<PAGE>
[PICTURE MUTUAL FUNDS [PICTURE
OF FOR PEOPLE OF
EATON WHO PAY EDUCATION SIGN
VANCE LOGO] TAXES & BRICKS]
Annual Report September 30, 1999
[PICTURE EATON VANCE California
OF MUNICIPALS
FREEWAY TRUST Florida
Massachusetts
Mississippi
Global Management-Global Distribution New York
Ohio
Rhode Island
West Virginia
[PICTURE
OF
BRIDGE]
<PAGE>
Eaton Vance Municipals Funds as of September 30, 1999
Letter to Shareholders
[PHOTO]
Thomas J. Fetter
President
The past year has proved to be increasingly challenging for the municipal
market. At the outset, continued low inflation provided a fairly positive
environment for the tax-exempt sector. The U.S. economy grew 4.6% in the first
quarter, before posting a more moderate 2.3% growth rate in the second quarter,
according to revised figures. However, while inflation appeared to remain fairly
well in check, rising energy prices and labor cost pressures caught the eye of
the Federal Reserve. In late June, the Fed raised its Federal Funds rate - a key
short-term interest rate barometer - by 25 basis points (.25%), and repeated the
move in August.
Municipal bonds gained ground on Treasuries in the first quarter of 1999, as
supply pressures, which weighed so heavily on the municipal market in 1998,
eased somewhat. In the summer and early fall, however, the municipal market
encountered some turmoil amid uncertainty about possible Federal Reserve actions
as well as confusion over tax proposals pending in Congress. For the year ended
September 30, 1999, the Lehman Brothers Municipal Bond Index*- a widely
recognized, unmanaged index of municipal bonds - posted a return of -0.70%.*
With the 2000 elections nearing,
tax reform has once again become
a political football...
Once again, the prospects of lower taxes are threatened by a political stalemate
in Washington. The administration has threatened to veto recent tax cuts passed
by Congress. Meanwhile, taxpayers continue to bear the burden of high taxes
while facing the challenge of paying for college tuition, caring for elderly
parents, or trying to plan for retirement.
Municipal bonds yield 96% of Treasury yields
5.83% 9.11%
30-Year AAA rated Taxable equivalent yield
General Obligation (GO) Bonds* in 36% tax bracket
6.05%
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 representrative of the Funds' yield.
Statistics as of September 30, 1999.
Past performance is no guarantee of future results.
Source: Bloomberg L.P.
Municipal bonds remain an
undervalued asset class...
At Eaton Vance, we believe that municipal bonds can be an attractive investment
alternative for conservative investors, especially at recent price levels. With
their competitive yields, lower volatility and tax-exempt status, municipal
bonds merit consideration from risk-conscious, income-oriented investors. In
this uncertain climate, municipals represent a prudent way to diversify one's
investment portfolio while lowering one's tax burden. We believe that municipals
merit strong consideration from today's tax-conscious investors.
Sincerely,
/s/ THOMAS J. FETTER
Thomas J. Fetter
President
November 11, 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.
YIELDS WILL CHANGE.
- -------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE CALIFORNIA MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The California economy retained its robust momentum in 1999, marking the
sixth year of expansion. The services sector fueled the state's growth, with
new technologies, business services, biotechnology, multimedia, electronics
and entertainment posting major job gains. The state's September unemployment
rate declined to 5.1% from 6.0% a year ago.
- - California's construction sector remained in a fast-growth mode, growing 15%
in the second quarter alone. More than 88,000 construction jobs have been
created in the past year, with specialty trades such as plumbing, painting,
flooring and electrical workers leading the way.
- - The strong economic news was tempered somewhat in the manufacturing sector,
which registered a modest job decline. California exports declined by 6.5% in
the first half of the year, the result of weaker demand from Asia's troubled
economies.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Management has had the opportunity this year to purchase good-quality,
non-rated, special assessment and tax allocation bonds, many of which are
backed by seasoned projects.
- - With muni yields dramatically higher in 1999, we focused on identifying
bonds or specific lots of bonds that could be sold at a loss and using the
proceeds to purchase more desirable bonds. This investment strategy allowed
management to realize a capital loss the Fund used to offset capital gains,
thereby lowering tax liability.
- - Emphasis on call protection has remained an important component of
management's strategy. Management continually strives to improve the call
characteristics of issues in the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -4.25% and -4.50%, respectively.(1) For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$10.32 on September 30, 1999 from $11.34 on September 30, 1998, and the
reinvestment of $0.557 per share in tax-free income.(2) For Class B, this
return resulted from a decline in NAV to $9.52 from $10.42, and the
reinvestment of $0.447 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.38% for Class A and 5.15% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were 4.99% and
4.85%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
Non-Rated/Below Investment Grade 15.80%
AAA 44.40%
AA 8%
A 12.50%
BBB 8.20%
BB 1.60%
Non-Rated/Investment Grade 9.50%
+May not represent the Portfolio's current or future 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 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. 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. Yield will
vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -4.25% -4.50%
Five Years 6.73 5.68
Ten Years N.A. 5.61
Life of Fund+ 6.37 5.96
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.84% -9.06%
Five Years 5.70 5.35
Ten Years N.A. 5.61
Life of Fund+ 5.41 5.96
+Inception date: Class A: 5/27/94; Class B: 12/19/85
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. The chart compares the total return
of the Fund's Class B with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 5/31/94 at net asset value would have grown to
$13,960 on 9/30/99; $13,294, including the 4.75% maximum sales charge. The
Index's total return does not reflect commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.33% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 1999 was designated as an
exempt-interest dividend.
- -------------------------------------------------------------------------------
3
<PAGE>
EATON VANCE FLORIDA MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Florida economy expanded further in 1999, with the fast-growing service
sector leading the way. Propelled by tourism and retirement services, Florida
has added 300,000 employees to its service sector payrolls in the past three
years alone. The September jobless rate was just 3.9%, down from 4.2% a year
earlier.
- - Tourism continued to rebound following last year's devastating wildfires.
Theme park and convention business posted strong gains, as Central Florida
opened new parks, accompanied by the construction of new hotels, restaurants,
retirement communities and entertainment facilities.
- - Florida's manufacturing sector has weakened in 1999 in response to slower
foreign demand. Exports, which slowed to a 5% growth rate in 1998, have
suffered from continued weak demand from Asia, with citrus fruits and chemical
exports especially hard-hit.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - While the majority of bonds issued in Florida are insured bonds, the Portfolio
had the opportunity to purchase lower investment grade issues in the health
care sector, as well as non-rated bonds in the special assessment sector.
Continued strong economic growth in the state has provided a solid foundation
for these financings.
- - Emphasis on call protection has remained an important component of
management's strategy. Management continually strives to improve the call
characteristics of issues in the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -4.02% and -4.84%, respectively.(1) For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$10.19 on September 30, 1999 from $11.15 on September 30, 1998, and the
reinvestment of $0.530 per share in tax-free income.(2) For Class B, this
return resulted from a decline in NAV to $10.43 from $11.42, and the
reinvestment of $0.455 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.20% for Class A and 4.36% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were 5.08% and
4.50%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 55.40%
AA 14.50%
A 7.20%
BBB 7.60%
BB 0.80%
Non-Rated 14.50%
+May not represent the Portfolio's current or future 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 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. 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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -4.02% -4.84%
Five Years 5.87 5.00
Life of Fund+ 5.92 6.13
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.61% -9.41%
Five Years 4.85 4.67
Life of Fund+ 4.99 6.13
+Inception date: Class A: 4/5/94; Class B: 8/28/90
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced
on 8/28/90. Index information is available only at month end; therefore, the
line comparison begins at the next month following the commencement of the
Fund's investment operations. The chart compares the total return of the
Fund's Class B with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal Bond
Index. An investment in Class A shares on 4/30/94 at net asset value would
have grown to $13,316 on 9/30/99; $12,687, including the 4.75% maximum sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest
directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.44% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 1999 was designated as an
exempt-interest dividend.
- -------------------------------------------------------------------------------
4
<PAGE>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Massachusetts economy continued its strong momentum in the first half of
1999. The September unemployment rate was 2.9%, well below the national rate.
Financial services, retail trade, health services and technology were again
among the largest sources of new jobs.
- - The construction sector added significantly to employment in the Commonwealth.
Residential and commercial building has been aided by a strong housing market
and large commercial projects like Boston's Central Artery and Seaport
projects.
- - Massachusetts tax revenues continued to reflect the strong state economy in
the first half of 1999, according to the Department of Revenue and Taxation.
Tax revenues rose, reflecting a sharp increase in individual income tax
collections and windfall capital gains taxes from a rising stock market.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Management has continued to be very selective regarding credits in the
healthcare sector, considering how competitive the industry has become. While
approximately 23% of the Portfolio is invested in uninsured healthcare issues,
this is a low percentage relative to the supply of healthcare bonds issued in
Massachusetts.
- - The Portfolio found compelling opportunities in Massachusetts secondary
schools, which represented about 5% of investments. In addition, we maintained
some exposure to the massive construction project known as the "Big Dig,"and
purchased several non-rated deals in the assisted-living sector.
- - Emphasis on call protection has remained an important component of
management's strategy. Management continually strives to improve the call
characteristics of issues in the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A, B, and I
shares had total returns of -3.42%; -4.44%; and -3.53%, respectively.(1) For
Class A, this return resulted from a decline in net asset value (NAV) per
share to $9.11 on September 30, 1999 from $9.94 on September 30, 1998, and
the reinvestment of $0.506 per share in tax-free income;2 for Class B, a
decline in NAV to $10.13 from $11.07, and the reinvestment of $0.465 per
share in tax-free income;(2) and for Class I, a decline in NAV to $9.39 from
$10.26, and the reinvestment of $0.529 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates for Class A, B, and I shares were 5.50%, 4.54%, and 5.54%,
respectively.(3)
- - The SEC 30-day yields for Class A, B,and I shares at September 30 were 4.87%,
4.69%, and 5.53%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 39.20%
AA 13.30%
A 8.80%
BBB 28.20%
Non-Rated/Investment Grade 5.40%
Non-Rated/Below Investment Grade 5.10%
+May not represent the Portfolio's current or future 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
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.
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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B Class I
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -3.42% -4.44% -3.53%
Five Years 5.83 5.11 6.03
Life of Fund+ 3.88 5.67 4.60
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.04% -9.02% -3.53%
Five Years 4.81 4.78 6.03
Life of Fund+ 3.01 5.67 4.60
+Inception date: Class A: 12/7/93; Class B: 4/18/91; Class I:6/17/93
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
4/18/91. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class
B with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines
on the chart represent total returns of $10,000 hypothetical investments in
the Fund and the Lehman Brothers Municipal Bond Index. An investment in Class
A shares on 12/31/93 at net asset value would have grown to $12,429 on
9/30/99; $11,839, including the 4.75% maximum sales charge. An investment in
Class I shares on 6/30/93 at net asset value would have grown to $13,181 on
9/30/99. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest directly
in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.60% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 1999 was designated as an
exempt-interest dividend.
- -------------------------------------------------------------------------------
5
<PAGE>
EATON VANCE MISSISSIPPI MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
The Economy
- -------------------------------------------------------------------------------
- - Mississippi's unemployment rate was 4.8% in September, down from 5.3% a year
ago. The total number of unemployed in the state decreased by 9.4%. Gains in
trade and services offset losses over the year in construction and
transportation equipment. Historically, unemployment in the state has tended
to be lower in September as jobs increase in the agriculture and education
sectors.
- - Valued at $4.7 billion yearly, agriculture is Mississippi's number-one
industry, and employs nearly 30% of the state's workforce, either directly or
indirectly.
The top agricultural commodities are cotton, catfish, and soybeans.
- - This year, Mississippi reached a record $140 billion in investment earnings,
the highest ever in the state in one year. Another milestone was achieved when
Standard & Poor's gave Mississippi revenue bonds a AAA rating for the first
time.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Muni yields were dramatically higher in the first half of 1999, so we focused
on identifying bonds or specific lots of bonds that could be sold at a loss
and using the proceeds to purchase more desirable bonds. This investment
strategy allowed management to realize a capital loss the Fund used to offset
capital gains, thereby lowering tax liability.
- - With few new municipal bonds being issued this year, the Mississippi bond
market was fairly quiet. Emphasis on call protection remained an important
component of management's strategy. Management's effort to improve the call
characteristics of issues in the Portfolio involved using secondary market
generic bonds.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -2.37% and -3.25%, respectively.1 For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$9.35 on September 30, 1999 from $10.06 on September 30, 1998, and the
reinvestment of $0.482 per share in tax-free income.2 For Class B, this return
resulted from a decline in NAV to $9.56 from $10.30, and the reinvestment of
$0.417 per share in tax-free income.2
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.14% for Class A and 4.30% for Class B.3
- - The SEC 30-day yields for Class A and B shares at September 30 were 5.60% and
4.67%, respectively.4
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 55.90%
AA 6.00%
A 22.00%
BBB 13.30%
Non-Rated 2.80%
+May not represent the Portfolio's current or future 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
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.
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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -2.37% -3.25%
Five Years 6.12 5.60
Life of Fund+ 3.92 3.98
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -7.00% -7.89%
Five Years 5.10 5.28
Life of Fund+ 3.05 3.98
+Inception date: Class A: 12/7/93; Class B: 6/11/93
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
6/11/93. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class
B with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines
on the chart represent total returns of $10,000 hypothetical investments in
the Fund and the Lehman Brothers Municipal Bond Index. An investment in Class
A shares on 12/31/93 at net asset value would have grown to $12,157 on
9/30/99; $12,064, including the 4.75% maximum sales charge. The Index's total
return does not reflect commissions or expenses that would have been incurred
if an investor individually purchased or sold the securities represented in
the Index. It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.66% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 1999 was designated as an
exempt-interest dividend.
- -------------------------------------------------------------------------------
6
<PAGE>
EATON VANCE NEW YORK MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Thomas J. Fetter
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - New York state's economy made further gains in 1999, although subject to
significant regional disparities. Most of the state's new jobs were created in
the New York City area, with the upstate region lagging. The state's September
jobless rate was 5.1%, above the national rate, but an improvement from the
5.5% level of a year ago.
- - Wall Street continued to play an increasingly large role in the New York City
economy. In 1998, the securities industry accounted for 19% of city residents'
total earnings. Wall Street has also been a prime driver of job creation, with
9% of all jobs tied to the securities industry.
- - Manufacturing remained a sore spot for the state,
with continuing losses in the auto and electronics industries. However,
computer manufacturing again proved an exception. Since 1992, 43,000 new jobs
have been created in the computer industry.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - With muni yields dramatically higher in the first half of 1999, management
focused on identifying bonds or specific lots of bonds that could be sold at a
loss and using the proceeds to purchase more desirable bonds. This investment
strategy allowed management to realize a capital loss the Fund can use in the
future to offset gains it might have, thereby lowering tax liability.
- - With credit quality spreads remaining narrow in the first half of 1999,
management took the opportunity to look for ways to increase the Portfolio's
overall credit quality.
- - Emphasis on call protection has remained an important component of
management's strategy. Management continually strives to improve the call
characteristics of issues in the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -3.63% and -4.35%, respectively.(1) For Class
A, this return resulted from a decline in net asset value (NAV) per share
to $9.86 on September 30, 1999 from $10.92 on September 30, 1998, and the
reinvestment of $0.533 per share in tax-free income and $0.151 per share in
capital gains distributions;(2) and for Class B, from a decline in NAV to
$10.64 from $11.76, and the reinvestment of $0.481 per share in tax-free
income and $0.151 per share in capital gains distributions.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.38% for Class A and 4.48% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were 4.87% and
4.66%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 18.00%
AA 12.50%
A 37.10%
BBB 21.20%
Non-Rated/ Investment Grade 4.70%
Non-Rated/Below Investment Grade 6.50%
+May not represent the Portfolio's current or future 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 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. 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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -3.63% -4.35%
Five Years 6.32 5.42
Life of Fund+ 5.88 6.59
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.17% -8.87%
Five Years 5.28 5.09
Life of Fund+ 4.93 6.59
+Inception date: Class A: 4/15/94; Class B: 8/30/90
* Source: Towers Data Systems, Bethesda, MD. Investment operations
commenced on 8/30/90. Index information is available only at month end;
therefore, the line comparison begins at the next month following the
commencement of the Fund's investment operations. The chart compares the
total return of the Fund's Class B with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index. Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent total
returns of $10,000 hypothetical investments in the Fund and the Lehman
Brothers Municipal Bond Index. An investment in Class A shares on 4/30/94
at net asset value would have grown to $13,013 on 9/30/99; $12,913,
including the 4.75% maximum sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the
Index. It is not possible to invest directly in an Index. Performance5
Class A Class B
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.26% of the total dividends paid by the Fund from net
investment income during the year ended September 30, 1999 was designated
as an exempt-interest dividend.
- -------------------------------------------------------------------------------
7
<PAGE>
EATON VANCE OHIO MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Thomas J. Fetter
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Ohio economy remained robust in 1999 and continued to generate strong job
growth. Over the past year, the number of employed Ohioans has increased by
nearly 200,000, with the total labor force reaching a new high. The state's
September jobless rate was 4.3%, unchanged from
a year earlier.
- - Despite the rise in interest rates during the year, Ohio's manufacturing
sector posted impressive gains amid strong domestic demand for durable goods
and a brightening trade picture due to improving Asian economies.
- - The Greater Cincinnati area remains an increasingly important, regional
financial services center. In the most recent expansion, Fifth Third Bancorp
unveiled plans to build a new operations center in Madisonville. The new
facility will house 2,000 employees and will be backed, in part, by state and
city tax abatements.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Management has continued to be very selective regarding credits in the
healthcare sector, considering how competitive the industry has become. While
approximately 15% of the Portfolio is invested in uninsured healthcare issues,
this is a low percentage relative to the supply of healthcare bonds issued.
- - With muni yields moving higher in the first half of 1999, we focused on
identifying bonds or specific lots of bonds that could be sold at a loss and
using the proceeds to purchase more desirable bonds. This investment strategy
allowed us to realize a capital loss that can be used in the future to offset
capital gains, thereby lowering tax liability.
- - Call protection was an important component of management's strategy.
Management continually strives to improve the call characteristics of the
Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -2.31% and -3.21%, respectively.(1) For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$9.12 on September 30, 1999 from $9.93 on September 30, 1998, and the
reinvestment of $0.513 per share in tax-free income and $0.083 in capital
gains distributions.(2) For Class B, this return resulted from a decline in
NAV to $10.29 from $11.21, and the reinvestment of $0.495 per share in
tax-free income and $0.083 in capital gains distributions.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.63% for Class A and 4.81% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were 5.12%
and 4.54%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 33.00%
AA 18.90%
A 15.90%
BBB 11.40%
BB 4.50%
Non-Rated/Investment Grade 9.10%
Non-Rated/Below Investment Grade 7.20%
+May not represent the Portfolio's current or future 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 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.
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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -2.31% -3.21%
Five Years 5.99 5.35
Life of Fund+ 3.87 5.82
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -6.99% -7.80%
Five Years 4.96 5.02
Life of Fund+ 3.01 5.82
+Inception date: Class A: 12/7/93; Class B: 4/18/91
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations
commenced on 4/18/91. Index information is available only at month end;
therefore, the line comparison begins at the next month following the
commencement of the Fund's investment operations. The chart compares the
total return of the Fund's Class B with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index. Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent total
returns of $10,000 hypothetical investments in the Fund and the Lehman
Brothers Municipal Bond Index. An investment in Class A shares on 12/31/93
at net asset value would have grown to $12,129 on 9/30/99; $12,038,
including the 4.75% maximum sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the
Index. It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.98% of the total dividends paid by the Fund from net
investment income during the year ended September 30, 1999 was designated
as an exempt-interest dividend.
- -------------------------------------------------------------------------------
8
<PAGE>
EATON VANCE RHODE ISLAND MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Rhode Island's seasonally adjusted unemployment rate was a low 3.8% in
September, an improvement of 1.0% from a year earlier. Most of the job growth
during the year was in the services group, with increases occuring in every
component industry. The state also recorded a seasonal uptick in manufacturing
employment.
- - Final employment data for 1998 made available earlier this year indicated
that 79% of Rhode Island's economy was in the service-producing sector,
including transportation, wholesale and retail trade, finance, insurance,
and other services.
- - The remaining 21% of jobs in Rhode Island occurred in the goods-producing
sector, which includes construction and manufacturing. Jewelry is one of the
state's biggest exports and employs more than 27,000 Rhode Islanders.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - As municipal bond supply in Rhode Island is low, there tends not to be a lot
of trading activity in its municipal bond issues. Therefore, to supplement the
R.I. exempt bonds, management invests in several Puerto Rico issues, which are
also exempt in R.I. and offer attractive structural characteristics.
- - Constituting 15% of the Portfolio's investments, single-family housing was
largest sector this year; we believe there is good value in this area. A very
competitive healthcare environment, however, meant that only 11% of the
Portfolio was in hospital credits.
- - Muni yields moved higher in the first half of 1999, so management focused on
identifying bonds or specific lots of bonds that could be sold at a loss. This
investment strategy allowed us to realize a capital loss that can be used in
the future to offset capital gains, thereby lowering tax liability.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -4.16% and -4.92%, respectively.(1) For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$9.07 on September 30, 1999 from $9.94 on September 30, 1998, and the
reinvestment of $0.472 per share in tax-free income.(2) For Class B, this
return resulted from a decline in NAV to $9.28 from $10.17, and the
reinvestment of $0.406 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.17% for Class A and 4.33% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were
5.32% and 4.83%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 55.80%
AA 17.50%
A 9.90%
BBB 15.90%
Non-Rated/Investment Grade 0.90%
+May not represent the Portfolio's current or future 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 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.
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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -4.16% -4.92%
Five Years 5.46 5.11
Life of Fund+ 3.32 3.58
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.76% -9.48%
Five Years 4.45 4.78
Life of Fund+ 2.46 3.58
+Inception date: Class A: 12/7/93; Class B: 6/11/93
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations
commenced on 6/11/93. Index information is available only at month end;
therefore, the line comparison begins at the next month following the
commencement of the Fund's investment operations. The chart compares the
total return of the Fund's Class B with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index. Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent total
returns of $10,000 hypothetical investments in the Fund and the Lehman
Brothers Municipal Bond Index. An investment in Class A shares on 12/31/93
at net asset value would have grown to $12,819 on 9/30/99; $12,719,
including the 4.75% maximum sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the
Index. It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.50% of the total dividends paid by the Fund from net
investment income during the year ended September 30, 1999 was designated
as an exempt-interest dividend.
- -------------------------------------------------------------------------------
9
<PAGE>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND as of September 30, 1999
INVESTMENT UPDATE
[PHOTO]
Timothy T. Browse
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - For the year ended August 31, the unemployment rate in West Virginia
declined from 6.7% to 6.4%. While well above the national average, the
figure represents a significantly improved labor picture in the state. In
addition, hourly and weekly average earnings rose from the previous August.
- - In the first six months of 1999, more than $305 million in total capital
investment was allocated for new business projects in the state. Sixty-two
companies announced the creation of over 5,600 new jobs, surpassing the job
creation record set in the first six months of 1998.
- - Among the new facilities, or expansion of existing facilities:United Airlines
opened its second customer service call center in the state; aerospace giant
Pratt & Whitney expanded its Bridgeport operation; and Ralph Lauren
Childrenswear broke ground on its new distribution center.
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Because West Virginia is a low-supply state, there is not a lot of trading
activity in its municipal bond issues. To supplement its holdings, the
Portfolio owns a number of bonds issued by Puerto Rico, which are also exempt
in W.V. and offer such characteristics as good liquidity and attractive coupon
structure.
- - Management focused on the investment strategy of executing tax-loss swaps.
This allowed management to realize a capital loss the Fund can use in the
future to offset gains it might have, thereby lowering tax liability.
- - Emphasis on call protection has remained an important component of
management's strategy. Management continually strives to improve the call
characteristics of issues in the Portfolio.
THE FUND
- -------------------------------------------------------------------------------
- - During the year ended September 30, 1999, the Fund's Class A and Class B
shares had total returns of -3.55% and -4.40%, respectively.(1) For Class A,
this return resulted from a decline in net asset value (NAV) per share to
$9.29 on September 30, 1999 from $10.12 on September 30, 1998, and the
reinvestment of $0.485 per share in tax-free income.(2) For Class B, this
return resulted from a decline in NAV to $9.47 from $10.32, and the
reinvestment of $0.411 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on September 30, 1999, the
distribution rates were 5.22% for Class A and 4.34% for Class B.(3)
- - The SEC 30-day yields for Class A and B shares at September 30 were 5.67%
and 5.21%, respectively.(4)
RATING DISTRIBUTION+
- -------------------------------------------------------------------------------
[PIE CHART]
AAA 64.50%
A 13.50%
BBB 15.00%
Non-Rated 7.00%
+May not represent the Portfolio's current or future 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 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. 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. Yield will vary.
- -------------------------------------------------------------------------------
FUND INFORMATION
as of September 30, 1999
Performance(5) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
One Year -3.55% -4.40%
Five Years 5.90 5.28
Life of Fund+ 3.85 3.77
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -8.09% -8.98%
Five Years 4.87 4.95
Life of Fund+ 2.98 3.77
+Inception date: Class A: 12/13/93; Class B: 6/11/93
[MOUNTAIN CHART]
* Source: Towers Data Systems, Bethesda, MD. Investment operations
commenced on 6/11/93. Index information is available only at month end;
therefore, the line comparison begins at the next month following the
commencement of the Fund's investment operations. The chart compares the
total return of the Fund's Class B with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index. Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent total
returns of $10,000 hypothetical investments in the Fund and the Lehman
Brothers Municipal Bond Index. An investment in Class A shares on 12/31/93
at net asset value would have grown to $12,044 on 9/30/99; $11,952,
including the 4.75% maximum sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an
investor individually purchased or sold the securities represented in the
Index. It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
Federal income tax information on distributions. For federal income tax
purposes, 99.89% of the total dividends paid by the Fund from net
investment income during the year ended September 30, 1999 was designated
as an exempt-interest dividend.
- -------------------------------------------------------------------------------
10
<PAGE>
EATON VANCE CALIFORNIA MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ----------------------------------------------
9/30/89 $10,000 $10,000
10/31/89 $10,077 $10,123
11/30/89 $10,225 $10,299
12/31/89 $10,280 $10,384
1/31/90 $10,173 $10,335
2/28/90 $10,294 $10,427
3/31/90 $10,285 $10,430
4/30/90 $10,146 $10,355
5/31/90 $10,391 $10,581
6/30/90 $10,482 $10,674
7/31/90 $10,660 $10,831
8/31/90 $10,385 $10,674
9/30/90 $10,363 $10,680
10/31/90 $10,538 $10,874
11/30/90 $10,774 $11,092
12/31/90 $10,794 $11,140
1/31/91 $10,940 $11,290
2/28/91 $10,979 $11,388
3/31/91 $10,945 $11,392
4/30/91 $11,097 $11,545
5/31/91 $11,178 $11,647
6/30/91 $11,131 $11,636
7/31/91 $11,266 $11,777
8/31/91 $11,385 $11,932
9/30/91 $11,564 $12,088
10/31/91 $11,669 $12,197
11/30/91 $11,614 $12,231
12/31/91 $11,805 $12,493
1/31/92 $11,747 $12,522
2/28/92 $11,781 $12,526
3/31/92 $11,752 $12,530
4/30/92 $11,861 $12,642
5/31/92 $11,994 $12,791
6/30/92 $12,203 $13,005
7/31/92 $12,557 $13,395
8/31/92 $12,345 $13,265
9/30/92 $12,381 $13,351
10/31/92 $12,038 $13,220
11/30/92 $12,341 $13,457
12/31/92 $12,526 $13,594
1/31/93 $12,681 $13,753
2/28/93 $13,220 $14,250
Page 1 of 3
<PAGE>
3/31/93 $13,024 $14,099
4/30/93 $13,166 $14,241
5/31/93 $13,209 $14,321
6/30/93 $13,400 $14,561
7/31/93 $13,373 $14,580
8/31/93 $13,715 $14,883
9/30/93 $13,856 $15,053
10/31/93 $13,853 $15,082
11/30/93 $13,693 $14,949
12/31/93 $13,960 $15,264
1/31/94 $14,110 $15,439
2/28/94 $13,735 $15,039
3/31/94 $13,095 $14,426
4/30/94 $13,090 $14,549
5/31/94 $13,156 $14,675
6/30/94 $13,023 $14,589
7/31/94 $13,253 $14,853
8/31/94 $13,304 $14,904
9/30/94 $13,102 $14,685
10/31/94 $12,802 $14,425
11/30/94 $12,467 $14,164
12/31/94 $12,691 $14,475
1/31/95 $13,145 $14,889
2/28/95 $13,583 $15,322
3/31/95 $13,740 $15,498
4/30/95 $13,715 $15,517
5/31/95 $14,169 $16,012
6/30/95 $13,888 $15,872
7/31/95 $13,966 $16,022
8/31/95 $14,070 $16,225
9/30/95 $14,189 $16,328
10/31/95 $14,491 $16,565
11/30/95 $14,823 $16,840
12/31/95 $15,034 $17,002
1/31/96 $15,080 $17,130
2/28/96 $14,941 $17,015
3/31/96 $14,676 $16,797
4/30/96 $14,598 $16,750
5/31/96 $14,596 $16,743
6/30/96 $14,724 $16,926
7/31/96 $14,890 $17,079
8/31/96 $14,888 $17,075
9/30/96 $15,110 $17,314
10/31/96 $15,232 $17,509
11/30/96 $15,534 $17,830
12/31/96 $15,437 $17,755
Page 2 of 3
<PAGE>
1/31/97 $15,499 $17,789
2/28/97 $15,681 $17,952
3/31/97 $15,444 $17,712
4/30/97 $15,600 $17,861
5/31/97 $15,824 $18,130
6/30/97 $16,036 $18,323
7/31/97 $16,556 $18,830
8/31/97 $16,339 $18,654
9/30/97 $16,618 $18,875
10/31/97 $16,696 $18,997
11/30/97 $16,815 $19,108
12/31/97 $17,107 $19,387
1/31/98 $17,271 $19,587
2/28/98 $17,272 $19,593
3/31/98 $17,277 $19,610
4/30/98 $17,102 $19,522
5/31/98 $17,404 $19,831
6/30/98 $17,434 $19,909
7/31/98 $17,446 $19,959
8/31/98 $17,827 $20,267
9/30/98 $18,080 $20,520
10/31/98 $17,950 $20,519
11/30/98 $18,015 $20,591
12/31/98 $18,021 $20,643
1/31/99 $18,207 $20,889
2/28/99 $18,096 $20,798
3/31/99 $18,134 $20,826
4/30/99 $18,161 $20,878
5/31/99 $18,020 $20,757
6/30/99 $17,622 $20,459
7/31/99 $17,621 $20,533
8/31/99 $17,339 $20,368
9/30/99 $17,267 $20,379
Page 3 of 3
<PAGE>
EATON VANCE FLORIDA MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- -----------------------------------------------
8/31/90 $10,000 $10,000
9/30/90 $9,990 $10,006
10/31/90 $10,127 $10,187
11/30/90 $10,429 $10,392
12/31/90 $10,482 $10,437
1/31/91 $10,622 $10,577
2/28/91 $10,704 $10,670
3/31/91 $10,698 $10,673
4/30/91 $10,864 $10,816
5/31/91 $10,988 $10,912
6/30/91 $10,899 $10,901
7/31/91 $11,094 $11,034
8/31/91 $11,241 $11,179
9/30/91 $11,434 $11,325
10/31/91 $11,536 $11,427
11/30/91 $11,522 $11,459
12/31/91 $11,886 $11,704
1/31/92 $11,814 $11,731
2/28/92 $11,817 $11,735
3/31/92 $11,784 $11,739
4/30/92 $11,911 $11,844
5/31/92 $12,117 $11,983
6/30/92 $12,360 $12,184
7/31/92 $12,816 $12,550
8/31/92 $12,497 $12,427
9/30/92 $12,510 $12,509
10/31/92 $12,204 $12,386
11/30/92 $12,661 $12,608
12/31/92 $12,843 $12,736
1/31/93 $12,967 $12,884
2/28/93 $13,604 $13,350
3/31/93 $13,352 $13,209
4/30/93 $13,536 $13,342
5/31/93 $13,627 $13,417
6/30/93 $13,870 $13,642
7/31/93 $13,860 $13,659
8/31/93 $14,183 $13,944
9/30/93 $14,368 $14,103
10/31/93 $14,380 $14,130
11/30/93 $14,122 $14,005
12/31/93 $14,494 $14,301
1/31/94 $14,688 $14,464
Page 1 of 3
<PAGE>
2/28/94 $14,191 $14,090
3/31/94 $13,423 $13,516
4/30/94 $13,487 $13,630
5/31/94 $13,565 $13,748
6/30/94 $13,446 $13,668
7/31/94 $13,717 $13,915
8/31/94 $13,718 $13,963
9/30/94 $13,457 $13,758
10/31/94 $13,091 $13,514
11/30/94 $12,772 $13,269
12/31/94 $13,187 $13,562
1/31/95 $13,647 $13,949
2/28/95 $14,160 $14,355
3/31/95 $14,267 $14,520
4/30/95 $14,276 $14,537
5/31/95 $14,655 $15,001
6/30/95 $14,389 $14,870
7/31/95 $14,479 $15,011
8/31/95 $14,605 $15,201
9/30/95 $14,789 $15,297
10/31/95 $15,056 $15,519
11/30/95 $15,407 $15,777
12/31/95 $15,619 $15,929
1/31/96 $15,681 $16,049
2/28/96 $15,460 $15,941
3/31/96 $15,209 $15,737
4/30/96 $15,158 $15,692
5/31/96 $15,103 $15,686
6/30/96 $15,254 $15,857
7/31/96 $15,439 $16,001
8/31/96 $15,356 $15,997
9/30/96 $15,592 $16,221
10/31/96 $15,694 $16,404
11/30/96 $15,945 $16,705
12/31/96 $15,862 $16,634
1/31/97 $15,865 $16,666
2/28/97 $15,977 $16,819
3/31/97 $15,722 $16,594
4/30/97 $15,797 $16,733
5/31/97 $15,947 $16,985
6/30/97 $16,162 $17,166
7/31/97 $16,627 $17,642
8/31/97 $16,358 $17,476
9/30/97 $16,511 $17,683
10/31/97 $16,678 $17,797
11/30/97 $16,791 $17,902
Page 2 of 3
<PAGE>
12/31/97 $17,077 $18,163
1/31/98 $17,308 $18,351
2/28/98 $17,314 $18,356
3/31/98 $17,337 $18,372
4/30/98 $17,194 $18,290
5/31/98 $17,518 $18,579
6/30/98 $17,579 $18,652
7/31/98 $17,592 $18,699
8/31/98 $17,863 $18,988
9/30/98 $18,047 $19,224
10/31/98 $17,964 $19,224
11/30/98 $18,027 $19,291
12/31/98 $18,005 $19,340
1/31/99 $18,179 $19,570
2/28/99 $18,098 $19,485
3/31/99 $18,040 $19,512
4/30/99 $18,086 $19,560
5/31/99 $17,972 $19,447
6/30/99 $17,690 $19,167
7/31/99 $17,620 $19,237
8/31/99 $17,293 $19,083
9/30/99 $17,174 $19,091
Page 3 of 3
<PAGE>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ------------------------------------------------
4/30/91 $10,000 $10,000
5/31/91 $10,040 $10,089
6/30/91 $10,063 $10,079
7/31/91 $10,248 $10,202
8/31/91 $10,410 $10,336
9/30/91 $10,544 $10,471
10/31/91 $10,662 $10,565
11/30/91 $10,669 $10,594
12/31/91 $10,985 $10,822
1/31/92 $11,011 $10,846
2/28/92 $11,025 $10,850
3/31/92 $11,004 $10,854
4/30/92 $11,095 $10,951
5/31/92 $11,250 $11,080
6/30/92 $11,483 $11,265
7/31/92 $11,889 $11,603
8/31/92 $11,657 $11,490
9/30/92 $11,690 $11,565
10/31/92 $11,417 $11,451
11/30/92 $11,744 $11,657
12/31/92 $11,877 $11,776
1/31/93 $12,005 $11,913
2/28/93 $12,487 $12,343
3/31/93 $12,325 $12,213
4/30/93 $12,488 $12,336
5/31/93 $12,562 $12,405
6/30/93 $12,757 $12,613
7/31/93 $12,736 $12,629
8/31/93 $13,020 $12,892
9/30/93 $13,172 $13,039
10/31/93 $13,183 $13,064
11/30/93 $13,031 $12,949
12/31/93 $13,308 $13,222
1/31/94 $13,444 $13,373
2/28/94 $13,115 $13,027
3/31/94 $12,445 $12,496
4/30/94 $12,409 $12,602
5/31/94 $12,519 $12,711
6/30/94 $12,406 $12,637
7/31/94 $12,625 $12,866
8/31/94 $12,675 $12,910
9/30/94 $12,439 $12,721
Page 1 of 3
<PAGE>
10/31/94 $12,116 $12,495
11/30/94 $11,736 $12,269
12/31/94 $12,092 $12,539
1/31/95 $12,542 $12,897
2/28/95 $12,940 $13,272
3/31/95 $13,054 $13,425
4/30/95 $13,037 $13,441
5/31/95 $13,384 $13,870
6/30/95 $13,143 $13,748
7/31/95 $13,215 $13,878
8/31/95 $13,387 $14,055
9/30/95 $13,481 $14,143
10/31/95 $13,721 $14,349
11/30/95 $14,000 $14,587
12/31/95 $14,187 $14,727
1/31/96 $14,218 $14,839
2/28/96 $14,046 $14,738
3/31/96 $13,845 $14,550
4/30/96 $13,808 $14,509
5/31/96 $13,823 $14,503
6/30/96 $13,951 $14,661
7/31/96 $14,057 $14,794
8/31/96 $14,031 $14,791
9/30/96 $14,227 $14,997
10/31/96 $14,308 $15,167
11/30/96 $14,560 $15,445
12/31/96 $14,479 $15,380
1/31/97 $14,507 $15,409
2/28/97 $14,627 $15,550
3/31/97 $14,438 $15,343
4/30/97 $14,563 $15,471
5/31/97 $14,761 $15,704
6/30/97 $14,935 $15,871
7/31/97 $15,376 $16,311
8/31/97 $15,220 $16,158
9/30/97 $15,424 $16,350
10/31/97 $15,525 $16,455
11/30/97 $15,617 $16,552
12/31/97 $15,875 $16,793
1/31/98 $16,022 $16,966
2/28/98 $16,072 $16,972
3/31/98 $16,066 $16,987
4/30/98 $15,932 $16,910
5/31/98 $16,184 $17,178
6/30/98 $16,230 $17,245
7/31/98 $16,245 $17,289
Page 2 of 3
<PAGE>
8/31/98 $16,506 $17,556
9/30/98 $16,699 $17,775
10/31/98 $16,637 $17,774
11/30/98 $16,699 $17,836
12/31/98 $16,710 $17,881
1/31/99 $16,878 $18,094
2/28/99 $16,742 $18,015
3/31/99 $16,733 $18,040
4/30/99 $16,763 $18,085
5/31/99 $16,624 $17,980
6/30/99 $16,370 $17,721
7/31/99 $16,351 $17,786
8/31/99 $16,055 $17,643
9/30/99 $15,957 $17,651
Page 3 of 3
<PAGE>
EATON VANCE MISSISSIPPI MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ----------------------------------------------
6/30/93 $10,000 $10,000
7/31/93 $9,950 $10,013
8/31/93 $10,249 $10,221
9/30/93 $10,385 $10,338
10/31/93 $10,369 $10,358
11/30/93 $10,244 $10,266
12/31/93 $10,522 $10,483
1/31/94 $10,644 $10,603
2/28/94 $10,295 $10,328
3/31/94 $9,640 $9,908
4/30/94 $9,717 $9,992
5/31/94 $9,816 $10,078
6/30/94 $9,733 $10,020
7/31/94 $9,925 $10,200
8/31/94 $9,919 $10,236
9/30/94 $9,741 $10,086
10/31/94 $9,500 $9,907
11/30/94 $9,254 $9,727
12/31/94 $9,477 $9,941
1/31/95 $9,835 $10,226
2/28/95 $10,214 $10,523
3/31/95 $10,296 $10,644
4/30/95 $10,274 $10,656
5/31/95 $10,577 $10,996
6/30/95 $10,408 $10,900
7/31/95 $10,474 $11,003
8/31/95 $10,593 $11,143
9/30/95 $10,658 $11,214
10/31/95 $10,857 $11,377
11/30/95 $11,103 $11,566
12/31/95 $11,235 $11,677
1/31/96 $11,290 $11,765
2/28/96 $11,150 $11,685
3/31/96 $10,950 $11,536
4/30/96 $10,913 $11,503
5/31/96 $10,932 $11,499
6/30/96 $11,047 $11,624
7/31/96 $11,145 $11,729
8/31/96 $11,141 $11,727
9/30/96 $11,315 $11,891
10/31/96 $11,402 $12,025
11/30/96 $11,588 $12,245
Page 1 of 2
<PAGE>
12/31/96 $11,537 $12,194
1/31/97 $11,616 $12,217
2/28/97 $11,736 $12,329
3/31/97 $11,583 $12,164
4/30/97 $11,661 $12,266
5/31/97 $11,825 $12,451
6/30/97 $11,956 $12,584
7/31/97 $12,279 $12,932
8/31/97 $12,177 $12,811
9/30/97 $12,271 $12,963
10/31/97 $12,326 $13,046
11/30/97 $12,386 $13,123
12/31/97 $12,588 $13,315
1/31/98 $12,707 $13,452
2/28/98 $12,705 $13,456
3/31/98 $12,720 $13,468
4/30/98 $12,638 $13,407
5/31/98 $12,833 $13,619
6/30/98 $12,841 $13,673
7/31/98 $12,860 $13,707
8/31/98 $13,050 $13,919
9/30/98 $13,222 $14,092
10/31/98 $13,164 $14,092
11/30/98 $13,199 $14,142
12/31/98 $13,230 $14,177
1/31/99 $13,368 $14,346
2/28/99 $13,285 $14,283
3/31/99 $13,246 $14,303
4/30/99 $13,292 $14,338
5/31/99 $13,221 $14,255
6/30/99 $12,987 $14,050
7/31/99 $13,005 $14,102
8/31/99 $12,840 $13,988
9/30/99 $12,792 $13,994
Page 2 of 3
<PAGE>
EATON VANCE NEW YORK MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ----------------------------------------------
8/31/90 $10,000 $10,000
9/30/90 $9,950 $10,006
10/31/90 $10,075 $10,187
11/30/90 $10,337 $10,392
12/31/90 $10,369 $10,437
1/31/91 $10,519 $10,577
2/28/91 $10,560 $10,670
3/31/91 $10,605 $10,673
4/30/91 $10,792 $10,816
5/31/91 $10,863 $10,912
6/30/91 $10,837 $10,901
7/31/91 $11,073 $11,034
8/31/91 $11,274 $11,179
9/30/91 $11,500 $11,325
10/31/91 $11,634 $11,427
11/30/91 $11,611 $11,459
12/31/91 $11,883 $11,704
1/31/92 $11,682 $11,731
2/28/92 $11,742 $11,735
3/31/92 $11,777 $11,739
4/30/92 $11,951 $11,844
5/31/92 $12,148 $11,983
6/30/92 $12,450 $12,184
7/31/92 $12,978 $12,550
8/31/92 $12,683 $12,427
9/30/92 $12,697 $12,509
10/31/92 $12,392 $12,386
11/30/92 $12,805 $12,608
12/31/92 $12,977 $12,736
1/31/93 $13,149 $12,884
2/28/93 $13,762 $13,350
3/31/93 $13,559 $13,209
4/30/93 $13,720 $13,342
5/31/93 $13,836 $13,417
6/30/93 $14,066 $13,642
7/31/93 $14,069 $13,659
8/31/93 $14,381 $13,944
9/30/93 $14,542 $14,103
10/31/93 $14,556 $14,130
11/30/93 $14,363 $14,005
12/31/93 $14,732 $14,301
1/31/94 $14,866 $14,464
Page 1 of 3
<PAGE>
2/28/94 $14,420 $14,090
3/31/94 $13,678 $13,516
4/30/94 $13,732 $13,630
5/31/94 $13,877 $13,748
6/30/94 $13,721 $13,668
7/31/94 $13,968 $13,915
8/31/94 $14,036 $13,963
9/30/94 $13,725 $13,758
10/31/94 $13,360 $13,514
11/30/94 $12,897 $13,269
12/31/94 $13,354 $13,562
1/31/95 $13,805 $13,949
2/28/95 $14,294 $14,355
3/31/95 $14,444 $14,520
4/30/95 $14,441 $14,537
5/31/95 $14,864 $15,001
6/30/95 $14,613 $14,870
7/31/95 $14,732 $15,011
8/31/95 $14,916 $15,201
9/30/95 $14,991 $15,297
10/31/95 $15,275 $15,519
11/30/95 $15,586 $15,777
12/31/95 $15,744 $15,929
1/31/96 $15,808 $16,049
2/28/96 $15,630 $15,941
3/31/96 $15,393 $15,737
4/30/96 $15,372 $15,692
5/31/96 $15,361 $15,686
6/30/96 $15,528 $15,857
7/31/96 $15,657 $16,001
8/31/96 $15,617 $15,997
9/30/96 $15,870 $16,221
10/31/96 $15,973 $16,404
11/30/96 $16,241 $16,705
12/31/96 $16,158 $16,634
1/31/97 $16,147 $16,666
2/28/97 $16,334 $16,819
3/31/97 $16,138 $16,594
4/30/97 $16,272 $16,733
5/31/97 $16,529 $16,985
6/30/97 $16,684 $17,166
7/31/97 $17,212 $17,642
8/31/97 $17,005 $17,476
9/30/97 $17,176 $17,683
10/31/97 $17,240 $17,797
11/30/97 $17,341 $17,902
Page 2 of 3
<PAGE>
12/31/97 $17,661 $18,163
1/31/98 $17,834 $18,351
2/28/98 $17,874 $18,356
3/31/98 $17,870 $18,372
4/30/98 $17,670 $18,290
5/31/98 $18,016 $18,579
6/30/98 $18,098 $18,652
7/31/98 $18,101 $18,699
8/31/98 $18,442 $18,988
9/30/98 $18,681 $19,224
10/31/98 $18,569 $19,224
11/30/98 $18,637 $19,291
12/31/98 $18,669 $19,340
1/31/99 $18,867 $19,570
2/28/99 $18,739 $19,485
3/31/99 $18,715 $19,512
4/30/99 $18,765 $19,560
5/31/99 $18,570 $19,447
6/30/99 $18,235 $19,167
7/31/99 $18,233 $19,237
8/31/99 $17,937 $19,083
9/30/99 $17,868 $19,091
Page 3 of 3
<PAGE>
EATON VANCE OHIO MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ----------------------------------------------
4/30/91 $10,000 $10,000
5/31/91 $10,030 $10,089
6/30/91 $10,007 $10,079
7/31/91 $10,200 $10,202
8/31/91 $10,337 $10,336
9/30/91 $10,488 $10,471
10/31/91 $10,592 $10,565
11/30/91 $10,597 $10,594
12/31/91 $10,872 $10,822
1/31/92 $10,875 $10,846
2/28/92 $10,886 $10,850
3/31/92 $10,852 $10,854
4/30/92 $10,940 $10,951
5/31/92 $11,103 $11,080
6/30/92 $11,312 $11,265
7/31/92 $11,716 $11,603
8/31/92 $11,506 $11,490
9/30/92 $11,550 $11,565
10/31/92 $11,266 $11,451
11/30/92 $11,625 $11,657
12/31/92 $11,773 $11,776
1/31/93 $11,910 $11,913
2/28/93 $12,388 $12,343
3/31/93 $12,214 $12,213
4/30/93 $12,363 $12,336
5/31/93 $12,469 $12,405
6/30/93 $12,684 $12,613
7/31/93 $12,672 $12,629
8/31/93 $12,976 $12,892
9/30/93 $13,137 $13,039
10/31/93 $13,147 $13,064
11/30/93 $12,984 $12,949
12/31/93 $13,294 $13,222
1/31/94 $13,440 $13,373
2/28/94 $13,042 $13,027
3/31/94 $12,327 $12,496
4/30/94 $12,385 $12,602
5/31/94 $12,517 $12,711
6/30/94 $12,402 $12,637
7/31/94 $12,655 $12,866
8/31/94 $12,678 $12,910
9/30/94 $12,429 $12,721
Page 1 of 3
<PAGE>
10/31/94 $12,082 $12,495
11/30/94 $11,741 $12,269
12/31/94 $12,104 $12,539
1/31/95 $12,560 $12,897
2/28/95 $12,990 $13,272
3/31/95 $13,089 $13,425
4/30/95 $13,082 $13,441
5/31/95 $13,487 $13,870
6/30/95 $13,298 $13,748
7/31/95 $13,380 $13,878
8/31/95 $13,548 $14,055
9/30/95 $13,639 $14,143
10/31/95 $13,874 $14,349
11/30/95 $14,122 $14,587
12/31/95 $14,267 $14,727
1/31/96 $14,321 $14,839
2/28/96 $14,163 $14,738
3/31/96 $13,990 $14,550
4/30/96 $13,978 $14,509
5/31/96 $13,978 $14,503
6/30/96 $14,117 $14,661
7/31/96 $14,275 $14,794
8/31/96 $14,195 $14,791
9/30/96 $14,387 $14,997
10/31/96 $14,521 $15,167
11/30/96 $14,741 $15,445
12/31/96 $14,675 $15,380
1/31/97 $14,688 $15,409
2/28/97 $14,819 $15,550
3/31/97 $14,661 $15,343
4/30/97 $14,770 $15,471
5/31/97 $14,979 $15,704
6/30/97 $15,094 $15,871
7/31/97 $15,501 $16,311
8/31/97 $15,391 $16,158
9/30/97 $15,536 $16,350
10/31/97 $15,651 $16,455
11/30/97 $15,743 $16,552
12/31/97 $15,941 $16,793
1/31/98 $16,073 $16,966
2/28/98 $16,080 $16,972
3/31/98 $16,118 $16,987
4/30/98 $16,061 $16,910
5/31/98 $16,252 $17,178
6/30/98 $16,298 $17,245
7/31/98 $16,314 $17,289
Page 2 of 3
<PAGE>
8/31/98 $16,513 $17,556
9/30/98 $16,661 $17,775
10/31/98 $16,617 $17,774
11/30/98 $16,697 $17,836
12/31/98 $16,715 $17,881
1/31/99 $16,855 $18,094
2/28/99 $16,784 $18,015
3/31/99 $16,809 $18,040
4/30/99 $16,858 $18,085
5/31/99 $16,755 $17,980
6/30/99 $16,507 $17,721
7/31/99 $16,508 $17,786
8/31/99 $16,234 $17,643
9/30/99 $16,125 $17,651
Page 3 of 3
<PAGE>
EATON VANCE RHODE ISLAND MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ------------------------------------------------
6/30/93 $10,000 $10,000
7/31/93 $9,970 $10,013
8/31/93 $10,328 $10,221
9/30/93 $10,453 $10,338
10/31/93 $10,406 $10,358
11/30/93 $10,259 $10,266
12/31/93 $10,587 $10,483
1/31/94 $10,729 $10,603
2/28/94 $10,297 $10,328
3/31/94 $9,643 $9,908
4/30/94 $9,711 $9,992
5/31/94 $9,832 $10,078
6/30/94 $9,740 $10,020
7/31/94 $9,944 $10,200
8/31/94 $9,961 $10,236
9/30/94 $9,731 $10,086
10/31/94 $9,458 $9,907
11/30/94 $9,202 $9,727
12/31/94 $9,503 $9,941
1/31/95 $9,885 $10,226
2/28/95 $10,200 $10,523
3/31/95 $10,305 $10,644
4/30/95 $10,274 $10,656
5/31/95 $10,513 $10,996
6/30/95 $10,290 $10,900
7/31/95 $10,380 $11,003
8/31/95 $10,523 $11,143
9/30/95 $10,600 $11,214
10/31/95 $10,802 $11,377
11/30/95 $10,993 $11,566
12/31/95 $11,116 $11,677
1/31/96 $11,184 $11,765
2/28/96 $11,045 $11,685
3/31/96 $10,881 $11,536
4/30/96 $10,880 $11,503
5/31/96 $10,900 $11,499
6/30/96 $11,005 $11,624
7/31/96 $11,104 $11,729
8/31/96 $11,077 $11,727
9/30/96 $11,252 $11,891
10/31/96 $11,341 $12,025
11/30/96 $11,540 $12,245
Page 1 of 2
<PAGE>
12/31/96 $11,490 $12,194
1/31/97 $11,449 $12,217
2/28/97 $11,557 $12,329
3/31/97 $11,426 $12,164
4/30/97 $11,540 $12,266
5/31/97 $11,716 $12,451
6/30/97 $11,834 $12,584
7/31/97 $12,183 $12,932
8/31/97 $12,055 $12,811
9/30/97 $12,174 $12,963
10/31/97 $12,230 $13,046
11/30/97 $12,315 $13,123
12/31/97 $12,493 $13,315
1/31/98 $12,601 $13,452
2/28/98 $12,611 $13,456
3/31/98 $12,626 $13,468
4/30/98 $12,506 $13,407
5/31/98 $12,715 $13,619
6/30/98 $12,736 $13,673
7/31/98 $12,755 $13,707
8/31/98 $12,972 $13,919
9/30/98 $13,132 $14,092
10/31/98 $13,059 $14,092
11/30/98 $13,119 $14,142
12/31/98 $13,109 $14,177
1/31/99 $13,233 $14,346
2/28/99 $13,136 $14,283
3/31/99 $13,148 $14,303
4/30/99 $13,180 $14,338
5/31/99 $13,055 $14,255
6/30/99 $12,845 $14,050
7/31/99 $12,822 $14,102
8/31/99 $12,575 $13,988
9/30/99 $12,485 $13,994
Page 2 of 2
<PAGE>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND, CLASS B VS.
LEHMAN BROTHERS MUNICIPAL BOND INDEX
DATE FUND/NAV LMBI
- ------------------------------------------------
6/30/93 $10,000 $10,000
7/31/93 $9,910 $10,013
8/31/93 $10,201 $10,221
9/30/93 $10,347 $10,338
10/31/93 $10,321 $10,358
11/30/93 $10,184 $10,266
12/31/93 $10,483 $10,483
1/31/94 $10,614 $10,603
2/28/94 $10,294 $10,328
3/31/94 $9,691 $9,908
4/30/94 $9,726 $9,992
5/31/94 $9,835 $10,078
6/30/94 $9,710 $10,020
7/31/94 $9,934 $10,200
8/31/94 $9,949 $10,236
9/30/94 $9,761 $10,086
10/31/94 $9,519 $9,907
11/30/94 $9,231 $9,727
12/31/94 $9,508 $9,941
1/31/95 $9,844 $10,226
2/28/95 $10,212 $10,523
3/31/95 $10,304 $10,644
4/30/95 $10,305 $10,656
5/31/95 $10,607 $10,996
6/30/95 $10,417 $10,900
7/31/95 $10,483 $11,003
8/31/95 $10,624 $11,143
9/30/95 $10,678 $11,214
10/31/95 $10,889 $11,377
11/30/95 $11,101 $11,566
12/31/95 $11,257 $11,677
1/31/96 $11,301 $11,765
2/28/96 $11,172 $11,685
3/31/96 $10,985 $11,536
4/30/96 $10,948 $11,503
5/31/96 $10,956 $11,499
6/30/96 $11,047 $11,624
7/31/96 $11,154 $11,729
8/31/96 $11,137 $11,727
9/30/96 $11,321 $11,891
10/31/96 $11,419 $12,025
11/30/96 $11,615 $12,245
Page 1 of 2
<PAGE>
12/31/96 $11,563 $12,194
1/31/97 $11,557 $12,217
2/28/97 $11,663 $12,329
3/31/97 $11,508 $12,164
4/30/97 $11,621 $12,266
5/31/97 $11,783 $12,451
6/30/97 $11,888 $12,584
7/31/97 $12,221 $12,932
8/31/97 $12,118 $12,811
9/30/97 $12,247 $12,963
10/31/97 $12,302 $13,046
11/30/97 $12,410 $13,123
12/31/97 $12,610 $13,315
1/31/98 $12,728 $13,452
2/28/98 $12,738 $13,456
3/31/98 $12,739 $13,468
4/30/98 $12,631 $13,407
5/31/98 $12,837 $13,619
6/30/98 $12,856 $13,673
7/31/98 $12,874 $13,707
8/31/98 $13,075 $13,919
9/30/98 $13,207 $14,092
10/31/98 $13,148 $14,092
11/30/98 $13,181 $14,142
12/31/98 $13,197 $14,177
1/31/99 $13,320 $14,346
2/28/99 $13,250 $14,283
3/31/99 $13,238 $14,303
4/30/99 $13,283 $14,338
5/31/99 $13,160 $14,255
6/30/99 $12,913 $14,050
7/31/99 $12,905 $14,102
8/31/99 $12,675 $13,988
9/30/99 $12,627 $13,994
Page 2 of 2
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $255,859,169 $346,539,818 $209,057,819 $17,361,872
Unrealized appreciation 14,341,009 332,434 3,219,265 438,151
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $270,200,178 $346,872,252 $212,277,084 $17,800,023
- -------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 397,844 $ 176,500 $ 152,397 $ 2,055
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $270,598,022 $347,048,752 $212,429,481 $17,802,078
- -------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 361,407 $ 1,011,185 $ 197,552 $ 105
Dividends payable 577,212 632,209 410,585 32,899
Payable to affiliate for Trustees' fees -- 1,257 -- --
Accrued expenses 221,570 329,176 144,350 14,120
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,160,189 $ 1,973,827 $ 752,487 $ 47,124
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $269,437,833 $345,074,925 $211,676,994 $17,754,954
- -------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------
Paid-in capital $272,858,160 $341,264,363 $217,159,568 $18,668,623
Accumulated net realized gain loss from
Portfolio (computed on the basis of
identified cost) (17,938,578) 3,740,559 (8,327,916) (1,395,224)
Accumulated undistributed (distributions
in excess of) net investment income 177,242 (262,431) (373,923) 43,404
Net unrealized appreciation from
Portfolio (computed on the basis of
identified cost) 14,341,009 332,434 3,219,265 438,151
- -------------------------------------------------------------------------------------------------------------
TOTAL $269,437,833 $345,074,925 $211,676,994 $17,754,954
- -------------------------------------------------------------------------------------------------------------
Class A Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 16,674,568 $ 12,819,408 $ 15,825,266 $ 1,455,347
SHARES OUTSTANDING 1,616,133 1,258,207 1,736,241 155,664
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.32 $ 10.19 $ 9.11 $ 9.35
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.83 $ 10.70 $ 9.56 $ 9.82
- -------------------------------------------------------------------------------------------------------------
Class B Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $252,763,265 $332,255,517 $185,540,407 $16,299,607
SHARES OUTSTANDING 26,547,646 31,859,763 18,312,342 1,704,186
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.52 $ 10.43 $ 10.13 $ 9.56
- -------------------------------------------------------------------------------------------------------------
Class I Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ -- $ 16,311,321 $ --
SHARES OUTSTANDING -- -- 1,098,009 --
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ -- $ 9.39 $ --
- -------------------------------------------------------------------------------------------------------------
</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 SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 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 $394,046,719 $214,574,321 $42,102,429 $26,970,388
Unrealized appreciation
(depreciation) 8,071,369 1,889,684 (504,302) (144,273)
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $402,118,088 $216,464,005 $41,598,127 $26,826,115
- ------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 19,035 $ 62,009 $ 2,462 $ 112
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $402,137,123 $216,526,014 $41,600,589 $26,826,227
- ------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 462,163 $ 296,539 $ 431,724 $ 33,408
Dividends payable 744,078 439,780 73,718 46,587
Payable to affiliate for Trustees' fees -- 1,267 -- 1,267
Accrued expenses 296,470 183,546 30,213 25,155
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,502,711 $ 921,132 $ 535,655 $ 106,417
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $400,634,412 $215,604,882 $41,064,934 $26,719,810
- ------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------
Paid-in capital $393,472,590 $213,852,466 $43,730,451 $28,004,767
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (165,469) (346,525) (2,105,240) (1,104,077)
Accumulated undistributed (distributions
in excess of) net investment income (744,078) 209,257 (55,975) (36,607)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of identified
cost) 8,071,369 1,889,684 (504,302) (144,273)
- ------------------------------------------------------------------------------------------------------------
TOTAL $400,634,412 $215,604,882 $41,064,934 $26,719,810
- ------------------------------------------------------------------------------------------------------------
Class A Shares
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 12,683,123 $ 9,203,462 $ 3,289,864 $ 1,865,594
SHARES OUTSTANDING 1,286,392 1,009,338 362,806 200,827
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.86 $ 9.12 $ 9.07 $ 9.29
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.35 $ 9.57 $ 9.52 $ 9.75
- ------------------------------------------------------------------------------------------------------------
Class B Shares
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $387,951,289 $206,401,420 $37,775,070 $24,854,216
SHARES OUTSTANDING 36,470,486 20,052,963 4,070,616 2,623,960
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.64 $ 10.29 $ 9.28 $ 9.47
- ------------------------------------------------------------------------------------------------------------
</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 SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 17,309,145 $ 23,427,863 $ 13,963,691 $ 1,122,604
Expenses allocated from Portfolio (1,592,787) (1,954,189) (1,180,743) (68,081)
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 15,716,358 $ 21,473,674 $ 12,782,948 $ 1,054,523
- -------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 4,786 $ 6,120 $ 5,142 $ 257
Distribution and service fees
Class A 13,921 15,882 10,362 1,938
Class B 1,424,847 3,739,894 1,957,141 171,052
Legal and accounting services 16,548 16,273 16,363 13,749
Printing and postage 24,256 28,317 22,523 2,607
Custodian fee 26,192 3,651 23,133 5,503
Transfer and dividend disbursing agent
fees 258,687 310,982 184,779 18,344
Registration fees 171 6,922 6,489 85
Miscellaneous 17,647 23,357 16,537 1,618
- -------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,787,055 $ 4,151,398 $ 2,242,469 $ 215,153
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 13,929,303 $ 17,322,276 $ 10,540,479 $ 839,370
- -------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,827,671 $ 8,811,395 $ 2,172,180 $ 206,558
Financial futures contracts 218,663 (74,128) 676,780 14,275
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 3,046,334 $ 8,737,267 $ 2,848,960 $ 220,833
- -------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(30,348,569) $(44,899,518) $(23,254,391) $(1,685,908)
Financial futures contracts 376,199 398,880 -- 22,937
- -------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(29,972,370) $(44,500,638) $(23,254,391) $(1,662,971)
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(26,926,036) $(35,763,371) $(20,405,431) $(1,442,138)
- -------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(12,996,733) $(18,441,095) $ (9,864,952) $ (602,768)
- -------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 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 $ 26,318,419 $ 14,525,314 $ 2,404,494 $ 1,663,220
Expenses allocated from Portfolio (2,350,526) (1,282,195) (152,042) (114,757)
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 23,967,893 $ 13,243,119 $ 2,252,452 $ 1,548,463
- ------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 5,144 $ 6,177 $ 257 $ 1,504
Distribution and service fees
Class A 16,924 8,627 3,975 2,076
Class B 4,086,612 2,167,078 380,220 265,462
Legal and accounting services 16,479 16,888 15,080 14,134
Printing and postage 45,855 18,842 5,229 4,594
Custodian fee 27,249 25,400 6,840 5,902
Transfer and dividend disbursing agent
fees 358,781 195,157 35,203 25,507
Registration fees 3,675 4,134 71 --
Miscellaneous 26,198 10,997 3,288 3,754
- ------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 4,586,917 $ 2,453,300 $ 450,163 $ 322,933
- ------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 19,380,976 $ 10,789,819 $ 1,802,289 $ 1,225,530
- ------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 224,797 $ (140,216) $ (176,295) $ 209,043
Financial futures contracts (291,627) (6,744) 134,780 58,452
- ------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (66,830) $ (146,960) $ (41,515) $ 267,495
- ------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(39,003,852) $(17,738,119) $(3,915,177) $(2,796,037)
Financial futures contracts 633,222 129,636 -- 45,361
- ------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(38,370,630) $(17,608,483) $(3,915,177) $(2,750,676)
- ------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(38,437,460) $(17,755,443) $(3,956,692) $(2,483,181)
- ------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(19,056,484) $ (6,965,624) $(2,154,403) $(1,257,651)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 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 $ 13,929,303 $ 17,322,276 $ 10,540,479 $ 839,370
Net realized gain 3,046,334 8,737,267 2,848,960 220,833
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,391) (1,662,971)
- ---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(12,996,733) $ (18,441,095) $ (9,864,952) $ (602,768)
- ---------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (673,875) $ (647,333) $ (787,162) $ (80,289)
Class B (12,531,445) (16,164,899) (9,070,180) (756,146)
Class I -- -- (583,125) --
In excess of net investment income
Class A (18,068) -- (1,110) --
- ---------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(13,223,388) $ (16,812,232) $(10,441,577) $ (836,435)
- ---------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 10,176,447 $ 7,154,899 $ 10,418,813 $ 155,969
Class B 16,221,926 15,328,815 11,998,918 1,703,665
Class I -- -- 149,838 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 311,225 260,728 354,184 52,749
Class B 5,124,488 5,557,296 4,415,774 335,333
Class I -- -- 87,260 --
Cost of shares redeemed
Class A (2,140,679) (5,168,562) (6,857,743) (574,250)
Class B (44,902,318) (97,432,555) (38,273,941) (3,026,851)
Class I -- -- (401,900) --
Contingent Deferred Sales Charges
Class B 212,719 -- -- --
- ---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(14,996,192) $ (74,299,379) $(18,108,797) $(1,353,385)
- ---------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,216,313) $ (109,552,706) $(38,415,326) $(2,792,588)
- ---------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------
At beginning of year $310,654,146 $ 454,627,631 $250,092,320 $20,547,542
- ---------------------------------------------------------------------------------------------------------------
AT END OF YEAR $269,437,833 $ 345,074,925 $211,676,994 $17,754,954
- ---------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ---------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 177,242 $ (262,431) $ (373,923) $ 43,404
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 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 $ 19,380,976 $ 10,789,819 $ 1,802,289 $ 1,225,530
Net realized gain (loss) (66,830) (146,960) (41,515) 267,495
Net change in unrealized appreciation
(depreciation) (38,370,630) (17,608,483) (3,915,177) (2,750,676)
- ------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(19,056,484) $ (6,965,624) $(2,154,403) $(1,257,651)
- ------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (655,858) $ (417,394) $ (127,239) $ (91,400)
Class B (18,642,328) (10,498,716) (1,656,262) (1,134,130)
In excess of net investment income
Class A (858) -- -- (1,694)
Class B -- -- -- (23,972)
From net realized gain
Class A (162,192) (57,623) -- --
Class B (6,002,259) (1,824,977) -- --
- ------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(25,463,495) $(12,798,710) $(1,783,501) $(1,251,196)
- ------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 12,294,400 $ 4,653,870 $ 1,481,209 $ 489,184
Class B 17,698,837 9,597,881 5,679,068 1,242,913
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 459,289 192,883 72,084 64,901
Class B 14,114,731 6,474,876 976,983 598,864
Cost of shares redeemed
Class A (10,456,245) (1,560,998) (210,877) (362,350)
Class B (74,072,217) (37,977,963) (4,953,374) (4,467,339)
- ------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $(39,961,205) $(18,619,451) $ 3,045,093 $(2,433,827)
- ------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(84,481,184) $(38,383,785) $ (892,811) $(4,942,674)
- ------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------
At beginning of year $485,115,596 $253,988,667 $41,957,745 $31,662,484
- ------------------------------------------------------------------------------------------------------------
AT END OF YEAR $400,634,412 $215,604,882 $41,064,934 $26,719,810
- ------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (744,078) $ 209,257 $ (55,975) $ (36,607)
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 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 SEPTEMBER 30, 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 SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS A
--------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------
1999 1998(1)
<S> <C> <C>
- ----------------------------------------------------------
Net asset value -- Beginning
of year $11.340 $10.900
- ----------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------
Net investment income $ 0.544 $ 0.556
Net realized and unrealized
gain (loss) (1.007) 0.468
- ----------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.463) $ 1.024
- ----------------------------------------------------------
Less distributions
- ----------------------------------------------------------
From net investment income $(0.542) $(0.564)
In excess of net investment
income (0.015) (0.020)
- ----------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.557) $(0.584)
- ----------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.320 $11.340
- ----------------------------------------------------------
TOTAL RETURN(2) (4.25)% 9.65%
- ----------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------
Net assets, end of year (000's
omitted) $16,675 $ 9,740
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.78% 0.79%
Expenses after custodian
fee reduction(3) 0.76% 0.77%
Net investment income 4.93% 5.02%
Portfolio Turnover of the
Portfolio 28% 16%
- ----------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS B
---------------------------------------------------
YEAR ENDED SEPTEMBER 30,
---------------------------------------------------
1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.420 $ 10.010 $9.540 $9.410 $ 9.290
- -----------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------
Net investment income $0.474 $ 0.431 $0.451 $0.464 $ 0.475
Net realized and unrealized
gain (loss) (0.934) 0.428 0.477 0.135 0.253
- -----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.460 ) $ 0.859 $0.928 $0.599 $ 0.728
- -----------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------
From net investment income $(0.448 ) $ (0.431) $(0.451 ) $(0.465 ) $ (0.475)
In excess of net investment
income -- (0.018) (0.007) (0.004) (0.016)
In excess of net realized gain -- -- -- -- (0.117)
- -----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.448 ) $ (0.449) $(0.458 ) $(0.469 ) $ (0.608)
- -----------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES
CHARGES $0.008 $ -- $ -- $ -- $ --
- -----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $9.520 $ 10.420 $10.010 $9.540 $ 9.410
- -----------------------------------------------------------------------------------
TOTAL RETURN(2) (4.50)% 8.80% 9.98% 6.49% 8.30%
- -----------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $252,763 $300,914 $321,157 $361,255 $401,742
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.18% 1.66% 1.69% 1.66% 1.65%
Expenses after custodian
fee reduction(3) 1.16% 1.64% 1.68% 1.65% 1.64%
Net investment income 4.70% 4.25% 4.66% 4.87% 5.19%
Portfolio Turnover of the
Portfolio 28% 16% 12% 14% 58%
- -----------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS A
YEAR ENDED SEPTEMBER 30,
------------------------
1999 1998(1)
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $11.150 $10.640
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.549 $ 0.528
Net realized and unrealized
gain (loss) (0.979) 0.532
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.430) $ 1.060
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $(0.530) $(0.528)
In excess of net investment
income -- (0.022)
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.530) $(0.550)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.190 $11.150
- --------------------------------------------------------
TOTAL RETURN(2) (4.02)% 10.20%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $12,818 $11,764
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.75% 0.73%
Expenses after custodian
fee reduction(3) 0.70% 0.69%
Net investment income 5.07% 4.82%
Portfolio Turnover of the
Portfolio 39% 25%
- --------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS B
YEAR ENDED SEPTEMBER 30,
---------------------------------------------------
1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------
Net asset value -- Beginning
of year $11.420 $ 10.900 $10.780 $10.720 $ 10.270
- -----------------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------------
Net investment income $0.466 $ 0.447 $0.488 $0.505 $ 0.514
Net realized and unrealized
gain (loss) (1.001) 0.546 0.136 0.067 0.469
- -----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.535 ) $ 0.993 $0.624 $0.572 $ 0.983
- -----------------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------------
From net investment income $(0.455 ) $ (0.447) $(0.488 ) $(0.506 ) $ (0.514)
In excess of net investment
income -- (0.026) (0.016) (0.006) (0.019)
- -----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.455 ) $ (0.473) $(0.504 ) $(0.512 ) $ (0.533)
- -----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.430 $ 11.420 $10.900 $10.780 $ 10.720
- -----------------------------------------------------------------------------------
TOTAL RETURN(2) (4.84)% 9.30% 5.89% 5.43% 9.90%
- -----------------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $332,227 $442,863 $504,057 $612,438 $701,565
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.58% 1.55% 1.57% 1.55% 1.54%
Expenses after custodian
fee reduction(3) 1.53% 1.51% 1.53% 1.52% 1.51%
Net investment income 4.23% 4.01% 4.50% 4.67% 4.97%
Portfolio Turnover of the
Portfolio 39% 25% 54% 51% 61%
- -----------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS A
------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------
1999(1) 1998(1)
<S> <C> <C>
- --------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.940 $ 9.620
- --------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------
Net investment income $ 0.504 $ 0.493
Net realized and unrealized
gain (loss) (0.828) 0.357
- --------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.324) $ 0.850
- --------------------------------------------------------------
Less distributions
- --------------------------------------------------------------
From net investment income $(0.505) $(0.493)
In excess of net investment
income (0.001) (0.037)
- --------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.506) $(0.530)
- --------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.110 $ 9.940
- --------------------------------------------------------------
TOTAL RETURN(2) (3.42)% 9.07%
- --------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------
Net assets, end of year (000's
omitted) $15,825 $13,282
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.70% 0.74%
Expenses after custodian
fee reduction(3) 0.68% 0.72%
Net investment income 5.23% 5.04%
Portfolio Turnover of the
Portfolio 24% 28%
- --------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS B
------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------------
1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 11.070 $ 10.690 $10.330 $10.270 $ 9.990
- --------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------
Net investment income $ 0.470 $ 0.468 $0.487 $0.491 $ 0.499
Net realized and unrealized
gain (loss) (0.945) 0.396 0.360 0.066 0.307
- --------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.475) $ 0.864 $0.847 $0.557 $ 0.806
- --------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------
From net investment income $ (0.465) $ (0.468) $(0.487 ) $(0.492 ) $ (0.499)
In excess of net investment
income -- (0.016) -- (0.005) (0.027)
- --------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.465) $ (0.484) $(0.487 ) $(0.497 ) $ (0.526)
- --------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.130 $ 11.070 $10.690 $10.330 $ 10.270
- --------------------------------------------------------------------------------------
TOTAL RETURN(2) (4.44)% 8.28% 8.41% 5.53% 8.38%
- --------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $185,540 $225,371 $239,838 $267,398 $291,114
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.57% 1.60% 1.61% 1.59% 1.58%
Expenses after custodian
fee reduction(3) 1.55% 1.58% 1.59% 1.58% 1.56%
Net investment income 4.37% 4.32% 4.70% 4.75% 5.00%
Portfolio Turnover of the
Portfolio 24% 28% 35% 51% 87%
- --------------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS I
------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------
1999(1) 1998(1)
<S> <C> <C>
- --------------------------------------------------------------
Net asset value -- Beginning
of year $10.260 $ 9.890
- --------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------
Net investment income $ 0.528 $ 0.527
Net realized and unrealized
gain (loss) (0.869) 0.373
- --------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.341) $ 0.900
- --------------------------------------------------------------
Less distributions
- --------------------------------------------------------------
From net investment income $(0.529) $(0.527)
In excess of net investment
income -- (0.003)
- --------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.529) $(0.530)
- --------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.390 $10.260
- --------------------------------------------------------------
TOTAL RETURN(2) (3.53)% 9.34%
- --------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------
Net assets, end of year (000's
omitted) $10,311 $11,439
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.64% 0.66%
Expenses after custodian
fee reduction(3) 0.62% 0.64%
Net investment income 5.30% 5.24%
Portfolio Turnover of the
Portfolio 24% 28%
- --------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS A
----------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------
1999(1) 1998
<S> <C> <C>
- ------------------------------------------------------------
Net asset value -- Beginning
of year $10.060 $ 9.740
- ------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------
Net investment income $ 0.487 $ 0.474
Net realized and unrealized
gain (loss) (0.715) 0.331
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.228) $ 0.805
- ------------------------------------------------------------
Less distributions
- ------------------------------------------------------------
From net investment income $(0.482) $(0.478)
In excess of net investment
income -- (0.007)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.482) $(0.485)
- ------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.350 $10.060
- ------------------------------------------------------------
TOTAL RETURN(2) (2.37)% 8.47%
- ------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 1,455 $ 1,932
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 0.70% 0.72%
Net expenses after
custodian fee
reduction(3) 0.68% 0.70%
Net investment income 4.97% 4.77%
Portfolio Turnover of the
Portfolio 16% 17%
- ------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS B
-----------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------
1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.300 $9.970 $9.610 $9.480 $ 9.110
- -------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------
Net investment income $ 0.417 $0.419 $0.433 $0.451 $ 0.449
Net realized and unrealized
gain (loss) (0.741) 0.337 0.362 0.122 0.379
- -------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.324) $0.756 $0.795 $0.573 $ 0.828
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.416) $(0.426) $(0.435) $(0.443) $(0.449)
In excess of net investment
income -- -- -- -- (0.009)
- -------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.416) $(0.426) $(0.435) $(0.443) $(0.458)
- -------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.560 $10.300 $9.970 $9.610 $ 9.480
- -------------------------------------------------------------------------------
TOTAL RETURN(2) (3.25)% 7.75% 8.45% 6.17% 9.40%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $16,300 $18,615 $20,924 $23,862 $26,756
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.51% 1.50% 1.60% 1.44% 1.36%
Net expenses after
custodian fee
reduction(3) 1.49% 1.48% 1.59% 1.41% 1.33%
Net investment income 4.16% 4.12% 4.39% 4.64% 4.89%
Portfolio Turnover of the
Portfolio 16% 17% 6% 12% 52%
- -------------------------------------------------------------------------------
+ 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 Administrator, or both. Had such actions 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) 1.55% 1.49%
Expenses after custodian
fee reduction(3) 1.52% 1.46%
Net investment income 4.53%% 4.76%
Net investment income per
share $0.440 $ 0.437
- -------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS A
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
1999(1) 1998(1)
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $10.920 $10.510
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.532 $ 0.538
Net realized and unrealized
gain (loss) (0.907) 0.446
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.375) $ 0.984
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $(0.533) $(0.538)
In excess of net investment
income (0.001) (0.013)
From net realized gain (0.151) (0.023)
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.685) $(0.574)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.860 $10.920
- --------------------------------------------------------
TOTAL RETURN(2) (3.63)% 9.62%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $12,683 $11,720
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.77% 0.77%
Expenses after custodian
fee reduction(3) 0.76% 0.75%
Net investment income 5.09% 5.03%
Portfolio Turnover of the
Portfolio 41% 55%
- --------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS B
------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------------
1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 11.760 $ 11.300 $10.930 $10.830 $ 10.450
- --------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------
Net investment income $ 0.483 $ 0.488 $0.506 $0.506 $ 0.523
Net realized and unrealized
gain (loss) (0.972) 0.478 0.375 0.116 0.406
- --------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.489) $ 0.966 $0.881 $0.622 $ 0.929
- --------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------
From net investment income $ (0.480) $ (0.483) $(0.506 ) $(0.508 ) $ (0.523)
In excess of net investment
income -- -- (0.005) (0.014) (0.026)
From net realized gain (0.151) (0.023) -- -- --
- --------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.631) $ (0.506) $(0.511 ) $(0.522 ) $ (0.549)
- --------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.640 $ 11.760 $11.300 $10.930 $ 10.830
- --------------------------------------------------------------------------------------
TOTAL RETURN(2) (4.35)% 8.76% 8.23% 5.87% 9.23%
- --------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $387,951 $473,396 $517,393 $590,397 $640,605
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.57% 1.58% 1.63% 1.54% 1.55%
Expenses after custodian
fee reduction(3) 1.56% 1.56% 1.63% 1.51% 1.51%
Net investment income 4.27% 4.26% 4.56% 4.64% 4.99%
Portfolio Turnover of the
Portfolio 41% 55% 44% 47% 55%
- --------------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS A
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
1999 1998
<S> <C> <C>
- --------------------------------------------------------
Net asset value -- Beginning
of year $ 9.930 $ 9.680
- --------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------
Net investment income $ 0.511 $ 0.514
Net realized and unrealized
gain (loss) (0.725) 0.249
- --------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.214) $ 0.763
- --------------------------------------------------------
Less distributions
- --------------------------------------------------------
From net investment income $(0.513) $(0.513)
From net realized gain (0.083) --
- --------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.596) $(0.513)
- --------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.120 $ 9.930
- --------------------------------------------------------
TOTAL RETURN(1) (2.31)% 8.07%
- --------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------
Net assets, end of year (000's
omitted) $ 9,203 $ 6,622
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.77% 0.80%
Expenses after custodian
fee reduction(2) 0.76% 0.78%
Net investment income 5.32% 5.25%
Portfolio Turnover of the
Portfolio 59% 17%
- --------------------------------------------------------
</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 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.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS B
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Net asset value -- Beginning
of year $11.210 $10.930 $10.590 $10.510 $ 10.070
- --------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------
Net investment income $0.490 $0.495 $0.499 $0.494 $ 0.487
Net realized and unrealized
gain (loss) (0.832) 0.280 0.328 0.071 0.461
- --------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.342 ) $0.775 $0.827 $0.565 $ 0.948
- --------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------
From net investment income $(0.495 ) $(0.495 ) $(0.487 ) $(0.485 ) $ (0.487)
In excess of net investment
income -- -- -- -- (0.021)
From net realized gain (0.083) -- -- -- --
- --------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.578 ) $(0.495 ) $(0.487 ) $(0.485 ) $ (0.508)
- --------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.290 $11.210 $10.930 $10.590 $ 10.510
- --------------------------------------------------------------------------------
TOTAL RETURN(1) (3.21)% 7.24% 7.98% 5.48% 9.74%
- --------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $206,401 $247,367 $267,001 $289,829 $315,891
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.61% 1.62% 1.63% 1.63% 1.59%
Expenses after custodian
fee reduction(2) 1.60% 1.60% 1.62% 1.61% 1.57%
Net investment income 4.50% 4.46% 4.65% 4.66% 4.80%
Portfolio Turnover of the
Portfolio 59% 17% 30% 35% 51%
- --------------------------------------------------------------------------------
</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 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.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS A
----------------------------
YEAR ENDED SEPTEMBER 30,
----------------------------
1999(1) 1998
<S> <C> <C>
- ------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.940 $ 9.610
- ------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------
Net investment income $ 0.474 $ 0.471
Net realized and unrealized
gain (loss) (0.872) 0.328
- ------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.398) $ 0.799
- ------------------------------------------------------------
Less distributions
- ------------------------------------------------------------
From net investment income $(0.472) $(0.469)
- ------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.472) $(0.469)
- ------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.070 $ 9.940
- ------------------------------------------------------------
TOTAL RETURN(2) (4.16)% 8.52%
- ------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------
Net assets, end of year
(000's omitted) $ 3,290 $ 2,200
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 0.69% 0.69%
Net expenses after
custodian fee
reduction(3) 0.65% 0.66%
Net investment income 4.94% 4.83%
Portfolio Turnover of the
Portfolio 18% 24%
- ------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS B
-----------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------
1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.170 $9.840 $9.510 $9.400 $ 9.090
- -------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------
Net investment income $ 0.409 $0.422 $0.427 $0.440 $ 0.452
Net realized and unrealized
gain (loss) (0.894) 0.334 0.334 0.125 0.332
- -------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.485) $0.756 $0.761 $0.565 $ 0.784
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.405) $(0.422) $(0.427) $(0.444) $(0.452)
In excess of net investment
income -- (0.004) (0.004) (0.011) (0.022)
- -------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.405) $(0.426) $(0.431) $(0.455) $(0.474)
- -------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.280 $10.170 $9.840 $9.510 $ 9.400
- -------------------------------------------------------------------------------
TOTAL RETURN(2) (4.92)% 7.87% 8.19% 6.14% 8.94%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $37,775 $39,758 $38,234 $39,488 $39,864
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.49% 1.46% 1.40% 1.35% 1.33%
Net expenses after
custodian fee
reduction(3) 1.45% 1.43% 1.35% 1.32% 1.29%
Net investment income 4.15% 4.23% 4.43% 4.63% 4.92%
Portfolio Turnover of the
Portfolio 18% 24% 39% 25% 42%
- -------------------------------------------------------------------------------
+ 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 Administrator, or both. Had such actions 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) 1.52% 1.47% 1.46%
Expenses after custodian
fee reduction(3) 1.47% 1.44% 1.42%
Net investment income 4.31% 4.51% 4.79%
Net investment income per
share $0.415 $0.429 $ 0.440
- -------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS A
------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------
1999(1) 1998
<S> <C> <C>
- --------------------------------------------------------------
Net asset value -- Beginning
of year $10.120 $ 9.790
- --------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------
Net investment income $ 0.476 $ 0.504
Net realized and unrealized
gain (loss) (0.821) 0.325
- --------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.345) $ 0.829
- --------------------------------------------------------------
Less distributions
- --------------------------------------------------------------
From net investment income $(0.476) $(0.499)
In excess of net investment
income (0.009) --
- --------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.485) $(0.499)
- --------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.290 $10.120
- --------------------------------------------------------------
TOTAL RETURN(2) (3.55)% 8.68%
- --------------------------------------------------------------
Ratios/Supplemental Data+
- --------------------------------------------------------------
Net assets, end of year
(000's omitted) $ 1,866 $ 1,839
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 0.70% 0.66%
Net expenses after
custodian fee
reduction(3) 0.68% 0.63%
Net investment income 4.84% 5.06%
Portfolio Turnover of the
Portfolio 32% 16%
- --------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS B
-----------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------
1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.320 $9.970 $9.620 $9.500 $ 9.130
- -------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------
Net investment income $ 0.403 $0.430 $0.419 $0.420 $ 0.436
Net realized and unrealized
gain (loss) (0.842) 0.336 0.351 0.147 0.393
- -------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.439) $0.766 $0.770 $0.567 $ 0.829
- -------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------
From net investment income $(0.402) $(0.416) $(0.419) $(0.427) $(0.436)
In excess of net investment
income (0.009) -- (0.001) (0.020) (0.023)
- -------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.411) $(0.416) $(0.420) $(0.447) $(0.459)
- -------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.470 $10.320 $9.970 $9.620 $ 9.500
- -------------------------------------------------------------------------------
TOTAL RETURN(2) (4.40)% 7.84% 8.18% 6.02% 9.39%
- -------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $24,854 $29,824 $31,524 $37,708 $39,569
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.53% 1.48% 1.53% 1.55% 1.40%
Net expenses after
custodian fee
reduction(3) 1.51% 1.45% 1.51% 1.51% 1.38%
Net investment income 4.02% 4.25% 4.31% 4.30% 4.74%
Portfolio Turnover of the
Portfolio 32% 16% 24% 43% 19%
- -------------------------------------------------------------------------------
+ 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 Administrator, or both. Had such actions 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) 1.48%
Expenses after custodian
fee reduction(3) 1.46%
Net investment income 4.66%
Net investment income per
share $ 0.429
- -------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each non-diversified, 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
generally sold subject to a sales charge imposed at 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. Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. 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 99.9% at September 30, 1999 for
each Fund except Mississippi, Rhode Island and West Virginia which were
99.2%, 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 Valuations -- Valuation of securities by the Portfolios are
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 the 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, 1999, 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 $17,095,660 September 30, 2004
Massachusetts Fund 2,135 September 30, 2005
8,214,564 September 30, 2004
</TABLE>
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
-------------------------------------------------------------------------
<S> <C> <C>
Mississippi Fund $ 1,397,104 September 30, 2004
Rhode Island Fund 34,703 September 30, 2005
1,523,162 September 30, 2004
426,784 September 30, 2003
21,699 September 30, 2002
West Virginia Fund 170,463 September 30, 2005
835,610 September 30, 2004
</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. Pursuant to section 852 of the Internal
Revenue Code, the New York Fund designates $28,703 of distributions from
tax-exempt income as a long-term capital gain distribution for its taxable
year ended September 30, 1999.
D 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 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 total expenses on the Statements of
Operations.
E Use of Estimates -- The preparation of financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on a trade-date basis.
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.
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 series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
<S> <C> <C>
------------------------------------------------------------------
Sales 924,993 485,031
Issued to shareholders electing to
receive payments of distributions in
Fund shares 28,544 14,845
Redemptions (196,430) (83,712)
Issued to EV Traditional Municipals Fund
shareholders -- 442,862
------------------------------------------------------------------
NET INCREASE 757,107 859,026
------------------------------------------------------------------
</TABLE>
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
CALIFORNIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,604,914 1,670,870
Issued to shareholders electing to
receive payments of distributions in
Fund shares 508,868 546,791
Redemptions (4,454,400) (5,403,497)
------------------------------------------------------------------
NET DECREASE (2,340,618) (3,185,836)
------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 652,645 762,699
Issued to shareholders electing to
receive payments of distributions in
Fund shares 24,149 15,294
Redemptions (473,493) (490,732)
Issued to EV Traditional Municipals Fund
shareholders -- 767,645
------------------------------------------------------------------
NET INCREASE 203,301 1,054,906
------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,375,863 1,297,153
Issued to shareholders electing to
receive payments of distributions in
Fund shares 501,473 619,609
Redemptions (8,793,156) (9,391,711)
------------------------------------------------------------------
NET DECREASE (6,915,820) (7,474,949)
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,080,772 979,696
Issued to shareholders electing to
receive payments of distributions in
Fund shares 36,852 17,263
Redemptions (717,242) (151,928)
Issued to EV Traditional Municipals Fund
shareholders -- 490,828
------------------------------------------------------------------
NET INCREASE 400,382 1,335,859
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,108,959 893,720
Issued to shareholders electing to
receive payments of distributions in
Fund shares 411,088 458,566
Redemptions (3,569,046) (3,429,412)
------------------------------------------------------------------
NET DECREASE (2,048,999) (2,077,126)
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS I 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 15,073 343,217
Issued to shareholders electing to
receive payments of distributions in
Fund shares 8,761 9,832
Redemptions (40,852) (63,805)
Issued to Massachusetts Municipal Bond
Portfolio shareholders -- 825,783
------------------------------------------------------------------
NET INCREASE (DECREASE) (17,018) 1,115,027
------------------------------------------------------------------
<CAPTION>
MISSISSIPPI FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 15,723 96,859
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,365 5,155
Redemptions (57,512) (14,766)
Issued to EV Traditional Municipals Fund
shareholders -- 104,840
------------------------------------------------------------------
NET INCREASE (DECREASE) (36,424) 192,088
------------------------------------------------------------------
<CAPTION>
MISSISSIPPI FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 168,593 70,854
Issued to shareholders electing to
receive payments of distributions in
Fund shares 33,450 36,072
Redemptions (305,972) (396,484)
------------------------------------------------------------------
NET DECREASE (103,929) (289,558)
------------------------------------------------------------------
</TABLE>
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
NEW YORK FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,167,623 333,561
Issued to shareholders electing to
receive payments of distributions in
Fund shares 43,894 21,769
Redemptions (998,505) (105,365)
Issued to EV Traditional Municipals Fund
shareholders -- 823,415
------------------------------------------------------------------
NET INCREASE 213,012 1,073,380
------------------------------------------------------------------
<CAPTION>
NEW YORK FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 1,559,455 1,537,239
Issued to shareholders electing to
receive payments of distributions in
Fund shares 1,244,490 1,046,249
Redemptions (6,578,544) (8,133,681)
------------------------------------------------------------------
NET DECREASE (3,774,599) (5,550,193)
------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 486,478 360,320
Issued to shareholders electing to
receive payments of distributions in
Fund shares 20,066 11,676
Redemptions (163,880) (32,078)
Issued to EV Traditional Municipal Fund
shareholders -- 326,756
------------------------------------------------------------------
NET INCREASE 342,664 666,674
------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 879,762 658,482
Issued to shareholders electing to
receive payments of distributions in
Fund shares 593,879 544,097
Redemptions (3,491,296) (3,551,484)
------------------------------------------------------------------
NET DECREASE (2,017,655) (2,348,905)
------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 155,911 50,651
Issued to shareholders electing to
receive payments of distributions in
Fund shares 7,535 5,151
Redemptions (21,897) (15,351)
Issued to EV Traditional Municipal Fund
shareholders -- 180,806
------------------------------------------------------------------
NET INCREASE 141,549 221,257
------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 570,367 523,695
Issued to shareholders electing to
receive payments of distributions in
Fund shares 99,187 94,909
Redemptions (508,534) (594,688)
------------------------------------------------------------------
NET INCREASE 161,020 23,916
------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 49,303 34,334
Issued to shareholders electing to
receive payments of distributions in
Fund shares 6,635 5,767
Redemptions (36,776) (40,039)
Issued to EV Traditional Municipal Fund
shareholders -- 181,603
------------------------------------------------------------------
NET INCREASE 19,162 181,665
------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 1999 1998
------------------------------------------------------------------
<S> <C> <C>
Sales 123,118 147,918
Issued to shareholders electing to
receive payments of distributions in
Fund shares 59,766 63,535
Redemptions (448,800) (484,146)
------------------------------------------------------------------
NET DECREASE (265,916) (272,693)
------------------------------------------------------------------
</TABLE>
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
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 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 officers and
Trustees of the Funds and of the Portfolios are officers 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. The Funds were informed that Eaton Vance Distributors,
Inc. (EVD), a subsidiary of EVM and the Funds' principal underwriter,
received $4,413, $5,153, $9,685, $351, $9,761, $3,962, $3,181 and $1,329 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 year
ended September 30, 1999.
5 Distribution and Service Plans
- -------------------------------------------
Each Fund has in effect a distribution plan for Class B shares (the Class B
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan for Class A shares (Class A Plans) (collectively, the Plans).
The Plans require the Funds to pay EVD amounts equal to 1/365 of 0.75% of
each Fund's daily net assets attributable to Class B shares, for providing
ongoing distribution services and facilities to the respective Fund. The
Funds 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 year ended September 30, 1999, Florida Fund, Massachusetts
Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund, paid $2,952,569, $1,573,730, $136,703, $3,287,113, $1,729,063,
$302,702 and $211,805, respectively, to EVD, representing 0.75% of each
Fund's Class B average daily net assets. The California Fund paid $774,417
representing 0.28% of the Fund's Class B average daily net assets. At
September 30, 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 $7,276,000, $4,312,000, $652,000,
$5,860,000, $4,307,000, $1,370,000 and $842,000, respectively. The California
Fund had no Uncovered Distribution Charges at September 30, 1999.
The Plans authorize the Funds to make payments of service fees to EVD,
investment dealers 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 initially implemented the Plans by
authorizing each class to make quarterly service fee payments to EVD and
investment dealers equal to 0.20% (0.25% for the California Fund) per annum
of each Fund's average daily net assets attributable to 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. On October 4, 1999 the Trustees approved
service fee payments equal 0.20% (0.25% for the California Fund) per annum of
each Fund's average daily net assets attributable to Class A and Class B
shares for any fiscal year on shares of the Funds sold on or after October
12, 1999. For the year ended September 30, 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 $13,921, $15,882, $10,362, $1,938, $16,924, $8,627,
$3,975 and $2,076, respectively, for Class A shares, and $650,430, $787,325,
$383,411, $34,349, $799,499, $438,015, $77,518 and $53,657, 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) generally is imposed on redemptions
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
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
the case of redemptions in the first and second year after purchase,
declining one percentage point each subsequent 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 and may be waived under certain other limited
conditions. 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 $416,000,
$181,000, $30,000, $382,000, $192,000, $47,000 and $41,000 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 year ended September 30, 1999. EVD also received $253,842 of CDSC
paid by Class B shareholders of California Fund of which $212,719 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 year ended September 30, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
<S> <C>
------------------------------------------------------
Increases $ 26,307,078
Decreases 56,905,888
<CAPTION>
FLORIDA FUND
------------------------------------------------------
<S> <C>
Increases $ 22,428,860
Decreases 117,286,711
<CAPTION>
MASSACHUSETTS FUND
------------------------------------------------------
<S> <C>
Increases $ 22,537,239
Decreases 53,364,100
<CAPTION>
MISSISSIPPI FUND
------------------------------------------------------
<S> <C>
Increases $ 1,934,210
Decreases 4,346,534
<CAPTION>
NEW YORK FUND
------------------------------------------------------
<S> <C>
Increases $ 31,675,642
Decreases 101,151,980
<CAPTION>
OHIO FUND
------------------------------------------------------
<S> <C>
Increases $ 15,132,326
Decreases 49,186,424
<CAPTION>
RHODE ISLAND FUND
------------------------------------------------------
<S> <C>
Increases $ 7,437,315
Decreases 6,067,386
<CAPTION>
WEST VIRGINIA FUND
------------------------------------------------------
<S> <C>
Increases $ 1,765,713
Decreases 5,785,114
</TABLE>
8 Transfer of Assets
- -------------------------------------------
On October 1, 1997, the California Municipals Fund, Florida Municipals Fund,
Massachusetts Municipals Fund, Mississippi Municipals Fund, New York
Municipals Fund, Ohio Municipals Fund, Rhode Island Municipals Fund and 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>
AGGREGATE NET ASSET
CLASS A SHARES VALUE OF VALUE PER
FUND ISSUED SHARES ISSUED 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.
41
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
The transactions were structured for tax purposes to qualify as tax-free
reorganizations under the Internal Revenue Code. The net assets acquired,
including unrealized appreciation at the date of the transactions 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.
42
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE MUNICIPALS TRUST:
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities of Eaton
Vance California Municipals Fund, Eaton Vance Florida Municipals Fund, Eaton
Vance Massachusetts Municipals Fund, Eaton Vance Mississippi Municipals Fund,
Eaton Vance New York Municipals Fund, Eaton Vance Ohio Municipals Fund, Eaton
Vance Rhode Island Municipals Fund and Eaton Vance West Virginia Municipals Fund
(the Funds) (certain of the series constituting Eaton Vance Municipals Trust) as
of September 30, 1999, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended
September 30, 1999 and 1998 and the financial highlights for each of the years
in the five-year period ended September 30, 1999. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and financial
highlights are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of the
aforementioned Funds of Eaton Vance Municipals Trust at September 30, 1999, the
results of their operations, the changes in their net assets and their financial
highlights for the respective stated periods in conformity with generally
accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 29, 1999
43
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.5%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Cogeneration -- 2.2%
- -----------------------------------------------------------------------------
$ 6,000 Sacramento Power Authority, (Campbell's
Soup), 6.00%, 7/1/22 $ 5,995,620
- -----------------------------------------------------------------------------
$ 5,995,620
- -----------------------------------------------------------------------------
Education -- 1.7%
- -----------------------------------------------------------------------------
$ 2,500 California Educational Facilities
Authority, (Santa Clara University),
5.00%, 9/1/23 $ 2,256,325
2,500 California Educational Facilities
Authority, (Santa Clara University),
5.25%, 9/1/26 2,331,350
- -----------------------------------------------------------------------------
$ 4,587,675
- -----------------------------------------------------------------------------
Electric Utilities -- 1.6%
- -----------------------------------------------------------------------------
$ 4,100 California Pollution Control Financing
Authority, (San Diego Gas & Electric),
5.90%, 6/1/14 $ 4,299,178
- -----------------------------------------------------------------------------
$ 4,299,178
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 29.2%
- -----------------------------------------------------------------------------
$ 1,700 Central Valley Financing Authority,
(Carson Ice), Prerefunded to 7/1/03,
6.20%, 7/1/20 $ 1,845,554
3,910 Fontana Public Financing Authority,
Prerefunded to 10/1/02, 7.00%, 9/1/21 4,088,961
3,455 Northern California Power Agency,
(MBIA), Prerefunded to 9/03/02, Variable
Rate, 8/1/25(1) 3,973,250
10,900 Sacramento Cogeneration Authority,
(Procter & Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 12,200,261
8,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.125%, 7/1/16(2) 10,063,200
6,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.25%, 1/1/21(2) 7,793,160
14,285 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.50%, 11/1/16(2) 18,783,489
1,000 San Bernadino, (San Bernadino Community
Hospital), Prerefunded to 12/1/99,
7.875%, 12/1/08 1,027,200
3,000 San Bernadino, (San Bernadino Community
Hospital), Prerefunded to 12/1/99,
7.875%, 12/1/19 3,081,600
12,000 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/14 5,491,920
5,765 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/26 1,249,506
35,975 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/27 7,352,211
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- -----------------------------------------------------------------------------
$ 2,000 Southern California Public Power
Authority, (FGIC), Escrowed to Maturity,
Variable Rate, 7/1/12(1) $ 2,042,500
- -----------------------------------------------------------------------------
$ 78,992,812
- -----------------------------------------------------------------------------
General Obligations -- 1.1%
- -----------------------------------------------------------------------------
$ 3,000 Capistrano Unified School District,
5.75%, 9/1/29 $ 2,830,710
- -----------------------------------------------------------------------------
$ 2,830,710
- -----------------------------------------------------------------------------
Hospital -- 4.7%
- -----------------------------------------------------------------------------
$ 5,000 California Statewide Communities
Development Authority, (Children's
Hospital of Los Angeles), 5.25%, 8/15/29 $ 4,497,450
1,500 California Statewide Communities
Development Authority, (Sonoma County
Indian Health), 6.40%, 9/1/29 1,419,930
890 Eastern Plumas Health Care District,
7.50%, 8/1/07 917,181
4,000 San Benito Health Care District,
5.40%, 10/1/20 3,549,880
1,000 San Gorgonio Memorial Health Care
District, 5.75%, 5/1/20 906,020
1,500 Washington Township Health Care
District, 5.25%, 7/1/29 1,336,125
- -----------------------------------------------------------------------------
$ 12,626,586
- -----------------------------------------------------------------------------
Housing -- 4.2%
- -----------------------------------------------------------------------------
$ 345 California Housing Finance Agency,
(AMT), 7.50%, 8/1/25 $ 348,391
2,650 California Statewide Communities
Development Authority, (Chesapeake Bay
Apartments), 6.00%, 6/1/32 2,516,678
2,750 California Statewide Communities
Development Authority, (Nantucket Bay
Apartments), 6.00%, 6/1/32 2,611,647
2,600 California Statewide Communities
Development Authority, (Oaks at Sunset
Apartments), 6.00%, 6/1/36 2,464,904
2,000 Los Angeles County, Housing Authority,
Multifamily, (Corporate Fund for
Housing), 10.50%, 12/1/29 1,981,520
1,270 Oakland, Housing Finance Agency,
7.10%, 1/1/10 1,311,516
- -----------------------------------------------------------------------------
$ 11,234,656
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 4.2%
- -----------------------------------------------------------------------------
$ 5,500 California Pollution Control Financing
Authority, (Browning Ferris Industries),
(AMT), 5.80%, 12/1/16 $ 5,039,265
3,000 California Pollution Control Financing
Authority, (Laidlaw Environmental),
(AMT), 6.70%, 7/1/07 3,030,060
3,600 California Statewide Communities
Development Authority, (United
Airlines), (AMT), 5.70%, 10/1/33 3,353,256
- -----------------------------------------------------------------------------
$ 11,422,581
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 5.2%
- -----------------------------------------------------------------------------
$ 4,195 Northern California Power Agency,
(MBIA), Variable Rate, 8/1/25(1) $ 4,813,762
7,070 Southern California Public Power
Authority, (MBIA), 0.00%, 7/1/15 2,932,565
6,915 Southern California Public Power
Authority, (MBIA), 5.00%, 1/1/20 6,317,890
- -----------------------------------------------------------------------------
$ 14,064,217
- -----------------------------------------------------------------------------
Insured-General Obligations -- 0.3%
- -----------------------------------------------------------------------------
$ 2,285 Merced Unified School District, (FGIC),
0.00%, 8/1/19 $ 725,944
- -----------------------------------------------------------------------------
$ 725,944
- -----------------------------------------------------------------------------
Insured-Hospital -- 1.8%
- -----------------------------------------------------------------------------
$ 4,000 California Health Facilities Financing
Authority, (Stanford Health Care),
(AMBAC), 5.00%, 11/15/28 $ 3,549,800
1,650 California Health Facilities Financing
Authority, (Sutter Health), (MBIA),
Variable Rate, 8/15/28(1)(3) 1,432,002
- -----------------------------------------------------------------------------
$ 4,981,802
- -----------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 5.8%
- -----------------------------------------------------------------------------
$ 6,000 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/19 $ 1,911,780
11,280 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/30 1,843,490
3,500 San Mateo County Joint Powers Financing
Authority, (FSA), Variable Rate,
7/15/29(1)(3) 2,741,410
4,350 Stockton, Wastewater Treatment Plant,
(FGIC), 6.80%, 9/1/24 4,919,111
13,985 Visalia Unified School District, (MBIA),
0.00%, 12/1/17 4,298,849
- -----------------------------------------------------------------------------
$ 15,714,640
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Solid Waste -- 0.6%
- -----------------------------------------------------------------------------
$ 1,500 Inland Empire Solid Waste Finance
Authority, (FSA), (AMT), 6.25%, 8/1/11 $ 1,612,485
- -----------------------------------------------------------------------------
$ 1,612,485
- -----------------------------------------------------------------------------
Insured-Transportation -- 2.9%
- -----------------------------------------------------------------------------
$ 2,200 Alameda Corridor Transportation
Authority, (MBIA), 4.75%, 1/1/25 $ 1,887,842
1,665 San Francisco City and County Airports,
(International Airport), (MBIA),
6.75%, 5/1/13 1,805,976
16,800 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
(MBIA), 0.00%, 1/15/24 4,057,872
- -----------------------------------------------------------------------------
$ 7,751,690
- -----------------------------------------------------------------------------
Insured-Water and Sewer -- 3.1%
- -----------------------------------------------------------------------------
$ 5,000 East Bay, Municipal Utilities District,
Water System, (MBIA), Variable Rate,
6/1/08(1) $ 5,137,500
3,000 San Diego County Water Authority,
(FGIC), Variable Rate, 4/22/09(1) 3,322,500
- -----------------------------------------------------------------------------
$ 8,460,000
- -----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 18.7%
- -----------------------------------------------------------------------------
$ 6,500 California Public Works, (University of
California), 5.00%, 6/1/23 $ 5,830,760
5,000 California Public Works, (University of
California), 5.25%, 6/1/20 4,754,600
8,000 California Public Works, (University of
California), 5.50%, 6/1/14 8,165,200
2,750 Inglewood, 7.00%, 8/1/19 2,948,633
5,115 Los Angeles County, (Disney Parking),
0.00%, 3/1/16 1,908,560
1,925 Los Angeles County, (Disney Parking),
0.00%, 3/1/17 677,562
5,000 Los Angeles County, (Disney Parking),
0.00%, 9/1/17 1,707,950
5,370 Los Angeles County, (Disney Parking),
0.00%, 3/1/18 1,773,818
3,100 Los Angeles County, (Disney Parking),
0.00%, 3/1/20 906,161
6,925 Los Angeles County, (Disney Parking),
0.00%, 9/1/20 1,964,207
7,000 Los Angeles County, (Marina Del Ray),
6.50%, 7/1/08 7,407,820
8,000 Pasadena Parking Facility,
6.25%, 1/1/18 8,621,360
4,000 Sacramento City Financing Authority,
5.40%, 11/1/20 3,865,040
- -----------------------------------------------------------------------------
$ 50,531,671
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Special Tax Revenue -- 8.0%
- -----------------------------------------------------------------------------
$ 2,500 Bonita Canyon Public Financing
Authority, 5.375%, 9/1/28 $ 2,247,225
995 Brentwood Infrastructure Financing
Authority, 5.625%, 9/2/29 927,081
1,675 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/22 1,649,289
500 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/29 490,100
5,000 Contra Costa County, Public Financing
Authority, 7.10%, 8/1/22 5,360,200
1,650 Corona Public Financing Authority,
5.80%, 9/1/20 1,560,389
1,955 Fairfield, (North Cordelia District),
7.375%, 9/2/18 2,019,593
3,325 Irvine, Improvement Bond Act 1915,
(Assessment District North 97-16, Group
Two), 5.50%, 9/2/22 3,062,957
2,500 Lincoln Public Financing Authority,
(Twelve Bridges), 6.20%, 9/2/25 2,498,250
1,000 Roseville Special Tax, 6.30%, 9/1/25(4) 1,000,350
1,000 Torrance Redevelopment Agency,
5.625%, 9/1/28 926,220
- -----------------------------------------------------------------------------
$ 21,741,654
- -----------------------------------------------------------------------------
Water and Sewer -- 2.2%
- -----------------------------------------------------------------------------
$ 1,670 California Water Resources, (Central
Valley), Variable Rate, 12/1/28(1)(3) $ 1,340,743
3,000 Metropolitan Southern California
Waterworks Revenue, Variable Rate,
7/1/27(1)(3) 2,074,440
2,500 Santa Margarita Water District,
6.20%, 9/1/20 2,511,350
- -----------------------------------------------------------------------------
$ 5,926,533
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.5%
(identified cost $249,159,445) $263,500,454
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.5% $ 6,699,744
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $270,200,198
- -----------------------------------------------------------------------------
</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 September 30, 1999, 22.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 1.3% to 13.9% 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) 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.
(4) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 102.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Cogeneration -- 2.7%
- -----------------------------------------------------------------------------
$ 4,600 Palm Beach County, (Okeelanta Power),
(AMT), 6.85%, 2/15/21(1) $ 2,829,000
11,000 Palm Beach County, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 6,655,000
- -----------------------------------------------------------------------------
$ 9,484,000
- -----------------------------------------------------------------------------
Economic Development Revenue -- 0.8%
- -----------------------------------------------------------------------------
$ 3,000 New Jersey EDA, (Continental Airlines),
(AMT), 6.25%, 9/15/29 $ 2,918,820
- -----------------------------------------------------------------------------
$ 2,918,820
- -----------------------------------------------------------------------------
Electric Utilities -- 3.2%
- -----------------------------------------------------------------------------
$ 6,980 Jacksonville Electric Authority,
5.10%, 10/1/32 $ 6,167,877
2,500 Orlando Utilities Commission Water and
Electric, 5.125%, 10/1/19 2,303,700
2,515 St. Lucie County Solid Waste Disposal,
(Florida
Power & Light Co.), (AMT),
6.70%, 5/1/27 2,650,961
- -----------------------------------------------------------------------------
$ 11,122,538
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.4%
- -----------------------------------------------------------------------------
$ 9,225 Dade County, (Baptist Hospital of
Miami), Escrowed to Maturity,
5.75%, 5/1/21 $ 9,359,500
3,835 Dade County, Professional Sports
Franchise, (MBIA), Escrowed to Maturity,
0.00%, 10/1/23 941,646
2,830 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.),
Prerefunded to 10/01/03, 6.75%, 10/1/14 3,111,528
1,675 Florida, (Mid-Bay Bridge Authority),
Escrowed to Maturity, 6.875%, 10/1/22 1,923,151
5,000 Hillsborough County Capital Improvement,
(Museum of Science), Prerefunded to
1/1/01, 6.45%, 1/1/22 5,133,250
1,800 Jacksonville Electric Authority, Bulk
Power Supply System Scherer 4,
Prerefunded to 10/1/02, 5.25%, 10/1/21 1,865,070
2,000 Lee County, (Memorial Hospital), (MBIA),
Prerefunded to 4/1/01, Variable Rate,
4/1/20(2) 2,202,500
5,600 St. Lucie Utility System, Escrowed to
Maturity, 6.00%, 10/1/20 5,807,704
2,000 Volusia County Educational Facilities,
(Embry-Riddle Aeronautical University)
(CLEE), Prerefunded to 10/15/02,
6.625%, 10/15/22 2,169,880
- -----------------------------------------------------------------------------
$ 32,514,229
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
General Obligations -- 6.5%
- -----------------------------------------------------------------------------
$ 1,000 Florida, Variable Rate, 7/1/27(2)(3) $ 774,140
20,000 Florida Board of Education,
4.75%, 6/1/22(4) 17,199,200
4,000 Florida Board of Education,
5.75%, 6/1/22(5) 3,932,480
2,300 Puerto Rico, 0.00%, 7/1/18 794,397
- -----------------------------------------------------------------------------
$ 22,700,217
- -----------------------------------------------------------------------------
Hospital -- 4.3%
- -----------------------------------------------------------------------------
$ 2,000 Highlands County HFA, (Adventist Health
System), 5.25%, 11/15/28 $ 1,740,340
2,500 Jacksonville Health Facilities
Authority, (Charity Obligation Group),
5.375%, 8/15/23 2,340,450
4,750 Jacksonville HFA, (St. Luke's Hospital
Association), 6.75%, 11/15/13 5,022,650
2,500 Marion County Hospital District,
5.50%, 10/1/29 2,267,650
3,500 Orange County Health Care Facilities,
6.60%, 4/1/24 3,487,365
- -----------------------------------------------------------------------------
$ 14,858,455
- -----------------------------------------------------------------------------
Housing -- 11.8%
- -----------------------------------------------------------------------------
$ 1,500 Broward County Housing Finance
Authority, Single Family, (GNMA/FNMA),
(AMT), 6.10%, 10/1/19 $ 1,527,045
1,300 Clay County Housing Finance Authority,
Multifamily, (GNMA), 7.40%, 12/1/25(4) 1,353,976
2,005 Clay County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.55%, 3/1/28 2,066,493
725 Dade County Housing Finance Authority,
Single Family, (AMT), 7.75%, 9/1/22 746,967
5,850 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.70%, 10/1/28 6,032,929
985 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT),
7.25%, 9/1/19 1,017,929
1,480 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.90%, 10/1/21 1,544,114
1,725 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.95%, 10/1/27 1,801,693
2,360 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.40%, 10/1/23 2,440,688
1,065 Florida Housing Finance Authority,
6.35%, 6/1/14 1,107,951
2,115 Florida Housing Finance Authority,
(AMT), 6.35%, 7/1/28 2,169,757
535 Hillsborough County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.875%, 5/1/23 554,485
6,205 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.60%, 4/1/28 6,397,107
7,230 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.85%, 10/1/27 7,531,130
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Housing (continued)
- -----------------------------------------------------------------------------
$ 1,695 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
7.375%, 9/1/24 $ 1,768,885
1,455 Polk County Housing Finance Authority,
Single Family, (GNMA), 7.15%, 9/1/23 1,512,138
1,400 Puerto Rico Urban Renewal and Housing
Corp., 7.875%, 10/1/04 1,431,738
- -----------------------------------------------------------------------------
$ 41,005,025
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 2.2%
- -----------------------------------------------------------------------------
$ 3,045 Broward County IDR, (Lynxs Cargoport),
(AMT), 6.75%, 6/1/19 $ 2,921,982
4,500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 4,585,050
- -----------------------------------------------------------------------------
$ 7,507,032
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 5.9%
- -----------------------------------------------------------------------------
$ 5,000 Florida Municipal Power Agency Stanton
II, (AMBAC), Variable Rate,
10/1/20(2)(3) $ 5,761,800
1,540 Manatee County Public Utility, (FGIC),
0.00%, 10/1/12 761,515
2,200 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(2) 2,332,000
2,200 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(2) 2,376,000
3,000 Sunrise Utilities Systems, (AMBAC),
5.00%, 10/1/28 2,670,780
7,000 Sunrise Utilities Systems, (AMBAC),
5.20%, 10/1/22 6,544,300
- -----------------------------------------------------------------------------
$ 20,446,395
- -----------------------------------------------------------------------------
Insured-Hospital -- 5.4%
- -----------------------------------------------------------------------------
$ 8,000 Charlotte County Health Care,
(Bon-Secours Health System), (FSA),
Variable Rate, 8/26/27(2) $ 8,290,000
3,000 Orange County HFA, (Orlando Regional
Medical Center), (MBIA), Variable Rate,
10/29/21(2) 3,352,500
7,500 Sarasota County Public Hospital Board,
(Sarasota Memorial Hospital), (MBIA),
5.25%, 7/1/24 6,974,775
- -----------------------------------------------------------------------------
$ 18,617,275
- -----------------------------------------------------------------------------
Insured-Housing -- 3.9%
- -----------------------------------------------------------------------------
$ 500 Brevard County Housing Finance
Authority, Single Family, (FSA),
7.00%, 3/1/13 $ 516,095
3,000 Florida HFA, (Brittany of Rosemont),
(AMBAC), (AMT), 6.875%, 8/1/26 3,198,660
6,530 Florida HFA, (Maitland Club Apartments),
(AMBAC), (AMT), 6.875%, 8/1/26 6,962,417
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Housing (continued)
- -----------------------------------------------------------------------------
$ 2,675 Lee County Housing Finance, SCA
Multifamily, (FSA), (AMT), 7.05%, 1/1/30 $ 2,852,486
- -----------------------------------------------------------------------------
$ 13,529,658
- -----------------------------------------------------------------------------
Insured-Miscellaneous -- 0.3%
- -----------------------------------------------------------------------------
$ 1,110 Escambia County, (MBIA), 7.20%, 1/1/15 $ 1,134,986
- -----------------------------------------------------------------------------
$ 1,134,986
- -----------------------------------------------------------------------------
Insured-Pooled Loans -- 0.2%
- -----------------------------------------------------------------------------
$ 799 Osceola County IDA, Community Provider
Pooled Loan Program, (FSA),
7.75%, 7/1/10 $ 836,249
- -----------------------------------------------------------------------------
$ 836,249
- -----------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.2%
- -----------------------------------------------------------------------------
$ 500 Alachua County Health Facility, (Mental
Health Services), (FSA), 7.75%, 7/1/10 $ 523,465
- -----------------------------------------------------------------------------
$ 523,465
- -----------------------------------------------------------------------------
Insured-Solid Waste -- 0.5%
- -----------------------------------------------------------------------------
$ 1,500 St. John's County Solid Waste Disposal,
(FGIC), 7.25%, 11/1/10 $ 1,575,720
- -----------------------------------------------------------------------------
$ 1,575,720
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 4.8%
- -----------------------------------------------------------------------------
$ 1,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/11 $ 524,450
2,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/12 980,260
1,185 Opa-Locka Sales Tax, (FGIC),
7.00%, 1/1/14 1,301,782
1,250 Puerto Rico Public Finance Corp.,
(AMBAC-TCRS), Variable Rate,
6/1/26(2)(3) 997,200
2,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/10 1,127,200
1,760 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/12 870,302
2,840 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/14 1,227,505
4,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/15 1,622,200
4,140 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/16 1,573,862
2,525 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/17 900,491
2,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/18 668,600
6,800 Tampa Utility Tax, (AMBAC),
0.00%, 4/1/19 2,200,276
5,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/19 1,571,750
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue (continued)
- -----------------------------------------------------------------------------
$ 4,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/20 $ 1,184,280
- -----------------------------------------------------------------------------
$ 16,750,158
- -----------------------------------------------------------------------------
Insured-Transportation -- 13.2%
- -----------------------------------------------------------------------------
$ 3,475 Dade County Aviation Facilities, (MBIA),
(AMT), 6.00%, 10/1/24 $ 3,640,063
4,000 Dade County Aviation Facilities, (MBIA),
(AMT), 6.55%, 10/1/13 4,264,720
4,150 Dade County Aviation Facilities, (MBIA),
(AMT), 6.60%, 10/1/22 4,406,387
11,750 Florida Turnpike Authority, (Department
of Transportation), (FGIC),
4.50%, 7/1/27(4) 9,523,023
10,000 Florida Turnpike Authority, (FSA),
4.50%, 7/1/28 7,984,800
8,650 Greater Orlando Aviation Authority,
(FGIC), (AMT), 6.375%, 10/1/21 9,025,064
2,000 Orlando and Orange County Expressway
Authority, (FGIC), 8.25%, 7/1/14 2,576,740
5,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 4,203,150
- -----------------------------------------------------------------------------
$ 45,623,947
- -----------------------------------------------------------------------------
Insured-Water and Sewer -- 2.2%
- -----------------------------------------------------------------------------
$ 5,000 Fort Myers Utility, (FGIC), Variable
Rate, 10/1/29(2) $ 4,630,750
1,000 Tampa Bay Water Utility System, (FGIC),
4.75%, 10/1/27 837,960
3,375 Tampa Bay Water Utility System, (FGIC),
Variable Rate, 10/1/27(2)(3) 2,273,265
- -----------------------------------------------------------------------------
$ 7,741,975
- -----------------------------------------------------------------------------
Miscellaneous -- 1.2%
- -----------------------------------------------------------------------------
$ 4,000 Muni Mae Tax Revenue Exempt Bond, (AMT),
Variable Rate, 6/30/09 $ 3,983,640
- -----------------------------------------------------------------------------
$ 3,983,640
- -----------------------------------------------------------------------------
Nursing Home -- 5.9%
- -----------------------------------------------------------------------------
$ 390 Charlotte County IDA, (Beverly
Enterprises), 10.00%, 6/1/11 $ 421,227
4,285 Dade County IDA, (Club Care Center),
(GNMA), 6.60%, 1/20/18 4,417,749
5,075 Dade County IDA, (Gramercy Park Nursing
Care), (FHA), 6.60%, 8/1/23 5,288,302
1,725 Highlands County IDA, (Beverly
Enterprises), 9.25%, 7/1/07 1,890,514
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Nursing Home (continued)
- -----------------------------------------------------------------------------
$ 3,750 Jacksonville Health Facilities
Authority, (Cypress Village),
7.00%, 12/1/22 $ 3,962,550
500 Lee County IDA, (Shell Point Village),
5.50%, 11/15/21 443,855
2,775 Lee County IDA, (Shell Point Village),
5.50%, 11/15/29 2,406,730
600 Orange County IDA, (Beverly
Enterprises), 9.25%, 8/1/10 643,548
1,000 Winter Garden, (Beverly Enterprises),
8.75%, 7/1/12 1,079,680
- -----------------------------------------------------------------------------
$ 20,554,155
- -----------------------------------------------------------------------------
Pooled Loans -- 1.5%
- -----------------------------------------------------------------------------
$ 5,000 Osceola County IDA, Community Pooled
Loan - 93, 7.75%, 7/1/17 $ 5,244,050
- -----------------------------------------------------------------------------
$ 5,244,050
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 4.4%
- -----------------------------------------------------------------------------
$ 6,895 Atlantic Beach, (Fleet Landing),
8.00%, 10/1/24 $ 7,459,356
635 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.),
6.75%, 10/1/14 668,166
4,000 North Miami HFA, (Imperial Club),
6.75%, 1/1/33 3,665,680
2,855 Okaloosa County, Retirement Rental
Housing, (Encore Retirement Partners),
6.125%, 2/1/14 2,517,939
1,000 Plantation Health Facilities Authority,
(Covenant Village of Florida),
5.125%, 12/1/22 856,090
- -----------------------------------------------------------------------------
$ 15,167,231
- -----------------------------------------------------------------------------
Solid Waste -- 1.0%
- -----------------------------------------------------------------------------
$ 3,285 Broward County, (Waste Energy Co., L.P.
North), 7.95%, 12/1/08 $ 3,400,304
- -----------------------------------------------------------------------------
$ 3,400,304
- -----------------------------------------------------------------------------
Special Tax Revenue -- 2.1%
- -----------------------------------------------------------------------------
$ 3,175 Dade County, Special Obligation,
Variable Rate, 10/1/35(2) $ 2,363,851
1,750 Longleaf Community Development District,
6.20%, 5/1/09 1,677,393
1,760 Longleaf Community Development District,
6.65%, 5/1/20 1,661,246
1,800 Orlando, Capital Improvement,
4.75%, 10/1/22 1,536,210
- -----------------------------------------------------------------------------
$ 7,238,700
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Transportation -- 7.7%
- -----------------------------------------------------------------------------
$ 3,000 Florida, (Jacksonville Transportation),
5.00%, 7/1/27 $ 2,664,930
3,000 Florida, (Jacksonville Transportation),
5.25%, 7/1/22 2,801,670
10,140 Florida, (Mid-Bay Bridge Authority),
6.125%, 10/1/22 10,184,312
2,900 Greater Orlando Aviation Authority,
(AMT), Variable Rate, 10/1/18 2,310,749
9,250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 8,060,358
700 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 669,683
- -----------------------------------------------------------------------------
$ 26,691,702
- -----------------------------------------------------------------------------
Water and Sewer -- 1.0%
- -----------------------------------------------------------------------------
$ 2,500 Hillsborough County Utility,
6.625%, 8/1/11 $ 2,608,025
1,015 Northern Palm Beach County, (Water
Control and Improvements),
6.00%, 8/1/25 973,182
- -----------------------------------------------------------------------------
$ 3,581,207
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 102.3%
(identified cost $354,418,699) $354,751,133
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- (2.3)% $ (7,878,861)
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $346,872,272
- -----------------------------------------------------------------------------
</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 economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1999, 37.6% 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 0.6% to 9.7% of total investments.
(1) Non-income producing security.
(2) Security has been issued as an inverse floater bond.
(3) 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.
(4) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(5) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Assisted Living -- 0.8%
- -----------------------------------------------------------------------------
$ 1,500 Massachusetts IFA, (Briscoe House),
(FHA), 7.125%, 2/1/36 $ 1,656,825
- -----------------------------------------------------------------------------
$ 1,656,825
- -----------------------------------------------------------------------------
Cogeneration -- 1.2%
- -----------------------------------------------------------------------------
$ 1,000 Massachusetts Development Finance
Agency, Resource Recovery, (Ogden
Haverhill), 5.50%, 12/1/19 $ 914,050
1,750 Massachusetts IFA, Resource Recovery,
(Ogden Haverhill), (AMT),
5.60%, 12/1/19 1,634,675
- -----------------------------------------------------------------------------
$ 2,548,725
- -----------------------------------------------------------------------------
Education -- 6.7%
- -----------------------------------------------------------------------------
$ 2,500 Massachusetts Development Finance
Agency, (Boston University),
5.45%, 5/15/59 $ 2,221,175
1,625 Massachusetts HEFA, (Amherst College),
6.80%, 11/1/21 1,739,107
3,100 Massachusetts HEFA, (Merrimack College),
7.125%, 7/1/12 3,383,743
2,000 Massachusetts IFA, (Belmont Hill
School), 5.25%, 9/1/28 1,778,880
1,250 Massachusetts IFA, (Dana Hall),
5.90%, 7/1/27 1,192,075
2,000 Massachusetts IFA, (St. Johns High
School, Inc.), 5.35%, 6/1/28 1,764,760
2,000 New England Educational Loan Marketing
Corp., (AMT), 6.90%, 11/1/09 2,168,320
- -----------------------------------------------------------------------------
$ 14,248,060
- -----------------------------------------------------------------------------
Electric Utilities -- 7.0%
- -----------------------------------------------------------------------------
$ 5,060 Massachusetts Municipal Wholesale
Electric Co., 6.625%, 7/1/18 $ 5,255,114
3,500 Massachusetts Municipal Wholesale
Electric Co., 6.75%, 7/1/11 3,728,585
3,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 1,102,290
13,230 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 4,861,099
- -----------------------------------------------------------------------------
$ 14,947,088
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.5%
- -----------------------------------------------------------------------------
$ 2,400 Massachusetts HEFA, (Fairview Care
Facilities), Prerefunded to 1/1/01,
10.25%, 1/1/21 $ 2,643,744
1,555 Massachusetts HEFA, (Jordan Hospital),
Prerefunded to 10/1/02, 6.875%, 10/1/22 1,688,528
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- -----------------------------------------------------------------------------
$ 2,000 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
Prerefunded to 7/15/02, 7.75%, 7/15/17 $ 2,215,800
2,085 Massachusetts HEFA, (Sisters of
Providence Health System), Prerefunded
to 11/15/04, 6.625%, 11/15/22 2,265,644
29,870 Massachusetts Turnpike Authority,
Escrowed to Maturity, 0.00%, 1/1/28 5,708,754
21,020 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20 19,418,066
1,000 Puerto Rico, RIBS, (AMBAC), Prerefunded
to 7/1/02, Variable Rate, 7/1/15 1,124,200
- -----------------------------------------------------------------------------
$ 35,064,736
- -----------------------------------------------------------------------------
General Obligations -- 0.9%
- -----------------------------------------------------------------------------
$ 1,700 Nantucket, 6.80%, 12/1/11 $ 1,822,485
- -----------------------------------------------------------------------------
$ 1,822,485
- -----------------------------------------------------------------------------
Hospital -- 23.3%
- -----------------------------------------------------------------------------
$ 1,600 Massachusetts HEFA, (Cape Cod
Healthcare), 5.45%, 11/15/23 $ 1,448,848
1,550 Massachusetts HEFA, (Caritas Christi
Obligated Group), 5.625%, 7/1/20 1,394,876
2,000 Massachusetts HEFA, (Daughters of
Charity Health System), 6.10%, 7/1/14 2,053,680
3,610 Massachusetts HEFA, (Jordan Hospital),
5.25%, 10/1/23 3,192,792
1,465 Massachusetts HEFA, (Jordan Hospital),
5.375%, 10/1/28 1,301,447
1,020 Massachusetts HEFA, (Jordan Hospital),
6.875%, 10/1/15 1,067,573
800 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.25%, 7/15/18 695,440
1,720 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.375%, 7/15/28 1,467,349
3,300 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 3,214,200
2,600 Massachusetts HEFA, (North Adams
Hospital), 6.625%, 7/1/18 2,645,370
10,000 Massachusetts HEFA, (Partners Healthcare
System), 5.25%, 7/1/29 8,783,100
5,255 Massachusetts HEFA, (Sisters of
Providence Health System),
6.50%, 11/15/08 5,691,323
8,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/08 5,039,120
9,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/09 5,349,240
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Hospital (continued)
- -----------------------------------------------------------------------------
$11,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/10 $ 6,142,510
- -----------------------------------------------------------------------------
$ 49,486,868
- -----------------------------------------------------------------------------
Housing -- 6.0%
- -----------------------------------------------------------------------------
$ 6,230 Massachusetts HFA, (AMT), 6.60%, 12/1/26 $ 6,400,764
6,075 Massachusetts HFA, (AMT),
6.60%, 12/1/26 6,241,516
- -----------------------------------------------------------------------------
$ 12,642,280
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 3.9%
- -----------------------------------------------------------------------------
$ 3,000 Massachusetts IFA, (Hingham Water Co.),
(AMT), 6.90%, 12/1/29 $ 3,167,070
2,075 Massachusetts IFA, (Massachusetts
American Co.), (AMT), 6.60%, 12/1/15 2,158,602
2,850 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 2,903,865
- -----------------------------------------------------------------------------
$ 8,229,537
- -----------------------------------------------------------------------------
Insured-Education -- 4.9%
- -----------------------------------------------------------------------------
$ 1,625 Massachusetts Educational Finance
Authority, (AMBAC), (AMT),
7.375%, 1/1/12 $ 1,726,384
240 Massachusetts Educational Finance
Authority, (MBIA), (AMT), 7.25%, 1/1/09 250,836
400 Massachusetts HEFA, (Boston University),
"RIBS", (MBIA), Variable Rate,
10/1/31(1) 442,500
2,500 Massachusetts HEFA, (Brandeis
University), (MBIA), 4.75%, 10/1/28 2,080,375
1,150 Massachusetts HEFA, Residual
Certificates, (Berklee College of
Music), (MBIA), Variable Rate,
10/1/27(1),(2) 900,220
1,000 Massachusetts IFA, (College of the Holy
Cross), (MBIA), 5.00%, 9/1/23 888,300
5,000 Massachusetts Industrial Financing
Authority, (Tufts University), (MBIA),
4.75%, 2/15/28 4,167,450
- -----------------------------------------------------------------------------
$ 10,456,065
- -----------------------------------------------------------------------------
Insured-Hospital -- 8.4%
- -----------------------------------------------------------------------------
$ 3,750 Massachusetts HEFA, (Beth Israel
Hospital), (AMBAC), (AMT), Variable
Rate, 7/1/25(1) $ 3,764,063
1,040 Massachusetts HEFA, (Beverly Hospital),
(MBIA), 7.30%, 7/1/13 1,063,348
1,270 Massachusetts HEFA, (Capital Assist
Program), (MBIA), 7.20%, 7/1/09 1,298,588
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Hospital (continued)
- -----------------------------------------------------------------------------
$ 1,000 Massachusetts HEFA, (Caregroup), (MBIA),
4.75%, 7/1/20 $ 848,980
2,000 Massachusetts HEFA, (St. Elizabeth
Hospital Issue), LEVRRS, (FSA), Variable
Rate, 8/12/21(1) 2,205,000
2,600 Massachusetts HEFA, (St. Luke's
Hospital) Yield Curve Notes, (MBIA),
Variable Rate, 8/15/13(1) 2,671,500
2,600 Massachusetts HEFA, (St. Luke's
Hospital) Yield Curve Notes, (MBIA),
Variable Rate, 8/15/23(1) 2,505,750
3,000 Massachusetts HEFA, (The Medical Center
of Central Massachusetts) (AMBAC), CARS,
Variable Rate, 6/23/22(1) 3,382,500
- -----------------------------------------------------------------------------
$ 17,739,729
- -----------------------------------------------------------------------------
Insured-Transportation -- 3.9%
- -----------------------------------------------------------------------------
$ 4,480 Massachusetts Port Authority, (FGIC),
7.50%, 7/1/20 $ 4,666,368
100 Massachusetts Turnpike Authority,
(MBIA), 5.00%, 1/1/20 92,379
2,000 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/19 660,260
8,500 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/24 2,069,920
1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 840,630
- -----------------------------------------------------------------------------
$ 8,329,557
- -----------------------------------------------------------------------------
Nursing Home -- 2.7%
- -----------------------------------------------------------------------------
$ 2,400 Massachusetts HEFA, (Christopher House),
6.875%, 1/1/29 $ 2,339,232
3,225 Massachusetts Industrial Financing
Authority, (Age Institute of
Massachusetts), 8.05%, 11/1/25 3,477,582
- -----------------------------------------------------------------------------
$ 5,816,814
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 0.8%
- -----------------------------------------------------------------------------
$ 1,900 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 $ 1,688,967
- -----------------------------------------------------------------------------
$ 1,688,967
- -----------------------------------------------------------------------------
Solid Waste -- 0.4%
- -----------------------------------------------------------------------------
$ 920 Pittsfield, Solid Waste Disposal, (Vicon
Recovery Associates), 7.95%, 11/1/04 $ 936,707
- -----------------------------------------------------------------------------
$ 936,707
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Transportation -- 2.0%
- -----------------------------------------------------------------------------
$ 3,500 Massachusetts Bay Transportation
Authority, Variable Rate, 3/1/27(1)(2) $ 2,576,280
2,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,742,780
- -----------------------------------------------------------------------------
$ 4,319,060
- -----------------------------------------------------------------------------
Water and Sewer -- 9.7%
- -----------------------------------------------------------------------------
$12,185 Boston IDA, (Harbor Electric Energy
Co.), (AMT), 7.375%, 5/15/15 $ 12,772,195
1,500 Massachusetts Water Resources Authority,
5.25%, 3/1/13 1,457,055
4,165 Massachusetts Water Resources Authority,
5.25%, 12/1/15 4,025,972
2,000 Virgin Islands Water and Power
Authority, 7.60%, 1/1/12 2,218,000
- -----------------------------------------------------------------------------
$ 20,473,222
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.1%
(identified cost $207,184,612) $210,406,725
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.9% $ 1,870,382
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $212,277,107
- -----------------------------------------------------------------------------
</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 Massachusetts
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by economic developments in a specific industry or
municipality. In order to reduce the risk associated with such economic
developments, at September 30, 1999, 17.9% 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 1.4% to 9.5% 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.
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.5%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Education -- 8.5%
- ----------------------------------------------------------------------------
$1,000 Mississippi State University Educational
Building Corp., 6.15%, 6/15/15 $ 1,030,640
470 University of Mississippi Educational
Building Corp., (Athletic Facility),
6.20%, 6/1/16 488,626
- ----------------------------------------------------------------------------
$ 1,519,266
- ----------------------------------------------------------------------------
Electric Utilities -- 2.6%
- ----------------------------------------------------------------------------
$ 450 Warren County, (Mississippi Power &
Light Co.), 7.00%, 4/1/22 $ 477,630
- ----------------------------------------------------------------------------
$ 477,630
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.9%
- ----------------------------------------------------------------------------
$1,000 Mississippi Educational Facilities
Authority, (Milsaps College), (MBIA),
Prerefunded to 11/1/04, 6.50%, 11/1/19 $ 1,105,820
2,500 Mississippi Housing Finance Corp.,
Single Family, Escrowed to Maturity,
(AMT), 0.00%, 6/1/15 1,023,725
- ----------------------------------------------------------------------------
$ 2,129,545
- ----------------------------------------------------------------------------
Hospital -- 6.4%
- ----------------------------------------------------------------------------
$ 300 Corinth and Alcorn County, (Magnolia
Registered Health Center),
5.50%, 10/1/21 $ 264,825
500 Jones County, (South Central Regional
Medical Center), 5.50%, 12/1/17 461,910
450 Mississippi Hospital Equipment and
Facilities Authority, (Rush Medical
Foundation), 6.00%, 1/1/22 423,166
- ----------------------------------------------------------------------------
$ 1,149,901
- ----------------------------------------------------------------------------
Housing -- 14.3%
- ----------------------------------------------------------------------------
$ 500 Hinds County, (Woodridge Apartments),
(FHA), 6.25%, 11/1/27 $ 514,115
500 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT),
6.625%, 4/1/27 517,135
495 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT),
7.55%, 12/1/27 547,034
295 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT),
8.10%, 12/1/24 322,231
610 Mississippi Home Corp., Single Family,
Access Program, (GNMA), (AMT),
8.125%, 12/1/24 664,827
- ----------------------------------------------------------------------------
$ 2,565,342
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 14.0%
- ----------------------------------------------------------------------------
$ 500 Grenada County, (Georgia-Pacific Corp.),
5.45%, 9/1/14 $ 460,020
750 Lowndes County, (Weyerhaeuser Co.),
6.80%, 4/1/22 820,125
500 Mississippi Business Finance Corp.,
(E.I. DuPont deNemours), (AMT),
7.15%, 5/1/16 527,825
250 Mississippi Business Finance Corp.,
(System Energy Resources, Inc.),
5.90%, 5/1/22 232,208
450 Warren County, (International Paper
Co.), (AMT), 6.60%, 3/1/19 468,680
- ----------------------------------------------------------------------------
$ 2,508,858
- ----------------------------------------------------------------------------
Insured-Education -- 2.7%
- ----------------------------------------------------------------------------
$ 500 Mississippi State University Educational
Building Corp., (MBIA), 5.25%, 8/1/17 $ 480,105
- ----------------------------------------------------------------------------
$ 480,105
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 4.4%
- ----------------------------------------------------------------------------
$ 550 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 $ 471,405
300 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 324,000
- ----------------------------------------------------------------------------
$ 795,405
- ----------------------------------------------------------------------------
Insured-General Obligations -- 5.5%
- ----------------------------------------------------------------------------
$ 500 Hinds County, (MBIA), 6.25%, 3/1/11 $ 545,885
500 Mississippi Development Obligation,
(Capital Projects & Equipment
Acquisition), (AMBAC), 5.00%, 7/1/24 445,035
- ----------------------------------------------------------------------------
$ 990,920
- ----------------------------------------------------------------------------
Insured-Hospital -- 14.4%
- ----------------------------------------------------------------------------
$ 750 Gulfport, (Gulfport Memorial Hospital),
(MBIA), 6.20%, 7/1/18 $ 769,215
1,275 Hinds County, (Mississippi Methodist
Hospital), (AMBAC), 5.60%, 5/1/12 1,312,460
500 Mississippi Hospital Equipment and
Facilities Authority, (Mississippi
Baptist Medical Center), (MBIA),
6.00%, 5/1/13 512,660
- ----------------------------------------------------------------------------
$ 2,594,335
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Water and Sewer -- 4.1%
- ----------------------------------------------------------------------------
$ 435 Mississippi Development Bank, (Combined
Water and Sewer System), (AMBAC),
5.00%, 7/1/23 $ 381,260
400 Mississippi Development Bank,
(Diberville Combined Water and Sewer
System), (AMBAC), 5.00%, 7/1/23 353,120
- ----------------------------------------------------------------------------
$ 734,380
- ----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 5.8%
- ----------------------------------------------------------------------------
$1,000 Mississippi Development Bank, (Golden
Triangle Solid Waste), 6.00%, 7/1/15 $ 1,034,980
- ----------------------------------------------------------------------------
$ 1,034,980
- ----------------------------------------------------------------------------
Nursing Home -- 1.7%
- ----------------------------------------------------------------------------
$ 295 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 $ 304,567
- ----------------------------------------------------------------------------
$ 304,567
- ----------------------------------------------------------------------------
Senior Living / Life Care -- 1.2%
- ----------------------------------------------------------------------------
$ 200 Ridgeland, Urban Renewal, (The Orchard),
7.75%, 12/1/15 $ 210,208
- ----------------------------------------------------------------------------
$ 210,208
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.5%
(identified cost $17,055,906) $17,495,442
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.5% $ 441,397
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $17,936,839
- ----------------------------------------------------------------------------
</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 economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 1999, 38.3% 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 institutions ranged from 1.9% to 22.2% of total
investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 101.8%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Assisted Living -- 1.7%
- -----------------------------------------------------------------------------
$ 4,000 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 4,194,920
2,935 North Syracuse Village Housing
Authority, (AJM Senior Housing, Inc.,
Janus Park), 8.00%, 6/1/24 2,831,042
- -----------------------------------------------------------------------------
$ 7,025,962
- -----------------------------------------------------------------------------
Cogeneration -- 2.8%
- -----------------------------------------------------------------------------
$ 6,000 New York City IDA, (Brooklyn Navy Yard
Cogeneration), 5.65%, 10/1/28 $ 5,607,900
2,100 New York City IDA, (Brooklyn Navy Yard
Cogeneration), (AMT), 5.75%, 10/1/36 1,967,805
4,250 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 3,865,332
- -----------------------------------------------------------------------------
$ 11,441,037
- -----------------------------------------------------------------------------
Education -- 22.3%
- -----------------------------------------------------------------------------
$ 1,000 Dutchess County IDA, (Bard College),
7.00%, 11/1/17 $ 1,069,730
5,740 Monroe County IDA, (Wilmur Assoc.),
7.25%, 12/1/16 5,933,955
8,000 New York Dormitory Authority, (City
University), 5.625%, 7/1/16 7,982,000
8,500 New York Dormitory Authority, (City
University), 6.00%, 7/1/20 8,707,910
5,100 New York Dormitory Authority, (City
University), 7.00%, 7/1/09 5,652,228
4,325 New York Dormitory Authority, (City
University), 7.50%, 7/1/10 4,956,666
1,300 New York Dormitory Authority, (New York
Medical College), (Asset Guaranty),
6.875%, 7/1/21 1,409,577
9,985 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/15 9,638,620
28,775 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/19(1) 27,077,275
14,680 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/21 13,768,519
2,000 New York Dormitory Authority, (State
University Educational Facilities),
5.50%, 5/15/19 1,948,360
1,300 New York Dormitory Authority, (State
University Educational Facilities),
7.50%, 5/15/11 1,503,411
- -----------------------------------------------------------------------------
$ 89,648,251
- -----------------------------------------------------------------------------
Electric Utilities -- 9.0%
- -----------------------------------------------------------------------------
$ 3,500 Long Island Power Authority, Electric
System Revenue, 5.25%, 12/1/26 $ 3,182,585
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Electric Utilities (continued)
- -----------------------------------------------------------------------------
$11,550 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/23 $ 10,922,488
11,760 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/29 10,982,311
2,500 New York Energy Research and Development
Authority, (Brooklyn Union Gas), RIBS,
(AMT), Variable Rate, 7/1/26(2) 3,034,375
1,745 New York Energy Research and Development
Authority, (LILCO), (AMT),
6.90%, 8/1/22 1,848,862
3,000 New York Energy Research and Development
Authority, RITES, (AMT), Variable Rate,
8/1/22(2) 3,541,950
2,450 New York Energy Research and Development
Authority, RITES, (AMT), Variable Rate,
8/1/22(2) 2,769,186
- -----------------------------------------------------------------------------
$ 36,281,757
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.1%
- -----------------------------------------------------------------------------
$ 1,650 Dutchess County Resource Recovery Solid
Waste, (FGIC), Prerefunded to 1/1/00,
7.50%, 1/1/09 $ 1,698,527
275 New York City, (AMBAC), Prerefunded to
8/1/02, 7.00%, 8/1/17 298,823
1,000 New York Dormitory Authority, (St.
Francis Hospital), (FHA), Prerefunded to
8/1/00, 7.65%, 8/1/30 1,051,700
1,365 New York Energy Research and Development
Authority, (AMT), Prerefunded to
1/21/03, 6.90%, 8/1/22 1,489,338
- -----------------------------------------------------------------------------
$ 4,538,388
- -----------------------------------------------------------------------------
General Obligations -- 5.7%
- -----------------------------------------------------------------------------
$ 4,000 New York City, 0.00%, 8/1/07 $ 2,695,720
2,500 New York City, 0.00%, 8/1/08 1,589,700
5,000 New York City, 5.25%, 8/1/16 4,688,650
8,500 New York City, 5.875%, 2/15/19 8,499,320
1,700 Onondaga County, 5.875%, 2/15/11 1,802,731
1,600 Onondaga County, 5.875%, 2/15/12 1,689,312
6,200 Puerto Rico, 0.00%, 7/1/18 2,141,418
- -----------------------------------------------------------------------------
$ 23,106,851
- -----------------------------------------------------------------------------
Health Care -- 1.4%
- -----------------------------------------------------------------------------
$ 5,000 New York Housing Finance Agency, RITES,
Variable Rate, 5/1/06(2)(3) $ 5,569,400
- -----------------------------------------------------------------------------
$ 5,569,400
- -----------------------------------------------------------------------------
Hospital -- 8.2%
- -----------------------------------------------------------------------------
$ 1,250 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 1,186,913
3,250 Chautauqua County IDA, (Womans Christian
Association), 6.40%, 11/15/29 2,998,905
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Hospital (continued)
- -----------------------------------------------------------------------------
$ 2,750 Fulton County IDA, (Nathan Littauer
Hospital), 6.00%, 11/1/18 $ 2,575,018
1,250 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 1,147,075
5,000 New York Dormitory Authority, (Jamaica
Hospital), 5.20%, 2/15/15 4,653,350
7,300 New York Dormitory Authority, Mental
Health Facilities, 5.375%, 2/15/26 6,721,548
3,000 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 6.70%, 8/15/23 3,226,440
2,190 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.00%, 8/15/32 2,359,988
6,600 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.25%, 2/15/31 7,163,376
925 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.45%, 8/15/31 977,004
- -----------------------------------------------------------------------------
$ 33,009,617
- -----------------------------------------------------------------------------
Hotel -- 0.3%
- -----------------------------------------------------------------------------
$ 3,000 Niagara County IDA, (Wintergarden Inn
Associates), 9.75%, 6/1/11(4) $ 1,185,000
- -----------------------------------------------------------------------------
$ 1,185,000
- -----------------------------------------------------------------------------
Housing -- 2.0%
- -----------------------------------------------------------------------------
$ 4,378 New York City HDC, Allerville,
6.50%, 11/15/18 $ 4,381,086
1,920 New York City HDC, Dayton,
6.50%, 11/15/18 1,964,748
235 New York Housing Finance Agency,
(Baytown), 7.10%, 8/15/35 246,094
4,815 New York Mortgage Agency,
0.00%, 10/1/14 1,136,147
500 New York Mortgage Agency, 6.65%, 4/1/22 513,390
- -----------------------------------------------------------------------------
$ 8,241,465
- -----------------------------------------------------------------------------
Insured-Education -- 2.4%
- -----------------------------------------------------------------------------
$11,325 New York Dormitory Authority, (FSA),
(State University Educational
Facilities), 4.75%, 5/15/28 $ 9,473,363
- -----------------------------------------------------------------------------
$ 9,473,363
- -----------------------------------------------------------------------------
Insured-General Obligations -- 3.9%
- -----------------------------------------------------------------------------
$ 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/08 $ 809,074
700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/09 813,666
770 Chautauqua County Unlimited Tax, (FGIC),
6.40%, 9/15/09 854,692
700 Jamestown, (AMBAC), 7.10%, 3/15/09 808,094
700 Jamestown, (AMBAC), 7.10%, 3/15/10 813,239
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-General Obligations (continued)
- -----------------------------------------------------------------------------
$ 700 Jamestown, (AMBAC), 7.10%, 3/15/11 $ 815,955
675 Jamestown, (AMBAC), 7.10%, 3/15/12 787,712
675 Jamestown, (AMBAC), 7.10%, 3/15/13 789,696
515 Jamestown, (AMBAC), 7.10%, 3/15/14 602,869
4,000 Nassau County, (AMBAC), 5.25%, 6/1/15 3,824,760
5 New York City, (AMBAC), 7.00%, 8/1/17 5,376
4,500 Puerto Rico, (FSA), Variable Rate,
7/1/22(2)(3) 4,691,250
- -----------------------------------------------------------------------------
$ 15,616,383
- -----------------------------------------------------------------------------
Insured-Hospital -- 1.1%
- -----------------------------------------------------------------------------
$ 4,000 New York Dormitory Authority, (Memorial
Sloan Kettering Cancer Center), (MBIA),
5.50%, 7/1/23 $ 3,908,920
750 New York Dormitory Authority, (New York
Presbyterian Hospital), (AMBAC),
4.75%, 8/1/27 628,703
- -----------------------------------------------------------------------------
$ 4,537,623
- -----------------------------------------------------------------------------
Insured-Miscellaneous -- 0.4%
- -----------------------------------------------------------------------------
$ 500 New York City IDA, (USTA National Tennis
Center, Inc.), (FSA), 6.375%, 11/15/14 $ 535,890
1,000 New York City Trust Cultural Resources,
(American Museum of Natural History),
(MBIA), 5.65%, 4/1/22 986,840
- -----------------------------------------------------------------------------
$ 1,522,730
- -----------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.4%
- -----------------------------------------------------------------------------
$ 1,400 New York MCFFA, Long Term Health Care
(FSA), 6.80%, 11/1/14 $ 1,494,332
- -----------------------------------------------------------------------------
$ 1,494,332
- -----------------------------------------------------------------------------
Insured-Solid Waste -- 1.9%
- -----------------------------------------------------------------------------
$ 6,795 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 7,494,206
- -----------------------------------------------------------------------------
$ 7,494,206
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.4%
- -----------------------------------------------------------------------------
$ 4,775 New York City Trust Cultural Resources,
(AMBAC), Variable Rate, 7/1/29(2)(3) $ 4,713,498
1,225 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) 841,624
- -----------------------------------------------------------------------------
$ 5,555,122
- -----------------------------------------------------------------------------
Insured-Transportation -- 5.9%
- -----------------------------------------------------------------------------
$ 6,330 Monroe County Airport Authority,
(Greater Rochester International),
(MBIA), 5.875%, 1/1/19 $ 6,498,948
4,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 3,362,520
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Transportation (continued)
- -----------------------------------------------------------------------------
$ 3,000 Triborough Bridge and Tunnel Authority,
(MBIA), Variable Rate, Variable Rate,
1/1/19(2)(3) $ 3,082,920
3,000 Triborough Bridge and Tunnel Authority,
RITES, (AMBAC), Variable Rate,
1/1/12(2)(3) 3,266,910
7,000 VRDC-IVRC Trust, (New York MTA), (MBIA),
Variable Rate, 6/26/02(2)(3) 7,358,750
- -----------------------------------------------------------------------------
$ 23,570,048
- -----------------------------------------------------------------------------
Insured-Utilities -- 1.3%
- -----------------------------------------------------------------------------
$ 5,000 Puerto Rico Telephone Authority, (MBIA),
Variable Rate, 1/25/07(2)(3) $ 5,350,000
- -----------------------------------------------------------------------------
$ 5,350,000
- -----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 10.2%
- -----------------------------------------------------------------------------
$ 3,380 New York HFA, 6.00%, 5/1/06 $ 3,572,356
5,865 New York Thruway Authority,
0.00%, 1/1/01 5,550,401
2,350 New York Thruway Authority,
0.00%, 1/1/03 2,017,851
27,940 New York UDC, 5.70%, 4/1/20 27,789,683
1,825 Syracuse-Hancock International Airport,
6.625%, 1/1/12 1,898,274
- -----------------------------------------------------------------------------
$ 40,828,565
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 0.1%
- -----------------------------------------------------------------------------
$ 380 New York City IDA, (A Very Special
Place, Inc.), 5.75%, 1/1/29 $ 340,586
- -----------------------------------------------------------------------------
$ 340,586
- -----------------------------------------------------------------------------
Special Tax Revenue -- 5.7%
- -----------------------------------------------------------------------------
$ 1,000 New York City Transitional Finance
Authority, 5.00%, 5/1/16 $ 923,980
14,830 New York LGAC, 5.00%, 4/1/21 13,374,287
2,630 New York Municipal Bond Bank Agency,
6.875%, 3/15/06 2,774,150
2,950 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(2)(3) 2,334,512
3,335 Triborough Bridge and Tunnel Authority,
Convention Center, 6.00%, 1/1/11 3,535,000
- -----------------------------------------------------------------------------
$ 22,941,929
- -----------------------------------------------------------------------------
Transportation -- 6.2%
- -----------------------------------------------------------------------------
$ 2,535 Metropolitan Transportation Authority of
New York, 5.50%, 7/1/14 $ 2,473,526
1,750 Niagara Frontier Airport Authority,
(AMT), Variable Rate, 4/1/29(2)(3) 1,628,060
1,200 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 1,143,912
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Transportation (continued)
- -----------------------------------------------------------------------------
$ 1,500 Port Authority of New York and New
Jersey, (AMT), Variable Rate, 1/15/27(2) $ 1,566,000
3,000 Triborough Bridge and Tunnel Authority,
5.20%, 1/1/22 2,757,030
12,080 Triborough Bridge and Tunnel Authority,
5.50%, 1/1/17 12,058,860
3,000 Triborough Bridge and Tunnel Authority,
6.125%, 1/1/21 3,188,190
- -----------------------------------------------------------------------------
$ 24,815,578
- -----------------------------------------------------------------------------
Water and Sewer -- 6.4%
- -----------------------------------------------------------------------------
$ 6,600 New York City Municipal Water Finance
Authority, 5.75%, 6/15/30(5) $ 6,459,684
6,500 New York City Municipal Water Finance
Authority, 5.75%, 6/15/29 6,359,015
9,000 New York City NY Municipal Water Finance
Authority, 5.25%, 6/15/29 8,178,030
4,545 New York EFC, State Water Pollution
Control, 7.20%, 3/15/11 4,686,668
- -----------------------------------------------------------------------------
$ 25,683,397
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 101.8%
(identified cost $401,043,782) $409,271,590
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.8)% $ (7,153,479)
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $402,118,111
- -----------------------------------------------------------------------------
</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 September 30, 1999, 18.7% 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 0.6% to 8.5% of total investments.
(1) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(2) Security has been issued as an inverse floater bond.
(3) 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.
(4) Non-income producing security.
(5) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Education -- 1.2%
- -----------------------------------------------------------------------------
$ 550 Ohio Higher Educational Facilities,
(Case Western University),
6.50%, 10/1/20 $ 610,538
2,625 Ohio Higher Educational Facilities,
(Oberlin College), Variable Rate,
10/1/29(1)(2) 1,980,720
- -----------------------------------------------------------------------------
$ 2,591,258
- -----------------------------------------------------------------------------
Electric Utilities -- 4.3%
- -----------------------------------------------------------------------------
$ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 1,907,220
1,185 Ohio Air Quality Development Authority,
(Dayton Power), 6.10%, 9/1/30 1,203,865
2,330 Ohio Air Quality Development Authority,
RITES, Variable Rate, 5/1/26(1)(2) 1,666,020
4,750 Ohio Water Development Authority,
Pollution Control Facilities, (Cleveland
Electric), (AMT), 6.10%, 8/1/20 4,584,130
- -----------------------------------------------------------------------------
$ 9,361,235
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.6%
- -----------------------------------------------------------------------------
$ 1,000 Clermont County, (Mercy Health System),
(AMBAC), Prerefunded to 9/25/01,
Variable Rate, 10/5/21(1) $ 1,125,000
1,750 Lorain County, (Lakeland County
Hospital), Escrowed to Maturity,
6.50%, 11/15/12 1,906,100
1,700 Puerto Rico, RIBS, (AMBAC), Prerefunded
to 7/1/02, Variable Rate, 7/1/15 1,911,140
600 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 641,688
- -----------------------------------------------------------------------------
$ 5,583,928
- -----------------------------------------------------------------------------
General Obligations -- 8.7%
- -----------------------------------------------------------------------------
$ 3,035 Belmont County, 7.30%, 12/1/12 $ 3,332,825
7,000 Hamilton City School District,
5.50%, 12/1/24 6,745,620
1,000 Tuscarawas County Public Library
Improvement, 6.90%, 12/1/11 1,042,530
6,855 Youngstown, 7.35%, 7/1/05 7,608,022
- -----------------------------------------------------------------------------
$ 18,728,997
- -----------------------------------------------------------------------------
Hospital -- 15.6%
- -----------------------------------------------------------------------------
$ 1,000 Allen County LIMA, (Convalescent Home
Foundation), (GNMA), 6.40%, 1/1/21 $ 1,024,250
1,000 Butler County, (Hamilton-Hughe
Hospital), 7.50%, 1/1/10 1,047,140
2,100 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/28 1,824,270
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Hospital (continued)
- -----------------------------------------------------------------------------
$ 2,100 Cuyahoga County, (Fairview General
Hospital), 6.25%, 8/15/10 $ 2,229,486
1,000 East Liverpool, (City Hospital),
8.00%, 10/1/21 1,053,450
4,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08 4,236,160
3,000 Franklin County, (Children's Hospital),
6.60%, 5/1/13 3,219,630
1,015 Garfield Heights, (Marymount Hospital),
6.65%, 11/15/11 1,101,082
1,000 Garfield Heights, (Marymount Hospital),
6.70%, 11/15/15 1,086,250
5,115 Hamilton County, (Bethesda Hospital,
Inc.), 6.25%, 1/1/12 5,350,239
1,000 Hamilton County, (Wesley Hall),
6.50%, 3/1/15 1,051,190
2,200 Highland County, (Township Hospital),
6.75%, 12/1/29 2,115,014
3,800 Miami, (Upper Valley Medical Center),
6.375%, 5/15/26 3,723,848
1,000 Parma, (Parma Community General Hospital
Association), 5.35%, 11/1/18 908,190
4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 3,735,197
- -----------------------------------------------------------------------------
$ 33,705,396
- -----------------------------------------------------------------------------
Housing -- 12.7%
- -----------------------------------------------------------------------------
$ 1,300 Clermont County, (SEM Laurels), (FHA),
6.00%, 9/1/20 $ 1,318,356
2,970 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 2,910,838
2,500 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.50%, 3/1/26 2,617,125
5,985 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.60%, 3/1/36 6,263,841
3,645 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT),
5.55%, 7/1/24 3,443,504
1,000 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT),
5.80%, 7/1/14 1,000,550
2,500 Kent MFMR, (Silver Meadows), (GNMA),
(AMT), 7.30%, 12/20/36 2,758,350
2,935 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 2,810,086
585 Ohio HFA SFMR, (GNMA), (AMT), Variable
Rate, 3/31/31(1) 628,144
1,000 Ohio HFA, (Aristocrat), (FHA), (AMT),
7.30%, 8/1/31 1,033,870
3,000 Ohio HFA, (GNMA), (AMT), 5.40%, 9/1/29 2,790,240
- -----------------------------------------------------------------------------
$ 27,574,904
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 19.3%
- -----------------------------------------------------------------------------
$ 4,500 Cleveland Airport, (Continental
Airlines), (AMT), 5.70%, 12/1/19 $ 4,143,105
2,000 Cuyahoga IDR, (Chippewa Place),
6.60%, 8/1/15 2,088,080
2,950 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 2,738,013
515 Ohio Economic Development Commission,
(Burrows Paper Corp.), (AMT),
7.625%, 6/1/11 543,315
195 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.50%, 12/1/04 199,772
530 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.90%, 12/1/09 548,237
1,470 Ohio Economic Development Commission,
(Consolidated Biscuit), (AMT),
7.00%, 12/1/09 1,584,939
3,060 Ohio Economic Development Commission, (J
J & W LP), (AMT), 6.70%, 12/1/14 3,242,988
1,020 Ohio Economic Development Commission,
(Kmart Corp.), 6.75%, 5/15/07 1,048,917
750 Ohio Economic Development Commission,
(Luigino's, Inc.), (AMT), 6.85%, 6/1/01 751,695
1,525 Ohio Economic Development Commission,
(Progress Plastic Products), (AMT),
7.80%, 12/1/09 1,707,863
425 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 431,728
1,000 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 1,061,100
680 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 721,548
880 Ohio Economic Development Commission,
(VSM Corp.), (AMT), 7.375%, 12/1/11 929,324
5,000 Ohio Environmental Facilities, (Ford
Motor Co.), (AMT), 5.95%, 9/1/29 4,982,400
2,200 Ohio Environmental Improvement, (USX
Corp.), 5.625%, 5/1/29 2,006,950
1,000 Ohio Pollution Control, (Standard Oil
Co.), 6.75%, 12/1/15 1,127,470
4,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 5.65%, 3/1/33 3,610,880
1,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 6.05%, 8/1/34 968,210
3,000 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT),
9.00%, 6/1/21 3,161,070
4,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 4,075,600
- -----------------------------------------------------------------------------
$ 41,673,204
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Education -- 1.4%
- -----------------------------------------------------------------------------
$ 1,000 Ohio HEFA, (University of Dayton),
(FGIC), 5.80%, 12/1/14 $ 1,015,660
2,000 University of Akron, (FGIC), Variable
Rate, 1/1/29(1)(2) 1,980,000
- -----------------------------------------------------------------------------
$ 2,995,660
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 2.9%
- -----------------------------------------------------------------------------
$ 1,650 Cleveland Public Power System, (MBIA),
7.00%, 11/15/17 $ 1,761,606
2,000 Cuyahoga County Utility Systems,
(Medical Center Co.), (MBIA), (AMT),
6.10%, 8/15/15 2,046,080
10 Ohio Air Quality Development Authority,
(Ohio Power), (AMBAC), 5.15%, 5/1/26 9,050
2,300 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 2,438,000
- -----------------------------------------------------------------------------
$ 6,254,736
- -----------------------------------------------------------------------------
Insured-General Obligations -- 4.6%
- -----------------------------------------------------------------------------
$ 3,700 Avon Lake City School District, (FGIC),
5.50%, 12/1/26 $ 3,570,833
2,110 Hudson Local School District, (FGIC),
0.00%, 12/15/09 1,251,863
2,600 Norwalk City School District, (AMBAC),
4.75%, 12/1/26 2,180,516
3,000 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) 3,127,500
- -----------------------------------------------------------------------------
$ 10,130,712
- -----------------------------------------------------------------------------
Insured-Hospital -- 10.5%
- -----------------------------------------------------------------------------
$ 5,245 Cuyahoga County, (Cleveland Clinic),
(MBIA), 5.125%, 1/1/29 $ 4,658,032
3,000 Hamilton County, (Childrens Hospital
Medical Center), (MBIA), 4.75%, 5/15/28 2,484,540
2,750 Mansfield, (Mansfield General Hospital),
(AMBAC), 6.70%, 12/1/09 2,922,370
5,000 Middleburg Heights, (Southwestern
General), (FSA), 5.75%, 8/15/21 4,971,900
1,000 Montgomery County, (Miami Valley
Hospital), (AMBAC), 6.25%, 11/15/16 1,029,210
6,565 Portage County, (Robinson Memorial
Hospital), (MBIA), 5.80%, 11/15/15 6,630,059
- -----------------------------------------------------------------------------
$ 22,696,111
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Housing -- 0.5%
- -----------------------------------------------------------------------------
$ 1,100 Ohio Capital Corp., (Horizon
Apartments), (FHA), (MBIA),
6.50%, 1/1/23 $ 1,128,523
- -----------------------------------------------------------------------------
$ 1,128,523
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.1%
- -----------------------------------------------------------------------------
$ 1,500 Hamilton County Sales Tax, (MBIA),
4.75%, 12/1/27 $ 1,249,155
1,575 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(1) 1,082,088
- -----------------------------------------------------------------------------
$ 2,331,243
- -----------------------------------------------------------------------------
Insured-Transportation -- 2.0%
- -----------------------------------------------------------------------------
$ 1,600 Ohio Turnpike Commission, (FGIC),
4.50%, 2/15/24 $ 1,291,968
650 Ohio Turnpike Commission, (FGIC),
4.75%, 2/15/28 541,768
3,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 2,521,890
- -----------------------------------------------------------------------------
$ 4,355,626
- -----------------------------------------------------------------------------
Nursing Home -- 6.0%
- -----------------------------------------------------------------------------
$ 2,000 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/17 $ 1,806,100
1,305 Cuyahoga County, (Maple Care Center),
(GNMA), (AMT), 8.00%, 8/20/16 1,510,968
1,205 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
6.10%, 9/20/16 1,244,235
6,455 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
9.55%, 3/20/32 8,341,990
- -----------------------------------------------------------------------------
$ 12,903,293
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 4.2%
- -----------------------------------------------------------------------------
$ 1,990 Franklin County, (Kensington Place),
6.75%, 1/1/34 $ 2,083,470
1,000 Hamilton County Hospital Facilities,
(Episcopal Retirement Home),
6.80%, 1/1/08 1,052,210
1,800 Marion, Health Care, (United Church
Home), 6.30%, 11/15/15 1,798,038
2,400 Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners),
6.75%, 3/1/19 2,203,512
2,250 Summit County Healthcare Facilities,
(Village at Saint Edward),
5.75%, 12/1/25 2,018,093
- -----------------------------------------------------------------------------
$ 9,155,323
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Solid Waste -- 1.0%
- -----------------------------------------------------------------------------
$ 2,400 Ohio Water Development Authority, Solid
Waste Disposal Revenue, (Bay Shore
Power), (AMT), 5.875%, 9/1/20 $ 2,268,864
- -----------------------------------------------------------------------------
$ 2,268,864
- -----------------------------------------------------------------------------
Special Tax Revenue -- 0.5%
- -----------------------------------------------------------------------------
$ 1,350 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 1,068,336
- -----------------------------------------------------------------------------
$ 1,068,336
- -----------------------------------------------------------------------------
Transportation -- 0.1%
- -----------------------------------------------------------------------------
$ 250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 217,848
- -----------------------------------------------------------------------------
$ 217,848
- -----------------------------------------------------------------------------
Water and Sewer -- 0.5%
- -----------------------------------------------------------------------------
$ 1,000 Vermilion Water, 7.25%, 8/15/15 $ 1,034,190
- -----------------------------------------------------------------------------
$ 1,034,190
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.7%
(identified cost $213,863,078) $215,759,387
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.3% $ 704,640
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $216,464,027
- -----------------------------------------------------------------------------
</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 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 September 30, 1999, 24.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 4.5% to 9.3% 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.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Education -- 1.8%
- ----------------------------------------------------------------------------
$ 750 Rhode Island Student Loan Authority,
(AMT), 5.60%, 12/1/12 $ 744,765
- ----------------------------------------------------------------------------
$ 744,765
- ----------------------------------------------------------------------------
Electric Utilities -- 1.5%
- ----------------------------------------------------------------------------
$ 750 Puerto Rico Electric Power Authority,
4.75%, 7/1/24 $ 638,842
- ----------------------------------------------------------------------------
$ 638,842
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.9%
- ----------------------------------------------------------------------------
$ 250 Puerto Rico, RIBS, (AMBAC), Prerefunded
to 7/1/02, Variable Rate, 7/1/15 $ 281,050
255 Rhode Island Clean Water Protection
Finance Agency, Water Pollution Control,
(MBIA), Prerefunded to 10/1/04,
5.85%, 10/1/09 273,401
1,000 Rhode Island Depositors Economic
Protection Corp., (MBIA), Escrowed to
Maturity, 5.80%, 8/1/12 1,054,160
- ----------------------------------------------------------------------------
$ 1,608,611
- ----------------------------------------------------------------------------
General Obligations -- 3.0%
- ----------------------------------------------------------------------------
$ 225 Puerto Rico, 0.00%, 7/1/16 $ 88,040
1,000 Puerto Rico Public Buildings Authority,
5.25%, 7/1/21 931,830
230 Rhode Island Depositors Economic
Protection Corp., 5.75%, 8/1/21 230,520
- ----------------------------------------------------------------------------
$ 1,250,390
- ----------------------------------------------------------------------------
Hospital -- 10.9%
- ----------------------------------------------------------------------------
$ 1,500 Rhode Island HEFA, (Landmark Medical
Center), 5.875%, 10/1/19 $ 1,460,460
500 Rhode Island HEFA, (Newport Hospital),
5.30%, 7/1/29 436,430
800 Rhode Island HEFA, (Saint Joseph Health
Services), 5.50%, 10/1/29 689,368
1,250 Rhode Island HEFA, (South County
Hospital), 5.75%, 11/15/26 1,167,962
830 Rhode Island HEFA, (Westerly Hospital),
6.00%, 7/1/14 805,432
- ----------------------------------------------------------------------------
$ 4,559,652
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Housing -- 14.7%
- ----------------------------------------------------------------------------
$ 500 Guam Housing Corp., Single Family,
5.75%, 9/1/31 $ 481,610
1,740 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.60%, 10/1/25 1,786,493
100 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.70%, 10/1/12 103,008
875 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.80%, 10/1/25 907,270
775 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.10%, 10/1/23 793,615
2,000 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.55%, 10/1/22 2,077,540
- ----------------------------------------------------------------------------
$ 6,149,536
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 2.5%
- ----------------------------------------------------------------------------
$ 400 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 $ 407,560
640 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.30%, 6/1/23 650,272
- ----------------------------------------------------------------------------
$ 1,057,832
- ----------------------------------------------------------------------------
Insured-Education -- 4.1%
- ----------------------------------------------------------------------------
$ 1,000 Rhode Island HEFA, (Johnson and Wales
University), (MBIA), 5.00%, 4/1/29 $ 864,310
400 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/28 345,960
500 Rhode Island HEFA, (University of Rhode
Island), (MBIA), 5.50%, 9/15/19(1) 489,615
- ----------------------------------------------------------------------------
$ 1,699,885
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 2.6%
- ----------------------------------------------------------------------------
$ 1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 $ 661,027
500 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 426,750
- ----------------------------------------------------------------------------
$ 1,087,777
- ----------------------------------------------------------------------------
Insured-General Obligations -- 10.9%
- ----------------------------------------------------------------------------
$ 1,500 Kent County Water Authority, (MBIA),
6.35%, 7/15/14 $ 1,602,120
500 Providence, Public Building Authority,
(School and Public Facilities Projects),
(FSA), 5.00%, 12/15/18 446,270
375 Rhode Island Consolidated Capital
Development, (FGIC), 4.75%, 9/1/17 330,131
500 Rhode Island Depositors Economic
Protection Corp., (MBIA), 5.80%, 8/1/09 534,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-General Obligations (continued)
- ----------------------------------------------------------------------------
$ 500 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/23 $ 436,230
1,400 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/28 1,201,522
- ----------------------------------------------------------------------------
$ 4,550,423
- ----------------------------------------------------------------------------
Insured-Hospital -- 11.3%
- ----------------------------------------------------------------------------
$ 2,700 Rhode Island HEFA, (Lifespan), (MBIA),
5.25%, 5/15/26(2) $ 2,420,712
2,350 Rhode Island HEFA, (Lifespan), (MBIA),
5.75%, 5/15/23 2,292,049
- ----------------------------------------------------------------------------
$ 4,712,761
- ----------------------------------------------------------------------------
Insured-Housing -- 1.3%
- ----------------------------------------------------------------------------
$ 500 Villa Excelsior Housing Development
Corp., (MBIA), 6.85%, 1/1/24 $ 525,800
- ----------------------------------------------------------------------------
$ 525,800
- ----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 12.4%
- ----------------------------------------------------------------------------
$ 3,000 Convention Center Authority of Rhode
Island, (MBIA), 5.00%, 5/15/20 $ 2,665,380
2,300 Convention Center Authority of Rhode
Island, (MBIA), 5.25%, 5/15/15 2,236,566
420 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) 288,557
- ----------------------------------------------------------------------------
$ 5,190,503
- ----------------------------------------------------------------------------
Insured-Transportation -- 3.5%
- ----------------------------------------------------------------------------
$ 1,750 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 1,471,103
- ----------------------------------------------------------------------------
$ 1,471,103
- ----------------------------------------------------------------------------
Insured-Water and Sewer -- 3.4%
- ----------------------------------------------------------------------------
$ 750 Rhode Island Clean Water, Safe Drinking
Water, (AMBAC), 6.70%, 1/1/15 $ 810,638
350 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.40%, 10/1/15 344,880
245 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.85%, 10/1/09 255,942
- ----------------------------------------------------------------------------
$ 1,411,460
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Nursing Home -- 1.6%
- ----------------------------------------------------------------------------
$ 725 Rhode Island HEFA, (Steere House),
5.80%, 7/1/20 $ 670,647
- ----------------------------------------------------------------------------
$ 670,647
- ----------------------------------------------------------------------------
Senior Living / Life Care -- 2.4%
- ----------------------------------------------------------------------------
$ 1,000 Rhode Island HEFA, (Tockwotton Home),
6.25%, 8/15/22 $ 978,500
- ----------------------------------------------------------------------------
$ 978,500
- ----------------------------------------------------------------------------
Special Tax Revenue -- 4.9%
- ----------------------------------------------------------------------------
$ 1,500 Providence, 7.65%, 6/1/16 $ 1,633,065
500 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(3)(4) 395,680
- ----------------------------------------------------------------------------
$ 2,028,745
- ----------------------------------------------------------------------------
Transportation -- 1.0%
- ----------------------------------------------------------------------------
$ 500 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 $ 434,060
- ----------------------------------------------------------------------------
$ 434,060
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.7%
(identified cost $41,277,750) $40,771,292
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.3% $ 960,405
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $41,731,697
- ----------------------------------------------------------------------------
</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 September 30, 1999, 54.6% 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 0.8% to 41.0% of total investments.
(1) When-issued 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.
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Electric Utilities -- 5.4%
- ----------------------------------------------------------------------------
$1,000 Mason PCR, (Appalacian Power Co.),
6.85%, 6/1/22 $ 1,052,210
1,130 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 415,196
- ----------------------------------------------------------------------------
$ 1,467,406
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.5%
- ----------------------------------------------------------------------------
$2,500 Kanawha-Putnam, Single Family, (AMBAC),
Escrowed to Maturity, 0.00%, 12/1/16 $ 932,050
- ----------------------------------------------------------------------------
$ 932,050
- ----------------------------------------------------------------------------
General Obligations -- 0.7%
- ----------------------------------------------------------------------------
$ 500 Puerto Rico, 0.00%, 7/1/16 $ 195,645
- ----------------------------------------------------------------------------
$ 195,645
- ----------------------------------------------------------------------------
Hospital -- 12.0%
- ----------------------------------------------------------------------------
$1,250 Berkeley Building Commission, (City
Hospital), 6.50%, 11/1/22 $ 1,277,900
750 Philippi Health System, (Davis Health
System - Broaddus Hospital),
5.50%, 11/1/24 681,547
250 Princeton, (Community Hospital),
6.10%, 5/1/29 236,917
1,000 West Virginia HFA, (Charleston Area
Medical Center), 6.50%, 9/1/23 1,031,420
- ----------------------------------------------------------------------------
$ 3,227,784
- ----------------------------------------------------------------------------
Housing -- 0.9%
- ----------------------------------------------------------------------------
$ 250 West Virginia State Housing Development
Fund, (AMT), 5.70%, 11/1/17 $ 247,677
- ----------------------------------------------------------------------------
$ 247,677
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 10.3%
- ----------------------------------------------------------------------------
$1,375 Jefferson, (Royal Venders, Inc.), (AMT),
5.90%, 8/1/04 $ 1,397,660
300 Kanawha, (Union Carbide Chemicals and
Plastics Co.), (AMT), 8.00%, 8/1/20 312,186
1,000 Upshur Solid Waste, (TJI), (AMT),
7.00%, 7/15/25 1,072,410
- ----------------------------------------------------------------------------
$ 2,782,256
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Education -- 5.9%
- ----------------------------------------------------------------------------
$1,000 West Virginia University, (AMBAC),
5.75%, 4/1/16 $ 1,006,960
550 West Virginia University, (AMBAC),
6.00%, 4/1/12 572,556
- ----------------------------------------------------------------------------
$ 1,579,516
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 8.8%
- ----------------------------------------------------------------------------
$ 700 Marshall PCR, (Ohio Power Kammer Plant),
(MBIA), 5.45%, 7/1/14 $ 692,601
1,500 Pleasants County Pollution Control,
(Potomac Edison), (AMBAC), (AMT),
5.50%, 4/1/29 1,407,660
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 270,000
- ----------------------------------------------------------------------------
$ 2,370,261
- ----------------------------------------------------------------------------
Insured-General Obligations -- 4.2%
- ----------------------------------------------------------------------------
$ 150 West Virginia, (FGIC), 5.25%, 11/1/26 $ 138,120
1,000 West Virginia, (FGIC), 5.75%, 11/1/21 991,910
- ----------------------------------------------------------------------------
$ 1,130,030
- ----------------------------------------------------------------------------
Insured-Hospital -- 14.4%
- ----------------------------------------------------------------------------
$ 500 Randolph County Commission Health
System, (Davis Health System, Inc.),
(FSA), 5.20%, 11/1/21 $ 456,100
1,300 West Virginia HFA, (Cabell Huntington
Hospital), (AMBAC), 6.25%, 1/1/19 1,334,619
850 West Virginia HFA, (Charleston Area
Medical Center), (MBIA), 5.75%, 9/1/13 865,360
1,200 West Virginia HFA, (Linked Bulls &
Bears), (MBIA), 6.10%, 1/1/18 1,217,544
- ----------------------------------------------------------------------------
$ 3,873,623
- ----------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of
Participation -- 1.8%
- ----------------------------------------------------------------------------
$ 500 West Virginia School Building Authority,
(AMBAC), 5.60%, 7/1/17 $ 494,690
- ----------------------------------------------------------------------------
$ 494,690
- ----------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 1.7%
- ----------------------------------------------------------------------------
$ 500 Harrison County Building Commission,
(Maplewood Retirement), (AMBAC),
5.25%, 4/1/28 $ 451,920
- ----------------------------------------------------------------------------
$ 451,920
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.4%
- ----------------------------------------------------------------------------
$ 175 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(1) $ 120,232
- ----------------------------------------------------------------------------
$ 120,232
- ----------------------------------------------------------------------------
Insured-Transportation -- 6.0%
- ----------------------------------------------------------------------------
$1,000 West Virginia Parkways Economic
Development and Tourism Authority,
(FGIC), 0.00%, 5/15/04 $ 807,020
1,000 West Virginia State Roads, (FGIC),
4.50%, 6/1/23 814,330
- ----------------------------------------------------------------------------
$ 1,621,350
- ----------------------------------------------------------------------------
Insured-Water and Sewer -- 15.8%
- ----------------------------------------------------------------------------
$ 250 Berkeley Public Service District Sewer,
(MBIA), 5.75%, 10/1/25 $ 248,898
500 Crab Orchard Public Service District,
(AMBAC), 5.50%, 10/1/25 481,085
1,000 Fairmont, Waterworks Revenue, (AMBAC),
4.50%, 7/1/24 809,440
1,500 Parkersburg Waterworks and Sewer, (FSA),
5.80%, 9/1/19 1,504,575
500 West Virginia Water Development, (Loan
Program II), (FSA), 5.25%, 11/1/35 451,440
750 West Virginia Water Development, (Loan
Program II), (FSA), 6.00%, 11/1/14 779,070
- ----------------------------------------------------------------------------
$ 4,274,508
- ----------------------------------------------------------------------------
Nursing Home -- 1.8%
- ----------------------------------------------------------------------------
$ 500 Kanawha County, (Beverly Enterprises),
5.50%, 11/1/08 $ 473,510
- ----------------------------------------------------------------------------
$ 473,510
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Solid Waste -- 3.6%
- ----------------------------------------------------------------------------
$1,000 Braxton County, (Weyerhaeuser Co.),
(AMT), 5.80%, 6/1/27 $ 960,690
- ----------------------------------------------------------------------------
$ 960,690
- ----------------------------------------------------------------------------
Special Tax Revenue -- 1.2%
- ----------------------------------------------------------------------------
$ 400 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 316,544
- ----------------------------------------------------------------------------
$ 316,544
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $26,667,588) $26,519,692
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 441,184
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $26,960,876
- ----------------------------------------------------------------------------
</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 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 September 30, 1999, 63.5% of the securities in the portfolio of
investments are backed by bond insurance of various financial institutions and
financial guaranty assurance agencies. The aggregate percentage insured by
financial institutions ranged from 10.4% to 28.7% 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.
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $249,159,445 $354,418,699 $207,184,612 $17,055,906
Unrealized appreciation 14,341,009 332,434 3,222,113 439,536
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $263,500,454 $354,751,133 $210,406,725 $17,495,442
- ---------------------------------------------------------------------------------------------------------------------------------
Cash $ 888,118 $ -- $ -- $ --
Receivable for investments sold 3,120,000 135,000 128,071 838,086
Interest receivable 3,715,263 7,042,312 3,214,012 340,169
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $271,223,835 $361,928,445 $213,748,808 $18,673,697
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 3,494,505 $ -- $ 474,730
Payable for when-issued securities 1,003,150 3,892,080 -- --
Demand note payable -- 7,600,000 1,400,000 200,000
Due to bank -- 59,429 55,791 56,818
Payable to affiliate for Trustees' fees -- 2,364 -- --
Accrued expenses 20,487 7,795 15,910 5,310
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,023,637 $ 15,056,173 $ 1,471,701 $ 736,858
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $270,200,198 $346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $255,859,189 $346,539,838 $209,054,994 $17,497,303
Net unrealized appreciation (computed on
the
basis of identified cost) 14,341,009 332,434 3,222,113 439,536
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL $270,200,198 $346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $401,043,782 $213,863,078 $41,277,750 $26,667,588
Unrealized appreciation
(depreciation) 8,227,808 1,896,309 (506,458) (147,896)
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $409,271,590 $215,759,387 $40,771,292 $26,519,692
- -----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 411,282 $ --
Receivable for investments sold 10,210,636 12,945,663 624,910 433,777
Interest receivable 6,715,802 3,339,496 849,721 443,645
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $426,198,028 $232,044,546 $42,657,205 $27,397,114
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ 17,073,721 $ 9,611,117 $ 431,572 $ --
Payable for when-issued securities 6,459,684 -- 489,044 --
Demand note payable 500,000 5,900,000 -- 400,000
Due to bank 22,638 53,923 -- 33,138
Payable to affiliate for Trustees' fees -- 1,603 -- 211
Accrued expenses 23,874 13,876 4,892 2,889
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 24,079,917 $ 15,580,519 $ 925,508 $ 436,238
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $393,890,303 $214,567,718 $42,238,155 $27,108,772
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 8,227,808 1,896,309 (506,458) (147,896)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------------
Interest $ 17,309,148 $ 23,427,863 $ 13,963,691 $ 1,130,481
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 17,309,148 $ 23,427,863 $ 13,963,691 $ 1,130,481
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,408,907 $ 1,827,598 $ 1,029,634 $ 31,879
Trustees fees and expenses 26,047 29,327 21,114 257
Legal and accounting services 38,864 41,270 34,959 17,304
Custodian fee 152,205 185,030 114,536 17,873
Miscellaneous 23,655 55,994 19,428 5,263
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,649,678 $ 2,139,219 $ 1,219,671 $ 72,576
- ---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 56,891 $ 185,030 $ 38,928 $ 4,020
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 56,891 $ 185,030 $ 38,928 $ 4,020
- ---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,592,787 $ 1,954,189 $ 1,180,743 $ 68,556
- ---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
- ---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,827,671 $ 8,811,395 $ 2,172,182 $ 208,014
Financial futures contracts 218,663 (74,128) 676,780 14,376
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 3,046,334 $ 8,737,267 $ 2,848,962 $ 222,390
- ---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(30,348,569) $(44,899,518) $(23,254,394) $(1,697,757)
Financial futures contracts 376,199 398,880 -- 22,941
- ---------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(29,972,370) $(44,500,638) $(23,254,394) $(1,674,816)
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(26,926,036) $(35,763,371) $(20,405,432) $(1,452,426)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $(14,289,697) $ (7,622,484) $ (390,501)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 26,318,419 $ 14,525,315 $ 2,412,221 $ 1,670,867
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 26,318,419 $ 14,525,315 $ 2,412,221 $ 1,670,867
- -----------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 2,052,610 $ 1,056,733 $ 108,206 $ 63,145
Trustees fees and expenses 28,764 21,487 2,572 2,642
Legal and accounting services 48,964 33,704 19,472 19,068
Custodian fee 194,113 124,932 30,584 26,890
Miscellaneous 58,634 66,783 5,550 9,790
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 2,383,085 $ 1,303,639 $ 166,384 $ 121,535
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 32,559 $ 21,444 $ 13,858 $ 6,258
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 32,559 $ 21,444 $ 13,858 $ 6,258
- -----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 2,350,526 $ 1,282,195 $ 152,526 $ 115,277
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
- -----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 224,797 $ (140,216) $ (176,858) $ 209,894
Financial futures contracts (291,627) (6,744) 135,208 58,720
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (66,830) $ (146,960) $ (41,650) $ 268,614
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(39,003,854) $(17,738,121) $(3,927,649) $(2,808,929)
Financial futures contracts 633,222 129,636 -- 45,458
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(38,370,632) $(17,608,485) $(3,927,649) $(2,763,471)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(38,437,462) $(17,755,445) $(3,969,299) $(2,494,857)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 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 $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
Net realized gain 3,046,334 8,737,267 2,848,962 222,390
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,394) (1,674,816)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $ (14,289,697) $ (7,622,484) $ (390,501)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 26,307,078 $ 22,428,860 $ 22,537,239 $ 1,934,210
Withdrawals (56,905,888) (117,286,711) (53,364,100) (4,346,534)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(30,598,810) $ (94,857,851) $(30,826,861) $(2,412,324)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,808,485) $(109,147,548) $(38,449,345) $(2,802,825)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 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 $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
Net realized gain (loss) (66,830) (146,960) (41,650) 268,614
Net change in unrealized appreciation
(depreciation) (38,370,632) (17,608,485) (3,927,649) (2,763,471)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 31,675,644 $ 15,132,326 $ 7,437,315 $ 1,765,713
Withdrawals (101,151,980) (49,186,424) (6,067,386) (5,785,114)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(69,476,336) $(34,054,098) $ 1,369,929 $(4,019,401)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(83,945,905) $(38,566,423) $ (339,675) $(4,958,668)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $486,064,016 $255,030,450 $42,071,372 $31,919,544
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 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 SEPTEMBER 30, 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 $45,483,365 $ 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 SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.56% 0.55% 0.57% 0.57% 0.59%
Expenses after custodian fee
reduction 0.54% 0.53% 0.56% 0.56% 0.58%
Net investment income 5.30% 5.33% 5.76% 5.93% 6.22%
Portfolio Turnover 28% 16% 12% 14% 58%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $270,200 $312,009 $327,004 $370,590 $410,763
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.52% 0.51% 0.52% 0.52% 0.55%
Expenses after custodian fee
reduction 0.48% 0.47% 0.48% 0.49% 0.52%
Net investment income 5.26% 5.03% 5.53% 5.67% 5.94%
Portfolio Turnover 40% 25% 54% 51% 61%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $346,843 $456,020 $514,201 $624,374 $712,203
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.52% 0.54% 0.53% 0.55% 0.56%
Expenses after custodian fee
reduction 0.50% 0.52% 0.52% 0.54% 0.53%
Net investment income 5.40% 5.36% 5.75% 5.77% 6.00%
Portfolio Turnover 24% 28% 35% 51% 87%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $212,277 $250,726 $253,675 $281,129 $302,170
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.36% 0.37% 0.38% 0.29% 0.27%
Net expenses after custodian
fee reduction 0.34% 0.35% 0.37% 0.26% 0.23%
Net investment income 5.30% 5.21% 5.59% 5.77% 5.97%
Portfolio Turnover 16% 17% 6% 12% 52%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $17,937 $20,740 $22,127 $25,280 $28,993
- ---------------------------------------------------------------------------
+ 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 0.40% 0.39%
Expenses after custodian fee
reduction 0.37% 0.35%
Net investment income 5.66% 5.85%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.53% 0.53% 0.57% 0.52% 0.54%
Expenses after custodian fee
reduction 0.52% 0.51% 0.57% 0.49% 0.51%
Net investment income 5.30% 5.28% 5.60% 5.64% 5.97%
Portfolio Turnover 41% 55% 44% 47% 55%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $402,118 $486,064 $527,604 $604,530 $652,736
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.55% 0.56% 0.56% 0.57% 0.57%
Expenses after custodian fee
reduction 0.54% 0.54% 0.55% 0.56% 0.55%
Net investment income 5.54% 5.50% 5.70% 5.69% 5.80%
Portfolio Turnover 59% 17% 30% 35% 51%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $216,464 $255,030 $271,269 $292,671 $319,017
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.39% 0.39% 0.27% 0.27% 0.29%
Net expenses after custodian
fee reduction 0.35% 0.36% 0.23% 0.24% 0.25%
Net investment income 5.24% 5.28% 5.54% 5.69% 5.96%
Portfolio Turnover 18% 24% 39% 25% 42%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $41,732 $42,071 $40,218 $42,167 $42,906
- ---------------------------------------------------------------------------
+ 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 0.39% 0.40% 0.41%
Expenses after custodian fee
reduction 0.35% 0.37% 0.37%
Net investment income 5.42% 5.56% 5.84%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.40% 0.37% 0.38% 0.42% 0.31%
Net expenses after custodian
fee reduction 0.38% 0.34% 0.36% 0.38% 0.29%
Net investment income 5.13% 5.34% 5.44% 5.41% 5.81%
Portfolio Turnover 32% 16% 24% 43% 19%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $26,961 $31,920 $33,503 $39,501 $40,835
- ---------------------------------------------------------------------------
+ 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 0.39%
Expenses after custodian fee
reduction 0.37%
Net investment income 5.73%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS
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 not readily available 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 its 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 sale
transaction, a 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.
F When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued and 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
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
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 the 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 balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reflected as a
reduction of operating expenses on the Statement of Operations.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended September 30, 1999, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
---------------------------------------------------------------------
California $1,408,907 0.48%
Florida 1,827,598 0.45%
Massachusetts 1,029,634 0.44%
Mississippi 31,879 0.16%
New York 2,052,610 0.45%
Ohio 1,056,733 0.44%
Rhode Island 108,206 0.25%
West Virginia 63,145 0.21%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
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 officers and Trustees of the Portfolios are officers 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 year ended September 30, 1999, no significant
amounts have been deferred.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased option transactions and short-term obligations, for the year ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 81,972,602
Sales 101,383,004
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $159,988,168
Sales 214,567,688
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 56,924,629
Sales 73,252,378
<CAPTION>
MISSISSIPPI PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 3,085,362
Sales 4,561,931
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $182,436,319
Sales 218,164,200
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $140,272,618
Sales 156,522,546
</TABLE>
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 11,081,928
Sales 7,518,444
<CAPTION>
WEST VIRGINIA PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 9,538,990
Sales 12,045,005
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in the value of the
investments owned by each Portfolio at September 30, 1999, as computed on a
federal income tax basis, were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $249,159,445
------------------------------------------------------
Gross unrealized appreciation $ 19,953,401
Gross unrealized depreciation (5,612,392)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 14,341,009
------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $354,418,699
------------------------------------------------------
Gross unrealized appreciation $ 13,515,155
Gross unrealized depreciation (13,182,721)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 332,434
------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $207,184,612
------------------------------------------------------
Gross unrealized appreciation $ 9,347,932
Gross unrealized depreciation (6,125,819)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,222,113
------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 17,055,906
------------------------------------------------------
Gross unrealized appreciation $ 719,116
Gross unrealized depreciation (279,580)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 439,536
------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $401,051,530
------------------------------------------------------
Gross unrealized appreciation $ 14,843,312
Gross unrealized depreciation (6,623,252)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 8,220,060
------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $213,863,078
------------------------------------------------------
Gross unrealized appreciation $ 6,590,158
Gross unrealized depreciation (4,693,849)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,896,309
------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 41,277,750
------------------------------------------------------
Gross unrealized appreciation $ 797,592
Gross unrealized depreciation (1,304,050)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (506,458)
------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 26,765,403
------------------------------------------------------
Gross unrealized appreciation $ 482,409
Gross unrealized depreciation (728,120)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (245,711)
------------------------------------------------------
</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 ($120 million effective October 12,
1999) 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 September 30, 1999, the Florida Portfolio, Massachusetts
Portfolio, Mississippi Portfolio, New York Portfolio, Ohio Portfolio and West
Virginia Portfolio had a balance outstanding pursuant to this line of credit
of
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
$7,600,000, $1,400,000, $200,000, $500,000, $5,900,000 and $400,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended September 30, 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.
At September 30, 1999, there were no such financial instruments outstanding.
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF THE CALIFORNIA MUNICIPALS PORTFOLIO, FLORIDA
MUNICIPALS PORTFOLIO, MASSACHUSETTS MUNICIPALS PORTFOLIO, MISSISSIPPI MUNICIPALS
PORTFOLIO, NEW YORK MUNICIPALS PORTFOLIO, OHIO MUNICIPALS PORTFOLIO, RHODE
ISLAND MUNICIPALS PORTFOLIO, AND WEST VIRGINIA MUNICIPALS PORTFOLIO
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments, of the California Municipals Portfolio, Florida
Municipals Portfolio, Massachusetts Municipals Portfolio, Mississippi Municipals
Portfolio, New York Municipals Portfolio, Ohio Municipals Portfolio, Rhode
Island Municipals Portfolio, and West Virginia Municipals Portfolio (the
Portfolios) as of September 30, 1999, the related statements of operations for
the year then ended, the statements of changes in net assets for the years ended
September 30, 1999 and 1998 and the supplementary data for each of the years in
the five-year period ended September 30, 1999. These financial statements and
supplementary data are the responsibility of the Portfolios management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities held as of
September 30, 1999 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other audit procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at September 30, 1999, the results of their operations, the changes
in their net assets and their supplementary data for the respective stated
periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 29, 1999
86
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 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
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolio
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts and
Rhode Island Municipals Portfolios
Timothy T. Browse
Vice President and Portfolio
Manager of West Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of California, Florida,
and Mississippi Municipals
Portfolios
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
Jack L. Treynor
Investment Adviser and Consultant
87
<PAGE>
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
INDEPENDENT AUDITORS
DELOITTE &TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 State Street
Boston, MA 02109
- ------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
2-2267-11/99 MUNISRC-11/99
