0.63% 1.45% 1.51% 1.51% 1.38% --
Net investment income 4.67%(4) 3.85%(4) 5.06% 4.25% 4.31% 4.30% 4.74% 4.62%
- ------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or the Administrator, or both. Had such action not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage
of average daily net
assets):
Expenses(2)(3) 1.48% 1.32%
Expenses after
custodian fee
reduction(2) 1.46% --
Net investment income 4.66% 4.25%
Net investment income per
share $ 0.429 $ 0.414
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) 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
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) The expense ratios for the year ended September 30, 1995 and periods
thereafter 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 the year ended September 30, 1994 have not been adjusted to reflect
this change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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 twenty-nine Funds, eight
of the non-diversified funds are included in these financial statements. They
include Eaton Vance California Municipals Fund ("California Fund"), Eaton
Vance Florida Municipals Fund ("Florida Fund"), Eaton Vance Massachusetts
Municipals Fund ("Massachusetts Fund"), Eaton Vance Mississippi Municipals
Fund ("Mississippi Fund"), Eaton Vance New York Municipals Fund ("New York
Fund"), Eaton Vance Ohio Municipals Fund ("Ohio Fund"), Eaton Vance Rhode
Island Municipals Fund ("Rhode Island Fund") and Eaton Vance West Virginia
Municipals Fund ("West Virginia Fund"). The California Fund, the Florida
Fund, the Mississippi Fund, the New York Fund, the Ohio Fund, the Rhode
Island Fund and the West Virginia Fund offer two classes of shares. The
Massachusetts Fund offers three classes of shares. Class A shares are sold
subject to a sales charge imposed at the time of purchase. Class B shares are
sold at net asset value and are subject to a declining contingent deferred
sales charge (see Note 6). Class I shares of the Massachusetts Fund are sold
at net asset value. All classes of shares have equal rights to assets and
voting privileges. Realized and unrealized gains and losses are allocated
daily to each class of shares based on the relative net assets of each class
to the total net assets of the Fund. Net investment income, other than class
specific expenses, is allocated daily to each class of shares based upon the
ratio of the value of each class' paid shares to the total value of all paid
shares. Each class of shares differs in its distribution plan and certain
other class specific expenses. 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 California Fund invests its assets
in the California Municipals Portfolio, the Florida Fund invests its assets
in the Florida Municipals Portfolio, the Massachusetts Fund invests its
assets in the Massachusetts Municipals Portfolio, the Mississippi Fund
invests its assets in the Mississippi Municipals Portfolio, the New York Fund
invests its assets in the New York Municipals Portfolio, the Ohio Fund
invests its assets in the Ohio Municipals Portfolio, the Rhode Island Fund
invests its assets in the Rhode Island Municipals Portfolio and the West
Virginia Fund invests its assets in the West Virginia 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
(approximately 100% at March 31, 1999 for each Fund except Mississippi, Rhode
Island and West Virginia which were 99.3%, 99.7% and 99.5%, respectively).
The performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuation -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the 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, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 1998, 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 the distributions to
shareholders which would otherwise be necessary to relieve the Funds of any
liability for federal income or excise tax. A portion of such capital loss
carryovers were acquired through the Fund Reorganization (see Note 8) and may
be subject to certain limitations. The amounts and expiration dates of the
capital loss carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
- ---------------------------------------------------------------------------
California Fund $ 18,822,061 September 30, 2004
1,123,064 September 30, 2003
573,068 September 30, 2002
Florida Fund 5,087,168 September 30, 2004
</TABLE>
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
- ---------------------------------------------------------------------------
<S> <C> <C>
Massachusetts Fund $ 2,135 September 30, 2005
10,926,357 September 30, 2004
Mississippi Fund 1,574,492 September 30, 2004
66,903 September 30, 2003
Ohio Fund 68,805 September 30, 2004
4,540 September 30, 2003
1,296 September 30, 2002
Rhode Island Fund 34,703 September 30, 2005
1,523,162 September 30, 2004
426,784 September 30, 2003
78,891 September 30, 2002
West Virginia Fund 170,463 September 30, 2005
1,133,263 September 30, 2004
113,056 September 30, 2003
</TABLE>
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 each Fund in connection
with its organization, including registration costs, are being amortized on
the straight-line basis over five years.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by the credits which are determined
based on the average daily cash balances the Funds or the Portfolios maintain
with IBT. All significant credit balances used to reduce each Fund's
custodian fees are reflected as a reduction of operating expenses on the
Statements of Operations.
F 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.
G Other -- Investment transactions are accounted for on a trade-date basis.
H Interim Financial Statements -- The interim financial statements relating to
March 31, 1999 and for the six month period then ended have not been audited
by independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
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 are
paid in the form of additional shares or, at the election of the shareholder,
in cash. 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.
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, 2000 and will be based
on tax accounting methods which may differ from amounts determined for
financial statement purposes.
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
3 Shares of Beneficial Interest
- -------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different classes.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 398,445 485,031
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,400 14,845
Redemptions (87,746) (83,712)
Issued to EV Traditional Municipals Fund
shareholders -- 442,862
- -------------------------------------------------------------------------------
NET INCREASE 323,099 859,026
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
CALIFORNIA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 831,916 1,670,870
Issued to shareholders electing to
receive payments of distributions in
Fund shares 244,062 546,791
Redemptions (1,928,881) (5,403,497)
- -------------------------------------------------------------------------------
NET DECREASE (852,903) (3,185,836)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FLORIDA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 473,386 762,699
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,059 15,294
Redemptions (409,243) (490,732)
Issued to EV Traditional Municipals Fund
shareholders -- 767,645
- -------------------------------------------------------------------------------
NET INCREASE 76,202 1,054,906
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
FLORIDA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 830,493 1,297,153
Issued to shareholders electing to
receive payments of distributions in
Fund shares 258,039 619,609
Redemptions (4,570,344) (9,391,711)
- -------------------------------------------------------------------------------
NET DECREASE (3,481,812) (7,474,949)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 503,673 979,696
Issued to shareholders electing to
receive payments of distributions in
Fund shares 16,270 17,263
Redemptions (271,421) (151,928)
Issued to EV Traditional Municipals Fund
shareholders -- 490,828
- -------------------------------------------------------------------------------
NET INCREASE 248,522 1,335,859
- -------------------------------------------------------------------------------
</TABLE>
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
MASSACHUSETTS FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 667,413 893,720
Issued to shareholders electing to
receive payments of distributions in
Fund shares 208,309 458,566
Redemptions (1,644,163) (3,429,412)
- -------------------------------------------------------------------------------
NET DECREASE (768,441) (2,077,126)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MASSACHUSETTS FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS I (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 8,293 343,217
Issued to shareholders electing to
receive payments of distributions in
Fund shares 4,506 9,832
Redemptions (7,836) (63,805)
Issued to Massachusetts Municipal Bond
Portfolio shareholders -- 825,783
- -------------------------------------------------------------------------------
NET INCREASE 4,963 1,115,027
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MISSISSIPPI FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 13,072 96,859
Issued to shareholders electing to
receive payments of distributions in
Fund shares 3,083 5,155
Redemptions (54,393) (14,766)
Issued to EV Traditional Municipals Fund
shareholders -- 104,840
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) (38,238) 192,088
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MISSISSIPPI FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 100,506 70,854
Issued to shareholders electing to
receive payments of distributions in
Fund shares 16,646 36,072
Redemptions (101,252) (396,484)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) 15,900 (289,558)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW YORK FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 474,731 333,561
Issued to shareholders electing to
receive payments of distributions in
Fund shares 25,228 21,769
Redemptions (227,347) (105,365)
Issued to EV Traditional Municipals Fund
shareholders -- 823,415
- -------------------------------------------------------------------------------
NET INCREASE 272,612 1,073,380
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW YORK FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 867,990 1,537,239
Issued to shareholders electing to
receive payments of distributions in
Fund shares 796,976 1,046,249
Redemptions (2,861,430) (8,133,681)
- -------------------------------------------------------------------------------
NET DECREASE (1,196,464) (5,550,193)
- -------------------------------------------------------------------------------
</TABLE>
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
OHIO FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 170,234 360,320
Issued to shareholders electing to
receive payments of distributions in
Fund shares 10,849 11,676
Redemptions (40,464) (32,078)
Issued to EV Traditional Municipals Fund
shareholders -- 326,756
- -------------------------------------------------------------------------------
NET INCREASE 140,619 666,674
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
OHIO FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 503,948 658,482
Issued to shareholders electing to
receive payments of distributions in
Fund shares 349,018 544,097
Redemptions (1,920,344) (3,551,484)
- -------------------------------------------------------------------------------
NET DECREASE (1,067,378) (2,348,905)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RHODE ISLAND FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 42,941 50,651
Issued to shareholders electing to
receive payments of distributions in
Fund shares 3,164 5,151
Redemptions (6,494) (15,351)
Issued to EV Traditional Municipals Fund
shareholders -- 180,806
- -------------------------------------------------------------------------------
NET INCREASE 39,611 221,257
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
RHODE ISLAND FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 357,609 523,695
Issued to shareholders electing to
receive payments of distributions in
Fund shares 48,120 94,909
Redemptions (178,945) (594,688)
- -------------------------------------------------------------------------------
NET INCREASE 226,784 23,916
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WEST VIRGINIA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 28,032 34,334
Issued to shareholders electing to
receive payments of distributions in
Fund shares 3,019 5,767
Redemptions (17,198) (40,039)
Issued to EV Traditional Municipals Fund
shareholders -- 181,603
- -------------------------------------------------------------------------------
NET INCREASE 13,853 181,665
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
WEST VIRGINIA FUND
-------------------------------------
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 80,491 147,918
Issued to shareholders electing to
receive payments of distributions in
Fund shares 30,593 63,535
Redemptions (144,988) (484,146)
- -------------------------------------------------------------------------------
NET DECREASE (33,904) (272,693)
- -------------------------------------------------------------------------------
</TABLE>
4 Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios have engaged Boston
Management
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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. Certain of the officers and Trustees
of the Funds and the Portfolios are officers and directors/trustees of the
above organizations. Except for Trustees of the Funds and 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. Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM
and the Funds' principal underwriter, received $4,117, $3,400, $4,226, $346,
$6,014, $1,632,490, $439,958 and $291,795 from the California Fund, Florida
Fund, Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode
Island Fund and West Virginia Fund, respectively as its portion of the sales
charge on sales of Class A shares for the six months ended March 31, 1999.
5 Distribution and Service Plans
- -------------------------------------------
Each Fund has adopted a distribution plan (Class B Plans) pursuant to Rule
12b-1 under the Investment Company Act of 1940 and a service plan (Class A
Plans) (collectively, the Plans). The Plans require the Class B shares to pay
EVD amounts equal to 1/365 of 0.75% of each Fund's Class B daily net assets,
for providing ongoing distribution services and facilities to the respective
Fund. A Fund's Class B shares 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) 5% of the aggregate amount
received by the Fund for Class B shares sold plus (ii) interest 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 (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 Class B share and, accordingly, reduces the
Class B's net assets. For the six months ended March 31, 1999, Florida Fund,
Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island
Fund and West Virginia Fund, paid $1,573,422, $819,333, $69,769, $1,717,846,
$902,190, $150,904 and $110,169, respectively, to EVD, representing 0.75%
(annualized) of each Fund's Class B average daily net assets. The California
Fund paid $410,969 representing 0.28% (annualized) of the Fund's Class B
average daily net assets. At March 31, 1999, the amount of Uncovered
Distribution Charges of EVD calculated under the Class B Plans for Florida
Fund, Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode
Island Fund and West Virginia Fund were approximately $8,314,000, $4,713,000,
$679,000, $7,061,000, $4,838,000, $1,389,000 and $912,000, respectively. The
California Fund had no Uncovered Distribution Charges at March 31, 1999.
In addition, the Plans authorize the Funds to make payments of service fees
to EVD, Authorized Firms and other persons in amounts not exceeding 0.25% of
each Fund's average daily net assets attributable to Class A and Class B
shares for any fiscal year. The Trustees have initially implemented the Plans
by authorizing each class to make quarterly service fee payments to EVD and
Authorized Firms in amounts not expected to exceed 0.20% (0.25% for the
California Fund) per annum of each Fund's average daily net assets
attributable to both Class A and Class B shares based on the value of Fund
shares sold by such persons and remaining outstanding for at least one year.
For the six months ended March 31, 1999, California Fund, Florida Fund,
Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island
Fund and West Virginia Fund paid or accrued service fees to or payable to EVD
in the amount of $4,149, $8,014, $2,863, $1,165, $6,720, $3,862, $1,390 and
$1,009, respectively for Class A shares, and $352,496, $419,532, $207,565,
$15,814, $435,155, $228,555, $36,217 and $27,910, respectively, for Class B
shares. Service fee payments are made for personal services and/or
maintenance of shareholder accounts. Service fees are separate and distinct
from the sales commissions and distribution fees payable by each Fund to EVD,
and as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD.
Certain officers and Trustees of the Funds are officers or directors of EVD.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class B shares acquired by reinvestment of
dividends or capital gains distributions. The CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second
year after purchase, declining one percentage point each subsequent
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
year. No CDSC is levied on Class B 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 each Fund's Class B Distribution Plan (see Note 5). CDSC charges
received when no Uncovered Distribution Charges exist will be credited to the
Fund. EVD received approximately $246,000, $101,000, $15,000, $171,000,
$111,000, $24,000 and $19,000 of CDSC paid by Class B shareholders of Florida
Fund, Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode
Island Fund and West Virginia, respectively, for the six months ended March
31, 1999. EVD also received $141,398 of CDSC paid by Class B shareholders of
California Fund of which $75,492 was paid directly to the Fund for days when
no Uncovered Distribution Charges existed.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
<S> <C>
- ------------------------------------------------------
Increases $ 13,800,165
Decreases 26,637,072
<CAPTION>
FLORIDA FUND
<S> <C>
- ------------------------------------------------------
Increases $ 14,885,790
Decreases 64,012,597
<CAPTION>
MASSACHUSETTS FUND
<S> <C>
- ------------------------------------------------------
Increases $ 11,021,549
Decreases 23,336,122
<CAPTION>
MISSISSIPPI FUND
<S> <C>
- ------------------------------------------------------
Increases $ 908,534
Decreases 1,944,910
<CAPTION>
NEW YORK FUND
<S> <C>
- ------------------------------------------------------
Increases $ 16,271,065
Decreases 45,195,810
<CAPTION>
OHIO FUND
<S> <C>
- ------------------------------------------------------
Increases $ 7,899,453
Decreases 27,052,194
<CAPTION>
RHODE ISLAND FUND
<S> <C>
- ------------------------------------------------------
Increases $ 4,207,967
Decreases 2,534,853
<CAPTION>
WEST VIRGINIA FUND
<S> <C>
- ------------------------------------------------------
Increases $ 1,124,330
Decreases 2,146,062
</TABLE>
8 Transfer of Assets
- -------------------------------------------
On October 1, 1997, EV Marathon California Municipals Fund, EV Marathon
Florida Municipals Fund, EV Marathon Massachusetts Municipals Fund, EV
Marathon Mississippi Municipals Fund, EV Marathon New York Municipals Fund,
EV Marathon Ohio Municipals Fund, EV Marathon Rhode Island Municipals Fund,
EV Marathon West Virginia Municipals Fund, acquired the net assets of EV
Traditional California Municipals Fund, EV Traditional Florida Municipals
Fund, EV Traditional Massachusetts Municipals Fund, Massachusetts Municipal
Bond Portfolio, EV Traditional Mississippi Municipals Fund, EV Traditional
New York Municipals Fund, EV Traditional Ohio Municipals Fund, EV Traditional
Rhode Island Municipals Fund and EV Traditional West Virginia Municipals
Fund, respectively, pursuant to an Agreement and Plan of Reorganization dated
June 23, 1997. In accordance with the agreement, the Funds', at the closing,
issued Class A shares as follows:
<TABLE>
<CAPTION>
CLASS A SHARES AGGREGATE VALUE NET ASSET VALUE
FUND ISSUED OF SHARES ISSUED PER SHARE
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------------------
California Fund 442,862 $4,827,782 $10.90
Florida Fund 767,645 8,168,505 10.64
Massachusetts Fund 490,828 4,721,026 9.62
Mississippi Fund 104,840 1,021,041 9.74
New York Fund 823,415 8,651,176 10.51
Ohio Fund 326,756 3,163,408 9.68
Rhode Island Fund 180,806 1,738,315 9.61
West Virginia Fund 181,603 1,777,064 9.79
</TABLE>
The Massachusetts Fund also issued 825,783 Class I shares with an aggregate
value of $8,170,080 and a net asset value of $9.89.
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
The transaction was structured for tax purposes to qualify as a tax free
reorganization under the Internal Revenue Code. The net assets acquired,
including unrealized appreciation at the date of the transaction were as
follows:
<TABLE>
<CAPTION>
FUND ACQUIRED NET ASSETS UNREALIZED APPRECIATION
<S> <C> <C>
- -----------------------------------------------------------------------------------------
California Fund $4,827,782 $411,207
Florida Fund 8,168,505 186,534
Massachusetts Fund 4,721,026 320,814
Mississippi Fund 1,021,041 121,850
New York Fund 8,651,176 360,034
Ohio Fund 3,163,408 59,995
Rhode Island Fund 1,738,315 78,130
West Virginia Fund 1,777,064 72,043
</TABLE>
The net assets acquired from the Massachusetts Municipal Bond Portfolio were
$8,170,080 and the unrealized appreciation was $375,818.
Directly after the merger, the combined net assets of the Funds and the net
asset value of Class A shares and Class B shares were as follows:
<TABLE>
<CAPTION>
CLASS A NET CLASS B NET
ASSET VALUE ASSET VALUE
FUND COMBINED NET ASSETS PER SHARE PER SHARE
<S> <C> <C> <C>
- --------------------------------------------------------------------------------------------
California Fund $ 325,985,128 $ 10.90 $ 10.01
Florida Fund 512,225,678 10.64 10.90
Massachusetts Fund 252,729,292 9.62 10.69
Mississippi Fund 21,945,103 9.74 9.97
New York Fund 526,044,320 10.51 11.30
Ohio Fund 270,164,317 9.68 10.93
Rhode Island Fund 39,972,173 9.61 9.84
West Virginia Fund 33,301,336 9.79 9.97
</TABLE>
The Class I net asset value for the Massachusetts Fund was $9.89.
34
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Cogeneration -- 4.0%
---------------------------------------------------------------------------------------
NR NR $ 4,985 Central Valley Financing Authority,
(Carson Ice), 6.20%, 7/1/20 $ 5,575,822
NR BBB- 6,000 Sacramento Power Authority, (Campbell's
Soup), 6.00%, 7/1/22 6,382,380
---------------------------------------------------------------------------------------
$ 11,958,202
---------------------------------------------------------------------------------------
Electric Utilities -- 1.5%
---------------------------------------------------------------------------------------
A2 A-1 $ 4,100 California Pollution Control Financing
Authority, (San Diego Gas & Electric),
5.90%, 6/1/14 $ 4,584,005
---------------------------------------------------------------------------------------
$ 4,584,005
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 29.0%
---------------------------------------------------------------------------------------
NR NR $ 2,810 Commerce, Joint Power Financing
Authority, Multifamily, Prerefunded to
3/01/01, 8.00%, 3/1/22 $ 3,100,329
NR BBB 3,910 Fontana Public Financing Authority,
Prerefunded to 10/1/02, 7.00%, 9/1/21 4,180,533
NR BBB+ 2,000 Fontana Redevelopment Agency, (Jurupa
Hills), Prerefunded to 10/1/02, 7.00%,
10/1/14 2,262,360
Aaa AAA 3,455 Northern California Power Agency,
(MBIA), Prerefunded to 9/03/02, Variable
Rate, 8/1/25(1) 4,133,044
Aaa AAA 6,400 Port Oakland, Prerefunded to 5/1/99,
0.00%, 11/1/05 4,111,808
NR NR 10,900 Sacramento Cogeneration Authority,
(Procter & Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 12,678,553
Aaa AAA 8,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.125%, 7/1/16(2) 10,864,800
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 6,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.25%, 1/1/21(2) $ 8,417,760
Aaa NR 14,285 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.50%, 11/1/16(2) 20,045,282
Aaa AAA 335 San Francisco City and County Airports,
(International Airport), (MBIA),
Prerefunded to 5/1/03, 6.75%, 5/1/13 380,999
Aaa AAA 12,000 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/14 5,926,920
Aaa AAA 5,765 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/26 1,487,082
Aaa AAA 35,975 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/27 8,814,595
---------------------------------------------------------------------------------------
$ 86,404,065
---------------------------------------------------------------------------------------
General Obligations -- 1.0%
---------------------------------------------------------------------------------------
NR NR $ 3,000 Capistrano Unified School District,
5.75%, 9/1/29(3) $ 3,000,000
---------------------------------------------------------------------------------------
$ 3,000,000
---------------------------------------------------------------------------------------
Hospital -- 4.3%
---------------------------------------------------------------------------------------
NR AAA $ 2,500 California HFA, Variable Rate,
8/15/28(1)(4) $ 2,617,050
NR NR 945 Eastern Plumas, Health Care, (District
Hospital), 7.50%, 8/1/07 1,009,638
NR NR 4,000 San Benito Health Care District, 5.40%,
10/1/20 3,881,280
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
35
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital (continued)
---------------------------------------------------------------------------------------
Ba2 NR $ 1,000 San Bernadino, (San Bernadino Community
Hospital), 7.875%, 12/1/08 $ 1,050,880
Ba2 NR 3,000 San Bernadino, (San Bernadino Community
Hospital), 7.875%, 12/1/19 3,152,640
NR NR 1,000 San Gorgonio Memorial Health Care
District, 5.75%, 5/1/20 969,090
---------------------------------------------------------------------------------------
$ 12,680,578
---------------------------------------------------------------------------------------
Housing -- 4.8%
---------------------------------------------------------------------------------------
Aa2 AA- $ 2,730 California Housing Finance Agency,
(AMT), 7.375%, 8/1/11 $ 2,797,922
Aa2 AA- 1,525 California Housing Finance Agency,
(AMT), 7.50%, 8/1/25 1,564,864
Aa AA- 5,630 California Housing Finance Agency,
(AMT), 7.65%, 8/1/23 5,772,214
NR NR 2,000 Los Angeles County, Housing Authority,
Multifamily, (Corporate Fund for
Housing), 10.50%, 12/1/29 1,942,960
A1 NR 645 Los Angeles County, Single Family,
7.875%, 8/1/16 702,773
NR A+ 1,385 Oakland, Housing Finance Agency, 7.10%,
1/1/10 1,456,549
---------------------------------------------------------------------------------------
$ 14,237,282
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 4.2%
---------------------------------------------------------------------------------------
Baa1 A- $ 5,500 California Pollution Control Financing
Authority, (Browning Ferris Industries),
(AMT), 5.80%, 12/1/16 $ 5,568,475
NR NR 3,000 California Pollution Control Financing
Authority, (Laidlaw Environmental),
(AMT), 6.70%, 7/1/07 3,130,560
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue (continued)
---------------------------------------------------------------------------------------
Baa3 BB+ $ 3,600 California Statewide Community
Development Authority, (United
Airlines), (AMT), 5.70%, 10/1/33 $ 3,719,232
---------------------------------------------------------------------------------------
$ 12,418,267
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 5.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 4,195 Northern California Power Agency,
(MBIA), Variable Rate, 8/1/25(1) $ 4,986,806
Aaa AAA 2,000 Southern California Public Power
Authority, (FGIC), Variable Rate,
7/1/12(1) 2,205,000
Aaa AAA 7,070 Southern California Public Power
Authority, (MBIA), 0.00%, 7/1/15 3,201,650
Aaa AAA 6,915 Southern California Public Power
Authority, (MBIA), 5.00%, 1/1/20 6,857,121
---------------------------------------------------------------------------------------
$ 17,250,577
---------------------------------------------------------------------------------------
Insured-Hospital -- 1.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 4,000 California HFA, (Stanford Health Care),
(AMBAC), 5.00%, 11/15/28 $ 3,948,000
---------------------------------------------------------------------------------------
$ 3,948,000
---------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 3.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 6,000 Anaheim Public Financing Authority,
(Public Improvements), (FSA), 0.00%,
9/1/19 $ 2,126,760
Aaa AAA 4,350 Stockton, Wastewater Treatment Plant,
(FGIC), 6.80%, 9/1/24 5,081,105
Aaa AAA 13,985 Visalia Unified School District, (MBIA),
0.00%, 12/1/17 4,373,249
---------------------------------------------------------------------------------------
$ 11,581,114
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Solid Waste -- 0.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Inland Empire Solid Waste Finance
Authority, (FSA), (AMT), 6.25%, 8/1/11 $ 1,700,715
---------------------------------------------------------------------------------------
$ 1,700,715
---------------------------------------------------------------------------------------
Insured-Transportation -- 4.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 10,000 Alameda Corridor Transportation
Authority, (MBIA), 0.00%, 10/1/30 $ 1,946,800
Aaa AAA 2,200 Alameda Corridor Transportation
Authority, (MBIA), 4.75%, 1/1/25 2,099,526
Aaa AAA 3,125 Port Oakland, (MBIA), (AMT), 5.375%,
11/1/25 3,198,313
Aaa AAA 1,665 San Francisco City and County Airports,
(International Airport), (MBIA), 6.75%,
5/1/13 1,863,834
Aaa AAA 16,800 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
(MBIA), 0.00%, 1/15/24 4,713,912
---------------------------------------------------------------------------------------
$ 13,822,385
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 7.1%
---------------------------------------------------------------------------------------
Aaa AAA $ 5,000 California State Department Water
Resources, (Central Valley Water
Systems), (FGIC), 5.25%, 12/1/28 $ 5,094,350
Aaa AAA 5,000 East Bay, Municipal Utilities District,
Water System, (MBIA), Variable Rate,
6/1/08(1) 5,537,500
Aaa AAA 2,000 Metropolitan Water District, Southern
California Waterworks, (MBIA), 5.00%,
7/1/27 1,977,460
Aaa AAA 5,000 Metropolitan Water District, Southern
California Waterworks, (MBIA), 5.00%,
7/1/30 4,941,150
Aaa AAA 3,000 San Diego County Water Authority,
(FGIC), Variable Rate, 4/22/09(1) 3,678,750
---------------------------------------------------------------------------------------
$ 21,229,210
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 19.6%
---------------------------------------------------------------------------------------
Aa3 A+ $ 6,500 California Public Works, (University of
California), 5.00%, 6/1/23 $ 6,361,225
Aa3 A+ 5,000 California Public Works, (University of
California), 5.25%, 6/1/20 5,185,000
Aa3 A+ 8,000 California Public Works, (University of
California), 5.50%, 6/1/14 8,692,560
Baa3 BBB- 2,750 Inglewood, 7.00%, 8/1/19 2,930,730
A3 BBB 5,115 Los Angeles County, (Disney Parking),
0.00%, 3/1/16 2,071,575
A3 BBB 1,925 Los Angeles County, (Disney Parking),
0.00%, 3/1/17 736,505
A3 BBB 5,000 Los Angeles County, (Disney Parking),
0.00%, 9/1/17 1,862,350
A3 BBB 5,370 Los Angeles County, (Disney Parking),
0.00%, 3/1/18 1,947,269
A3 BBB 3,100 Los Angeles County, (Disney Parking),
0.00%, 3/1/20 1,007,748
A3 BBB 6,925 Los Angeles County, (Disney Parking),
0.00%, 9/1/20 2,191,486
A3 BBB 1,000 Los Angeles County, (Disney Parking),
6.50%, 3/1/23 1,122,220
NR NR 7,000 Los Angeles County, (Marina Del Ray),
6.50%, 7/1/08 7,635,670
A1 A+ 8,000 Pasadena Parking Facility, 6.25%, 1/1/18 9,143,440
A1 A+ 4,000 Sacramento City Financing Authority,
5.40%, 11/1/20 4,163,760
NR AAA 3,500 San Mateo County Joint Powers Financing
Authority, Variable Rate, 7/15/29(1)(4) 3,418,730
---------------------------------------------------------------------------------------
$ 58,470,268
---------------------------------------------------------------------------------------
Special Tax Revenue -- 7.2%
---------------------------------------------------------------------------------------
NR NR $ 3,150 Brentwood Infrastructure Financing
Authority, 5.625%, 9/2/29 $ 3,069,297
NR BBB 5,000 Contra Costa County, Public Financing
Authority, 7.10%, 8/1/22 5,440,950
NR NR 1,955 Fairfield, (North Cordelia District),
7.375%, 9/2/18 2,025,204
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
37
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
------------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Special Tax Revenue (continued)
---------------------------------------------------------------------------------------
NR NR $ 3,325 Irvine, Improvement Bond Act 1915,
(Assessment District North 97-16, Group
Two), 5.50%, 9/2/22 $ 3,309,672
NR BBB 600 Rancho Mirage Joint Power Financing
Authority, 7.50%, 4/1/17 643,782
NR NR 3,000 Riverside County Community Facilities
District, 7.55%, 9/1/17 3,233,880
NR BBB 2,500 Riverside County Redevelopment Agency,
7.50%, 10/1/26 2,788,675
NR NR 1,000 Torrance Redevelopment Agency, 5.625%,
9/1/28 1,002,290
---------------------------------------------------------------------------------------
$ 21,513,750
---------------------------------------------------------------------------------------
Water and Sewer -- 1.1%
---------------------------------------------------------------------------------------
Aaa AAA $ 3,000 San Francisco City and County Sewer,
(AMBAC), Variable Rate, 10/1/21(1)(4) $ 3,221,040
---------------------------------------------------------------------------------------
$ 3,221,040
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $261,039,666) $ 298,019,458
---------------------------------------------------------------------------------------
</TABLE>
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 California
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 24.8% of securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage by financial
institution ranged from 1.3% to 16.8% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(3) When-issued security.
(4) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $9,256,820 or 3.1% of the
Portfolio's net assets.
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Cogeneration -- 2.9%
---------------------------------------------------------------------------------------
NR NR $ 4,600 Palm Beach County, (Okeelanta Power),
(AMT), 6.85%, 2/15/21(1) $ 3,542,000
NR NR 11,000 Palm Beach County, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 8,360,000
---------------------------------------------------------------------------------------
$ 11,902,000
---------------------------------------------------------------------------------------
Electric Utilities -- 8.2%
---------------------------------------------------------------------------------------
Aa2 AA $ 14,000 Jacksonville Electric Authority, Bulk
Power Supply System Scherer 4, 5.25%,
10/1/21(2) $ 14,103,039
NR AA 3,490 Jacksonville Electric Authority,
Variable Rate, 10/1/32(3)(4) 3,407,147
Aa1 AA 2,850 Orlando Utilities Commission Water and
Electric, 5.125%, 10/1/19 2,853,392
Aa2 AA- 10,000 Orlando Utilities Commission Water and
Electric, 5.60%, 10/6/17 10,572,700
Aa3 AA- 2,515 St. Lucie County Solid Waste Disposal,
(Florida Power & Light Co.), (AMT),
6.70%, 5/1/27 2,722,437
---------------------------------------------------------------------------------------
$ 33,658,715
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 9,225 Dade County, (Baptist Hospital of
Miami), Escrowed to Maturity, 5.75%,
5/1/21 $ 10,078,036
NR BBB+ 2,830 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.),
Prerefunded to 10/01/03, 6.75%, 10/1/14 3,207,522
Aaa AAA 1,110 Escambia County, (MBIA), Prerefunded to
10/1/03, 7.20%, 1/1/15 1,135,874
Aa2 AA+ 6,000 Florida Board of General Services,
Prerefunded to 7/1/02, 6.60%, 7/1/17 6,580,080
NR NR 1,675 Florida State, (Mid-Bay Bridge
Authority), Escrowed to Maturity,
6.875%, 10/1/22 2,082,327
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
---------------------------------------------------------------------------------------
A3 A $ 7,255 Hillsborough County Capital Improvement,
(Museum of Science), Prerefunded to
1/1/01, 6.45%, 1/1/22 $ 7,573,204
Aaa AAA 2,000 Lee County, (Memorial Hospital), (MBIA),
Prerefunded to 4/1/01, Variable Rate,
4/1/20(3) 2,290,000
Aaa AAA 5,600 St. Lucie Utility System, Escrowed to
Maturity, 6.00%, 10/1/20 6,291,880
---------------------------------------------------------------------------------------
$ 39,238,923
---------------------------------------------------------------------------------------
General Obligations -- 6.2%
---------------------------------------------------------------------------------------
NR NR $ 3,000 Capistrano, CA, Unified School District,
5.75%, 9/1/29(5) $ 3,000,000
Aa2 AA+ 20,000 Florida Board of Education, 4.75%,
6/1/22 19,040,399
NR AA+ 2,500 Florida State, Variable Rate,
7/1/27(3)(4) 2,410,525
Baa1 A 2,100 Puerto Rico, 0.00%, 7/1/16 894,369
---------------------------------------------------------------------------------------
$ 25,345,293
---------------------------------------------------------------------------------------
Hospital -- 1.3%
---------------------------------------------------------------------------------------
NR AA+ $ 4,750 Jacksonville HFA, (St. Luke's Hospital
Association), 6.75%, 11/15/13 $ 5,172,513
---------------------------------------------------------------------------------------
$ 5,172,513
---------------------------------------------------------------------------------------
Housing -- 10.4%
---------------------------------------------------------------------------------------
Aaa NR $ 1,500 Broward County Housing Finance
Authority, Single Family, (GNMA/ FNMA),
(AMT), 6.10%, 10/1/19 $ 1,597,020
NR AAA 1,300 Clay County Housing Finance Authority,
Multifamily, (GNMA), 7.40%, 12/1/25 1,367,548
Aaa NR 2,005 Clay County Housing Finance Authority,
Single Family, (GNMA), (AMT), 6.55%,
3/1/28 2,143,265
Aaa NR 825 Dade County Housing Finance Authority,
Single Family, (AMT), 7.75%, 9/1/22 859,782
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
39
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing (continued)
---------------------------------------------------------------------------------------
NR AAA $ 5,850 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT), 6.70%,
10/1/28 $ 6,257,219
Aaa NR 1,070 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT), 7.25%,
9/1/19 1,119,851
Aaa AAA 1,480 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.90%, 10/1/21 1,598,163
Aaa AAA 1,725 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.95%, 10/1/27 1,864,311
Aaa NR 2,360 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.40%, 10/1/23 2,472,454
NR AAA 1,065 Florida Housing Finance Authority,
6.35%, 6/1/14 1,132,883
Aa3 AA 2,115 Florida Housing Finance Authority,
(AMT), 6.35%, 7/1/28 2,268,866
Aaa NR 625 Hillsborough County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.875%, 5/1/23 654,256
NR AAA 6,205 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT), 6.60%,
4/1/28 6,636,185
NR AAA 7,230 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT), 6.85%,
10/1/27(2) 7,780,854
NR AAA 1,695 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT), 7.375%,
9/1/24 1,791,395
Aaa NR 1,455 Polk County Housing Finance Authority,
Single Family, (GNMA), 7.15%, 9/1/23 1,521,537
Baa3 BBB 1,400 Puerto Rico Urban Renewal and Housing
Corp., 7.875%, 10/1/04 1,455,188
---------------------------------------------------------------------------------------
$ 42,520,777
---------------------------------------------------------------------------------------
Improvements -- 0.6%
---------------------------------------------------------------------------------------
Aa3 AA- $ 2,800 Orlando, Capital Improvement, 4.75%,
10/1/22 $ 2,657,508
---------------------------------------------------------------------------------------
$ 2,657,508
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 1.8%
---------------------------------------------------------------------------------------
A2 A $ 2,350 New York, NY, IDA, (British Airways
PLC), (AMT), 5.25%, 12/1/32 $ 2,340,976
Baa3 BBB- 4,500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 4,854,240
---------------------------------------------------------------------------------------
$ 7,195,216
---------------------------------------------------------------------------------------
Insured-Cogeneration -- 1.2%
---------------------------------------------------------------------------------------
Aaa NR $ 5,000 Tampa Solid Waste System, (McKay Bay
Refuse to Energy), (AMBAC), (AMT),
5.00%, 10/1/21 $ 4,891,000
---------------------------------------------------------------------------------------
$ 4,891,000
---------------------------------------------------------------------------------------
Insured-Education -- 1.5%
---------------------------------------------------------------------------------------
NR AAA $ 5,500 Volusia County Educational Facilities,
(Embry-Riddle Aeronautical University)
(CLEE), 6.625%, 10/15/22(2) $ 6,032,070
---------------------------------------------------------------------------------------
$ 6,032,070
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 5.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 5,000 Florida Municipal Power Agency Stanton
II, (AMBAC), Variable Rate,
10/1/20(3)(4) $ 6,043,250
Aaa AAA 1,540 Manatee County Public Utility, (FGIC),
0.00%, 10/1/12 808,546
Aaa AAA 2,200 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/02(3) 2,455,750
Aaa AAA 2,200 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/03(3) 2,530,000
Aaa AAA 3,000 Sunrise Utilities Systems, (AMBAC),
5.00%, 10/1/28 2,988,540
Aaa AAA 7,000 Sunrise Utilities Systems, (AMBAC),
5.20%, 10/1/22 7,168,700
---------------------------------------------------------------------------------------
$ 21,994,786
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations -- 2.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 10,000 Florida Board of Education, (FGIC),
4.50%, 6/1/23 $ 9,190,800
---------------------------------------------------------------------------------------
$ 9,190,800
---------------------------------------------------------------------------------------
Insured-Hospital -- 7.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 8,000 Charlotte County Health Care, (Bon-
Secours Health System), (FSA), Variable
Rate, 8/26/27(3) $ 9,230,000
Aaa AAA 10,000 Jacksonville HFA, (Daughters of
Charity), (MBIA), 5.00%, 11/15/15 10,002,200
Aaa AAA 3,000 Orange County HFA, (Orlando Regional
Medical Center), (MBIA), Variable Rate,
10/29/21(3) 3,495,000
Aaa AAA 7,500 Sarasota County Public Hospital Board,
(Sarasota Memorial Hospital), (MBIA),
5.25%, 7/1/24 7,717,500
---------------------------------------------------------------------------------------
$ 30,444,700
---------------------------------------------------------------------------------------
Insured-Housing -- 3.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 595 Brevard County Housing Finance
Authority, Single Family, (FSA), 7.00%,
3/1/13 $ 625,714
Aaa AAA 3,000 Florida HFA, (Brittany of Rosemont),
(AMBAC), (AMT), 6.875%, 8/1/26 3,291,060
Aaa AAA 6,530 Florida HFA, (Maitland Club Apartments),
(AMBAC), (AMT), 6.875%, 8/1/26 7,163,541
Aaa AAA 2,675 Lee County Housing Finance, SCA
Multifamily, (FSA), (AMT), 7.05%, 1/1/30 2,934,823
---------------------------------------------------------------------------------------
$ 14,015,138
---------------------------------------------------------------------------------------
Insured-Miscellaneous -- 0.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 799 Osceola County IDA, Community Provider
Pooled Loan Program, (FSA), 7.75%,
7/1/10 $ 840,532
---------------------------------------------------------------------------------------
$ 840,532
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.1%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Alachua County Health Facility, (Mental
Health Services), (FSA), 7.75%, 7/1/10 $ 534,790
---------------------------------------------------------------------------------------
$ 534,790
---------------------------------------------------------------------------------------
Insured-Solid Waste -- 0.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,500 St. John's County Solid Waste Disposal,
(FGIC), 7.25%, 11/1/10 $ 1,608,105
---------------------------------------------------------------------------------------
$ 1,608,105
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 7.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 3,835 Dade County, Professional Sports
Franchise, (MBIA), 0.00%, 10/1/23 $ 1,110,808
Aaa AAA 1,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/11 552,710
Aaa AAA 2,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/12 1,043,160
Aaa AAA 1,185 Opa-Locka Sales Tax, (FGIC), 7.00%,
1/1/14 1,346,717
NR AAA 1,250 Puerto Rico Public Finance Corp.,
(AMBAC-TCRS), Variable Rate,
6/1/26(3)(4) 1,253,788
Aaa AAA 2,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/10 1,178,820
Aaa AAA 1,760 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/12 924,053
Aaa AAA 2,840 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/14 1,330,966
Aaa AAA 4,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/15 1,767,960
Aaa AAA 4,140 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/16 1,726,711
Aaa AAA 2,525 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/17 994,572
Aaa AAA 11,500 Tampa Sports Authority, (MBIA), 5.25%,
1/1/17 11,830,625
Aaa AAA 6,800 Tampa Utility Tax, (AMBAC), 0.00%,
4/1/19 2,459,492
Aaa AAA 5,000 Tampa Utility Tax, (AMBAC), 0.00%,
10/1/19 1,763,050
Aaa AAA 2,000 Tampa Utility Tax, (AMBAC), 0.00%,
10/1/20 743,420
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Special Tax Revenue (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 4,000 Tampa Utility Tax, (AMBAC), 0.00%,
10/1/20 $ 1,337,720
---------------------------------------------------------------------------------------
$ 31,364,572
---------------------------------------------------------------------------------------
Insured-Transportation -- 7.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 3,475 Dade County Aviation Facilities, (MBIA),
(AMT), 6.00%, 10/1/24 $ 3,753,521
Aaa AAA 4,000 Dade County Aviation Facilities, (MBIA),
(AMT), 6.55%, 10/1/13 4,374,240
Aaa AAA 4,150 Dade County Aviation Facilities, (MBIA),
(AMT), 6.60%, 10/1/22 4,544,956
Aaa AAA 7,000 Florida Turnpike Authority, (Department
of Transportation), (FGIC), 4.50%,
7/1/27 6,369,650
Aaa AAA 8,650 Greater Orlando Aviation Authority,
(FGIC), (AMT), 6.375%, 10/1/21 9,419,331
Aaa AAA 2,000 Orlando and Orange County Expressway
Authority, (FGIC), 8.25%, 7/1/14 2,755,320
---------------------------------------------------------------------------------------
$ 31,217,018
---------------------------------------------------------------------------------------
Miscellaneous -- 1.3%
---------------------------------------------------------------------------------------
NR NR $ 5,000 Osceola County IDA, Community Pooled
Loan-93, 7.75%, 7/1/17 $ 5,371,800
---------------------------------------------------------------------------------------
$ 5,371,800
---------------------------------------------------------------------------------------
Nursing Home -- 5.1%
---------------------------------------------------------------------------------------
NR NR $ 300 Broward County IDA, (Beverly
Enterprises), 9.80%, 11/1/10 $ 337,347
NR NR 410 Charlotte County IDA, (Beverly
Enterprises), 10.00%, 6/1/11 453,927
NR AAA 4,285 Dade County IDA, (Club Care Center),
(GNMA), 6.60%, 1/20/18 4,572,052
NR AAA 5,075 Dade County IDA, (Gramercy Park Nursing
Care), (FHA), 6.60%, 8/1/23 5,450,347
Baa1 A- 2,000 Highlands County HFA, (Adventist Health
System), 5.25%, 11/15/28 1,938,540
NR NR 1,850 Highlands County IDA, (Beverly
Enterprises), 9.25%, 7/1/07 2,024,511
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Nursing Home (continued)
---------------------------------------------------------------------------------------
Baa1 NR $ 3,750 Jacksonville Health, (Cypress Village),
7.00%, 12/1/22 $ 4,061,325
NR NR 630 Orange County IDA, (Beverly
Enterprises), 9.25%, 8/1/10 691,286
NR NR 1,000 Winter Garden, (Beverly Enterprises),
8.75%, 7/1/12 1,106,750
---------------------------------------------------------------------------------------
$ 20,636,085
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 3.5%
---------------------------------------------------------------------------------------
NR NR $ 6,895 Atlantic Beach, (Fleet Landing), 8.00%,
10/1/24 $ 7,685,857
NR BBB+ 770 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.), 6.75%,
10/1/14 832,147
NR NR 4,000 North Miami HFA, (Imperial Club), 6.75%,
1/1/33 3,926,920
NR NR 1,855 Okaloosa County, Retirement Rental
Housing, (Encore Retirement Partners),
6.125%, 2/1/14 1,852,125
---------------------------------------------------------------------------------------
$ 14,297,049
---------------------------------------------------------------------------------------
Solid Waste -- 0.8%
---------------------------------------------------------------------------------------
A3 A- $ 3,285 Broward County, (Waste Energy Co., L.P.
North), 7.95%, 12/1/08 $ 3,463,277
---------------------------------------------------------------------------------------
$ 3,463,277
---------------------------------------------------------------------------------------
Special Tax Revenue -- 0.8%
---------------------------------------------------------------------------------------
NR AAA $ 3,175 Dade County, Special Obligation,
Variable Rate, 10/1/35(3) $ 3,059,938
---------------------------------------------------------------------------------------
$ 3,059,938
---------------------------------------------------------------------------------------
Transportation -- 8.7%
---------------------------------------------------------------------------------------
Aa2 AA+ $ 10,000 Florida State, (Jacksonville
Transportation), 5.25%, 7/1/22 $ 10,119,700
NR NR 10,140 Florida State, (Mid-Bay Bridge
Authority), 6.125%, 10/1/22 10,800,418
Baa1 A 5,000 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 4,781,500
Baa1 A 9,250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 9,195,055
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation (continued)
---------------------------------------------------------------------------------------
Baa1 A $ 700 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 $ 743,001
---------------------------------------------------------------------------------------
$ 35,639,674
---------------------------------------------------------------------------------------
Water and Sewer -- 1.4%
---------------------------------------------------------------------------------------
Baa1 BBB+ $ 2,500 Hillsborough County Utility, 6.625%,
8/1/11 $ 2,656,425
NR AAA 3,375 Tampa Bay Water Utility System, Variable
Rate, 10/1/27(3)(4) 3,002,704
---------------------------------------------------------------------------------------
$ 5,659,129
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $377,650,076) $ 407,951,408
---------------------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purposes of the Federal Alternative Minimum Tax.
The portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 38.1% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 1.5% to 14.3% of total investments.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(3) Security has been issued as an inverse floater bond.
(4) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $16,117,414 or 3.9% of the
Portfolio's net assets.
(5) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Assisted Living -- 0.7%
---------------------------------------------------------------------------------------
NR AAA $ 1,500 Massachusetts IFA, (Briscoe House),
(FHA), 7.125%, 2/1/36 $ 1,741,455
---------------------------------------------------------------------------------------
$ 1,741,455
---------------------------------------------------------------------------------------
Cogeneration -- 0.9%
---------------------------------------------------------------------------------------
NR BBB $ 1,000 Massachusetts Development Finance
Agency, Resource Recovery, (Ogden
Haverhill), 5.50%, 12/1/19 $ 991,990
NR BBB 1,250 Massachusetts IFA, Resource Recovery,
(Ogden Haverhill), (AMT), 5.60%, 12/1/19 1,253,613
---------------------------------------------------------------------------------------
$ 2,245,603
---------------------------------------------------------------------------------------
Education -- 9.7%
---------------------------------------------------------------------------------------
Aa1 AA+ $ 1,625 Massachusetts HEFA, (Amherst College),
6.80%, 11/1/21 $ 1,779,976
Aa3 AA- 9,635 Massachusetts HEFA, (Boston College),
4.75%, 6/1/31 8,939,257
NR AAA 3,300 Massachusetts HEFA, (Merrimack College),
7.125%, 7/1/12 3,703,062
NR AAA 1,150 Massachusetts HEFA, Residual
Certificates, Variable Rate,
10/1/27(1)(2) 1,126,115
NR A 2,000 Massachusetts IFA, (Belmont Hill
School), 5.25%, 9/1/28 1,968,980
Baa3 BBB- 1,250 Massachusetts IFA, (Dana Hall), 5.90%,
7/1/27 1,289,838
Baa1 BBB+ 2,000 Massachusetts IFA, (St. Johns High
School, Inc.), 5.35%, 6/1/28 1,955,080
A3 NR 2,000 New England Educational Loan Marketing
Corp., (AMT), 6.90%, 11/1/09 2,279,200
---------------------------------------------------------------------------------------
$ 23,041,508
---------------------------------------------------------------------------------------
Electric Utilities -- 6.7%
---------------------------------------------------------------------------------------
Baa2 BBB+ $ 5,060 Massachusetts Municipal Wholesale
Electric Co., 6.625%, 7/1/18 $ 5,463,282
Baa2 BBB+ 3,500 Massachusetts Municipal Wholesale
Electric Co., 6.75%, 7/1/11 3,790,920
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Electric Utilities (continued)
---------------------------------------------------------------------------------------
Baa1 BBB+ $ 16,230 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 $ 6,543,449
---------------------------------------------------------------------------------------
$ 15,797,651
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.4%
---------------------------------------------------------------------------------------
Aaa NR $ 2,400 Massachusetts HEFA, (Fairview Care
Facilities), Prerefunded to 1/1/01,
10.25%, 1/1/21 $ 2,735,712
NR BBB+ 3,055 Massachusetts HEFA, (Jordan Hospital),
Prerefunded to 10/1/02, 6.875%, 10/1/22 3,406,783
Baa3 NR 2,000 Massachusetts HEFA, (Milford-
Whitinsville Hospital), Prerefunded to
7/15/02, 7.75%, 7/15/17 2,274,240
Aaa BBB 2,085 Massachusetts HEFA, (Sisters of
Providence Health System), Prerefunded
to 11/15/04, 6.625%, 11/15/22 2,324,045
Aaa AAA 1,380 Massachusetts Port Authority, (FGIC),
Prerefunded to 7/1/00, 7.50%, 7/1/20 1,476,172
Aaa AAA 29,870 Massachusetts Turnpike Authority,
Escrowed to Maturity, 0.00%, 1/1/28 6,777,802
Aaa NR 20,860 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20(3) 21,114,700
NR AAA 1,000 Puerto Rico, "RIBS", (AMBAC),
Prerefunded to 7/1/02, Variable Rate,
7/1/15(1)(2) 1,163,120
---------------------------------------------------------------------------------------
$ 41,272,574
---------------------------------------------------------------------------------------
General Obligations -- 0.8%
---------------------------------------------------------------------------------------
Aaa NR $ 1,700 Nantucket, 6.80%, 12/1/11 $ 1,867,943
---------------------------------------------------------------------------------------
$ 1,867,943
---------------------------------------------------------------------------------------
Hospital -- 18.6%
---------------------------------------------------------------------------------------
NR BBB+ $ 1,500 Massachusetts HEFA, (Cape Cod
Healthcare), 5.45%, 11/15/23 $ 1,472,985
Baa2 BBB 1,550 Massachusetts HEFA, (Caritas Christi
Obligation Group), 5.625%, 7/1/20 1,541,289
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital (continued)
---------------------------------------------------------------------------------------
Aa2 AA+ $ 2,000 Massachusetts HEFA, (Daughters of
Charity Health System), 6.10%, 7/1/14 $ 2,164,480
NR AA 1,445 Massachusetts HEFA, (FHA), (Deutsches
Altenheim), 7.70%, 11/1/31 1,524,966
NR BBB+ 3,610 Massachusetts HEFA, (Jordan Hospital),
5.25%, 10/1/23 3,461,232
NR BBB+ 1,465 Massachusetts HEFA, (Jordan Hospital),
5.375%, 10/1/28 1,425,928
NR BBB+ 1,020 Massachusetts HEFA, (Jordan Hospital),
6.875%, 10/1/15 1,091,420
Baa2 BBB- 500 Massachusetts HEFA, (Milford-
Whitinsville Hospital), 5.25%, 7/15/18 479,475
Baa2 BBB- 1,500 Massachusetts HEFA, (Milford-
Whitinsville Hospital), 5.375%, 7/15/28 1,434,930
Baa3 NR 3,050 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 3,121,065
NR BBB- 2,600 Massachusetts HEFA, (North Adams
Hospital), 6.625%, 7/1/18 2,801,266
Aaa BBB 5,255 Massachusetts HEFA, (Sisters of
Providence Health System), 6.50%,
11/15/08 5,835,467
A1 AA- 530 Massachusetts HEFA, (Spaulding
Rehabilitation Hospital), 7.625%, 7/1/21 542,291
NR A+ 8,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/08 5,223,360
NR NR 9,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/09 5,557,590
NR NR 11,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/10 6,411,570
---------------------------------------------------------------------------------------
$ 44,089,314
---------------------------------------------------------------------------------------
Housing -- 5.8%
---------------------------------------------------------------------------------------
Aa A+ $ 12,815 Massachusetts HFA, (AMT), 6.60%, 12/1/26 $ 13,667,710
---------------------------------------------------------------------------------------
$ 13,667,710
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 3.6%
---------------------------------------------------------------------------------------
NR NR $ 3,000 Massachusetts IFA, (Hingham Water Co.),
(AMT), 6.90%, 12/1/29 $ 3,272,370
NR NR 2,075 Massachusetts IFA, (Massachusetts
American Co.), (AMT), 6.60%, 12/1/15 2,235,937
Baa3 BBB- 2,850 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 3,074,352
---------------------------------------------------------------------------------------
$ 8,582,659
---------------------------------------------------------------------------------------
Insured-Education -- 2.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,700 Massachusetts Educational Finance
Authority, (AMBAC), (AMT), 7.375%,
1/1/12 $ 1,862,367
Aaa AAA 255 Massachusetts Educational Finance
Authority, (MBIA), (AMT), 7.25%, 1/1/09 271,399
Aaa AAA 400 Massachusetts HEFA, (Boston University),
RIBS, (MBIA), Variable Rate, 10/1/31(1) 464,500
Aaa AAA 2,500 Massachusetts HEFA, (Brandeis
University), (MBIA), 4.75%, 10/1/28 2,347,350
Aaa AAA 1,000 Massachusetts IFA, (College of the Holy
Cross), (MBIA), 5.00%, 9/1/23 979,930
---------------------------------------------------------------------------------------
$ 5,925,546
---------------------------------------------------------------------------------------
Insured-Hospital -- 10.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 3,750 Massachusetts HEFA, (Beth Israel
Hospital), (AMBAC), (AMT), Variable
Rate, 7/1/25(1) $ 4,312,500
Aaa AAA 1,040 Massachusetts HEFA, (Beverly Hospital),
(MBIA), 7.30%, 7/1/13 1,070,534
Aaa AAA 1,500 Massachusetts HEFA, (Capital Assist
Program), (MBIA), 7.20%, 7/1/09 1,543,725
Aaa AAA 1,000 Massachusetts HEFA, (Caregroup), (MBIA),
4.75%, 7/1/20 940,620
Aaa AAA 3,000 Massachusetts HEFA, (Hallmark Health),
(FSA), 5.00%, 7/1/27 2,896,380
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Hospital (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 2,000 Massachusetts HEFA, (St. Elizabeth
Hospital Issue), "LEVRRS", (FSA),
Variable Rate, 8/12/21(1) $ 2,315,000
Aaa AAA 2,600 Massachusetts HEFA, (St. Luke's
Hospital) "Yield Curve Notes", (MBIA),
Variable Rate, 8/15/13(1) 2,947,750
Aaa AAA 2,600 Massachusetts HEFA, (St. Luke's
Hospital) "Yield Curve Notes", (MBIA),
Variable Rate, 8/15/23(1) 2,918,500
Aaa AAA 3,000 Massachusetts HEFA, (The Medical Center
of Central Massachusetts) (AMBAC),
"CARS", Variable Rate, 6/23/22(1) 3,933,750
Aaa AAA 700 Massachusetts HEFA, (University
Hospital), (MBIA), 7.25%, 7/1/19 747,110
---------------------------------------------------------------------------------------
$ 23,625,869
---------------------------------------------------------------------------------------
Insured-Transportation -- 3.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 4,480 Massachusetts Port Authority, (FGIC),
7.50%, 7/1/20 $ 4,768,602
Aaa AAA 4,000 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/19 1,462,440
Aaa AAA 6,500 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/24 1,827,020
---------------------------------------------------------------------------------------
$ 8,058,062
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 2.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 5,000 Massachusetts Water Resources Authority,
(FSA), 4.75%, 8/1/27 $ 4,692,650
---------------------------------------------------------------------------------------
$ 4,692,650
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 3.7%
---------------------------------------------------------------------------------------
NR AA- $ 7,800 Plymouth County, (Plymouth County
Correctional Facility), 7.00%, 4/1/22 $ 8,770,866
---------------------------------------------------------------------------------------
$ 8,770,866
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Nursing Home -- 1.5%
---------------------------------------------------------------------------------------
NR NR $ 3,225 Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 $ 3,598,681
---------------------------------------------------------------------------------------
$ 3,598,681
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 0.8%
---------------------------------------------------------------------------------------
NR NR $ 1,900 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 $ 1,812,543
---------------------------------------------------------------------------------------
$ 1,812,543
---------------------------------------------------------------------------------------
Solid Waste -- 0.4%
---------------------------------------------------------------------------------------
NR NR $ 920 Pittsfield, Solid Waste Disposal, (Vicon
Recovery Associates), 7.95%, 11/1/04 $ 946,036
---------------------------------------------------------------------------------------
$ 946,036
---------------------------------------------------------------------------------------
Transportation -- 2.6%
---------------------------------------------------------------------------------------
NR AA- $ 3,500 Massachusetts Bay Transportation
Authority, Variable Rate, 3/1/27(1)(2) $ 3,284,680
Baa1 A 1,000 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 956,300
Baa1 A 2,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,988,120
---------------------------------------------------------------------------------------
$ 6,229,100
---------------------------------------------------------------------------------------
Water and Sewer -- 8.9%
---------------------------------------------------------------------------------------
Baa1 BBB $ 12,185 Boston IDA, (Harbor Electric Energy
Co.), (AMT), 7.375%, 5/15/15 $ 13,026,496
A1 A 1,500 Massachusetts Water Resources Authority,
5.25%, 3/1/13 1,542,510
A1 A 4,165 Massachusetts Water Resources Authority,
5.25%, 12/1/15 4,346,386
NR NR 2,000 Virgin Islands Water and Power
Authority, 7.60%, 1/1/12 2,263,220
---------------------------------------------------------------------------------------
$ 21,178,612
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $216,982,571) $ 237,144,382
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
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 Massachusetts
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 19.0% 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 institutions ranged from 2.6% to 7.4% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These may be resold in transactions exempt from registration,
normally to qualified institutional buyers. At March 31, 1999, the value of
these securities amounted to $5,573,915 or 2.3% of the Portfolio's net
assets.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Education -- 2.7%
---------------------------------------------------------------------------------------
NR A $ 470 University of Mississippi Educational
Building Corp., (Athletic Facility),
6.20%, 6/1/16 $ 514,504
---------------------------------------------------------------------------------------
$ 514,504
---------------------------------------------------------------------------------------
Electric Utilities -- 4.8%
---------------------------------------------------------------------------------------
NR BBB $ 400 Guam Power Authority, 6.625%, 10/1/14 $ 445,924
Baa3 NR 450 Warren County, (Mississippi Power &
Light Co.), 7.00%, 4/1/22 491,499
---------------------------------------------------------------------------------------
$ 937,423
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 750 Medical Center Building Corp.,
(University of Mississippi Medical
Center), (MBIA), Prerefunded to 12/1/04,
5.80%, 12/1/14 $ 832,005
Aaa AAA 1,000 Mississippi Educational Facilities
Authority, (Milsaps College), (MBIA),
Prerefunded to 11/1/04, 6.50%, 11/1/19 1,145,130
Aaa NR 2,500 Mississippi Housing Finance Corp.,
Single Family, (AMT), Escrowed to
Maturity, 0.00%, 6/1/15 1,126,900
---------------------------------------------------------------------------------------
$ 3,104,035
---------------------------------------------------------------------------------------
General Obligations -- 1.1%
---------------------------------------------------------------------------------------
Aa3 AA $ 200 Mississippi State, 5.10%, 11/15/12 $ 210,340
---------------------------------------------------------------------------------------
$ 210,340
---------------------------------------------------------------------------------------
Hospital -- 6.4%
---------------------------------------------------------------------------------------
Baa3 NR $ 300 Corinth and Alcorn County, (Magnolia
Registered Health Center), 5.50%,
10/1/21 $ 290,598
NR BBB+ 500 Jones County, (South Central Regional
Medical Center), 5.50%, 12/1/17 493,415
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Hospital (continued)
---------------------------------------------------------------------------------------
Baa3 BBB- $ 450 Mississippi Hospital Equipment and
Facilities Authority, (Rush Medical
Foundation), 6.00%, 1/1/22 $ 461,975
---------------------------------------------------------------------------------------
$ 1,245,988
---------------------------------------------------------------------------------------
Housing -- 13.9%
---------------------------------------------------------------------------------------
Aa NR $ 500 Hinds County, (Woodridge Apartments),
(FHA), 6.25%, 11/1/27 $ 527,805
Aaa NR 500 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT), 6.625%,
4/1/27 536,170
Aaa NR 495 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT), 7.55%,
12/1/27 563,978
Aaa NR 320 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT), 8.10%,
12/1/24 358,243
Aaa NR 640 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT), 8.125%,
12/1/24 713,914
---------------------------------------------------------------------------------------
$ 2,700,110
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 12.5%
---------------------------------------------------------------------------------------
Baa2 NR $ 500 Grenada County, (Georgia-Pacific Corp.),
5.45%, 9/1/14 $ 491,385
A2 A 750 Lowndes County, (Weyerhaeuser Co.),
6.80%, 4/1/22 907,043
NR AA- 500 Mississippi Business Finance Corp.,
(E.I. DuPont deNemours), (AMT), 7.15%,
5/1/16 538,100
A3 BBB+ 450 Warren County, (International Paper
Co.), (AMT), 6.60%, 3/1/19 486,914
---------------------------------------------------------------------------------------
$ 2,423,442
---------------------------------------------------------------------------------------
Insured-Education -- 2.7%
---------------------------------------------------------------------------------------
Aaa NR $ 500 Mississippi State University Educational
Building Corp., (MBIA), 5.25%, 8/1/17 $ 520,050
---------------------------------------------------------------------------------------
$ 520,050
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Electric Utilities -- 1.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 300 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/03(1) $ 345,000
---------------------------------------------------------------------------------------
$ 345,000
---------------------------------------------------------------------------------------
Insured-General Obligations -- 3.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Hinds County, (MBIA), 6.25%, 3/1/11 $ 577,250
---------------------------------------------------------------------------------------
$ 577,250
---------------------------------------------------------------------------------------
Insured-Hospital -- 14.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 750 Gulfport, (Gulfport Memorial Hospital),
(MBIA), 6.20%, 7/1/18 $ 826,965
Aaa AAA 1,275 Hinds County, (Mississippi Methodist
Hospital), (AMBAC), 5.60%, 5/1/12 1,384,840
Aaa AAA 500 Mississippi Hospital Equipment and
Facilities Authority, (Mississippi
Baptist Medical Center), (MBIA), 6.00%,
5/1/13 540,315
---------------------------------------------------------------------------------------
$ 2,752,120
---------------------------------------------------------------------------------------
Insured-Transportation -- 2.8%
---------------------------------------------------------------------------------------
Aaa AAA $1,250 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 $ 545,050
---------------------------------------------------------------------------------------
$ 545,050
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 4.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 435 Mississippi Development Bank, (Combined
Water and Sewer System), (AMBAC), 5.00%,
7/1/23 $ 424,808
Aaa AAA 400 Mississippi Development Bank,
(Diberville Combined Water and Sewer
System), (AMBAC), 5.00%, 7/1/23 389,820
---------------------------------------------------------------------------------------
$ 814,628
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 11.1%
---------------------------------------------------------------------------------------
NR A $1,000 Mississippi Development Bank, (Golden
Triangle Solid Waste), 6.00%, 7/1/15 $ 1,082,270
A2 NR 1,000 Mississippi State University Educational
Building Corp., 6.15%, 6/15/15 1,074,120
---------------------------------------------------------------------------------------
$ 2,156,390
---------------------------------------------------------------------------------------
Nursing Home -- 1.7%
---------------------------------------------------------------------------------------
NR NR $ 300 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 $ 322,551
---------------------------------------------------------------------------------------
$ 322,551
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 1.1%
---------------------------------------------------------------------------------------
NR NR $ 200 Ridgeland, Urban Renewal, (The Orchard),
7.75%, 12/1/15 $ 216,246
---------------------------------------------------------------------------------------
$ 216,246
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $17,717,241) $ 19,385,127
---------------------------------------------------------------------------------------
</TABLE>
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 Mississippi
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 38.9% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 1.8% to 22.9% of total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Assisted Living -- 1.6%
---------------------------------------------------------------------------------------
NR NR $ 4,000 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 4,271,000
NR NR 2,935 North Syracuse Village Housing
Authority, (AJM Senior Housing, Inc.,
Janus Park), 8.00%, 6/1/24 3,039,222
---------------------------------------------------------------------------------------
$ 7,310,222
---------------------------------------------------------------------------------------
Cogeneration -- 2.3%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 6,000 New York City IDA, (Brooklyn Navy Yard
Cogeneration), 5.65%, 10/1/28 $ 6,129,840
NR NR 4,250 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 4,272,270
---------------------------------------------------------------------------------------
$ 10,402,110
---------------------------------------------------------------------------------------
Education -- 24.3%
---------------------------------------------------------------------------------------
A NR $ 1,000 Dutchess County IDA, (Bard College),
7.00%, 11/1/17 $ 1,101,370
A1 NR 5,740 Monroe County IDA, (Wilmur Assoc.),
7.25%, 12/1/16 6,025,680
Baa2 NR 1,660 New Rochelle IDA, (College of New
Rochelle), 6.75%, 7/1/22 1,778,657
Baa1 BBB+ 8,000 New York State Dormitory Authority,
(City University), 5.625%, 7/1/16 8,558,320
Baa1 BBB+ 8,500 New York State Dormitory Authority,
(City University), 6.00%, 7/1/20 9,538,190
Baa1 BBB 105 New York State Dormitory Authority,
(City University), 6.375%, 7/1/08 113,831
Baa1 BBB+ 5,100 New York State Dormitory Authority,
(City University), 7.00%, 7/1/09 5,892,489
Baa1 BBB+ 4,325 New York State Dormitory Authority,
(City University), 7.50%, 7/1/10 5,215,561
NR AA 1,300 New York State Dormitory Authority, (New
York Medical College), (Asset Guaranty),
6.875%, 7/1/21 1,445,522
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Education (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 2,500 New York State Dormitory Authority,
(Rockefeller University), 4.75%, 7/1/37 $ 2,347,250
A3 A- 11,000 New York State Dormitory Authority,
(State University Educational
Facilities), 5.125%, 5/15/21 10,898,799
A3 A- 9,985 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/15 10,399,177
A3 A- 28,775 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/19 29,587,030
A3 A- 14,680 New York State Dormitory Authority,
(State University Educational
Facilities), 5.25%, 5/15/21 15,077,533
A3 A- 2,000 New York State Dormitory Authority,
(State University Educational
Facilities), 5.50%, 5/15/19 2,119,280
A3 A- 1,300 New York State Dormitory Authority,
(State University Educational
Facilities), 7.50%, 5/15/11 1,585,363
---------------------------------------------------------------------------------------
$ 111,684,052
---------------------------------------------------------------------------------------
Electric Utilities -- 9.1%
---------------------------------------------------------------------------------------
Baa1 A- $ 7,000 Long Island Power Authority, Electric
System Revenue, 5.25%, 12/1/26 $ 7,002,380
Baa1 A- 11,550 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/23 11,943,739
NR NR 5,880 Long Island Power Authority, Electric
System Revenue, 8.362%, 12/1/29(1)(2) 6,268,550
A1 A+ 2,365 New York State Energy Research and
Development Authority, (Consolidated
Edison), (AMT), 7.50%, 7/1/25 2,411,236
A2 A 2,500 New York State Energy Research and
Development Authority, (Brooklyn Union
Gas), "RIBS", (AMT), Variable Rate,
7/1/26(1) 3,300,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Electric Utilities (continued)
---------------------------------------------------------------------------------------
A1 A+ $ 1,000 New York State Energy Research and
Development Authority, (Consolidated
Edison), (AMT), 7.50%, 1/1/26 $ 1,037,840
NR NR 5,450 New York State Energy Research and
Development Authority, (LILCO), "RITES",
(AMT), Variable Rate, 8/1/22(1) 6,644,948
Baa3 A- 3,110 New York State Energy Research and
Development Authority, (LILCO), (AMT),
6.90%, 8/1/22 3,414,314
---------------------------------------------------------------------------------------
$ 42,023,007
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 0.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,650 Dutchess County Resource Recovery Solid
Waste, (FGIC), Prerefunded to 1/1/00,
7.50%, 1/1/09 $ 1,735,602
Aaa AAA 215 New York City, (AMBAC), Prerefunded to
8/1/02, 7.00%, 8/1/17 240,005
Baa1 BBB 145 New York State Dormitory Authority,
(City University), Prerefunded to
7/1/02, 6.375%, 7/1/08 158,800
NR AAA 1,000 New York State Dormitory Authority, (St.
Francis Hospital), (FHA), Prerefunded to
8/1/00, 7.65%, 8/1/30 1,075,810
---------------------------------------------------------------------------------------
$ 3,210,217
---------------------------------------------------------------------------------------
General Obligations -- 4.0%
---------------------------------------------------------------------------------------
A3 A- $ 8,000 New York City, 0.00%, 8/1/07 $ 5,525,680
A3 A- 2,500 New York City, 0.00%, 8/1/08 1,642,775
A3 A- 5,000 New York City, 5.25%, 8/1/16 5,076,050
Aa2 AA 1,700 Onondaga County, 5.875%, 2/15/11 1,903,932
Aa2 AA 1,600 Onondaga County, 5.875%, 2/15/12 1,795,584
Baa1 A 6,200 Puerto Rico, 0.00%, 7/1/18 2,364,928
---------------------------------------------------------------------------------------
$ 18,308,949
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Health Care -- 1.3%
---------------------------------------------------------------------------------------
NR NR $ 5,000 New York State Housing Finance Agency,
"RITES", Variable Rate, 5/1/06(1)(2) $ 5,950,300
---------------------------------------------------------------------------------------
$ 5,950,300
---------------------------------------------------------------------------------------
Hospital -- 7.8%
---------------------------------------------------------------------------------------
Baa1 BBB+ $ 7,680 New York State Dormitory Authority,
(Jamaica Hospital), 5.20%, 2/15/15 $ 7,741,133
A3 A- 7,300 New York State Dormitory Authority,
Mental Health Facilities, 5.375%,
2/15/26 7,438,773
NR AA 9,000 New York State MCFFA, Hospital and
Nursing Insured Mortgage, (FHA), 6.70%,
8/15/23 9,936,000
Aa2 AA 2,190 New York State MCFFA, Hospital and
Nursing Insured Mortgage, (FHA), 7.00%,
8/15/32 2,423,629
Aa2 AA 6,600 New York State MCFFA, Hospital and
Nursing Insured Mortgage, (FHA), 7.25%,
2/15/31 7,347,450
Aa2 AA 935 New York State MCFFA, Hospital and
Nursing Insured Mortgage, (FHA), 7.45%,
8/15/31 1,010,623
---------------------------------------------------------------------------------------
$ 35,897,608
---------------------------------------------------------------------------------------
Hotel -- 0.3%
---------------------------------------------------------------------------------------
NR NR $ 3,000 Niagara County IDA, (Wintergarden Inn
Associates), 9.75%, 6/1/11(3) $ 1,200,000
---------------------------------------------------------------------------------------
$ 1,200,000
---------------------------------------------------------------------------------------
Housing -- 2.1%
---------------------------------------------------------------------------------------
NR NR $ 4,429 New York City HDC, Allerville, 6.50%,
11/15/18 $ 4,434,756
NR NR 1,942 New York City HDC, Dayton, 6.50%,
11/15/18 2,040,019
Aa2 AAA 235 New York State Housing Finance Agency,
(Baytown), 7.10%, 8/15/35 250,289
Aaa NR 5,485 New York State Mortgage Agency, 0.00%,
10/1/14 1,236,429
Aa2 NR 500 New York State Mortgage Agency, 6.65%,
4/1/22 526,145
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Housing (continued)
---------------------------------------------------------------------------------------
Aa2 NR $ 1,000 New York State Mortgage Agency, 7.50%,
4/1/15 $ 1,061,600
---------------------------------------------------------------------------------------
$ 9,549,238
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 2.8%
---------------------------------------------------------------------------------------
NR NR $ 1,250 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 1,251,600
NR NR 3,250 Chautauqua County IDA, (Womans Christian
Association), 6.40%, 11/15/29 3,232,840
Baa1 BBB- 3,500 New York City IDA, (American Airlines,
Inc.), (AMT), 5.40%, 7/1/19 3,540,670
Baa1 BBB- 2,000 New York City IDA, (American Airlines,
Inc.), (AMT), 5.40%, 7/1/20 2,023,240
Baa3 BBB- 2,800 Port Authority of New York and New
Jersey, (Delta Airlines), 6.95%,
6/1/08(4) 3,033,184
---------------------------------------------------------------------------------------
$ 13,081,534
---------------------------------------------------------------------------------------
Insured-Education -- 2.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 8,375 New York State Dormitory Authority, (New
York University), (MBIA), 5.75%, 7/1/27 $ 9,326,065
---------------------------------------------------------------------------------------
$ 9,326,065
---------------------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/08 $ 855,855
Aaa AAA 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/09 864,745
Aaa AAA 770 Chautauqua County Unlimited Tax, (FGIC),
6.40%, 9/15/09 904,650
Aaa AAA 700 Jamestown, (AMBAC), 7.10%, 3/15/09 856,919
Aaa AAA 700 Jamestown, (AMBAC), 7.10%, 3/15/10 861,028
Aaa AAA 700 Jamestown, (AMBAC), 7.10%, 3/15/11 864,864
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-General Obligations (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 675 Jamestown, (AMBAC), 7.10%, 3/15/12 $ 839,288
Aaa AAA 675 Jamestown, (AMBAC), 7.10%, 3/15/13 842,110
Aaa AAA 515 Jamestown, (AMBAC), 7.10%, 3/15/14 645,666
Aaa AAA 65 New York City, (AMBAC), 7.00%, 8/1/17 71,804
Aaa AAA 4,500 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) 5,130,000
---------------------------------------------------------------------------------------
$ 12,736,929
---------------------------------------------------------------------------------------
Insured-Hospital -- 0.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 2,750 New York State Dormitory Authority, (New
York Presbyterian Hospital), (AMBAC),
4.75%, 8/1/27 $ 2,580,958
---------------------------------------------------------------------------------------
$ 2,580,958
---------------------------------------------------------------------------------------
Insured-Miscellaneous -- 0.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 New York City IDA, (USTA National Tennis
Center, Inc.), (FSA), 6.375%, 11/15/14 $ 558,240
Aaa AAA 1,600 New York City Trust Cultural Resources,
(American Museum of Natural History),
(MBIA), 5.65%, 4/1/22 1,693,312
---------------------------------------------------------------------------------------
$ 2,251,552
---------------------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,400 New York State MCFFA, Long Term Health
Care, (FSA), 6.80%, 11/1/14 $ 1,532,020
---------------------------------------------------------------------------------------
$ 1,532,020
---------------------------------------------------------------------------------------
Insured-Solid Waste -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 6,795 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 7,778,848
---------------------------------------------------------------------------------------
$ 7,778,848
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Special Tax Revenue -- 1.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 5,900 Puerto Rico Financing Authority,
(AMBAC), 5.00%, 7/1/28 $ 5,886,017
---------------------------------------------------------------------------------------
$ 5,886,017
---------------------------------------------------------------------------------------
Insured-Transportation -- 4.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 6,000 New York State Thruway Authority,
(MBIA), 5.375%, 4/1/16 $ 6,258,300
Aaa AAA 3,000 Triborough Bridge and Tunnel Authority,
"RITES", (AMBAC), Variable Rate,
1/1/12(1)(2) 3,419,130
NR AAA 3,000 Triborough Bridge and Tunnel Authority,
(MBIA), Variable Rate, 1/1/19(1)(2) 3,213,540
NR NR 7,000 VRDC-IVRC Trust, (New York MTA), (MBIA),
Variable Rate, 6/26/02(1)(2) 7,840,000
---------------------------------------------------------------------------------------
$ 20,730,970
---------------------------------------------------------------------------------------
Insured-Utilities -- 1.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 5,000 Puerto Rico Telephone Authority, (MBIA),
Variable Rate, 1/25/07(1)(2) $ 5,525,000
---------------------------------------------------------------------------------------
$ 5,525,000
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 9.4%
---------------------------------------------------------------------------------------
Baa1 A- $ 3,380 New York State HFA, 6.00%, 5/1/06 $ 3,706,981
NR BBB 5,865 New York State Thruway Authority, 0.00%,
1/1/01 5,488,232
NR BBB 2,350 New York State Thruway Authority, 0.00%,
1/1/03 2,016,747
Baa1 BBB+ 27,940 New York State UDC, 5.70%, 4/1/20 29,954,194
Baa1 BBB- 1,825 Syracuse-Hancock International Airport,
6.625%, 1/1/12 1,938,552
---------------------------------------------------------------------------------------
$ 43,104,706
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 0.3%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 1,250 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 $ 1,241,325
---------------------------------------------------------------------------------------
$ 1,241,325
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Solid Waste -- 2.1%
---------------------------------------------------------------------------------------
Baa1 NR $ 9,530 New York State EFC, Resource Recovery,
(Huntington), 7.50%, 10/1/12 $ 9,886,899
---------------------------------------------------------------------------------------
$ 9,886,899
---------------------------------------------------------------------------------------
Special Tax Revenue -- 6.9%
---------------------------------------------------------------------------------------
A3 A+ $ 14,830 New York State LGAC, 5.00%, 4/1/21 $ 14,722,482
A3 A+ 8,500 New York State LGAC, 5.375%, 4/1/19 8,691,335
NR BBB+ 2,630 New York State Municipal Bond Bank
Agency, 6.875%, 3/15/06 2,842,530
NR AAA 1,750 Puerto Rico, Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) 1,733,743
Baa1 BBB+ 3,335 Triborough Bridge and Tunnel Authority,
Convention Center, 6.00%, 1/1/11 3,727,530
---------------------------------------------------------------------------------------
$ 31,717,620
---------------------------------------------------------------------------------------
Transportation -- 7.2%
---------------------------------------------------------------------------------------
Baa1 BBB+ $ 2,535 Metropolitan Transportation Authority of
New York, 5.50%, 7/1/14 $ 2,662,080
A1 AA- 3,200 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 3,383,840
A1 AA- 1,500 Port Authority of New York and New
Jersey, (AMT), Variable Rate, 1/15/27(1) 1,662,720
Baa1 A 4,000 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 3,825,200
Aa3 A+ 5,000 Triborough Bridge and Tunnel Authority,
5.20%, 1/1/22 5,035,700
Aa3 A+ 12,080 Triborough Bridge and Tunnel Authority,
5.50%, 1/1/17 12,954,108
Aa3 A+ 3,000 Triborough Bridge and Tunnel Authority,
6.125%, 1/1/21 3,459,420
---------------------------------------------------------------------------------------
$ 32,983,068
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Water and Sewer -- 3.0%
---------------------------------------------------------------------------------------
A1 A $ 9,000 New York City Municipal Water Finance
Authority, 5.25%, 6/15/29 $ 9,041,670
Aa2 A+ 4,545 New York State EFC, State Water
Pollution Control, 7.20%, 3/15/11 4,772,477
---------------------------------------------------------------------------------------
$ 13,814,147
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $423,756,266) $ 459,713,361
---------------------------------------------------------------------------------------
</TABLE>
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 New York
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 15.3% 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 0.6% to 9.1% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $39,080,263 or 8.5% of the
Portfolio's net assets.
(3) Non-income producing security.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Education -- 1.3%
---------------------------------------------------------------------------------------
Aa AA $ 550 Ohio State Higher Educational
Facilities, (Case Western University),
6.50%, 10/1/20 $ 654,280
NR AA 2,625 Ohio State Higher Educational
Facilities, (Oberlin College), 6.54%,
10/1/29(1)(2) 2,496,611
---------------------------------------------------------------------------------------
$ 3,150,891
---------------------------------------------------------------------------------------
Electric Utilities -- 4.0%
---------------------------------------------------------------------------------------
NR NR $ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 2,034,160
A1 A+ 1,185 Ohio State Air Quality Development
Authority, (Dayton Power), 6.10%, 9/1/30 1,264,383
Ba1 BB+ 6,250 Ohio State Water Development Authority,
Pollution Control Facilities, (Cleveland
Electric), (AMT), 6.10%, 8/1/20 6,337,812
---------------------------------------------------------------------------------------
$ 9,636,355
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Clermont County, (Mercy Health System),
(AMBAC), Prerefunded to 9/25/01,
Variable Rate, 10/5/21(1) $ 1,175,000
A1 NR 1,750 Lorain, (Lakeland County Hospital),
Escrowed to Maturity, 6.50%, 11/15/12 1,987,755
NR AAA 1,700 Puerto Rico, "RIBS", (AMBAC),
Prerefunded to 7/1/02, Variable Rate,
7/1/15(1)(2) 1,977,304
Aa2 NR 600 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 656,748
---------------------------------------------------------------------------------------
$ 5,796,807
---------------------------------------------------------------------------------------
General Obligations -- 8.3%
---------------------------------------------------------------------------------------
NR NR $ 3,035 Belmont County, 7.30%, 12/1/12 $ 3,298,165
Aa3 NR 3,250 Chagrin Falls, (Village School
District), 5.375%, 12/1/22 3,338,530
Aa2 NR 2,510 Hamilton County Parking Facility, 5.00%,
12/1/24 2,479,428
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
General Obligations (continued)
---------------------------------------------------------------------------------------
Baa1 A $ 1,075 Puerto Rico, 0.00%, 7/1/16 $ 457,832
Aa2 NR 1,250 Rocky River City School District,
5.375%, 12/1/17 1,313,375
NR NR 1,000 Tuscarawas County Public Library
Improvement, 6.90%, 12/1/11 1,065,280
NR NR 6,855 Youngstown, 7.35%, 7/1/05 7,800,029
---------------------------------------------------------------------------------------
$ 19,752,639
---------------------------------------------------------------------------------------
Hospital -- 17.8%
---------------------------------------------------------------------------------------
NR AAA $ 1,000 Allen County LIMA, (Convalescent Home
Foundation), (GNMA), 6.40%, 1/1/21 $ 1,051,290
Baa3 BBB- 1,000 Butler County, (Hamilton-Hughe
Hospital), 7.50%, 1/1/10 1,069,760
Aa3 AA- 3,000 Cuyahoga County, (Cleveland Health
Clinic), 5.125%, 1/1/29 2,923,770
Aa3 AA- 2,100 Cuyahoga County, (Fairview General
Hospital), 6.25%, 8/15/10 2,286,816
Aa AA 4,450 Cuyahoga County, (University Hospitals
Health System), 6.00%, 1/15/22 4,709,213
Aa AA 750 Cuyahoga County, (University Hospitals
Health System), 6.50%, 1/15/19 805,883
NR A 2,815 Defiance, (Defiance Hospital), 7.625%,
11/1/03 2,850,610
Baa2 BBB+ 1,000 East Liverpool, (City Hospital), 8.00%,
10/1/21 1,075,390
A A 4,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08 4,342,040
Aa NR 3,000 Franklin County, (Children's Hospital),
6.60%, 5/1/13 3,306,210
Aa3 A 1,015 Garfield Heights, (Marymount Hospital),
6.65%, 11/15/11 1,130,233
Aa3 A 1,000 Garfield Heights, (Marymount Hospital),
6.70%, 11/15/15 1,115,210
A2 A 5,115 Hamilton County, (Bethesda Hospital,
Inc.), 6.25%, 1/1/12 5,541,079
Aa2 NR 1,000 Hamilton County, (Wesley Hall), 6.50%,
3/1/15 1,106,360
Baa2 BBB 3,800 Miami, (Upper Valley Medical Center),
6.375%, 5/15/26 4,025,910
NR A- 1,000 Parma, (Parma Community General Hospital
Association), 5.35%, 11/1/18 1,004,670
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital (continued)
---------------------------------------------------------------------------------------
NR A- $ 4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 $ 4,267,978
---------------------------------------------------------------------------------------
$ 42,612,422
---------------------------------------------------------------------------------------
Housing -- 10.9%
---------------------------------------------------------------------------------------
Aa NR $ 1,300 Clermont County, (SEM Laurels), (FHA),
6.00%, 9/1/20 $ 1,364,727
NR NR 2,980 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 3,041,835
Aa NR 2,500 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.50%, 3/1/26 2,731,275
Aa NR 5,985 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.60%, 3/1/36 6,535,499
Aa NR 3,645 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT), 5.55%, 7/1/24 3,672,301
Aa NR 1,000 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT), 5.80%, 7/1/14 1,032,430
Aaa NR 2,500 Kent MFMR, (Silver Meadows), (GNMA),
(AMT), 7.30%, 12/20/36 2,841,225
NR NR 2,950 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 2,963,747
Aaa AAA 785 Ohio HFA SFMR, (GNMA), (AMT), Variable
Rate, 3/31/31(1) 869,388
Aa A 1,000 Ohio HFA, (Aristocrat), (FHA), (AMT),
7.30%, 8/1/31 1,053,930
---------------------------------------------------------------------------------------
$ 26,106,357
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 13.8%
---------------------------------------------------------------------------------------
Ba2 BB $ 4,500 Cleveland, (Continental Airlines, Inc.),
(AMT), 5.375%, 9/15/27 $ 4,387,860
Aa NR 2,000 Cuyahoga IDR, (Chippewa Place), 6.60%,
8/1/15 2,137,300
NR BBB 500 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 503,995
NR A- 525 Ohio Economic Development Commission,
(Burrows Paper Corp.), (AMT), 7.625%,
6/1/11 567,257
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue (continued)
---------------------------------------------------------------------------------------
NR A- $ 215 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.50%, 12/1/04 $ 230,463
NR A- 530 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.90%, 12/1/09 572,596
NR A- 1,520 Ohio Economic Development Commission,
(Consolidated Biscuit), (AMT), 7.00%,
12/1/09 1,703,662
NR A- 3,110 Ohio Economic Development Commission, (J
J & W LP), (AMT), 6.70%, 12/1/14 3,422,213
NR BB+ 1,020 Ohio Economic Development Commission,
(Kmart Corp.), 6.75%, 5/15/07 1,086,759
NR A- 750 Ohio Economic Development Commission,
(Luigino's, Inc.), (AMT), 6.85%, 6/1/01 752,078
NR A- 1,525 Ohio Economic Development Commission,
(Progress Plastic Products), (AMT),
7.80%, 12/1/09 1,779,843
NR A- 505 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 522,417
NR A- 1,000 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 1,083,380
NR A- 680 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 736,698
NR A- 880 Ohio Economic Development Commission,
(VSM Corp.), (AMT), 7.375%, 12/1/11 947,945
Aa3 AA+ 1,000 Ohio Pollution Control, (Standard Oil
Co.), 6.75%, 12/1/15 1,214,760
NR NR 3,000 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT), 9.00%,
6/1/21 3,212,700
Baa2 BBB 3,715 Ohio Water Development Authority, (Union
Carbide Corp.), 5.50%, 1/15/07 3,717,415
Baa3 BBB- 4,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 4,314,880
---------------------------------------------------------------------------------------
$ 32,894,221
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Education -- 0.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Ohio HEFA, (University of Dayton),
(FGIC), 5.80%, 12/1/14 $ 1,085,370
---------------------------------------------------------------------------------------
$ 1,085,370
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,650 Cleveland Public Power System, (MBIA),
7.00%, 11/15/17 $ 1,804,787
Aaa AAA 2,000 Cleveland, Public Power System, (MBIA),
5.00%, 11/15/20 1,990,720
Aaa AAA 2,000 Cuyahoga County Utility Systems,
(Medical Center Co.), (MBIA), (AMT),
6.10%, 8/15/15 2,164,860
Aaa AAA 2,300 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/02(1) 2,567,375
---------------------------------------------------------------------------------------
$ 8,527,742
---------------------------------------------------------------------------------------
Insured-General Obligations -- 3.8%
---------------------------------------------------------------------------------------
Aaa NR $ 1,000 Norwalk, City School District, (AMBAC),
4.75%, 12/1/26 $ 947,630
Aaa AAA 3,000 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) 3,420,000
Aaa AAA 5,000 South-Western City School District,
Franklin and Pickway Counties, (AMBAC),
4.75%, 12/1/26 4,738,150
---------------------------------------------------------------------------------------
$ 9,105,780
---------------------------------------------------------------------------------------
Insured-Hospital -- 9.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 4,000 Hamilton County, (Childrens Hospital
Medical Center), (MBIA), 4.75%, 5/15/28 $ 3,745,480
NR AA 1,250 Knox County, (Knox Community Hospital),
(AGR), 5.00%, 6/1/12 1,269,838
Aaa AAA 1,250 Mahoning County, (Forum Health), (MBIA),
5.00%, 11/15/17 1,232,800
Aaa AAA 2,750 Mansfield, (Mansfield General Hospital),
(AMBAC), 6.70%, 12/1/09 2,989,718
Aaa AAA 5,000 Middleburg Heights, (Southwestern
General), (FSA), 5.75%, 8/15/21 5,328,650
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Hospital (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Montgomery County, (Miami Valley
Hospital), (AMBAC), 6.25%, 11/15/16 $ 1,089,430
Aaa AAA 6,565 Portage County, (Robinson Memorial
Hospital), (MBIA), 5.80%, 11/15/15 7,038,532
---------------------------------------------------------------------------------------
$ 22,694,448
---------------------------------------------------------------------------------------
Insured-Housing -- 0.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,100 Ohio Capital Corp., (Horizon
Apartments), (FHA), (MBIA), 6.50%,
1/1/23 $ 1,151,788
---------------------------------------------------------------------------------------
$ 1,151,788
---------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 0.9%
---------------------------------------------------------------------------------------
Aaa AAA $ 2,150 University of Cincinnati, (MBIA),
5.125%, 6/1/24 $ 2,155,526
---------------------------------------------------------------------------------------
$ 2,155,526
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 2,110 Hudson Local School District, (FGIC),
0.00%, 12/15/09 $ 1,299,401
Aaa AAA 2,700 Puerto Rico Financing Authority,
(AMBAC), 5.00%, 7/1/28 2,693,601
---------------------------------------------------------------------------------------
$ 3,993,002
---------------------------------------------------------------------------------------
Insured-Transportation -- 2.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,750 Columbus Municipal Airport Authority,
(AMBAC), 5.00%, 1/1/28 $ 1,727,513
Aaa AAA 2,000 Ohio State Airline Quality Development
Authority, (JMG Funding), (AMBAC),
5.625%, 10/1/22 2,072,740
Aaa AAA 2,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 872,080
---------------------------------------------------------------------------------------
$ 4,672,333
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Water and Sewer -- 0.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,600 Springboro, Water System Revenue,
(AMBAC), 4.75%, 12/1/23 $ 1,525,024
---------------------------------------------------------------------------------------
$ 1,525,024
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.5%
---------------------------------------------------------------------------------------
A2 A+ $ 1,000 University of Cincinnati, 6.50%, 12/1/11 $ 1,090,110
---------------------------------------------------------------------------------------
$ 1,090,110
---------------------------------------------------------------------------------------
Nursing Home -- 6.6%
---------------------------------------------------------------------------------------
NR NR $ 2,000 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute), 5.50%,
12/1/17 $ 1,992,900
NR NR 2,100 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute), 5.50%,
12/1/28 2,069,613
Aaa NR 1,305 Cuyahoga County, (Maple Care Center),
(GNMA), (AMT), 8.00%, 8/20/16 1,583,017
NR AAA 1,205 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA), 6.10%,
9/20/16 1,345,045
NR AAA 6,455 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA), 9.55%,
3/20/32 8,864,715
---------------------------------------------------------------------------------------
$ 15,855,290
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 4.0%
---------------------------------------------------------------------------------------
Aa NR $ 1,990 Franklin County, (Kensington Place),
6.75%, 1/1/34(3) $ 2,118,654
Aa2 NR 1,000 Hamilton County, (Hospital - Episcopal
Retirement Home), 6.80%, 1/1/08 1,076,510
NR BBB- 1,800 Marion, Health Care, (United Church
Home), 6.30%, 11/15/15 1,883,970
NR NR 2,400 Ohio Housing Finance Agency, Retirement
Rental Housing, (Encore Retirement
Partners), 6.75%, 3/1/19 2,404,968
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Senior Living / Life Care (continued)
---------------------------------------------------------------------------------------
NR NR $ 2,250 Summit County Healthcare Facilities,
(Village at Saint Edward), 5.75%,
12/1/25 $ 2,192,940
---------------------------------------------------------------------------------------
$ 9,677,042
---------------------------------------------------------------------------------------
Solid Waste -- 3.3%
---------------------------------------------------------------------------------------
P-1 BBB $ 5,400 Ohio State Solid Waste Disposal, (USG
Corp.), (AMT), 5.60%, 8/1/32 $ 5,404,320
NR NR 2,400 Ohio State Water Development Authority,
Solid Waste Disposal Revenue, (Bay Shore
Power), (AMT), 5.875%, 9/1/20 2,449,512
---------------------------------------------------------------------------------------
$ 7,853,832
---------------------------------------------------------------------------------------
Special Tax Revenue -- 0.9%
---------------------------------------------------------------------------------------
NR AAA $ 2,250 Puerto Rico, Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 2,229,098
---------------------------------------------------------------------------------------
$ 2,229,098
---------------------------------------------------------------------------------------
Transportation -- 2.7%
---------------------------------------------------------------------------------------
Baa1 A $ 3,000 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 $ 2,868,900
Baa1 A 250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 248,515
Baa1 A 3,000 Puerto Rico Highway and Transportation
Authority, 6.625%, 7/1/12 3,256,500
---------------------------------------------------------------------------------------
$ 6,373,915
---------------------------------------------------------------------------------------
Water and Sewer -- 0.4%
---------------------------------------------------------------------------------------
NR NR $ 1,000 Vermilion Water, 7.25%, 8/15/15 $ 1,051,240
---------------------------------------------------------------------------------------
$ 1,051,240
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $224,641,868) $ 238,991,232
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
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 Ohio
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 24.3% 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 0.5% to 9.1% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $10,123,013 or 4.2% of the
Portfolio's net assets.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Education -- 1.8%
---------------------------------------------------------------------------------------
A NR $ 750 Rhode Island Student Loan Authority,
(AMT), 5.60%, 12/1/12 $ 796,028
---------------------------------------------------------------------------------------
$ 796,028
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.3%
---------------------------------------------------------------------------------------
NR AAA $ 250 Puerto Rico, "RIBS", (AMBAC),
Prerefunded to 7/1/02, Variable Rate,
7/1/15(1)(2) $ 290,780
Aaa AAA 255 Rhode Island Clean Water Protection
Finance Agency, Water Pollution Control,
(MBIA), Prerefunded to 10/1/04, 5.85%,
10/1/09 282,119
---------------------------------------------------------------------------------------
$ 572,899
---------------------------------------------------------------------------------------
General Obligations -- 3.1%
---------------------------------------------------------------------------------------
Baa1 A $ 225 Puerto Rico, 0.00%, 7/1/16 $ 95,825
Baa1 A 1,000 Puerto Rico Public Buildings Authority,
5.25%, 7/1/21 1,007,410
Baa1 A- 230 Rhode Island Depositors Economic
Protection Corp., 5.75%, 8/1/21 250,843
---------------------------------------------------------------------------------------
$ 1,354,078
---------------------------------------------------------------------------------------
Hospital -- 11.2%
---------------------------------------------------------------------------------------
NR AA $ 1,500 Rhode Island HEFA, (Landmark Medical
Center), 5.875%, 10/1/19 $ 1,568,265
NR A- 500 Rhode Island HEFA, (Newport Hospital),
5.30%, 7/1/29 485,655
Baa3 BBB- 800 Rhode Island HEFA, (Saint Joseph Health
Services), 5.50%, 10/1/29 757,128
A3 A- 1,250 Rhode Island HEFA, (South County
Hospital), 5.75%, 11/15/26 1,277,325
Baa3 BBB 830 Rhode Island HEFA, (Westerly Hospital),
6.00%, 7/1/14 856,037
---------------------------------------------------------------------------------------
$ 4,944,410
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Housing -- 14.9%
---------------------------------------------------------------------------------------
NR AAA $ 500 Guam Housing Corp., Single Family,
5.75%, 9/1/31 $ 538,720
Aa2 AA+ 1,740 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.60%, 10/1/25 1,856,737
Aa2 AA+ 100 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.70%, 10/1/12 106,355
Aa2 AA+ 875 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.80%, 10/1/25(3) 934,386
Aa2 AA+ 1,000 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.10%, 10/1/23 1,044,570
Aa2 AA+ 2,000 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.55%, 10/1/22 2,108,920
---------------------------------------------------------------------------------------
$ 6,589,688
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 2.2%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 400 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 $ 431,488
Baa3 BBB- 500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.30%, 6/1/23 530,235
---------------------------------------------------------------------------------------
$ 961,723
---------------------------------------------------------------------------------------
Insured-Education -- 3.1%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Rhode Island HEFA, (Johnson and Wales
University), (MBIA), 5.00%, 4/1/29(4) $ 966,100
Aaa AAA 400 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/28 386,488
---------------------------------------------------------------------------------------
$ 1,352,588
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 1.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 $ 723,363
---------------------------------------------------------------------------------------
$ 723,363
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-General Obligations -- 13.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,500 Kent County Water Authority, (MBIA),
6.35%, 7/15/14 $ 1,669,050
Aaa AAA 500 Providence, Public Building Authority,
(School and Public Facilities Projects),
(FSA), 5.00%, 12/15/18 492,265
Aaa AAA 500 Rhode Island Depositors Economic
Protection Corp., (MBIA), 5.80%, 8/1/09 562,230
Aaa AAA 1,000 Rhode Island Depositors Economic
Protection Corp., (MBIA), 5.80%, 8/1/12 1,121,200
Aaa AAA 375 Rhode Island State Consolidated Capital
Development, (FGIC), 4.75%, 9/1/17 363,566
Aaa AAA 500 Rhode Island State Economic Development
Corp., (FSA), 5.00%, 7/1/23 483,260
Aaa AAA 1,400 Rhode Island State Economic Development
Corp., (FSA), 5.00%, 7/1/28 1,352,932
---------------------------------------------------------------------------------------
$ 6,044,503
---------------------------------------------------------------------------------------
Insured-Hospital -- 14.1%
---------------------------------------------------------------------------------------
Aaa AAA $ 2,700 Rhode Island HEFA, (Lifespan), (MBIA),
5.25%, 5/15/26 $ 2,686,284
Aaa AAA 3,350 Rhode Island HEFA, (Lifespan), (MBIA),
5.75%, 5/15/23(5) 3,529,760
---------------------------------------------------------------------------------------
$ 6,216,044
---------------------------------------------------------------------------------------
Insured-Housing -- 1.2%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 Villa Excelsior Housing Development
Corp., (MBIA), 6.85%, 1/1/24 $ 539,550
---------------------------------------------------------------------------------------
$ 539,550
---------------------------------------------------------------------------------------
Insured-Pooled Loans -- 0.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 245 Rhode Island Clean Water Protection
Finance Agency, Water Pollution Control,
(MBIA), 5.85%, 10/1/09 $ 268,314
---------------------------------------------------------------------------------------
$ 268,314
---------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 14.4%
---------------------------------------------------------------------------------------
Aaa AAA $ 3,000 Convention Center Authority of Rhode
Island, (MBIA), 5.00%, 5/15/20 $ 2,932,860
Aaa AAA 2,300 Convention Center Authority of Rhode
Island, (MBIA), 5.25%, 5/15/15 2,408,537
Aaa AAA 1,000 Puerto Rico Financing Authority,
(AMBAC), 5.00%, 7/1/28 997,630
---------------------------------------------------------------------------------------
$ 6,339,027
---------------------------------------------------------------------------------------
Insured-Transportation -- 1.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 $ 436,040
---------------------------------------------------------------------------------------
$ 436,040
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 2.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 750 Rhode Island Clean Water, Safe Drinking
Water, (AMBAC), 6.70%, 1/1/15 $ 851,078
Aaa AAA 350 Rhode Island Clean Water, Water
Pollution Control, (MBIA), 5.40%,
10/1/15 371,896
---------------------------------------------------------------------------------------
$ 1,222,974
---------------------------------------------------------------------------------------
Nursing Home -- 1.6%
---------------------------------------------------------------------------------------
NR NR $ 725 Rhode Island HEFA, (Steere House),
5.80%, 7/1/20 $ 725,479
---------------------------------------------------------------------------------------
$ 725,479
---------------------------------------------------------------------------------------
Senior Living / Life Care -- 2.4%
---------------------------------------------------------------------------------------
NR NR $ 1,000 Rhode Island HEFA, (Tockwotton Home),
6.25%, 8/15/22 $ 1,046,080
---------------------------------------------------------------------------------------
$ 1,046,080
---------------------------------------------------------------------------------------
Special Tax Revenue -- 5.2%
---------------------------------------------------------------------------------------
Baa3 BBB- $ 1,500 Providence, 7.65%, 6/1/16 $ 1,694,355
NR AAA 600 Puerto Rico, Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) 594,426
---------------------------------------------------------------------------------------
$ 2,288,781
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Transportation -- 3.8%
---------------------------------------------------------------------------------------
Baa1 A $ 1,750 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 $ 1,673,525
---------------------------------------------------------------------------------------
$ 1,673,525
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $41,612,747) $ 44,095,094
---------------------------------------------------------------------------------------
</TABLE>
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 Rhode Island
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 53.8% 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 0.8% to 41.0% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $885,206 or 2.0% of the
Portfolio's net assets.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) When-issued security.
(5) Security (or a portion thereof) has been segregated to cover when-issued
securities.
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Electric Utilities -- 8.4%
---------------------------------------------------------------------------------------
A2 A $ 1,000 Harrison PCR, (Monongahela Power Co.
Harrison Station), (AMT), 6.75%, 8/1/24 $ 1,100,670
Baa1 BBB+ 1,000 Mason PCR, (Appalacian Power Co.),
6.85%, 6/1/22 1,078,770
Baa1 BBB+ 1,130 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 455,582
---------------------------------------------------------------------------------------
$ 2,635,022
---------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 2,500 Kanawha-Putnam, Single Family, (AMBAC),
Escrowed to Maturity, 0.00%, 12/1/16 $ 1,037,625
---------------------------------------------------------------------------------------
$ 1,037,625
---------------------------------------------------------------------------------------
General Obligations -- 1.3%
---------------------------------------------------------------------------------------
Baa1 A $ 500 Puerto Rico, 0.00%, 7/1/16 $ 212,945
Baa1 A 500 Puerto Rico, 0.00%, 7/1/18 190,720
---------------------------------------------------------------------------------------
$ 403,665
---------------------------------------------------------------------------------------
Hospital -- 8.5%
---------------------------------------------------------------------------------------
NR BBB+ $ 1,250 Berkeley Building Commission, (City
Hospital), 6.50%, 11/1/22 $ 1,330,000
Baa1 BBB+ 250 Princeton, (Community Hospital), 6.00%,
5/1/18 255,985
A1 NR 1,000 West Virginia HFA, (Charleston Area
Medical Center), 6.50%, 9/1/23 1,066,350
---------------------------------------------------------------------------------------
$ 2,652,335
---------------------------------------------------------------------------------------
Housing -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 West Virginia State Housing Development
Fund, (AMT), 5.70%, 11/1/17 $ 516,425
---------------------------------------------------------------------------------------
$ 516,425
---------------------------------------------------------------------------------------
Industrial Development Revenue -- 9.1%
---------------------------------------------------------------------------------------
NR A- $ 1,375 Jefferson, (Royal Venders, Inc.), (AMT),
5.90%, 8/1/04 $ 1,439,405
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Industrial Development Revenue (continued)
---------------------------------------------------------------------------------------
Baa2 NR $ 300 Kanawha, (Union Carbide Chemicals and
Plastics Co.), (AMT), 8.00%, 8/1/20 $ 316,887
NR NR 1,000 Upshur Solid Waste, (TJI), (AMT), 7.00%,
7/15/25 1,105,160
---------------------------------------------------------------------------------------
$ 2,861,452
---------------------------------------------------------------------------------------
Insured-Education -- 10.0%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 West Virginia University, (AMBAC),
5.00%, 5/1/22 $ 492,240
Aaa AAA 1,000 West Virginia University, (AMBAC),
5.00%, 5/1/27 978,540
Aaa AAA 1,000 West Virginia University, (AMBAC),
5.75%, 4/1/16 1,064,890
Aaa AAA 550 West Virginia University, (AMBAC),
6.00%, 4/1/12 597,867
---------------------------------------------------------------------------------------
$ 3,133,537
---------------------------------------------------------------------------------------
Insured-Electric Utilities -- 3.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 700 Marshall PCR, (Ohio Power Kammer Plant),
(MBIA), 5.45%, 7/1/14 $ 730,793
Aaa AAA 250 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/03(1) 287,500
---------------------------------------------------------------------------------------
$ 1,018,293
---------------------------------------------------------------------------------------
Insured-General Obligations -- 6.8%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 West Virginia State Roads, (FGIC),
4.50%, 6/1/23 $ 920,380
Aaa AAA 150 West Virginia, (FGIC), 5.25%, 11/1/26 151,512
Aaa AAA 1,000 West Virginia, (FGIC), 5.75%, 11/1/21 1,069,630
---------------------------------------------------------------------------------------
$ 2,141,522
---------------------------------------------------------------------------------------
Insured-Hospital -- 13.2%
---------------------------------------------------------------------------------------
Aaa NR $ 500 Randolph County Commission Health
System, (Davis Health System Inc.),
(FSA), 5.20%, 11/1/21 $ 496,365
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
---------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured-Hospital (continued)
---------------------------------------------------------------------------------------
Aaa AAA $ 1,300 West Virginia HFA, (Cabell Huntington
Hospital), (AMBAC), 6.25%, 1/1/19 $ 1,426,945
Aaa AAA 850 West Virginia HFA, (Charleston Area
Medical Center), (MBIA), 5.75%, 9/1/13 913,733
Aaa AAA 1,200 West Virginia HFA, (Linked Bulls &
Bears), (MBIA), 6.10%, 1/1/18 1,283,760
---------------------------------------------------------------------------------------
$ 4,120,803
---------------------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.7%
---------------------------------------------------------------------------------------
Aaa AAA $ 500 West Virginia School Building Authority,
(AMBAC), 5.60%, 7/1/17 $ 529,015
---------------------------------------------------------------------------------------
$ 529,015
---------------------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 2.3%
---------------------------------------------------------------------------------------
Aaa NR $ 730 Harrison County Building Commission,
(Maplewood Retirement), (AMBAC), 5.25%,
4/1/28 $ 731,511
---------------------------------------------------------------------------------------
$ 731,511
---------------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.5%
---------------------------------------------------------------------------------------
Aaa AAA $ 800 Puerto Rico Financing Authority,
(AMBAC), 5.00%, 7/1/28 $ 798,104
---------------------------------------------------------------------------------------
$ 798,104
---------------------------------------------------------------------------------------
Insured-Transportation -- 2.6%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 West Virginia Parkways Economic
Development and Tourism Authority,
(FGIC), 0.00%, 5/15/04 $ 811,890
---------------------------------------------------------------------------------------
$ 811,890
---------------------------------------------------------------------------------------
Insured-Water and Sewer -- 16.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 250 Berkeley Public Service District Sewer,
(MBIA), 5.75%, 10/1/25 $ 267,300
Aaa AAA 500 Crab Orchard Public Service District,
(AMBAC), 5.50%, 10/1/25 521,220
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------
Insured-Water and Sewer (continued)
---------------------------------------------------------------------------------------
Aaa NR $ 1,000 Fairmont, Waterworks Revenue, (AMBAC),
4.50%, 7/1/24 $ 915,930
Aaa NR 500 Fairmont, Waterworks Revenue, (AMBAC),
4.75%, 7/1/29 476,535
Aaa AAA 1,500 Parkersburg Waterworks and Sewer, (FSA),
5.80%, 9/1/19 1,608,629
Aaa AAA 500 West Virginia Water Development, (Loan
Program II), (FSA), 5.25%, 11/1/35 503,240
Aaa AAA 750 West Virginia Water Development, (Loan
Program II), (FSA), 6.00%, 11/1/14 825,473
---------------------------------------------------------------------------------------
$ 5,118,327
---------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 3.3%
---------------------------------------------------------------------------------------
Aaa AAA $ 1,000 Charleston Urban Renewal Authority,
Lease Revenue, (FSA), 5.25%, 12/15/18 $ 1,024,010
---------------------------------------------------------------------------------------
$ 1,024,010
---------------------------------------------------------------------------------------
Nursing Home -- 1.6%
---------------------------------------------------------------------------------------
NR NR $ 500 Kanawha County, (Beverly Enterprises),
5.50%, 11/1/08 $ 494,845
---------------------------------------------------------------------------------------
$ 494,845
---------------------------------------------------------------------------------------
Solid Waste -- 3.3%
---------------------------------------------------------------------------------------
A2 A $ 1,000 Braxton County, (Weyerhaeuser Co.),
(AMT), 5.80%, 6/1/27 $ 1,044,290
---------------------------------------------------------------------------------------
$ 1,044,290
---------------------------------------------------------------------------------------
Special Tax Revenue -- 0.8%
---------------------------------------------------------------------------------------
NR AAA $ 250 Puerto Rico, Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 247,678
---------------------------------------------------------------------------------------
$ 247,678
---------------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $29,511,433) $ 31,320,349
---------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
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 West Virginia
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at March 31, 1999, 65.3% 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 9.4% to 30.6% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1993. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At March 31,
1999, the value of these securities amounted to $247,678 or 0.8% of the
Portfolio's net assets.
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $261,039,666 $377,650,076 $216,982,571 $17,717,241
Unrealized appreciation 36,979,792 30,301,332 20,161,811 1,667,886
- ------------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $298,019,458 $407,951,408 $237,144,382 $19,385,127
- ------------------------------------------------------------------------------------------------------------------------------------
Cash $ 2,158,274 $ 352 $ 96 $ 133,684
Receivable for investments sold -- 336,600 345,298 25,677
Interest receivable 3,990,087 7,455,719 3,672,315 344,972
Receivable for daily variation
margin on financial futures
contracts -- -- 21,250 --
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $304,167,819 $415,744,079 $241,183,341 $19,889,460
- ------------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------------------
Payable for when-issued securities $ 3,000,000 $ 3,000,000 $ -- $ --
Demand note payable -- 3,723,000 945,000 --
Payable to affiliate for Trustees'
fees 313 270 283 4
Other accrued expenses 19,689 2,750 19,844 5,896
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 3,020,002 $ 6,726,020 $ 965,127 $ 5,900
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $301,147,817 $409,018,059 $240,218,214 $19,883,560
- ------------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $264,168,025 $378,716,727 $220,024,143 $18,215,674
Net unrealized appreciation
(computed on the basis of
identified cost) 36,979,792 30,301,332 20,194,071 1,667,886
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL $301,147,817 $409,018,059 $240,218,214 $19,883,560
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $423,756,266 $ 224,641,868 $41,612,747 $29,511,433
Unrealized appreciation 35,957,095 14,349,364 2,482,347 1,808,916
- --------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $459,713,361 $ 238,991,232 $44,095,094 $31,320,349
- --------------------------------------------------------------------------------------------------------------------------------
Cash $ 488 $ 514 $ 527 $ 184,152
Receivable for investments sold 85,957 773,150 1,198,155 --
Interest receivable 7,402,243 3,573,637 806,688 468,153
Receivable for daily variation
margin on financial futures
contracts -- -- 4,781 4,101
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $467,202,049 $ 243,338,533 $46,105,245 $31,976,755
- --------------------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ 6,003,322 $ 2,747,283 $ 1,017,512 $ 814,010
Payable for when-issued securities -- -- 967,291 --
Demand note payable 861,000 1,131,000 65,000 --
Payable to affiliate for Trustees'
fees 454 -- 32 --
Other accrued expenses 32,277 23,731 6,695 3,365
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 6,897,053 $ 3,902,014 $ 2,056,530 $ 817,375
- --------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $460,304,996 $ 239,436,519 $44,048,715 $31,159,380
- --------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $424,347,901 $ 225,087,155 $41,559,109 $29,350,464
Net unrealized appreciation
(computed on the basis of
identified cost) 35,957,095 14,349,364 2,489,606 1,808,916
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL $460,304,996 $ 239,436,519 $44,048,715 $31,159,380
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------------------
Interest $ 8,809,515 $ 11,973,321 $ 7,134,972 $ 575,253
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 8,809,515 $ 11,973,321 $ 7,134,972 $ 575,253
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 726,153 $ 966,088 $ 531,497 $ 16,573
Trustees' fees and expenses 13,973 13,358 11,979 137
Custodian fee 76,163 80,807 64,033 9,162
Legal and accounting services 38,103 39,092 33,843 16,746
Miscellaneous 7,174 19,531 8,415 1,844
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 861,566 $ 1,118,876 $ 649,767 $ 44,462
- ------------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 30,533 $ 80,807 $ 28,558 $ 1,886
- ------------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 30,533 $ 80,807 $ 28,558 $ 1,886
- ------------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 831,033 $ 1,038,069 $ 621,209 $ 42,576
- ------------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 7,978,482 $ 10,935,252 $ 6,513,763 $ 532,677
- ------------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 1,281,321 $ 6,016,956 $ 1,398,908 $ 92,950
Financial futures contracts 49,825 (295,422) 176,100 1,111
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,331,146 $ 5,721,534 $ 1,575,008 $ 94,061
- ------------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(7,709,786) $(14,930,620) $(6,314,696) $(469,407)
Financial futures contracts 376,199 398,880 32,260 22,941
- ------------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(7,333,587) $(14,531,740) $(6,282,436) $(446,466)
- ------------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(6,002,441) $ (8,810,206) $(4,707,428) $(352,405)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,976,041 $ 2,125,046 $ 1,806,335 $ 180,272
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------------------------------------------
Interest $ 13,409,676 $ 7,475,858 $1,175,800 $ 849,882
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 13,409,676 $ 7,475,858 $1,175,800 $ 849,882
- --------------------------------------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,067,182 $ 550,843 $ 53,187 $ 33,197
Trustees' fees and expenses 15,343 10,473 1,364 1,191
Custodian fee 73,514 51,698 15,813 14,395
Legal and accounting services 47,462 32,109 18,832 18,056
Miscellaneous 29,014 40,862 2,141 3,568
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,232,515 $ 685,985 $ 91,337 $ 70,407
- --------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 6,048 $ 3,232
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 6,048 $ 3,232
- --------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,232,515 $ 685,985 $ 85,289 $ 67,175
- --------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 12,177,161 $ 6,789,873 $1,090,511 $ 782,707
- --------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 2,098,895 $ 2,020,363 $ 116,630 $ 263,327
Financial futures contracts (468,986) (95,996) 28,673 22,193
- --------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,629,909 $ 1,924,367 $ 145,303 $ 285,520
- --------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(11,274,567) $(5,285,066) $ (938,844) $(852,117)
Financial futures contracts 633,222 129,636 7,259 45,458
- --------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(10,641,345) $(5,155,430) $ (931,585) $(806,659)
- --------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (9,011,436) $(3,231,063) $ (786,282) $(521,139)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,165,725 $ 3,558,810 $ 304,229 $ 261,568
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 7,978,482 $ 10,935,252 $ 6,513,763 $ 532,677
Net realized gain 1,331,146 5,721,534 1,575,008 94,061
Net change in unrealized
appreciation (depreciation) (7,333,587) (14,531,740) (6,282,436) (446,466)
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,976,041 $ 2,125,046 $ 1,806,335 $ 180,272
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 13,800,165 $ 14,885,790 $ 11,021,549 $ 908,534
Withdrawals (26,637,072) (64,012,597) (23,336,122) (1,944,910)
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(12,836,907) $(49,126,807) $(12,314,573) $(1,036,376)
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,860,866) $(47,001,761) $(10,508,238) $ (856,104)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of period $312,008,683 $456,019,820 $250,726,452 $20,739,664
- ------------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $301,147,817 $409,018,059 $240,218,214 $19,883,560
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 12,177,161 $ 6,789,873 $ 1,090,511 $ 782,707
Net realized gain 1,629,909 1,924,367 145,303 285,520
Net change in unrealized
appreciation (depreciation) (10,641,345) (5,155,430) (931,585) (806,659)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,165,725 $ 3,558,810 $ 304,229 $ 261,568
- --------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 16,271,065 $ 7,899,453 $ 4,207,967 $ 1,124,330
Withdrawals (45,195,810) (27,052,194) (2,534,853) (2,146,062)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM CAPITAL TRANSACTIONS $(28,924,745) $ (19,152,741) $ 1,673,114 $(1,021,732)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $(25,759,020) $ (15,593,931) $ 1,977,343 $ (760,164)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
At beginning of period $486,064,016 $ 255,030,450 $42,071,372 $31,919,544
- --------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $460,304,996 $ 239,436,519 $44,048,715 $31,159,380
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 16,749,988 $ 24,411,408 $ 13,279,143 $ 1,095,413
Net realized gain 5,489,144 10,921,955 5,581,339 573,326
Net change in unrealized
appreciation (depreciation) 7,467,292 12,878,283 3,418,130 114,281
- ------------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 29,706,424 $ 48,211,646 $ 22,278,612 $ 1,783,020
- ------------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 22,739,308 $ 23,116,173 $ 23,126,655 $ 1,791,601
Withdrawals (67,441,064) (129,509,414) (48,353,576) (4,961,704)
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(44,701,756) $(106,393,241) $(25,226,921) $(3,170,103)
- ------------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(14,995,332) $ (58,181,595) $ (2,948,309) $(1,387,083)
- ------------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------------------
At beginning of year $327,004,015 $ 514,201,415 $253,674,761 $22,126,747
- ------------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
- ------------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 26,577,893 $ 14,511,143 $ 2,164,155 $ 1,733,679
Net realized gain (loss) 16,834,383 3,940,354 (61,270) 410,963
Net change in unrealized
appreciation (depreciation) 3,990,623 2,570,827 1,425,915 669,508
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 47,402,899 $ 21,022,324 $ 3,528,800 $ 2,814,150
- --------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 21,974,717 $ 12,482,905 $ 5,483,365 $ 1,913,546
Withdrawals (110,917,114) (49,743,364) (7,158,442) (6,311,147)
- --------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (88,942,397) $ (37,260,459) $(1,675,077) $(4,397,601)
- --------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ (41,539,498) $ (16,238,135) $ 1,853,723 $(1,583,451)
- --------------------------------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 527,603,514 $ 271,268,585 $40,217,649 $33,502,995
- --------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 486,064,016 $ 255,030,450 $42,071,372 $31,919,544
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
-------------------------------------------------------------------------------------------------
YEAR ENDED
-----------------------------------------------------------------------------
SIX MONTHS ENDED SEPTEMBER 30,
MARCH 31, 1999 ---------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994(1)
<S> <C> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------------------------------
Expenses(3) 0.56%(4) 0.55% 0.57% 0.57% 0.59% 0.57%(4)
Expenses after custodian fee
reduction 0.54%(4) 0.53% 0.56% 0.56% 0.58% --
Net investment income 5.21%(4) 5.33% 5.76% 5.93% 6.22% 6.09%(4)
Portfolio Turnover 11% 16% 12% 14% 58% 40%
- ------------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $301,148 $312,009 $327,004 $370,590 $410,763 $445,131
- ------------------------------------------------------------------------------------------------------------------------------------
<CAPTION>
MARCH 31,
----------
1994(2)
<S> <C>
- ---------------------------------
Ratios to average daily net asset
- ---------------------------------
Expenses(3) 0.55%(4)
Expenses after custodian fee
reduction --
Net investment income 5.72%(4)
Portfolio Turnover 91%
- ---------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $467,259
- ---------------------------------
</TABLE>
(1) For the six months ended September 30, 1994. The Portfolio changed its
fiscal year from March 31 to September 30, effective September 30, 1994.
(2) For the period from the start of business, May 3, 1993, to March 31, 1994.
(3) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the 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 prior periods have not been
adjusted to reflect this change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.52%(2) 0.51% 0.52% 0.52% 0.55% 0.48%
Expenses after custodian fee
reduction 0.48%(2) 0.47% 0.48% 0.49% 0.52% --
Net investment income 5.04%(2) 5.03% 5.53% 5.67% 5.94% 5.65%
Portfolio Turnover 18% 25% 54% 51% 61% 57%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $409,018 $456,020 $514,201 $624,374 $712,203 $772,123
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratio for the year ended September 30, 1994 has not
been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.54% 0.53% 0.55% 0.56% 0.51%
Expenses after custodian fee
reduction 0.51%(2) 0.52% 0.52% 0.54% 0.53% --
Net investment income 5.32%(2) 5.36% 5.75% 5.77% 6.00% 5.74%
Portfolio Turnover 14% 28% 35% 51% 87% 53%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $240,218 $250,726 $253,675 $281,129 $302,170 $308,540
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratio for the year ended September 30, 1994 has not
been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.43%(2) 0.37% 0.38% 0.29% 0.27% 0.05%
Net expenses after custodian fee
reduction 0.41%(2) 0.35% 0.37% 0.26% 0.23% --
Net investment income 5.18%(2) 5.21% 5.59% 5.77% 5.97% 5.67%
Portfolio Turnover 8% 17% 6% 12% 52% 38%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $ 19,884 $ 20,740 $ 22,127 $ 25,280 $ 28,993 $ 29,477
- -----------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an allocation of expenses to
the Investment Adviser, or both. Had such action not been taken, the ratios would have been as follows:
Expenses(1) 0.40% 0.39% 0.32%
Expenses after custodian fee
reduction 0.37% 0.35% --
Net investment income 5.66% 5.85% 5.40%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratios for the year ended September 30, 1994 have
not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.52%(2) 0.53% 0.57% 0.52% 0.54% 0.48%
Expenses after custodian fee
reduction 0.52%(2) 0.51% 0.57% 0.49% 0.51% --
Net investment income 5.16%(2) 5.28% 5.60% 5.64% 5.97% 5.70%
Portfolio Turnover 15% 55% 44% 47% 55% 47%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $460,305 $486,064 $527,604 $604,530 $652,736 $655,647
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratio for the year ended September 30, 1994 has not
been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.55%(2) 0.56% 0.56% 0.57% 0.57% 0.51%
Expenses after custodian fee
reduction 0.55%(2) 0.54% 0.55% 0.56% 0.55% --
Net investment income 5.46%(2) 5.50% 5.70% 5.69% 5.80% 5.61%
Portfolio Turnover 26% 17% 30% 35% 51% 31%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $239,437 $255,030 $271,269 $292,671 $319,017 $324,412
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratio for the year ended September 30, 1994 has not
been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.43%(2) 0.39% 0.27% 0.27% 0.29% 0.12%
Net expenses after custodian fee
reduction 0.40%(2) 0.36% 0.23% 0.24% 0.25% --
Net investment income 5.10%(2) 5.28% 5.54% 5.69% 5.96% 5.64%
Portfolio Turnover 7% 24% 39% 25% 42% 42%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $ 44,049 $ 42,071 $ 40,218 $ 42,167 $ 42,906 $ 38,120
- -----------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an allocation of expenses to
the Investment Adviser, or both. Had such action not been taken, the ratios would have been as follows:
Expenses(1) 0.39% 0.40% 0.41% 0.33%
Expenses after custodian fee
reduction 0.35% 0.37% 0.37% --
Net investment income 5.42% 5.56% 5.84% 5.43%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratios for the year ended September 30, 1994 have
not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
---------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- -----------------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.45%(2) 0.37% 0.38% 0.42% 0.31% 0.10%
Net expenses after custodian fee
reduction 0.43%(2) 0.34% 0.36% 0.38% 0.29% --
Net investment income 4.98%(2) 5.34% 5.44% 5.41% 5.81% 5.52%
Portfolio Turnover 15% 16% 24% 43% 19% 39%
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $ 31,159 $ 31,920 $ 33,503 $ 39,501 $ 40,835 $ 40,473
- -----------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an allocation of expenses to
the Investment Adviser, or both. Had such action not been taken, the ratios would have been as follows:
Expenses(1) 0.39% 0.33%
Expenses after custodian fee
reduction 0.37% --
Net investment income 5.73% 5.29%
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting guidelines.
The new reporting guidelines require the Portfolio to increase its expense
ratio by the effect of any expense offset arrangements with its service
providers. The expense ratios for the year ended September 30, 1994 have
not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
California Municipals Portfolio (California Portfolio), Florida Municipals
Portfolio (Florida Portfolio), Massachusetts Municipals Portfolio
(Massachusetts Portfolio), Mississippi Municipals Portfolio (Mississippi
Portfolio), New York Municipals Portfolio (New York Portfolio), Ohio
Municipals Portfolio (Ohio Portfolio), Rhode Island Municipals Portfolio
(Rhode Island Portfolio) and West Virginia Municipals Portfolio (West
Virginia Portfolio), collectively the Portfolios, are registered under the
Investment Company Act of 1940, as amended, as non-diversified, open-end
management investment companies. The Portfolios were organized as trusts
under the laws of the State of New York on May 1, 1992. The Declarations of
Trust permit the trustees to issue interests in the Portfolios. The following
is a summary of significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts and options on
futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on futures contracts 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, deduction
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 Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed for both
hedging against anticipated future changes in interest rates and investment
purposes. Should interest rates move unexpectedly, a Portfolio may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss.
E 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 sales
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 put options is limited
to the premium originally paid.
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued or delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Legal Fees -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
H Other -- Investment transactions are accounted for on a trade date basis.
I 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.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balance each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reflected as a
reduction of operating expenses in the Statements of Operations.
K Interim Financial Statements -- The interim financial statements relating to
March 31, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended March 31, 1999, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
- ------------------------------------------------------------------------
California $ 726,153 0.47%
Florida 966,088 0.44%
Massachusetts 531,497 0.43%
Mississippi 16,573 0.16%
New York 1,067,182 0.45%
Ohio 550,843 0.44%
Rhode Island 53,187 0.25%
West Virginia 33,197 0.21%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets
(annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Certain of the officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations. Trustees of the 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 six months ended
March 31, 1999, no significant amounts have been deferred.
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased option transactions and short-term obligations, for the six months
ended March 31, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 31,790,250
Sales 36,705,439
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 75,177,111
Sales 103,218,201
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 34,815,471
Sales 39,756,529
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 1,619,248
Sales 2,287,142
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 68,156,326
Sales 81,542,641
<CAPTION>
OHIO PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 65,009,898
Sales 72,619,576
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 6,514,020
Sales 2,879,350
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 5,061,038
Sales 4,787,065
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at March 31, 1999, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 261,039,666
- -------------------------------------------------------
Gross unrealized appreciation $ 37,137,334
Gross unrealized depreciation (157,542)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 36,979,792
- -------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 377,650,076
- -------------------------------------------------------
Gross unrealized appreciation $ 33,863,774
Gross unrealized depreciation (3,562,442)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 30,301,332
- -------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 216,982,571
- -------------------------------------------------------
Gross unrealized appreciation $ 20,885,404
Gross unrealized depreciation (613,593)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 20,161,811
- -------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 17,717,241
- -------------------------------------------------------
Gross unrealized appreciation $ 1,684,823
Gross unrealized depreciation (16,937)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,667,886
- -------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 423,756,266
- -------------------------------------------------------
Gross unrealized appreciation $ 36,395,096
Gross unrealized depreciation (438,001)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 35,957,095
- -------------------------------------------------------
</TABLE>
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
OHIO PORTFOLIO
- -------------------------------------------------------
<S> <C>
AGGREGATE COST $ 224,641,868
- -------------------------------------------------------
Gross unrealized appreciation $ 14,620,578
Gross unrealized depreciation (271,214)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 14,349,364
- -------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 41,612,747
- -------------------------------------------------------
Gross unrealized appreciation $ 2,513,122
Gross unrealized depreciation (30,775)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,482,347
- -------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 29,511,433
- -------------------------------------------------------
Gross unrealized appreciation $ 1,849,639
Gross unrealized depreciation (40,723)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,808,916
- -------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million unsecured line of credit agreement
with a group of banks. The Portfolios may temporarily borrow from the line of
credit 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 Eurodollar rate or federal funds rate. In addition, a
fee computed at an annual rate of 0.10% on the daily unused portion of the
line of credit is allocated among the participating portfolios and funds at
the end of each quarter. At March 31, 1999, the Florida Portfolio,
Massachusetts Portfolio, New York Portfolio, Ohio Portfolio and Rhode Island
Portfolio had a balance outstanding pursuant to this line of credit of
$3,723,000, $945,000, $861,000, $1,131,000 and $65,000, respectively. The
Portfolios did not have any significant borrowings or allocated fees during
the six months ended March 31, 1999.
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 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.
A summary of obligations under these financial instruments at March 31, 1999,
is as follows:
<TABLE>
<CAPTION>
FUTURES
CONTRACTS
EXPIRATION NET UNREALIZED
PORTFOLIO DATE CONTRACTS POSITION APPRECIATION
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------
Massachusetts 6/99 40 US Treasury Bonds Short 32,260
- ------------------------------------------------------------------------------------------------
Rhode Island 6/99 9 US Treasury Bonds Short 7,259
</TABLE>
At March 31, 1999 each Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
85
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE MUNICIPALS FUNDS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolios
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts and
Rhode Island Municipals Portfolio
Timothy T. Browse
Vice President and Portfolio
Manager of West Virginia
Municipals Portfolio
Cynthia J. Clemson
Vice President and Portfolio
Manager of California, Florida and
Mississippi Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
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PORTFOLIO INVESTMENT ADVISER
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
FUND ADMINISTRATOR
Eaton Vance Management
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
Eaton Vance Distributors, Inc.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
Investors Bank & Trust Company
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
First Data Investor Services Group, Inc.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales
charges and expenses. Please read the prospectus carefully
before you invest or send money.
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8CSRC-5/98
