<PAGE>
MUTUAL FUNDS [PHOTO]
[PHOTO] FOR PEOPLE -Education-
- -To Come- WHO PAY
TAXES
Semiannual Report March 31, 1999
EATON VANCE
NATIONAL
MUNICIPALS
FUND
[PHOTO]
- -Highway-
[PHOTO]
- -Bridge-
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT UPDATE
[PICTURE]
Thomas M. Metzold
Portfolio Manager
INVESTMENT ENVIRONMENT
- -------------------------------------------------------------------------------
- - Continued low inflation and a declining interest rate environment provided
the backdrop for the tax-exempt sector. U.S. economic growth was more robust
than expected in the fourth quarter of 1998. Gross Domestic Product (GDP) grew
6.1%, the fastest pace in nearly 15 years, making the GDP growth rate for
1998 4.3%.
- - Through the end of 1998, municipal bonds trailed the Treasury market, which
rallied strongly as investors sought quality in an uncertain global economic
outlook. Adding supply pressures for the tax-exempt sector, nearly $300
billion in new issues came to market in 1998. However, during the first 3
months of 1999, municipal bonds have outperformed Treasuries.
- - The Lehman Brothers Municipal Bond Index* -- a broad-based, unmanaged index of
municipal bonds -- posted a return of 6.2% for the twelve-month period ended
March 31, 1999.
MANAGEMENT DISCUSSION
- -------------------------------------------------------------------------------
- - Credit quality spreads continued to narrow in the second half of 1998 and the
first three months of 1999. Management took the opportunity to selectively
reduce credit risk and to diversify and improve credit quality in the
Portfolio by swapping into higher-grade credits.
- - Management continued its strategy of structuring the Portfolio in a "barbell
approach," which balances lower coupon performance bonds with higher coupon
income bonds.
- - We continually strive to improve the call characteristics of issues in the
Portfolio in order to reduce reinvestment risk in a declining interest rate
environment.
FUND PERFORMANCE
- -------------------------------------------------------------------------------
The Past Six Months
- - During the six months ended March 31, 1999, the Fund's Class A shares had a
total return of 0.2%.(1) This return resulted from a change in net asset value
(NAV) per share to $11.35 on March 31, 1999 from $11.65 on September 30, 1998,
and the reinvestment of $0.321 per share in tax-exempt dividend income.(2)
- - The Fund's Class B shares had a total return of -0.2%.(1) This return resulted
from a change in NAV per share to $10.59 on March 31, 1999 from $10.87 on
September 30, 1998, and the reinvestment of $0.258 per share in tax-exempt
dividend income.(2)
- - The Fund's Class C shares had a total return of -0.2%.(1) This return resulted
from a change in NAV per share to $10.09 on March 31, 1999 from $10.35 on
September 30, 1998, and the reinvestment of $0.242 per share in tax-exempt
dividend income.(2)
- - Based on the Fund's most recent dividends and NAVs per share on March 31,
1999, of $11.35 for Class A, $10.59 for Class B, and $10.09 for Class C,
the distribution rates were 5.55%, 4.77%, and 4.68%, respectively.(3)
- - The SEC 30-day yields at March 31, 1999 were 4.93%, 4.35%, and 4.34%,
respectively.(4)
(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 and Class C shares. (2) A portion of the
Fund's income may be subject to state income tax and/or alternative
minimum tax. (3) The Fund's distribution rate represents actual
distributions paid to shareholders and is calculated daily by dividing
the last distribution per share (annualized)by the net asset value
(NAV). (4) The Fund's SEC yield is calculated by dividing the net
investment income per share for the 30-day period by the offering price
at the end of the period and annualizing the result. (5) Returns are
historical and are calculated by determining the percentage change in
NAV with all distributions reinvested. SEC average annual returns for
Class A reflect the maximum sales charge of 4.75%. Class B returns
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. For
Class C, one year return reflects 1% CDSC. (6) May not represent the
Portfolio's current or future investments; subject to change due to
active management. Five largest sectors represent 56.4% of the
Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
* It is not possible to invest directly in an Index.
- -------------------------------------------------------------------------------
<TABLE>
<CAPTION>
Fund Information
as of March 31, 1999
Performance(5) Class A Class B Class C
- ---------------------------------------------------------------------------
<S> <C> <C> <C>
Average Annual Total Returns (at net asset value)
- ---------------------------------------------------------------------------
One Year 3.9% 3.1% 3.1
Five Years N.A. 7.7 7.5
Ten Years N.A. 7.7 N.A.
Life of Fund+ 9.1 7.4 5.8
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- ----------------------------------------------------------------------------
One Year (1.1%) (1.8%) 2.1
Five Years N.A. 7.4 7.5
Ten Years N.A. 7.7 N.A.
Life of Fund+ 8.0 7.4 5.8
</TABLE>
+Inception date: Class A: 4/5/94; Class B: 12/19/85; Class C: 12/3/93
<TABLE>
<CAPTION>
5 Largest Sectors(6)
- ---------------------
BY TOTAL INVESTMENTS
<S> <C>
Escrowed 21.8%
Industrial Development 17.6%
Nursing Home 6.4%
Hospital 5.8%
Assisted Living 4.8%
</TABLE>
<TABLE>
<CAPTION>
Portfolio Overview(6)
- ---------------------
<S> <C>
Number of Issues: 138
Average Maturity: 23.9 yrs.
Effective Maturity: 12.8 yrs.
Average Rating: BB-
Average Call: 12.5 yrs.
Average Dollar Price: $110.14
</TABLE>
- -------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
- -------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF MARCH 31, 1999
<S> <C>
Assets
- ---------------------------------------------------------------
Investment in National Municipals Portfolio,
at value
(identified cost, $2,166,174,207) $ 2,370,569,915
Receivable for Fund shares sold 3,080,997
- ---------------------------------------------------------------
TOTAL ASSETS $ 2,373,650,912
- ---------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------
Dividends payable $ 4,816,321
Payable for Fund shares redeemed 4,808,698
Other accrued expenses 1,906,499
- ---------------------------------------------------------------
TOTAL LIABILITIES $ 11,531,518
- ---------------------------------------------------------------
NET ASSETS $ 2,362,119,394
- ---------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------
Paid-in capital $ 2,155,024,590
Accumulated net realized gain from Portfolio
(computed on the basis of identified cost) 4,758,798
Accumulated distributions in excess of net
investment income (2,059,702)
Net unrealized appreciation from Portfolio
(computed on the basis of identified cost) 204,395,708
- ---------------------------------------------------------------
TOTAL $ 2,362,119,394
- ---------------------------------------------------------------
Class A Shares
- ---------------------------------------------------------------
NET ASSETS $ 198,775,083
SHARES OUTSTANDING 17,508,379
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 11.35
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of $11.35) $ 11.92
- ---------------------------------------------------------------
Class B Shares
- ---------------------------------------------------------------
NET ASSETS $ 2,012,758,459
SHARES OUTSTANDING 190,050,328
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.59
- ---------------------------------------------------------------
Class C Shares
- ---------------------------------------------------------------
NET ASSETS $ 150,585,852
SHARES OUTSTANDING 14,924,460
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION
PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.09
- ---------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
MARCH 31, 1999
<S> <C>
Investment Income
- --------------------------------------------------------------
Interest allocated from Portfolio $ 74,742,610
Expenses allocated from Portfolio (5,049,377)
- --------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 69,693,233
- --------------------------------------------------------------
Expenses
- --------------------------------------------------------------
Trustees fees and expenses $ 2,339
Distribution and service fees
Class A 149,550
Class B 10,106,981
Class C 682,299
Transfer and dividend disbursing agent fees 737,052
Registration fees 90,296
Printing and postage 16,738
Legal and accounting services 14,830
Miscellaneous 83,940
- --------------------------------------------------------------
TOTAL EXPENSES $ 11,884,025
- --------------------------------------------------------------
NET INVESTMENT INCOME $ 57,809,208
- --------------------------------------------------------------
Realized and Unrealized
Gain (Loss) from Portfolio
- --------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost
basis) $ 35,907,706
Financial futures contracts 2,152,292
- --------------------------------------------------------------
NET REALIZED GAIN $ 38,059,998
- --------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $ (103,466,676)
Financial futures contracts 3,608,750
- --------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (99,857,926)
- --------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (61,797,928)
- --------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (3,988,720)
- --------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) MARCH 31, 1999 YEAR ENDED
in Net Assets (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
From operations --
Net investment income $ 57,809,208 $ 109,780,538
Net realized gain 38,059,998 62,170,469
Net change in unrealized appreciation
(depreciation) (99,857,926) 14,051,015
- ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (3,988,720) $ 186,002,022
- ---------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (4,904,197) $ (4,961,910)
Class B (49,386,046) (101,970,342)
Class C (3,233,113) (4,580,088)
In excess of net
investment income
Class B -- (2,428,253)
- ---------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (57,523,356) $ (113,940,593)
- ---------------------------------------------------------------------------------
Transactions in shares of
beneficial interest --
Proceeds from sale of shares
Class A $ 69,607,170 $ 102,611,748
Class B 104,139,093 225,630,573
Class C 43,501,230 56,423,943
Issued in reorganization of EV
Traditional and EV Classic
National Municipals Funds
Class A -- 49,435,356
Class C -- 82,777,583
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 2,726,419 2,455,264
Class B 19,615,887 40,750,734
Class C 2,024,549 2,814,562
Cost of shares redeemed
Class A (15,152,453) (11,442,195)
Class B (128,546,198) (301,849,492)
Class C (14,268,299) (22,311,421)
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 83,647,398 $ 227,296,655
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 22,135,322 $ 299,358,084
- ---------------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
Net Assets (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
AT BEGINNING OF PERIOD $ 2,339,984,072 $ 2,040,625,988
- ---------------------------------------------------------------------------------
AT END OF PERIOD $ 2,362,119,394 $ 2,339,984,072
- ---------------------------------------------------------------------------------
Accumulated distribution in
excess of net investment
income included in net
assets
- ---------------------------------------------------------------------------------
AT END OF PERIOD $ (2,059,702) $ (2,345,554)
- ---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999
(UNAUDITED)
----------------------------------
CLASS A CLASS B CLASS C
<S> <C> <C> <C>
- -------------------------------------------------------------------------
Net asset value -- Beginning of
period $11.650 $ 10.870 $10.350
- -------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------
Net investment income $ 0.324 $ 0.259 $ 0.245
Net realized and unrealized gain
(loss) (0.303) (0.280) (0.263)
- -------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 0.021 $ (0.021) $(0.018)
- -------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------
From net investment income $(0.321) $ (0.259) $(0.242)
In excess of net investment income -- -- --
In excess of net realized gain -- -- --
- -------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.321) $ (0.259) $(0.242)
- -------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $11.350 $ 10.590 $10.090
- -------------------------------------------------------------------------
TOTAL RETURN(1) 0.18% (0.21)% (0.19)%
- -------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $198,775 $2,012,758 $150,586
Ratios (As a percentage of average
daily net assets):
Expenses(2)(3) 0.70%(4) 1.52%(4) 1.53%(4)
Expenses after custodian fee
reduction(2) 0.68%(4) 1.50%(4) 1.51%(4)
Net investment income 5.64%(4) 4.85%(4) 4.82%(4)
- -------------------------------------------------------------------------
<CAPTION>
YEAR ENDED SEPTEMBER 30,
1998 1997 1996 1995 1994
---------------------------------- ---------- ---------- ---------- ----------
CLASS A CLASS B CLASS C CLASS B CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C>
- ------------------------------------
Net asset value -- Beginning of
period $11.260 $ 10.530 $10.010 $ 9.900 $ 9.800 $ 9.410 $ 10.570
- ------------------------------------
Income (loss) from operations
- ------------------------------------
Net investment income $ 0.644 $ 0.523 $ 0.493 $ 0.550 $ 0.557 $ 0.570 $ 0.556
Net realized and unrealized gain
(loss) 0.398 0.361 0.349 0.634 0.096 0.395 (1.043)
- ------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ 1.042 $ 0.884 $ 0.842 $ 1.184 $ 0.653 $ 0.965 $ (0.487)
- ------------------------------------
Less distributions
- ------------------------------------
From net investment income $(0.652) $ (0.531) $(0.502) $ (0.554) $ (0.553) $ (0.570) $ (0.556)
In excess of net investment income -- (0.013) -- -- -- (0.005) (0.077)
In excess of net realized gain -- -- -- -- -- -- (0.040)
- ------------------------------------
TOTAL DISTRIBUTIONS $(0.652) $ (0.544) $(0.502) $ (0.554) $ (0.553) $ (0.575) $ (0.673)
- ------------------------------------
NET ASSET VALUE -- END OF PERIOD $11.650 $ 10.870 $10.350 $ 10.530 $ 9.900 $ 9.800 $ 9.410
- ------------------------------------
TOTAL RETURN(1) 9.49% 8.60% 8.59% 12.33% 6.84% 10.60% (4.82)%
- ------------------------------------
Ratios/Supplemental Data
- ------------------------------------
Net assets, end of period (000's
omitted) $146,067 $2,071,078 $122,839 $2,040,626 $2,101,632 $2,191,240 $2,171,901
Ratios (As a percentage of average
daily net assets):
Expenses(2)(3) 0.71% 1.53% 1.54% 1.60% 1.55% 1.53% 1.51%
Expenses after custodian fee
reduction(2) 0.69% 1.51% 1.52% 1.60% 1.54% 1.52% --
Net investment income 5.60% 4.87% 4.83% 5.45% 5.62% 6.00% 5.54%
- ------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as its
corresponding Portfolio, to increase its expense ratio by the effect of any
expense offset arrangements with its service providers. The expense ratio
for the year ended September 30, 1994 has not been adjusted to reflect this
change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance National Municipals Fund (the Fund) is a diversified series of
Eaton Vance Municipals Trust (the Trust). The Trust is an entity of the type
commonly known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Fund offers three classes of shares. Generally, Class
A shares are sold subject to a sales charge imposed at the time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
contingent deferred sales charge (see Note 6). All classes of shares have
equal rights to assets and voting privileges. Realized and unrealized gains
and losses are allocated daily to each class of shares based on the relative
net assets of each class to the total net assets of the Fund. Net investment
income, other than class specific expenses, is allocated daily to each class
of shares based upon the ratio of the value of each class' paid shares to the
total value of all paid shares. Each class of shares differs in its
distribution plan and certain other class specific expenses. The Fund invests
all of its investable assets in interests in National Municipals Portfolio
(the Portfolio), a New York Trust, having the same investment objective as
the Fund. The value of the Fund's investment in the Portfolio reflects the
Fund's proportionate interest in the net assets of the Portfolio (99.99% at
March 31, 1999). The performance of the Fund is directly affected by the
performance of the Portfolio. The financial statements of the Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with the Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 1998, the Fund, for federal income tax purposes, had a capital
loss carryover of $36,492,067 which will reduce the taxable income arising
from future net realized gains 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 Fund of any liability for federal income or excise tax. A portion
of such capital loss carryover was acquired through the Fund Reorganization
(see Note 8) and may be subject to certain limitations. Such capital loss
carryover will expire on September 30, 2002 ($599,716), September 30, 2004
($28,646,299) and September 30, 2005 ($7,246,052). Dividends paid by the Fund
from net tax-exempt interest on municipal bonds allocated from the Portfolio
are not includable by shareholders as gross income for federal income tax
purposes because the Fund and Portfolio intend to meet certain requirements
of the Internal Revenue Code applicable to regulated investment companies
which will enable the Fund to pay exempt-interest dividends. The portion of
such interest, if any, earned on private activity bonds issued after August
7, 1986, may be considered a tax preference item to shareholders.
D 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.
E Other -- Investment transactions are accounted for on a trade-date basis.
F Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the
6
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Portfolio maintains with IBT. All significant credit balances used to reduce
the Fund's custodian fees are reported as a reduction of operating expenses
on the Statement of Operations.
G Interim Financial Statements -- The interim financial statements relating to
March 31, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
The net income of the Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized gains, if any, are made at least annually. Shareholders
may reinvest capital gain distributions in additional shares of the Fund at
the net asset value as of the ex-dividend date. Distributions are paid in the
form of additional shares or, at the election of the shareholder, in cash.
The Fund distinguishes between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over-distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different classes.
Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 6,054,057 8,929,025
Issued to shareholders electing to
receive payment of distribution in Fund
shares 237,610 213,017
Redemptions (1,319,902) (994,852)
Issued to EV Traditional National
Municipals Fund Shareholders -- 4,389,424
- -------------------------------------------------------------------------------
NET INCREASE 4,971,765 12,536,614
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 9,710,187 21,046,222
Issued to shareholders electing to
receive payment of distribution in Fund
shares 1,829,304 3,796,542
Redemptions (12,003,592) (28,163,550)
- -------------------------------------------------------------------------------
NET DECREASE (464,101) (3,320,786)
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
SIX MONTHS ENDED
MARCH 31, 1999 YEAR ENDED
CLASS C (UNAUDITED) SEPTEMBER 31, 1998
<S> <C> <C>
- -------------------------------------------------------------------------------
Sales 4,261,307 5,517,422
Issued to shareholders electing to
receive payment of distribution in Fund
shares 198,412 275,339
Redemptions (1,400,061) (2,196,022)
Issued to EV Classic National Municipals
Fund Shareholders -- 8,268,063
- -------------------------------------------------------------------------------
NET INCREASE 3,059,658 11,864,802
- -------------------------------------------------------------------------------
</TABLE>
4 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services.
See Note 2 of the Portfolio's
7
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Notes to Financial Statements which are included elsewhere in this report.
Except as to Trustees of the Fund and the Portfolio who are not members of
EVM's or BMR's organization, officers and Trustees receive remuneration for
their services to the Fund out of the investment adviser fee earned by BMR.
Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's
principal underwriter, received $40,581 as its portion of the sales charge on
sales of Class A shares for the six months ended March 31, 1999.
Certain officers and Trustees of the Fund and of the Portfolio are officers
and/or directors/trustees of the above organizations.
5 Distribution and Service Plans
- -------------------------------------------
The Fund has adopted distribution plans (Class B Plan and Class C Plan, the
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan (Class A Plan) (collectively, the Plans). The Plans require the
Fund to pay the Principal Underwriter, Eaton Vance Distributors, Inc. (EVD)
amounts equal to 1/365 of 0.75% of the Fund's average daily net assets
attributable to Class B and Class C shares for providing ongoing distribution
services and facilities to the Fund. The Fund will automatically discontinue
payments to EVD during any period in which there are no outstanding Uncovered
Distribution Charges, which are equivalent to the sum of (i) 5% and 6.25% of
the aggregate amount received by the Fund for the Class B and Class C shares
sold, respectively, 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 of each respective class reduced by the aggregate
amount of contingent deferred sales charges (see Note 6) and daily amounts
theretofore paid to EVD by each respective class. The Fund paid or accrued
$7,656,864 and $511,724 for Class B, and Class C shares, respectively, to or
payable to EVD for the six months ended March 31, 1999, representing 0.75% of
the average daily net assets for Class B and Class C shares. At March 31,
1999, the amount of Uncovered Distribution Charges EVD calculated under the
Plans was approximately $11,954,000 and $12,780,000 for Class B and Class C
shares, respectively.
In addition, the Plans authorize the Fund to make payments of service fees to
EVD, Authorized Firms and other persons in amounts not exceeding 0.25% of the
Fund's average daily net assets attributable to Class A, Class B, and Class C
shares for each fiscal year. The Trustees have initially implemented the
Plans by authorizing the Fund to make quarterly payments of service fees to
EVD and Authorized Firms in amounts not expected to exceed 0.25% per annum of
the 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. The Class C Plan permits the fund to make
monthly payments of service fees in amounts not expected to exceed 0.25% of
the Fund's average daily net assets attributable to Class C shares for any
fiscal year. Service fee payments will be made for personal services and/or
the maintenance of shareholder accounts. Service fees are separate and
distinct from the sales commissions and distribution fees payable by the Fund
to EVD, and, as such are not subject to automatic discontinuance when there
are no outstanding Uncovered Distribution Charges of EVD. Service fee
payments for the six months ended March 31, 1999 amounted to $149,550,
$2,450,117, and $170,575 for Class A, Class B, and Class C shares,
respectively.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) is imposed on any redemption of
Class B shares made within six years of purchase. A CDSC is imposed on
certain Class C shares redeemed within one year of purchase. Generally, the
CDSC is based upon the lower of the net asset value at date of redemption or
date of purchase. No charge is levied on shares acquired by reinvestment of
dividends or capital gains distributions. Class B CDSC is imposed at
declining rates that begin at 5% in the case of redemptions in the first and
second year after purchase, declining one percentage point each subsequent
year. Class C shares will be subject to a 1% CDSC if redeemed within one year
of purchase. No CDSC is levied on shares which have been sold to EVM or its
affiliates or to their respective employees or clients. CDSC charges are paid
to EVD to reduce the amount of Uncovered Distribution Charges calculated
under each Fund's Distribution Plan (see Note 5). CDSC charges received when
no Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $853,000 and $28,000 of CDSC paid by shareholders for
Class B shares and Class C shares, respectively, for the six months ended
March 31, 1999.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the National Municipals
Portfolio aggregated $227,834,909 and $205,285,053, respectively, for the six
months ended March 31, 1999.
8
<PAGE>
EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
8 Transfer of Net Assets
- -------------------------------------------
On October 1, 1997, the EV Marathon National Municipals Fund acquired the net
assets of the EV Traditional National Municipals Fund and EV Classic National
Municipals Fund pursuant to an Agreement and Plan of Reorganization dated
June 23, 1997. In accordance with the agreement, EV Marathon National
Municipals Fund, at the closing, issued 4,389,424 Class A shares and
8,268,063 Class C shares of the Fund having an aggregate value of $49,435,356
and $82,777,583, respectively. As a result, the Fund issued one Class A share
and one Class C share for each share of EV Traditional National Municipals
Fund and EV Classic National Municipals Fund, respectively. The transaction
was structured for tax purposes to qualify as a tax free reorganization under
the Internal Revenue Code. The EV Traditional National Municipals Fund's and
EV Classic National Municipals Fund's net assets at the date of the
transaction were $49,435,356 and $82,777,583, respectively, including
$3,854,847 and $6,655,724 of unrealized appreciation. Directly after the
merger, the combined net assets of the Eaton Vance National Municipals Fund
(formerly "EV Marathon National Municipals Fund") were $2,172,838,927 with a
net asset value of $11.26, $10.53 and $10.01 for Class A, Class B and Class
C, respectively.
9
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Assisted Living -- 4.8%
-----------------------------------------------------------------------------------------
NR NR $ 6,035 Arizona Health Facilities Authority,
(Care Institute, Inc. - Mesa), 7.625%,
1/1/26 $ 6,258,114
NR NR 17,070 Bell County, TX, Health Facilities,
(Care Institute, Inc., Texas), 9.00%,
11/1/24 19,364,720
NR NR 5,000 Chester, PA, IDA, (Senior Life Choice of
Paoli, L.P.), (AMT), 8.05%, 1/1/24 5,536,800
NR NR 3,060 Chester, PA, IDA, (Senior Life-Choice of
Kimberton), (AMT), 8.50%, 9/1/25 3,468,755
NR NR 5,000 Delaware, PA, IDA, (Glen Riddle), (AMT),
8.625%, 9/1/25 5,700,450
NR NR 10,000 Glen Cove, NY, IDA, (Regency at Glen
Cove), 9.50%, 7/1/12 10,677,500
NR NR 15,000 Illinois Development Finance Authority,
(Care Institute, Inc. - Illinois),
7.80%, 6/1/25 16,339,200
NR NR 4,605 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.25%, 10/1/20 5,075,217
NR NR 10,000 New Jersey EDA, (Forsgate), (AMT),
8.625%, 6/1/25 11,459,500
NR NR 4,935 North Syracuse Village Housing
Authority, NY, (AJM Senior Housing,
Inc., Janus Park), 8.00%, 6/1/24 5,110,242
NR NR 7,915 Roseville, MN, Elder Care Facility,
(Care Institute, Inc. - Roseville),
7.75%, 11/1/23 8,100,448
NR NR 12,430 St. Paul, MN, Housing and Redevelopment,
(Care Institute, Inc.-Highland), 8.75%,
11/1/24 14,229,615
-----------------------------------------------------------------------------------------
$ 111,320,561
-----------------------------------------------------------------------------------------
Cogeneration -- 4.5%
-----------------------------------------------------------------------------------------
NR NR $ 22,150 Maryland Energy Cogeneration, (AES
Warrior Run), (AMT), 7.40%, 9/1/19 $ 23,654,207
NR BB+ 30,775 New Jersey EDA, (Vineland Cogeneration)
(AMT), 7.875%, 6/1/19 33,228,690
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Cogeneration (continued)
-----------------------------------------------------------------------------------------
NR NR $ 12,950 Palm Beach County, FL, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) $ 9,842,000
NR BBB- 6,100 Pennsylvania EDA, (Northampton
Generating), (AMT), 6.50%, 1/1/13 6,422,568
NR BBB- 18,450 Pennsylvania EDA, (Northampton
Generating), (AMT), 6.60%, 1/1/19 19,542,240
NR NR 7,000 Pennsylvania EDA, (Northampton
Generating), Junior Liens, (AMT),
6.875%, 1/1/11 7,333,830
NR NR 5,000 Pennsylvania EDA, (Northampton
Generating), Junior Liens, (AMT), 6.95%,
1/1/21 5,244,900
-----------------------------------------------------------------------------------------
$ 105,268,435
-----------------------------------------------------------------------------------------
Education -- 1.3%
-----------------------------------------------------------------------------------------
Aaa AAA $ 12,390 California Educational Facilities
Authority, (Stanford University), 5.35%,
6/1/27 $ 12,780,657
NR NR 1,250 Massachusetts HEFA, (Nichols College),
7.00%, 10/1/20 1,368,088
Ba1 NR 4,235 New Hampshire HEFA, (Franklin Pierce Law
Center), 7.50%, 7/1/22 4,765,646
A3 A- 9,000 New York State Dormitory Authority,
(State University Educational
Facilities), 7.50%, 5/15/11 10,975,590
-----------------------------------------------------------------------------------------
$ 29,889,981
-----------------------------------------------------------------------------------------
Electric Utilities -- 2.9%
-----------------------------------------------------------------------------------------
B2 B $ 14,000 Apache County, AZ, IDA, (Tuscon Electric
Power Co.), 5.85%, 3/1/28 $ 13,902,560
Baa1 BBB 10,000 Brazos River Authority, TX, Pollution
Control Revenue, (AMT), 5.55%, 6/1/30 9,924,400
Ba3 B+ 10,000 Connecticut State Development Authority,
(Connecticut Light and Power), 5.85%,
9/1/28 10,125,800
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Electric Utilities (continued)
-----------------------------------------------------------------------------------------
Ba3 B+ $ 13,000 Connecticut State Development Authority,
(Western Massachusetts Electric Co.),
5.85%, 9/1/28 $ 13,092,950
A1 A+ 9,500 Intermountain Power Agency, UT, 5.00%,
7/1/23 9,144,130
NR NR 11,000 Long Island, NY, Power Authority,
(RITES), Variable Rate, 12/1/29(2) 11,602,470
-----------------------------------------------------------------------------------------
$ 67,792,310
-----------------------------------------------------------------------------------------
Escrowed / Prerefunded -- 21.8%
-----------------------------------------------------------------------------------------
NR AAA $ 6,317 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
Prerefunded to 2/1/03, 8.625%, 2/1/20 $ 7,498,248
NR AAA 6,800 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
Prerefunded to 2/1/03, 8.85%, 2/1/23 8,024,612
Aaa AAA 42,500 Bakersfield, CA, (Bakersfield Assisted
Living Center), Escrowed to Maturity,
0.00%, 4/15/21 13,119,750
NR NR 2,200 Bexar County, TX, Health Facilities,
(St. Luke's Lutheran), Escrowed to
Maturity, 7.00%, 5/1/21 2,764,938
NR AAA 171,955 Colorado Health Facilities Authority,
(Liberty Heights), Escrowed to Maturity,
0.00%, 7/15/24 44,197,593
Aaa NR 225,500 Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 58,900,599
Aaa NR 30,000 Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 7,836,000
Aaa AAA 7,610 Detroit, MI, Sewer Disposal, (FGIC),
Prerefunded to 7/17/03, Variable
Rate, 7/1/23(2) 8,865,650
NR NR 7,000 Florida State, (Mid-Bay Bridge
Authority), Escrowed to Maturity,
6.875%, 10/1/22 8,702,260
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
-----------------------------------------------------------------------------------------
NR NR $ 4,310 Hazelton Luzerne, PA, (Saint Joseph
Medical Center), Prerefunded to 7/1/03,
8.375%, 7/1/12 $ 5,034,640
NR AAA 101,555 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/23 25,357,268
NR AAA 60,360 Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/25 13,443,983
NR NR 4,650 Illinois HEFA, (Chicago Osteopathic
Health Systems), Escrowed to Maturity,
7.125%, 5/15/11 5,482,676
NR NR 4,500 Illinois HEFA, (Chicago Osteopathic
Health Systems), Prerefunded to
11/15/19, 7.25%, 5/15/22 5,677,740
NR AAA 4,790 Kansas City, MO, IDA, (Kingswood United
Methodist Manor), Prerefunded to
11/15/03, 9.00%, 11/15/13 5,846,722
Aaa AAA 20,400 Loudoun County, VA, IDA, (Falcons
Landing), Prerefunded to 11/1/04, 8.75%,
11/1/24 25,668,300
NR AAA 11,890 Louisiana Public Facilities Authority,
(Southern Baptist Hospitals, Inc.),
Escrowed to Maturity, 8.00%, 5/15/12 14,548,366
Aaa AAA 18,600 Louisville, KY, Hospital Revenue,
(MBIA), Prerefunded to 10/30/01,
Variable
Rate, 10/1/14(2) 20,191,974
Baa1 BBB- 6,500 Maricopa County, AZ, (Sun Health Corp.),
Prerefunded to 4/1/02, 8.125%, 4/1/12 7,391,020
NR NR 5,675 Maricopa County, AZ, IDA, (Place Five
and The Greenery), Escrowed to Maturity,
6.625%, 1/1/27 6,591,910
NR NR 1,000 Maricopa County, AZ, IDA, Multifamily,
Escrowed to Maturity, 6.45%, 1/1/17 1,135,150
Aaa AAA 41,015 Massachusetts Turnpike Authority,
(FGIC), Escrowed to Maturity, 5.125%,
1/1/23 41,679,852
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed / Prerefunded (continued)
-----------------------------------------------------------------------------------------
NR NR $ 4,300 Mille Lacs Capital Improvements, MN,
(Mille Lacs Band of Chippewa Indians),
Prerefunded to 11/1/02, 9.25%, 11/1/12 $ 5,141,510
Baa3 NR 5,000 Mississippi Hospital Equipment and
Facilities Authority, (Magnolia
Hospital), Prerefunded to 10/01/01,
7.375%, 10/1/21 5,514,150
Aaa NR 100,000 Mississippi Housing Finance Corp.,
Single Family, (AMT), Escrowed to
Maturity, 0.00%, 6/1/15 45,075,999
Aaa AAA 10,000 New Hampshire HEFA, (Riverwoods at
Exeter), Prerefunded to 3/1/03, 9.00%,
3/1/23 12,241,800
NR NR 22,500 New Jersey Sports and Exposition
Authority, (Monmouth Park), Prerefunded
to 1/1/05, 8.00%, 1/1/25 27,263,475
Aaa NR 6,105 North Salt Lake Municipal Building
Authority, Davis County, UT, Prerefunded
to 12/01/02, 8.625%, 12/1/17 7,281,800
Aaa AAA 46,210 San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/20 16,350,946
Aaa AAA 72,685 San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/21 24,411,257
Aaa AAA 45,045 San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/23 13,633,320
Aaa AAA 15,000 San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/25 4,088,850
Baa2 BBB 5,435 South Dakota HEFA, (Prairie Lakes Health
Care), Prerefunded to 04/01/03, 7.25%,
4/1/22 6,184,487
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
-----------------------------------------------------------------------------------------
Aaa AAA $ 1,600 Washington Public Power Supply System,
(Nuclear Project Number 2), (MBIA),
Escrowed to Maturity, 14.375%, 7/1/01 $ 1,805,104
-----------------------------------------------------------------------------------------
$ 506,951,949
-----------------------------------------------------------------------------------------
General Obligations -- 1.2%
-----------------------------------------------------------------------------------------
Aa2 AA+ $ 10,000 Florida Board of Education, 4.75%,
6/1/28 $ 9,434,900
Aaa AAA 15,000 North East Independent School District,
TX, 4.50%, 10/1/28 13,602,900
Aa1 AA+ 4,665 Washington State, 5.75%, 7/1/14 5,023,459
-----------------------------------------------------------------------------------------
$ 28,061,259
-----------------------------------------------------------------------------------------
Hospital -- 5.8%
-----------------------------------------------------------------------------------------
NR BBB $ 6,500 Arizona HFA, (Phoenix Memorial
Hospital), 8.20%, 6/1/21 $ 6,912,230
NR NR 2,360 Berlin, MD, (Atlantic General Hospital),
8.375%, 6/1/22 2,536,434
NR NR 10,180 Chaves County, NM, (Eastern New Mexico
Medical Center), 7.25%, 12/1/22 11,542,491
NR NR 11,000 Colorado Health Facilities Authority,
(Rocky Mountain Adventist), (RITES),
Variable Rate, 2/1/22(2) 11,763,070
Baa3 NR 4,000 Corinth and Alcorn County, MS, (Magnolia
Registered Health Center), 5.50%,
10/1/21 3,874,640
Baa3 NR 300 Corinth and Alcorn County, MS, (Magnolia
Registered Health Center), 5.50%,
10/1/21 290,598
Baa1 NR 4,000 Crossville, TN, HEFA, (Cumberland
Medical Center), 6.75%, 11/1/12 4,263,280
A3 BBB+ 6,000 District of Columbia, (Washington
Hospital Center Issue-Medlantic
Healthcare Group, Inc.), 7.125%, 8/15/19 6,709,860
NR A- 5,000 Dubuque, IA, (Finley Hospital), 6.875%,
1/1/12 5,365,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Hospital (continued)
-----------------------------------------------------------------------------------------
NR BB $ 4,000 Hawaii State Department of Budget and
Finance, (Wahiawa General Hospital),
7.50%, 7/1/12 $ 4,282,560
Baa1 NR 1,000 Illinois Health Facilities Authority,
(Holy Cross Hospital), 6.70%, 3/1/14 1,090,300
Baa1 NR 2,650 Illinois Health Facilities Authority,
(Holy Cross Hospital), 6.75%, 3/1/24 2,895,019
Baa2 NR 4,500 Indiana Health Facility Financing
Authority, (Memorial Hospital and Health
Care Center), 7.40%, 3/1/22 4,815,990
NR BBB 8,010 Louisiana Public Facilities Authority,
(General Health Systems), 6.80%, 11/1/16 8,783,045
NR AA+ 10,000 Maricopa County, AZ, IDA, Residual
Certs, Variable
Rate, 11/15/37(2)(3) 9,802,700
Baa NR 2,000 Marshall County, AL, (Guntersville-Arab
Medical Center), 7.00%, 10/1/09 2,135,400
Baa NR 2,000 Marshall County, AL, (Guntersville-Arab
Medical Center), 7.00%, 10/1/13 2,141,180
Baa2 BBB+ 2,000 Oklahoma Development Finance Authority,
(Hillcrest Health System), 5.625%,
8/15/29 1,991,760
Ca CCC 9,000 Philadelphia, PA, HEFA, (Graduate Health
System), 6.625%, 7/1/21(1) 3,420,000
Ca CCC 2,250 Philadelphia, PA, HEFA, (Graduate Health
System), 7.25%, 7/1/18(1) 855,000
Caa3 NR 3,075 Prince George's County, MD, (Greater
Southeast Healthcare System), 6.375%,
1/1/23 2,060,250
Baa3 BBB- 7,750 Rhode Island HEFA, (Saint Joseph Health
Services), 5.50%, 10/1/29 7,334,678
NR AA+ 22,500 Rochester, MN, Health Care Facilities
Revenue, (Mayo Clinic), 5.50%, 11/15/27 23,323,050
Aaa AAA 4,800 Winslow, AZ, IDA, (Winslow Memorial
Hospital), 9.50%, 6/1/22 5,738,832
-----------------------------------------------------------------------------------------
$ 133,927,367
-----------------------------------------------------------------------------------------
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Hotel -- 0.1%
-----------------------------------------------------------------------------------------
NR NR $ 4,205 Niagara County, NY IDA, (Wintergarden
Inn Associates), 9.75%, 6/1/11(1) $ 1,682,000
-----------------------------------------------------------------------------------------
$ 1,682,000
-----------------------------------------------------------------------------------------
Housing -- 2.5%
-----------------------------------------------------------------------------------------
NR NR $ 7,055 Arkansas Development Finance Authority,
MFMR, (Park Apartments), (AMT), 5.95%,
12/1/28 $ 7,005,686
Aa AA- 9,400 California Housing Finance Agency, RIBS,
(AMT), Variable Rate, 8/1/23(2) 10,739,500
Aa2 NR 5,000 Colorado HFA, Single Family Housing,
(AMT), 7.55%, 11/1/27 5,676,400
NR NR 10,800 Lake Creek, CO, (Affordable Housing
Corp.), Multifamily, 6.25%, 12/1/23 10,906,488
NR NR 8,000 Los Angeles County Housing Authority,
CA, (Corporate Fund for Housing),
Multifamily, 10.50%, 12/1/29 7,771,840
NR NR 1,500 Maricopa County, AZ, IDA, (National
Health Facilities II), 6.375%, 1/1/19 1,513,170
NR NR 3,525 Minneapolis, MN, Community Development,
(Lindsay Brothers), 1.50%, 12/1/07 2,854,298
NR NR 3,305 Minneapolis, MN, Community Development,
(Lindsay Brothers), 9.50%, 12/1/07 3,716,076
Aa1 AA+ 8,710 Montana Board of Housing, Single Family,
(AMT), 5.45%, 6/1/27 8,809,555
-----------------------------------------------------------------------------------------
$ 58,993,013
-----------------------------------------------------------------------------------------
Industrial Development Revenue -- 17.6%
-----------------------------------------------------------------------------------------
NR NR $ 7,500 Austin, TX, (Cargoport Development LLC),
(AMT), 8.30%, 10/1/21 $ 8,260,800
NR NR 2,000 California Pollution Control Financing
Authority, (Laidlaw Environmental),
(AMT), 6.70%, 7/1/07 2,087,040
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Industrial Development Revenue (continued)
-----------------------------------------------------------------------------------------
NR BB- $ 2,000 Camden County, NJ, (Holt Hauling),
(AMT), 9.875%, 1/1/21 $ 2,461,740
Baa2 BBB 6,050 Carbon County, UT, (Laidlaw
Environmental), (AMT), 7.50%, 2/1/10 6,810,304
Baa2 BBB- 20,275 Chicago, IL, O'Hare International,
(American Airlines), 8.20%, 12/1/24 23,890,033
NR NR 6,000 Clark County, NV, (Nevada Power),
(RITES), (AMT), Variable Rate,
11/1/30(2) 6,257,160
Baa1 BBB 24,000 Courtland, AL, (Champion International
Corp.), (AMT), 7.00%, 6/1/22 25,764,960
Baa2 BBB- 41,000 Dallas-Fort Worth, TX, International
Airport Facility, (American Airlines),
7.25%, 11/1/30 44,967,569
Baa3 BB+ 52,500 Denver, CO, Airport Special Facilities,
(United Airlines), (AMT), 6.875%,
10/1/32 56,079,974
Baa2 BBB- 8,000 Effingham County, GA, Solid Waste
Disposal, (Fort James), (AMT), 5.625%,
7/1/18 8,016,400
Baa1 BBB 18,480 Gulf Coast, TX, Waste Disposal,
(Champion International Corp.), (AMT),
6.875%, 12/1/28 20,057,268
Baa1 BBB 7,000 Gulf Coast, TX, Waste Disposal,
(Champion International Corp.), (AMT),
7.45%, 5/1/26 7,571,620
NR NR 5,928 Gwinnett County, GA, (Plastics/
Packaging, Inc.), (AMT), 0.00%,
5/1/13(1) 2,548,855
NR NR 6,645 Hardeman County, TN, (Correctional
Facilities Corp.), 7.75%, 8/1/17 7,446,653
Ba2 BB 4,725 Hawaii State Department of
Transportation, (Continental Airlines,
Inc.), (AMT), 5.625%, 11/15/27 4,721,315
NR NR 6,500 Kimball, NE, EDA, (Clean Harbors, Inc.),
10.75%, 9/1/26 7,071,675
Baa2 NR 7,500 Little River County, AR,
(Georgia-Pacific Corp.), (AMT), 5.60%,
10/1/26 7,543,800
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Industrial Development Revenue (continued)
-----------------------------------------------------------------------------------------
Baa1 BBB $ 5,000 McMinn County, TN, (Calhoun Newsprint
Co. - Bowater, Inc.), (AMT), 7.40%,
12/1/22 $ 5,517,700
NR NR 10,000 Michigan Strategic, (S.D. Warren Co.),
7.375%, 1/15/22 10,984,900
NR NR 15,000 Michigan Strategic, (S.D. Warren Co.),
(AMT), 7.375%, 1/15/22 16,477,350
NR NR 3,810 Middleboro, MA, (Read Corp.), 9.50%,
10/1/10 4,023,970
NR NR 17,000 New Jersey EDA, (Holt Hauling), 7.75%,
3/1/27 18,853,680
NR NR 1,500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 1,680,945
NR NR 1,000 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT), 9.00%,
6/1/21 1,070,900
NR NR 22,600 Peninsula Ports Authority, VA, (Zeigler
Coal), 6.90%, 5/2/22 22,650,172
Baa3 BBB 10,000 Pennsylvania, IDA, (Sun Company), (AMT),
7.60%, 12/1/24 11,337,200
B3 D 2,585 Riverdale Village, IL, (ACME Metals,
Inc.), (AMT), 7.90%, 4/1/24(1) 2,248,950
B3 D 2,000 Riverdale Village, IL, (ACME Metals,
Inc.), (AMT), 7.95%, 4/1/25(1) 1,740,000
NR NR 2,400 Savannah, GA, (Intercat-Savannah, Inc.),
(AMT), 9.75%, 7/1/10 2,536,536
NR NR 3,810 Savannah, GA, EDA, (Intercat-Savannah,
Inc.), (AMT), 9.00%, 1/1/15 4,170,350
NR NR 2,000 Skowhegan, ME, (S.D. Warren Co.), (AMT),
6.65%, 10/15/15 2,117,060
NR NR 3,500 Toole County, UT, Pollution Control,
(Laidlaw Environmental), (AMT), 7.55%,
7/1/27 3,837,190
Aa2 AA+ 37,000 Valdez, AK, Marine Terminal, (BP
Pipelines, Inc.), 5.85%, 8/1/25 38,553,999
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Industrial Development Revenue (continued)
-----------------------------------------------------------------------------------------
Aa2 AA $ 15,000 Valdez, AK, Marine Terminal, (Mobil
Alaska Pipeline), 5.75%, 11/1/28 $ 15,576,900
Baa2 AA- 4,000 Yavapai County, AZ, IDA, (Citizens
Utilities Co.), (AMT), 5.45%, 6/1/33 4,109,720
-----------------------------------------------------------------------------------------
$ 409,044,688
-----------------------------------------------------------------------------------------
Insured - Electric Utilities -- 4.3%
-----------------------------------------------------------------------------------------
Aaa AAA $ 10,000 Brazos River Authority, TX, (Houston
Lighting and Power Co.), (AMBAC), (AMT),
5.05%, 11/1/18(4) $ 9,919,700
Aaa AAA 22,000 Intermountain Power Agency, UT, (MBIA),
5.75%, 7/1/19 23,536,700
Aaa AAA 10,000 Intermountain Power Agency, UT, (MBIA),
6.00%, 7/1/16 10,916,700
Aaa AAA 10,000 Los Angeles, CA, Department of Water and
Power, (MBIA), 5.00%, 10/15/33 9,862,100
Aaa AAA 12,500 Matagorda County, TX, Navigation
District, (Houston Lighting), (AMBAC),
(AMT), 5.125%, 11/1/28 12,367,875
Aaa AAA 16,500 Sacramento, CA, Municipal Utility
District, (MBIA), Variable Rate,
11/15/15(2) 18,026,250
Aaa AAA 15,350 South Carolina Public Services, RIBS,
(FGIC), Variable
Rate, 1/1/25(2)(3) 14,429,000
-----------------------------------------------------------------------------------------
$ 99,058,325
-----------------------------------------------------------------------------------------
Insured - General Obligations -- 3.6%
-----------------------------------------------------------------------------------------
Aaa AAA $ 30,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/20 $ 9,699,000
Aaa AAA 20,000 Chicago, IL, Board of Education, (FGIC),
0.00%, 12/1/26 4,662,800
Aaa AAA 7,000 Detroit, MI, School District, (FGIC),
4.75%, 5/1/28 6,625,290
Aaa AAA 10,000 Detroit, MI, School District, (FGIC),
5.25%, 5/1/25(4) 10,309,800
Aaa AAA 12,500 Florida Board of Education, (FGIC),
4.50%, 6/1/23 11,488,500
Aaa AAA 10,000 Florida Board of Education, (FGIC),
4.50%, 6/1/24 9,174,000
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Insured - General Obligations (continued)
-----------------------------------------------------------------------------------------
Aaa AAA $ 5,500 Michigan State Trunk Line, (MBIA),
5.00%, 11/1/26 $ 5,382,905
Aaa AAA 18,000 South-Western City School District, OH,
Franklin and Pickway Counties, (AMBAC),
4.75%, 12/1/26 17,057,340
Aaa NR 9,455 Spring Ford School District, PA, (FGIC),
4.75%, 3/1/25 8,975,159
-----------------------------------------------------------------------------------------
$ 83,374,794
-----------------------------------------------------------------------------------------
Insured - Hospital -- 0.3%
-----------------------------------------------------------------------------------------
Aaa AAA $ 7,000 Montgomery County, PA, HEFA, (Abington
Memorial Hospital) (AMBAC), Variable
Rate, 7/5/11(2) $ 8,085,000
-----------------------------------------------------------------------------------------
$ 8,085,000
-----------------------------------------------------------------------------------------
Insured - Housing -- 0.4%
-----------------------------------------------------------------------------------------
Aaa AAA $ 7,525 SCA Multifamily Mortgage, Industrial
Development Board, Hamilton County, TN,
(FSA), (AMT), 7.35%, 1/1/30 $ 8,368,176
-----------------------------------------------------------------------------------------
$ 8,368,176
-----------------------------------------------------------------------------------------
Insured - Industrial Development Revenue -- 0.6%
-----------------------------------------------------------------------------------------
Aaa AAA $ 11,950 Chicago, IL, (The Peoples Gas Light and
Coke Company), (AMBAC), RIBS, (AMT),
Variable Rate, 12/1/23(2)(3) $ 12,897,635
-----------------------------------------------------------------------------------------
$ 12,897,635
-----------------------------------------------------------------------------------------
Insured - Senior Living / Life Care -- 0.2%
-----------------------------------------------------------------------------------------
Aaa AAA $ 4,500 Maryland HEFA, (Medlantic/ Helix Issue),
(AMBAC), 4.75%, 8/15/28 $ 4,271,130
-----------------------------------------------------------------------------------------
$ 4,271,130
-----------------------------------------------------------------------------------------
Insured - Special Tax Revenue -- 2.7%
-----------------------------------------------------------------------------------------
Aaa AAA $ 7,000 George L. Smith, (Georgia World Congress
Center- Domed Stadium), (MBIA), (AMT),
5.50%, 7/1/20(5) $ 7,035,910
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Insured - Special Tax Revenue (continued)
-----------------------------------------------------------------------------------------
Aaa AAA $ 9,800 Metropolitan Pier and Exposition
Authority, IL, (McCormick Place
Expansion), RIBS, (MBIA), Variable Rate,
6/15/27(2)(3) $ 11,410,434
Aaa AAA 6,370 New Jersey Sports and Exposition
Authority, (MBIA), 4.50%, 3/1/19 5,974,805
Aaa AAA 3,415 Regional Transportation Authority, LA,
(FGIC), 0.00%, 12/1/12 1,766,955
Aaa AAA 10,935 Regional Transportation Authority, LA,
(FGIC), 0.00%, 12/1/15 4,754,647
Aaa AAA 10,000 Regional Transportation Authority, LA,
(FGIC), 0.00%, 12/1/21 3,111,900
Aaa AAA 20,000 South Orange County, CA, Public
Financing Authority, (FGIC), Variable
Rate, 8/15/15(2)(4) 21,500,000
Aaa AAA 7,000 Utah Municipal Finance Corp., Local
Government Revenue, (FSA), 0.00%, 3/1/10 4,210,990
Aaa AAA 6,000 Utah Municipal Finance Corp., Local
Government Revenue, (FSA), 0.00%, 3/1/11 3,409,320
-----------------------------------------------------------------------------------------
$ 63,174,961
-----------------------------------------------------------------------------------------
Insured - Transportation -- 4.5%
-----------------------------------------------------------------------------------------
Aaa AAA $ 26,000 Central Puget Sound, WA, Transportation
Authority, (FGIC), 4.75%, 2/1/28(4) $ 24,297,000
Aaa AAA 19,000 Massachusetts State Turnpike Authority,
(FGIC), 5.00%, 1/1/20 19,231,990
Aaa AAA 14,400 Metropolitan Washington, DC Airport
Authority, (MBIA), Variable Rate,
4/1/21(2)(3) 15,662,304
Aaa AAA 18,200 Mobile, AL, Airport Authority, (MBIA),
6.375%, 10/1/14(4) 20,161,232
Aaa AAA 5,000 New Jersey State Transportation
Authority, (FSA), 4.50%, 6/15/19 4,711,300
Aaa AAA 10,000 Philadelphia, PA, IDA, (Philadelphia
Airport System), (FGIC), (AMT), 5.125%,
7/1/28 9,791,400
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Insured - Transportation (continued)
-----------------------------------------------------------------------------------------
NR AAA $ 10,000 Triborough Bridge and Tunnel Authority,
NY, (MBIA), Variable Rate, 1/1/19(2)(3) $ 10,711,800
-----------------------------------------------------------------------------------------
$ 104,567,026
-----------------------------------------------------------------------------------------
Insured - Water and Sewer -- 4.1%
-----------------------------------------------------------------------------------------
Aaa AAA $ 30,395 California State Department Water
Resources, (Central Valley Water
Systems), (FGIC), 5.25%, 12/1/28(4) $ 30,968,553
Aaa AAA 2,390 Detroit, MI, Sewer Disposal, (FGIC),
Variable
Rate, 7/1/23(2) 2,631,988
Aaa AAA 25,500 Fulton County, GA, Water and Sewer,
(FGIC), 4.75%, 1/1/28(4) 24,141,105
Aaa AAA 7,150 Harrisburg, PA, Water Revenue Bonds,
RIBS, (FGIC), Variable Rate, 8/11/16(2) 7,453,875
Aaa AAA 12,800 Honolulu, HI, City and County Waterworks
System Revenue, (FGIC), 4.50%, 7/1/28 11,611,392
Aaa AAA 9,000 Louisville and Jefferson County, KY,
Metropolitan Sewer District and Drainage
System Revenue, (FGIC), 4.75%, 5/15/28 8,517,870
Aaa AAA 10,000 San Diego Public Finance Authority, CA,
(FGIC), 5.25%, 5/15/27 10,224,000
-----------------------------------------------------------------------------------------
$ 95,548,783
-----------------------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.2%
-----------------------------------------------------------------------------------------
NR AA- $ 3,500 Plymouth County, MA, (Plymouth County
Correctional Facility), 7.00%, 4/1/22 $ 3,935,645
-----------------------------------------------------------------------------------------
$ 3,935,645
-----------------------------------------------------------------------------------------
Miscellaneous -- 1.0%
-----------------------------------------------------------------------------------------
NR NR $ 5,890 American Samoa Economic Development
Authority, (Executive Office Building),
10.125%, 9/1/08 $ 6,117,118
NR A- 6,500 Los Angeles, CA, Regional Airports
Improvement Corp., (LAXFuel), (AMT),
6.50%, 1/1/32 6,749,535
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Miscellaneous (continued)
-----------------------------------------------------------------------------------------
NR NR $ 10,200 Orange County, NC, (Community Activity
Corp.), 8.00%, 3/1/24(1) $ 6,120,000
NR NR 1,600 Pittsfield Township, MI, EDC, (Arbor
Hospice), 7.875%, 8/15/27 1,680,272
NR NR 3,445 Tax Revenue Exempt Securities Trust,
Community Health Provider, (Pooled Loan
Program Various States Trust
Certificates), 5.50%, 12/1/36 3,359,220
-----------------------------------------------------------------------------------------
$ 24,026,145
-----------------------------------------------------------------------------------------
Nursing Home -- 6.4%
-----------------------------------------------------------------------------------------
NR NR $ 13,125 Bell County, TX, (Riverside Healthcare,
Inc. - Normandy Terrace), 9.00%, 4/1/23 $ 15,760,106
NR NR 3,755 Collier County, FL, IDA, Retirement
Rental, (Beverly Enterprises - Florida,
Inc.), 10.75%, 3/1/03 4,172,894
NR NR 4,945 Delaware County, PA, (Mainline-Haverford
Nursing and Rehabilitation Centers),
9.00%, 8/1/22 5,758,700
NR NR 2,150 Hillsborough County, FL, IDA, (Tampa Bay
Retirement Center), 0.00%, 6/1/25 1,075,000
NR NR 10,150 Hillsborough County, FL, IDA, (Tampa Bay
Retirement Center), 7.00%, 6/1/25 9,991,356
Baa1 NR 10,000 Indianapolis, IN, (National Benevolent
Association - Robin Run Village),
7.625%, 10/1/22 10,942,500
NR NR 3,475 Lackawanna County, PA, IDA, (Edella
Street Associates), 8.875%, 9/1/14 3,834,871
NR NR 2,885 Luzerne County, PA, IDA, (River Street
Associates), 8.75%, 6/15/07 3,164,095
NR NR 13,250 Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 14,785,278
NR NR 11,765 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 12,649,375
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Nursing Home (continued)
-----------------------------------------------------------------------------------------
NR NR $ 6,750 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 6.625%, 8/15/05 $ 7,267,793
NR NR 14,000 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 7.50%, 8/15/12 15,654,800
NR NR 12,500 Montgomery, PA, IDA, (Advancement of
Geriatric Health Care Institute),
8.375%, 7/1/23 13,417,000
NR NR 4,945 New Jersey EDA, (Claremont Health
System, Inc.), 9.10%, 9/1/22 5,525,691
NR NR 5,915 New Jersey EDA, (Victoria Health Corp.),
7.75%, 1/1/24 6,447,350
A3 BBB 3,870 Racine County, WI, Health Center,
8.125%, 8/1/21 3,973,058
NR NR 5,000 Sussex County, DE, (Delaware Health
Corp.), 7.50%, 1/1/14 5,367,950
NR NR 5,000 Sussex County, DE, (Delaware Health
Corp.), 7.60%, 1/1/24 5,377,600
NR NR 2,470 Westmoreland, PA, (Highland Health
Systems, Inc.), 9.25%, 6/1/22 2,765,214
-----------------------------------------------------------------------------------------
$ 147,930,631
-----------------------------------------------------------------------------------------
Senior Living / Life Care -- 4.1%
-----------------------------------------------------------------------------------------
NR NR $ 14,700 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
5.75%, 12/15/28 $ 14,615,622
NR NR 10,000 Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 9,947,100
NR NR 10,000 Atlantic Beach, FL, (Fleet Landing),
8.00%, 10/1/24 11,147,000
NR NR 12,435 De Kalb County, GA, Private Hospital
Authority, (Atlanta, Inc.), 8.50%,
3/1/25(6) 6,217,500
Aaa AAA 2,100 Loudoun County, VA, IDA, (Falcons
Landing), 9.25%, 7/1/04 2,442,888
NR NR 15,000 Louisiana HFA, (HCC Assisted Living
Group 1), (AMT), 9.00%, 3/1/25 16,731,150
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
-----------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Senior Living / Life Care (continued)
-----------------------------------------------------------------------------------------
NR NR $ 12,400 North Miami, FL, HFA, (Imperial Club),
6.75%, 1/1/33 $ 12,173,452
NR NR 800 North Miami, FL, HFA, (Imperial Club),
9.00%, 1/1/12 800,000
NR NR 5,600 Ridgeland, MS, Urban Renewal, (The
Orchard), 7.75%, 12/1/15 6,054,888
Baa2 BBB 2,565 South Dakota HEFA, (Prairie Lakes Health
Care), 7.25%, 4/1/22 2,847,766
NR NR 4,500 Vermont IDA, (Wake Robin Corp.), 8.75%,
3/1/23 5,017,905
NR NR 7,500 Vermont IDA, (Wake Robin Corp.), 8.75%,
4/1/23 8,363,175
-----------------------------------------------------------------------------------------
$ 96,358,446
-----------------------------------------------------------------------------------------
Solid Waste -- 0.8%
-----------------------------------------------------------------------------------------
NR NR $ 35,000 Robbins, Cook County, IL, (Robbins
Resource Recovery Partners, L.P.),
8.375%, 10/15/16 $ 18,900,000
-----------------------------------------------------------------------------------------
$ 18,900,000
-----------------------------------------------------------------------------------------
Special Tax Revenue -- 0.5%
-----------------------------------------------------------------------------------------
Aa3 AA- $ 7,500 Michigan State Trunk Line, 5.50%,
11/1/18 $ 8,027,775
NR AAA 4,500 Pennsylvania State Turnpike Commission,
Oil Franchise Tax, Variable Rate,
12/1/27(2)(3) 4,008,240
-----------------------------------------------------------------------------------------
$ 12,036,015
-----------------------------------------------------------------------------------------
Transportation -- 2.7%
-----------------------------------------------------------------------------------------
NR BBB- $ 5,750 Connector 2000 Association, Inc., South
Carolina Bridge & Toll Road Revenue,
(Southern Connector),
5.25%, 1/1/23 $ 5,313,115
Baa1 BBB+ 4,735 Denver, CO, City and County Airport
Revenue, (AMT), 7.50%, 11/15/23 5,414,188
Baa1 BBB+ 6,000 Metropolitan Transportation Authority,
NY, 5.50%, 7/1/17 6,210,840
A1 AA- 15,000 Port Authority of New York and New
Jersey, (AMT), Variable Rate, 1/15/27(2) 16,627,200
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Transportation (continued)
-----------------------------------------------------------------------------------------
Aa3 A+ $ 9,050 Triborough Bridge and Tunnel Authority,
NY, 5.125%, 1/1/22 $ 9,013,167
Aa3 A+ 19,030 Triborough Bridge and Tunnel Authority,
NY, 5.25%, 1/1/28 19,209,263
-----------------------------------------------------------------------------------------
$ 61,787,773
-----------------------------------------------------------------------------------------
Utilities - Electrical and Gas -- 0.2%
-----------------------------------------------------------------------------------------
NR AAA $ 5,250 Philadelphia, PA, Natural Gas
Works, Variable Rate, 7/1/28(2) $ 4,997,003
-----------------------------------------------------------------------------------------
$ 4,997,003
-----------------------------------------------------------------------------------------
Water and Sewer -- 0.9%
-----------------------------------------------------------------------------------------
Aa2 AA $ 21,920 California State Department Water
Resources, (Central Valley Water
Systems), 5.25%, 12/1/24 $ 22,157,613
-----------------------------------------------------------------------------------------
$ 22,157,613
-----------------------------------------------------------------------------------------
Total Tax-Exempt Investments
(identified cost $2,120,011,312) $ 2,324,406,664
-----------------------------------------------------------------------------------------
TAXABLE - INVESTMENT -- 0.0%
<CAPTION>
RATINGS
----------- PRINCIPAL
AMOUNT
STANDARD (000'S
MOODY'S & POOR'S OMITTED) SECURITY VALUE
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Senior Living / Life Care -- 0.0%
-----------------------------------------------------------------------------------------
NR NR $ 395 Ridgeland, MS, Urban Renewal, (The
Orchard), 9.00%, 12/1/00 $ 395,356
-----------------------------------------------------------------------------------------
$ 395,356
-----------------------------------------------------------------------------------------
Total Taxable-Investment
(identified cost $395,000) $ 395,356
-----------------------------------------------------------------------------------------
Total Investments -- 100.0%
(identified cost $2,120,406,312) $ 2,324,802,020
-----------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
At March 31, 1999 the concentration of the Portfolio's investments in the
various states, determined as a percentage of total investments, is as follows:
California 10.0%
Others, representing less than 10% individually 90.0%
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 municipalities. The
ability of the issuers of the debt securities to meet their obligations may be
affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at March
31, 1999, 23.7% 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 0.9% to 13.2% 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. At March 31,
1999, the value of these securities amounted to $78,922,113 or 3.3% of the
Portfolio's net assets.
(4) Security (or a portion thereof) has been segregated to cover when-issued
securities.
(5) When-issued security.
(6) The Portfolio is accruing only partial interest on this security.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF MARCH 31, 1999
<S> <C>
Assets
- ---------------------------------------------------------
Investments, at value
(identified cost, $2,120,406,312) $ 2,324,802,020
Cash 6,393,979
Receivable for investments sold 29,887,061
Interest receivable 38,809,962
- ---------------------------------------------------------
TOTAL ASSETS $ 2,399,893,022
- ---------------------------------------------------------
Liabilities
- ---------------------------------------------------------
Payable for investments purchased $ 22,600,000
Payable for when-issued securities 6,710,830
Other accrued expenses 12,253
- ---------------------------------------------------------
TOTAL LIABILITIES $ 29,323,083
- ---------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $ 2,370,569,939
- ---------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $ 2,166,174,231
Net unrealized appreciation (computed on
the basis of identified cost) 204,395,708
- ---------------------------------------------------------
TOTAL $ 2,370,569,939
- ---------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
MARCH 31, 1999
<S> <C>
Investment Income
- --------------------------------------------------------
Interest $ 74,742,610
- --------------------------------------------------------
TOTAL INVESTMENT INCOME $ 74,742,610
- --------------------------------------------------------
Expenses
- --------------------------------------------------------
Investment adviser fee $ 4,883,986
Trustees fees and expenses 21,082
Custodian fee 199,701
Legal and accounting services 85,548
Miscellaneous 58,761
- --------------------------------------------------------
TOTAL EXPENSES $ 5,249,078
- --------------------------------------------------------
Deduct --
Reduction of custodian fee $ 199,701
- --------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 199,701
- --------------------------------------------------------
NET EXPENSES $ 5,049,377
- --------------------------------------------------------
NET INVESTMENT INCOME $ 69,693,233
- --------------------------------------------------------
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 35,907,706
Financial futures contracts 2,152,292
- --------------------------------------------------------
NET REALIZED GAIN $ 38,059,998
- --------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (103,466,676)
Financial futures contracts 3,608,750
- --------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (99,857,926)
- --------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (61,797,928)
- --------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 7,895,305
- --------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) MARCH 31, 1999 YEAR ENDED
in Net Assets (UNAUDITED) SEPTEMBER 30, 1998
<S> <C> <C>
- ---------------------------------------------------------------------------------
From operations --
Net investment income $ 69,693,233 $ 133,228,452
Net realized gain 38,059,998 62,170,470
Net change in unrealized appreciation
(depreciation) (99,857,926) 13,950,121
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 7,895,305 $ 209,349,043
- ---------------------------------------------------------------------------------
Capital transactions --
Contributions $ 227,834,909 $ 389,124,010
Withdrawals (205,285,053) (439,963,679)
- ---------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM
CAPITAL TRANSACTIONS $ 22,549,856 $ (50,839,669)
- ---------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 30,445,161 $ 158,509,374
- ---------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------
At beginning of period $ 2,340,124,778 $ 2,181,615,404
- ---------------------------------------------------------------------------------
AT END OF PERIOD $ 2,370,569,939 $ 2,340,124,778
- ---------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 1999 -------------------------------------------------------------------
(UNAUDITED) 1998 1997 1996 1995 1994
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.45%(2) 0.45% 0.52% 0.49% 0.50% 0.50%
Expenses after custodian fee reduction 0.43%(2) 0.43% 0.52% 0.48% 0.49% --
Net investment income 5.91%(2) 5.93% 6.51% 6.65% 7.00% 6.55%
Portfolio Turnover 20% 28% 17% 19% 54% 40%
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $2,370,570 $2,340,125 $2,181,615 $2,212,478 $2,260,646 $2,210,936
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended September 30, 1995 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset arrangements
with its service providers. The expense ratio for the year ended September
30, 1994 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
National Municipals Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end management
investment company which was organized as a trust under the laws of the State
of New York on May 1, 1992. The Declaration of Trust permits the Trustees to
issue interests in the Portfolio. The following is a summary of significant
accounting policies of the Portfolio. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuation -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts listed on the
commodity exchanges are valued at closing settlement prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are unavailable are valued at fair 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 Federal Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investor's distributive share of the Portfolio's net taxable (if any) and
tax-exempt investment income, net realized capital gains, and any other items
of income, gain, loss, deduction or credit. Interest income received by the
Portfolio on investments in municipal bonds, which is excludable from gross
income under the Internal Revenue Code, will retain its status as income
exempt from federal income tax when allocated to the Portfolio's investors.
The portion of such interest, if any, earned on private activity bonds issued
after August 7, 1986 may be considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, the Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by the Portfolio ("margin maintenance") each day, dependent
on the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by the Portfolio.
The Portfolio's investment in financial futures contracts is designed for
both hedging against anticipated future changes in interest rates and
investment purposes. Should interest rates move unexpectedly, the 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 the Portfolio, the premium paid is
recorded as an investment, the value of which is marked-to-market daily. When
a purchased option expires, the Portfolio will realize a loss in the amount
of the cost of the option. When the Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When the 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 Legal Fees -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
G When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued or delayed delivery transactions. The Portfolio records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin accruing interest on
settlement date.
H 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
23
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NATIONAL MUNICIPALS PORTFOLIO AS OF MARCH 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
statements and the reported amounts of revenue and expense during the
reporting period. Actual results could differ from those estimates.
I Other -- Investment transactions are accounted for on a trade date basis.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balance the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reflected as a reduction of
operating expense on the Statement of Operations.
K Interim Financial Statements -- The interim financial statements relating to
March 31, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management, reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
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The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended March 31, 1999, the fee was equivalent
to 0.41% of the Portfolio's average daily net assets for such period and
amounted to $4,883,986. Except as to Trustees of the Portfolio who are not
members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to the Portfolio out of such investment
adviser fee. Trustees of the Portfolio that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended March 31, 1999, no significant
amounts have been deferred.
Certain of the officers and Trustees of the Portfolio are officers and
directors/trustees of the above organizations.
3 Investments
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Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $534,585,854 and $462,708,855,
respectively, for the six months ended March 31, 1999.
4 Federal Income Tax Basis of Investments
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The cost and unrealized appreciation (depreciation) in value of the
investments owned at March 31, 1999, as computed on a Federal income tax
basis, are as follows:
<TABLE>
<S> <C>
Aggregate cost $ 2,120,406,312
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Gross unrealized appreciation $ 249,286,860
Gross unrealized depreciation (44,891,152)
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NET UNREALIZED APPRECIATION $ 204,395,708
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</TABLE>
5 Line of Credit
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The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million unsecured line of credit agreement
with a group of banks. The portfolio 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. The Portfolio did not have any significant
borrowings or allocated fees during the six months ended March 31, 1999.
6 Financial Instruments
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The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its 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 the Portfolio has in particular classes of financial instruments
and does not necessarily represent the amounts potentially subject to risk.
The measurement of the risks associated with these instruments is meaningful
only when all related and offsetting transactions are considered.
At March 31, 1999, there were no outstanding obligations under these
financial instruments.
24
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EATON VANCE NATIONAL MUNICIPALS FUND AS OF MARCH 31, 1999
INVESTMENT MANAGEMENT
EATON VANCE NATIONAL MUNICIPALS FUND
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
Independent Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
NATIONAL MUNICIPALS PORTFOLIO
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President and Portfolio
Manager
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Independent Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of
Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
John L. Thorndike
Former Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
25
<PAGE>
INVESTMENT ADVISOR OF
NATIONAL MUNICIPALS PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF
EATON VANCE NATIONAL MUNICIPALS FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
FIRST DATA INVESTOR SERVICES GROUP, INC.
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EATON VANCE MUNICIPALS TRUST
The Eaton Vance Building
255 State Street
Boston, MA 02109
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
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2-2144-5/99 HMSRC-5/99
