<PAGE>
[EATON VANCE LOGO] MUTUAL FUNDS
FOR PEOPLE
WHO PAY
TAXES-REGISTERED TRADMARK-
[PICTURE OF EDUCATION]
ANNUAL REPORT SEPTEMBER 30, 2000
EATON VANCE
MUNICIPALS
TRUST
California
Florida
Massachusetts
[PICTURE OF CARS ON HIGHWAY] Mississippi
New York
Ohio
[PICTURE OF BRIDGE] Rhode Island
West Virginia
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
--------------------------------------------------------------------------------
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
President
The rate of economic growth in the U.S. finally showed signs of easing somewhat
in the second half of 2000. Last year's prolonged rise in interest rates
resulted in lower corporate profits, slower capital investment, and weaker
consumer demand. Those trends were generally reflected at the state level as
well, as indicated in the following pages, and, together with volatility in the
equity markets, have tempered the outlook for economic growth.
AFTER A DISAPPOINTING YEAR IN 1999, MUNICIPAL BONDS STAGED A MODEST RECOVERY IN
2000...
The effect of higher interest rates on the municipal market was quite evident in
1999. Bond prices, which generally move in the opposite direction of interest
rates, reacted negatively to the rate hikes, creating disappointing returns for
municipal bond funds, including Eaton Vance Municipals Funds.
In the six-month period ended September 30, 2000, however, the picture
brightened somewhat. After the Federal Reserve raised its benchmark Federal
Funds rate in March and again in May, the U.S. economy appeared in the ensuing
months to show the cumulative effects of the Fed's actions. In the second
quarter, GDP growth slowed to a moderate 2.3%. While expressing concerns about
sharply higher energy prices, the Federal Reserve left rates unchanged at its
August 2000 meeting and signaled that its sustained string of rate hikes may be
near an end.
AS RATES STABILIZED, THE CLIMATE FOR MUNICIPAL BONDS IMPROVED...
The prospect of stable, or potentially lower, interest rates was applauded by
fixed-income markets, including the municipal market, which mounted a modest
rally. The funds in the Lipper General Municipal Debt Fund Classification, which
had an average total return of -4.58% in 1999, had a return of 3.39% in the
six-month period ended September 30, 2000.* That represented a modest recovery,
as the interest rate scenario improved somewhat.
Naturally, the outlook for the municipal market will depend, in large part, on
the relative strength of the economy and future Fed actions. From a supply
standpoint, however, conditions have turned more favorable. Increased tax
revenues at the state and local level have reduced funding needs. As a result,
the rate of new municipal issuance declined from previous years, reducing supply
pressures within the municipal market. Finally, if the equity markets remain
under pressure, the municipal markets could attract more demand from
tax-conscious investors. The economy will, of course, bear close watching in
coming months. But, in a moderating economy, we believe that municipals are
increasingly worthy of consideration in a diversified investment portfolio.
--------------------------------------------------------------------------------
MUNICIPAL BOND YIELDS ARE NEARLY 98% OF TREASURY YIELDS
-------------------------------------------------
5.76% 9.54%
--------------------------------------------------
30-Year AAA-rated Taxable equivalent yield
General Obligation (GO) Bonds* in 39.6% tax bracket
------------------------------
5.88%
------------------------------
30-Year Tresury bond
Principal and interest payments of Treasury securties are quaranteed by the U.S.
government.
*GO yields are a compilation of a representative variety of general obligations
and are not necessarily representative of the Funds' yield. Statistics as of
September 30, 2000.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
--------------------------------------------------------------------------------
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
November 11, 2000
*It is not possible to invest directly in a Lipper classification.
--------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL
CHANGE.
--------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE CALIFORNIA MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- California's economic growth has proceeded at a fairly solid pace in 2000,
although job growth has moderated somewhat in the second half. Business
services and engineering provided an especially strong boost to the service
sector. The state's September 2000 unemployment rate declined to 4.8% from
5.0% a year ago.
- The supply of California bonds declined sharply in 2000, falling roughly 25%
below the 1999 levels. In a limited new-issue market, the Portfolio's largest
sector weighting was escrowed bonds. Because they are backed by Treasury
bonds, these issues provided the Portfolio with excellent credit quality.
- Special tax revenue bonds remained a major emphasis of the Portfolio. These
special assessment issues continue to constitute a large percentage of new
state supply, and were issued to meet the growing infrastructure needs of
California communities.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 51.5%
Non-Rated 21.4%
BBB 5.9%
AA 8.6%
A 12.6%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 5.17% and 5.06%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$10.27 on September 30, 2000 from $10.32 on September 30, 1999, and the
reinvestment of $0.555 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.49 from $9.52, and the
reinvestment of $0.487 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.40% for Class A and 5.06% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
9.86% and 9.24%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 4.72% and
4.71%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.62% and 8.60%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 45.22% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.31% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+ May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
------------------------------------------------------
Average Annual Total Returns (at net asset value)
------------------------------------------------------
<S> <C> <C>
One Year 5.17% 5.06%
Five Years 5.79 5.03
Ten Years N.A. 5.76
Life of Fund+ 6.18 5.90
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
------------------------------------------------------
One Year 0.22% 0.07%
Five Years 4.76 4.70
Ten Years N.A. 5.76
Life of Fund+ 5.37 5.90
</TABLE>
+Inception date: Class A: 5/27/94; Class B: 12/19/85
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE CALIFORNIA
MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX*
September 30, 1990 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
CALIFORNIA MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
9/30/1990 $10,000 $10,000
10/31/1990 $10,169 $10,182
11/30/1990 $10,396 $10,386
12/31/1990 $10,416 $10,431
1/31/1991 $10,557 $10,572
2/28/1991 $10,594 $10,664
3/31/1991 $10,562 $10,667
4/30/1991 $10,708 $10,810
5/31/1991 $10,787 $10,906
6/30/1991 $10,741 $10,895
7/31/1991 $10,871 $11,028
8/31/1991 $10,986 $11,173
9/30/1991 $11,159 $11,318
10/31/1991 $11,260 $11,420
11/30/1991 $11,207 $11,452
12/31/1991 $11,392 $11,698
1/31/1992 $11,336 $11,725
2/29/1992 $11,368 $11,729
3/31/1992 $11,341 $11,733
4/30/1992 $11,445 $11,837
5/31/1992 $11,574 $11,977
6/30/1992 $11,776 $12,177
7/31/1992 $12,117 $12,543
8/31/1992 $11,912 $12,420
9/30/1992 $11,947 $12,502
10/31/1992 $11,616 $12,379
11/30/1992 $11,909 $12,600
12/31/1992 $12,087 $12,729
1/31/1993 $12,236 $12,877
2/28/1993 $12,756 $13,343
3/31/1993 $12,567 $13,202
4/30/1993 $12,705 $13,335
5/31/1993 $12,746 $13,410
6/30/1993 $12,931 $13,634
7/31/1993 $12,904 $13,652
8/31/1993 $13,235 $13,936
9/30/1993 $13,371 $14,095
10/31/1993 $13,368 $14,122
11/30/1993 $13,213 $13,997
12/31/1993 $13,471 $14,293
1/31/1994 $13,616 $14,456
2/28/1994 $13,253 $14,082
3/31/1994 $12,636 $13,508
4/30/1994 $12,632 $13,623
5/31/1994 $12,695 $13,741
6/30/1994 $12,566 $13,661
7/31/1994 $12,788 $13,907
8/31/1994 $12,838 $13,955
9/30/1994 $12,643 $13,751
10/31/1994 $12,354 $13,507
11/30/1994 $12,030 $13,262
12/31/1994 $12,246 $13,554
1/31/1995 $12,685 $13,942
2/28/1995 $13,107 $14,347
3/31/1995 $13,258 $14,512
4/30/1995 $13,234 $14,529
5/31/1995 $13,673 $14,993
6/30/1995 $13,402 $14,862
7/31/1995 $13,477 $15,002
8/31/1995 $13,577 $15,193
9/30/1995 $13,692 $15,289
10/31/1995 $13,983 $15,511
11/30/1995 $14,303 $15,769
12/31/1995 $14,507 $15,920
1/31/1996 $14,552 $16,040
2/29/1996 $14,417 $15,932
3/31/1996 $14,161 $15,728
4/30/1996 $14,087 $15,684
5/31/1996 $14,084 $15,678
6/30/1996 $14,208 $15,849
7/31/1996 $14,368 $15,992
8/31/1996 $14,366 $15,988
9/30/1996 $14,581 $16,212
10/31/1996 $14,698 $16,395
11/30/1996 $14,989 $16,695
12/31/1996 $14,896 $16,625
1/31/1997 $14,956 $16,656
2/28/1997 $15,131 $16,809
3/31/1997 $14,902 $16,585
4/30/1997 $15,053 $16,724
5/31/1997 $15,269 $16,976
6/30/1997 $15,474 $17,157
7/31/1997 $15,975 $17,632
8/31/1997 $15,767 $17,466
9/30/1997 $16,036 $17,674
10/31/1997 $16,111 $17,787
11/30/1997 $16,225 $17,892
12/31/1997 $16,507 $18,153
1/31/1998 $16,666 $18,340
2/28/1998 $16,666 $18,346
3/31/1998 $16,672 $18,362
4/30/1998 $16,503 $18,279
5/31/1998 $16,794 $18,569
6/30/1998 $16,823 $18,642
7/31/1998 $16,835 $18,688
8/31/1998 $17,203 $18,977
9/30/1998 $17,447 $19,214
10/31/1998 $17,321 $19,213
11/30/1998 $17,383 $19,281
12/31/1998 $17,389 $19,329
1/31/1999 $17,569 $19,559
2/28/1999 $17,462 $19,474
3/31/1999 $17,498 $19,501
4/30/1999 $17,525 $19,549
5/31/1999 $17,388 $19,436
6/30/1999 $17,005 $19,156
7/31/1999 $17,004 $19,226
8/31/1999 $16,732 $19,072
9/30/1999 $16,662 $19,080
10/31/1999 $16,242 $18,873
11/30/1999 $16,385 $19,074
12/31/1999 $16,208 $18,932
1/31/2000 $16,023 $18,849
2/29/2000 $16,322 $19,068
3/31/2000 $16,697 $19,485
4/30/2000 $16,488 $19,370
5/31/2000 $16,356 $19,269
6/30/2000 $16,957 $19,780
7/31/2000 $17,288 $20,055
8/31/2000 $17,706 $20,364
9/30/2000 $17,504 $20,258
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. The chart compares the total return
of the Fund's Class B with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged national municipal market index. Returns are calculated
by determining the percentage change in net asset value (NAV) with all
distributions reinvested. The lines on the chart represent total returns of
$10,000 hypothetical investments in the Fund and the Lehman Brothers Municipal
Bond Index. An investment in Class A shares on 5/27/94 at net asset value would
have grown to $14,638 on 9/30/00; $13,941, including the 4.75% maximum sales
charge. The Index's total return does not reflect commissions or expenses that
would have been incurred if an investor individually purchased or sold the
securities represented in the Index. It is not possible to invest directly in an
Index.
3
<PAGE>
EATON VANCE FLORIDA MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF CYNTHIA J. CLEMSON]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Reflecting a more moderate southeast economy, the Florida economy eased
somewhat in the first half of 2000. Residential and commercial construction
were slightly below last year's pace, and state officials worried about the
effect of higher gas prices on tourism. The state's August 2000 jobless rate
was 3.7%, down from 3.8% a year ago.
- One of the Portfolio's largest sector weightings was escrowed bonds. Because
they are backed by Treasury bonds, these issues provided the Portfolio with
excellent credit quality.
- Florida's economy has been characterized by high levels of in-migration,
which has resulted in a very strong demand for housing. Management has
therefore selectively invested in special assessment bonds, which help fund
Florida's growing infrastructure needs.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 62.0%
Non-Rated 19.2%
BBB 6.0%
AA 7.0%
A 5.8%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 5.05% and 4.38%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$10.01 on September 30, 2000 from $10.19 on September 30, 1999, and the
reinvestment of $0.539 per share in tax-free income and $0.125 in capital
gains distributions.(2) For Class B, this return resulted from a change in
NAV to $10.27 from $10.43, and the reinvestment of $0.468 per share in
tax-free income and $0.125 in capital gains distributions.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.39% for Class A and 4.63% for Class B. (3)The
distribution rates of Class A and Class B are equivalent to taxable rates of
8.92%and 7.67%, respectively.(4)
- The SEC30-day yields for Class A and B shares at September 30 were 5.29% and
4.78%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.76% and 7.91%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state intangibles tax rate.
(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)Taxable-equivalent
rates assume maximum 39.60% federal income tax rate. A lower rate would
result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the percentage change in
NAV with all distributions reinvested. SEC average annual returns for
Class A reflect a sales charge of 4.75% and for Class B reflect applicable
CDSC based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd
year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.64% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+ May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
------------------------------------------------------
Average Annual Total Returns (at net asset value)
------------------------------------------------------
<S> <C> <C>
One Year 5.05% 4.38%
Five Years 4.79 3.92
Ten Years N.A. 6.02
Life of Fund+ 5.79 5.96
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
------------------------------------------------------
One Year 0.04% -0.54%
Five Years 3.78 3.59
Ten Years N.A. 6.02
Life of Fund+ 4.99 5.96
</TABLE>
+Inception date: Class A: 4/5/94; Class B: 8/28/90
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE FLORIDA
MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND INDEX*
September 30, 1990 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
FLORIDA MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
9/30/1990 $10,000 $10,000
10/31/1990 $10,137 $10,182
11/30/1990 $10,439 $10,386
12/31/1990 $10,493 $10,431
1/31/1991 $10,633 $10,572
2/28/1991 $10,714 $10,664
3/31/1991 $10,709 $10,667
4/30/1991 $10,875 $10,810
5/31/1991 $10,999 $10,906
6/30/1991 $10,910 $10,895
7/31/1991 $11,105 $11,028
8/31/1991 $11,252 $11,173
9/30/1991 $11,445 $11,318
10/31/1991 $11,547 $11,420
11/30/1991 $11,533 $11,452
12/31/1991 $11,898 $11,698
1/31/1992 $11,826 $11,725
2/29/1992 $11,829 $11,729
3/31/1992 $11,796 $11,733
4/30/1992 $11,923 $11,837
5/31/1992 $12,129 $11,977
6/30/1992 $12,372 $12,177
7/31/1992 $12,829 $12,543
8/31/1992 $12,510 $12,420
9/30/1992 $12,523 $12,502
10/31/1992 $12,217 $12,379
11/30/1992 $12,674 $12,600
12/31/1992 $12,856 $12,729
1/31/1993 $12,980 $12,877
2/28/1993 $13,618 $13,343
3/31/1993 $13,365 $13,202
4/30/1993 $13,550 $13,335
5/31/1993 $13,641 $13,410
6/30/1993 $13,884 $13,634
7/31/1993 $13,874 $13,652
8/31/1993 $14,198 $13,936
9/30/1993 $14,382 $14,095
10/31/1993 $14,394 $14,122
11/30/1993 $14,136 $13,997
12/31/1993 $14,509 $14,293
1/31/1994 $14,703 $14,456
2/28/1994 $14,205 $14,082
3/31/1994 $13,436 $13,508
4/30/1994 $13,501 $13,623
5/31/1994 $13,579 $13,741
6/30/1994 $13,460 $13,661
7/31/1994 $13,730 $13,907
8/31/1994 $13,731 $13,955
9/30/1994 $13,470 $13,751
10/31/1994 $13,104 $13,507
11/30/1994 $12,784 $13,262
12/31/1994 $13,200 $13,554
1/31/1995 $13,661 $13,942
2/28/1995 $14,174 $14,347
3/31/1995 $14,282 $14,512
4/30/1995 $14,290 $14,529
5/31/1995 $14,670 $14,993
6/30/1995 $14,404 $14,862
7/31/1995 $14,493 $15,002
8/31/1995 $14,620 $15,193
9/30/1995 $14,804 $15,289
10/31/1995 $15,071 $15,511
11/30/1995 $15,422 $15,769
12/31/1995 $15,635 $15,920
1/31/1996 $15,696 $16,040
2/29/1996 $15,476 $15,932
3/31/1996 $15,224 $15,728
4/30/1996 $15,173 $15,684
5/31/1996 $15,118 $15,678
6/30/1996 $15,270 $15,849
7/31/1996 $15,454 $15,992
8/31/1996 $15,371 $15,988
9/30/1996 $15,608 $16,212
10/31/1996 $15,710 $16,395
11/30/1996 $15,961 $16,695
12/31/1996 $15,878 $16,625
1/31/1997 $15,880 $16,656
2/28/1997 $15,993 $16,809
3/31/1997 $15,738 $16,585
4/30/1997 $15,812 $16,724
5/31/1997 $15,963 $16,976
6/30/1997 $16,178 $17,157
7/31/1997 $16,644 $17,632
8/31/1997 $16,375 $17,466
9/30/1997 $16,528 $17,674
10/31/1997 $16,695 $17,787
11/30/1997 $16,808 $17,892
12/31/1997 $17,094 $18,153
1/31/1998 $17,325 $18,340
2/28/1998 $17,331 $18,346
3/31/1998 $17,354 $18,362
4/30/1998 $17,211 $18,279
5/31/1998 $17,535 $18,569
6/30/1998 $17,597 $18,642
7/31/1998 $17,609 $18,688
8/31/1998 $17,880 $18,977
9/30/1998 $18,065 $19,214
10/31/1998 $17,982 $19,213
11/30/1998 $18,045 $19,281
12/31/1998 $18,023 $19,329
1/31/1999 $18,197 $19,559
2/28/1999 $18,116 $19,474
3/31/1999 $18,058 $19,501
4/30/1999 $18,104 $19,549
5/31/1999 $17,990 $19,436
6/30/1999 $17,707 $19,156
7/31/1999 $17,637 $19,226
8/31/1999 $17,310 $19,072
9/30/1999 $17,191 $19,080
10/31/1999 $16,906 $18,873
11/30/1999 $17,053 $19,074
12/31/1999 $16,873 $18,932
1/31/2000 $16,675 $18,849
2/29/2000 $16,956 $19,068
3/31/2000 $17,377 $19,485
4/30/2000 $17,243 $19,370
5/31/2000 $17,048 $19,269
6/30/2000 $17,531 $19,780
7/31/2000 $17,810 $20,055
8/31/2000 $18,101 $20,364
9/30/2000 $17,944 $20,258
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
8/28/90. The chart compares the total return of the Fund's Class B with that of
the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged national
municipal market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. An investment in Class A
shares on 4/5/94 at net asset value would have grown to $14,407 on 9/30/00;
$13,721, including the 4.75% maximum sales charge. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
4
<PAGE>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- The Massachusetts economy remained sound in 2000, although the rate of growth
has slowed from previous years. Financial services, technology and health
care continued to generate good job growth. The September 2000 jobless rate
was just 2.4%, down from 3.2% a year earlier.
- We continued to avoid Big Dig-related credits issued by the Commonwealth of
Massachusetts, the Mass. Turnpike Authority, and Mass. Port Authority. There
has been a large supply of bonds issued to finance the Big Dig and other
highway projects, with more such debt expected in the future.
- The state's public transportation agency, the MBTA, has issued two new types
of bonds. We invested in one of these issues, which is backed by sales-tax
revenues, rather than by the Commonwealth's guarantee. We also continue to
have a lot of exposure to secondary schools and other education credits.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 43.0%
Non-Rated 4.5%
BBB 26.1%
AA 6.3%
A 20.1%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A, B, and I shares
had total returns of 4.70%; 3.93%; and 4.92%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.02 on September 30, 2000 from $9.11 on September 30, 1999, and the
reinvestment of $0.497 per share in tax-free income;(2) for Class B, a change
in NAV to $10.05 from $10.13, and the reinvestment of $0.460 per share in
tax-free income;(2) and for Class I, a change in NAV to $9.31 from $9.39, and
the reinvestment of $0.520 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.44% for Class A, 4.58% for Class B, and 5.59% for
Class I.(3) The distribution rates of Class A, Class B, and Class I shares
are equivalent to taxable rates of 9.57%, 8.05%, and 9.83%, respectively.(4)
- The SEC 30-day yields for Class A, B, and I shares at September 30 were
4.93%, 4.36%, and 5.31%, respectively.(5) The SEC 30-day yields of Class A,
Class B, and Class I shares are equivalent to taxable yields of 8.67%,
7.67%,and 9.34%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 43.13% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule:5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.54% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+ May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B CLASS I
----------------------------------------------------------
Average Annual Total Returns (at net asset value)
----------------------------------------------------------
<S> <C> <C>
One Year 4.70% 3.93% 4.92%
Five Years 5.09 4.23 5.15
Life of Fund+ 4.00 5.48 4.65
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
----------------------------------------------------------
One Year -0.22% -1.03% 4.92%
Five Years 4.08 3.90 5.15
Life of Fund+ 3.26 5.48 4.65
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 4/18/91; Class I:6/17/93
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
MASSACHUSETTS MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
April 30, 1991 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
MASSACHUSETTS MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
4/30/1991 $10,000 $10,000
5/31/1991 $10,040 $10,089
6/30/1991 $10,063 $10,079
7/31/1991 $10,248 $10,202
8/31/1991 $10,410 $10,336
9/30/1991 $10,544 $10,471
10/31/1991 $10,662 $10,565
11/30/1991 $10,669 $10,594
12/31/1991 $10,985 $10,822
1/31/1992 $11,011 $10,846
2/29/1992 $11,025 $10,850
3/31/1992 $11,004 $10,854
4/30/1992 $11,095 $10,951
5/31/1992 $11,250 $11,080
6/30/1992 $11,483 $11,265
7/31/1992 $11,889 $11,603
8/31/1992 $11,657 $11,490
9/30/1992 $11,690 $11,565
10/31/1992 $11,417 $11,451
11/30/1992 $11,744 $11,657
12/31/1992 $11,877 $11,776
1/31/1993 $12,005 $11,913
2/28/1993 $12,487 $12,343
3/31/1993 $12,325 $12,213
4/30/1993 $12,488 $12,336
5/31/1993 $12,562 $12,405
6/30/1993 $12,757 $12,613
7/31/1993 $12,736 $12,629
8/31/1993 $13,020 $12,892
9/30/1993 $13,172 $13,039
10/31/1993 $13,183 $13,064
11/30/1993 $13,031 $12,949
12/31/1993 $13,308 $13,222
1/31/1994 $13,444 $13,373
2/28/1994 $13,115 $13,027
3/31/1994 $12,445 $12,496
4/30/1994 $12,409 $12,602
5/31/1994 $12,519 $12,711
6/30/1994 $12,406 $12,637
7/31/1994 $12,625 $12,866
8/31/1994 $12,675 $12,910
9/30/1994 $12,439 $12,721
10/31/1994 $12,116 $12,495
11/30/1994 $11,736 $12,269
12/31/1994 $12,092 $12,539
1/31/1995 $12,542 $12,897
2/28/1995 $12,940 $13,272
3/31/1995 $13,054 $13,425
4/30/1995 $13,037 $13,441
5/31/1995 $13,384 $13,870
6/30/1995 $13,143 $13,748
7/31/1995 $13,215 $13,878
8/31/1995 $13,387 $14,055
9/30/1995 $13,481 $14,143
10/31/1995 $13,721 $14,349
11/30/1995 $14,000 $14,587
12/31/1995 $14,187 $14,727
1/31/1996 $14,218 $14,839
2/29/1996 $14,046 $14,738
3/31/1996 $13,845 $14,550
4/30/1996 $13,808 $14,509
5/31/1996 $13,823 $14,503
6/30/1996 $13,951 $14,661
7/31/1996 $14,057 $14,794
8/31/1996 $14,031 $14,791
9/30/1996 $14,227 $14,997
10/31/1996 $14,308 $15,167
11/30/1996 $14,560 $15,445
12/31/1996 $14,479 $15,380
1/31/1997 $14,507 $15,409
2/28/1997 $14,627 $15,550
3/31/1997 $14,438 $15,343
4/30/1997 $14,563 $15,471
5/31/1997 $14,761 $15,704
6/30/1997 $14,935 $15,871
7/31/1997 $15,376 $16,311
8/31/1997 $15,220 $16,158
9/30/1997 $15,424 $16,350
10/31/1997 $15,525 $16,455
11/30/1997 $15,618 $16,552
12/31/1997 $15,875 $16,793
1/31/1998 $16,022 $16,966
2/28/1998 $16,072 $16,972
3/31/1998 $16,066 $16,987
4/30/1998 $15,932 $16,910
5/31/1998 $16,184 $17,178
6/30/1998 $16,230 $17,245
7/31/1998 $16,245 $17,289
8/31/1998 $16,506 $17,556
9/30/1998 $16,699 $17,775
10/31/1998 $16,637 $17,774
11/30/1998 $16,699 $17,836
12/31/1998 $16,710 $17,881
1/31/1999 $16,878 $18,094
2/28/1999 $16,742 $18,015
3/31/1999 $16,733 $18,040
4/30/1999 $16,763 $18,085
5/31/1999 $16,624 $17,980
6/30/1999 $16,370 $17,721
7/31/1999 $16,351 $17,786
8/31/1999 $16,055 $17,643
9/30/1999 $15,957 $17,651
10/31/1999 $15,685 $17,459
11/30/1999 $15,778 $17,645
12/31/1999 $15,568 $17,514
1/31/2000 $15,397 $17,437
2/29/2000 $15,629 $17,640
3/31/2000 $16,042 $18,025
4/30/2000 $15,899 $17,919
5/31/2000 $15,729 $17,826
6/30/2000 $16,167 $18,298
7/31/2000 $16,445 $18,553
8/31/2000 $16,734 $18,839
9/30/2000 $16,584 $18,741
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
4/18/91. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class B
with that of the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged
national municipal market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 12/7/93 at net asset value would have grown to
$13,066 on 9/30/00; $12,444, including the 4.75% maximum sales charge. An
investment in Class I shares on 6/17/93 at net asset value would have grown to
$13,927 on 9/30/00. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually purchased or
sold the securities represented in the Index. It is not possible to invest
directly in an Index.
5
<PAGE>
EATON VANCE MISSISSIPPI MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF CYNTHIA J. CLEMSON
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- In August 2000, Mississippi's legislature approved the "Advantage Mississippi
Initiative," a wide-ranging act designed to improve the state's economic
competitiveness, especially in high-tech areas. The measure has met with wide
approval from economic and business leaders, as it's expected to vastly
improve the overall economic well-being of the state.
- The largest sector weighting in the Mississippi Portfolio at September 30,
2000 was industrial development bonds. In addition to providing above-average
coupons, IDBs provide financing for projects for well-known companies,
including Georgia-Pacific and Weyerhauser.
- The municipals market in Mississippi experienced relatively low issuance in
the past year. Management focused on improving the Portfolio's structure
through such methods as improving call protection.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 57.4%
BBB 16.1%
AA 6.8%
A 17.1%
Non-rated 2.6%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 4.87% and 4.14%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.31 on September 30, 2000 from $9.35 on September 30, 1999, and the
reinvestment of $0.476 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.53 from $9.56, and the
reinvestment of $0.411 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.05% for Class A and 4.31% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
8.80% and 7.51%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 4.94% and
4.41%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.61% and 7.69%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 42.62% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.69% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+ May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
--------------------------------------------------
Average Annual Total Returns (at net asset value)
--------------------------------------------------
<S> <C> <C>
One Year 4.87% 4.14%
Five Years 5.22 4.56
Life of Fund+ 4.06 4.00
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
--------------------------------------------------
One Year -0.15% -0.84%
Five Years 4.20 4.23
Life of Fund+ 3.32 4.00
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 6/11/93
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
MISSISSIPPI MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
June 30, 1993 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
MISSISSIPPI MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
6/30/1993 $10,000 $10,000
7/31/1993 $9,950 $10,013
8/31/1993 $10,249 $10,221
9/30/1993 $10,385 $10,338
10/31/1993 $10,369 $10,358
11/30/1993 $10,244 $10,266
12/31/1993 $10,522 $10,483
1/31/1994 $10,644 $10,603
2/28/1994 $10,295 $10,328
3/31/1994 $9,640 $9,908
4/30/1994 $9,717 $9,992
5/31/1994 $9,816 $10,078
6/30/1994 $9,733 $10,020
7/31/1994 $9,925 $10,200
8/31/1994 $9,919 $10,236
9/30/1994 $9,741 $10,086
10/31/1994 $9,500 $9,907
11/30/1994 $9,254 $9,727
12/31/1994 $9,477 $9,941
1/31/1995 $9,835 $10,226
2/28/1995 $10,214 $10,523
3/31/1995 $10,296 $10,644
4/30/1995 $10,274 $10,656
5/31/1995 $10,577 $10,996
6/30/1995 $10,408 $10,900
7/31/1995 $10,474 $11,003
8/31/1995 $10,593 $11,143
9/30/1995 $10,658 $11,214
10/31/1995 $10,857 $11,377
11/30/1995 $11,103 $11,566
12/31/1995 $11,235 $11,677
1/31/1996 $11,290 $11,765
2/29/1996 $11,150 $11,685
3/31/1996 $10,950 $11,536
4/30/1996 $10,913 $11,503
5/31/1996 $10,932 $11,499
6/30/1996 $11,047 $11,624
7/31/1996 $11,145 $11,729
8/31/1996 $11,141 $11,727
9/30/1996 $11,315 $11,891
10/31/1996 $11,402 $12,025
11/30/1996 $11,588 $12,245
12/31/1996 $11,537 $12,194
1/31/1997 $11,616 $12,217
2/28/1997 $11,736 $12,329
3/31/1997 $11,583 $12,164
4/30/1997 $11,661 $12,266
5/31/1997 $11,825 $12,451
6/30/1997 $11,956 $12,584
7/31/1997 $12,279 $12,932
8/31/1997 $12,177 $12,811
9/30/1997 $12,271 $12,963
10/31/1997 $12,326 $13,046
11/30/1997 $12,386 $13,123
12/31/1997 $12,588 $13,315
1/31/1998 $12,707 $13,452
2/28/1998 $12,705 $13,456
3/31/1998 $12,720 $13,468
4/30/1998 $12,638 $13,407
5/31/1998 $12,833 $13,619
6/30/1998 $12,841 $13,673
7/31/1998 $12,860 $13,707
8/31/1998 $13,050 $13,919
9/30/1998 $13,222 $14,092
10/31/1998 $13,164 $14,092
11/30/1998 $13,199 $14,142
12/31/1998 $13,230 $14,177
1/31/1999 $13,368 $14,346
2/28/1999 $13,285 $14,283
3/31/1999 $13,246 $14,303
4/30/1999 $13,292 $14,338
5/31/1999 $13,221 $14,255
6/30/1999 $12,987 $14,050
7/31/1999 $13,005 $14,102
8/31/1999 $12,840 $13,988
9/30/1999 $12,805 $13,994
10/31/1999 $12,623 $13,843
11/30/1999 $12,696 $13,990
12/31/1999 $12,566 $13,886
1/31/2000 $12,469 $13,825
2/29/2000 $12,634 $13,986
3/31/2000 $12,883 $14,291
4/30/2000 $12,810 $14,207
5/31/2000 $12,703 $14,133
6/30/2000 $12,999 $14,508
7/31/2000 $13,187 $14,709
8/31/2000 $13,413 $14,936
9/30/2000 $13,322 $14,858
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
6/11/93. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class B
with that of the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged
national municipal market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 12/7/93 at net asset value would have grown to
$13,117 on 9/30/00; $12,493, including the 4.75% maximum sales charge. The
Index's total return does not reflect commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
6
<PAGE>
EATON VANCE NEW YORK MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- New York's economy remained strong in 2000, with real estate prices rising
and labor markets fairly tight. Construction was especially strong, with
multi-family permits up 60% from 1999 levels. The September 2000 jobless rate
was 4.6%, slightly below the 5.2% level of a year ago
- At 27.6% as of September 30, 2000, education bonds were the largest sector
holding in the Portfolio. Most of these bonds were issued by the New
York State Dormitory Authority to finance residential facilities at schools
in the New York state college system.
- Special tax revenue bonds, at 13% of holdings, remained a major emphasis of
the Portfolio. These special assessment issues continue to constitute a large
percentage of new state supply, and were issued to meet the growing
infrastructure needs of New York communities.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 22.2%
AA 20.6%
A 41.4%
BBB 3.4%
Non-Rated 12.4%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 6.09% and 5.24%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.91 on September 30, 2000 from $9.86 on September 30, 1999, and the
reinvestment of $0.526 per share in tax-free income;(2) and for Class B, from
an increase in NAV to $10.70 from $ 10.64, and the reinvestment of $0.477 per
share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.25% for Class A and 4.46% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
9.33% and 7.93%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 4.94% and
4.20%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.78% and 7.47%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state and local income tax. (3)The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated daily by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4)Taxable-equivalent
rates assume maximum 43.74% combined federal and state income tax rate. A
lower rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 97.74% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
--------------------------------------------------
Average Annual Total Returns (at net asset value)
--------------------------------------------------
<S> <C> <C>
One Year 6.09% 5.24%
Five Years 5.49 4.64
Ten Years N.A. 6.57
Life of Fund+ 5.91 6.46
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
--------------------------------------------------
One Year 1.07% 0.24%
Five Years 4.46 4.31
Ten Years N.A. 6.57
Life of Fund+ 5.11 6.46
</TABLE>
+Inception date: Class A: 4/15/94; Class B: 8/30/90
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
NEW YORK MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
September 30, 1990 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
NEW YORK MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
9/30/1990 $10,000 $10,000
10/31/1990 $10,126 $10,182
11/30/1990 $10,389 $10,386
12/31/1990 $10,422 $10,431
1/31/1991 $10,572 $10,572
2/28/1991 $10,613 $10,664
3/31/1991 $10,659 $10,667
4/30/1991 $10,846 $10,810
5/31/1991 $10,918 $10,906
6/30/1991 $10,891 $10,895
7/31/1991 $11,129 $11,028
8/31/1991 $11,331 $11,173
9/30/1991 $11,558 $11,318
10/31/1991 $11,693 $11,420
11/30/1991 $11,670 $11,452
12/31/1991 $11,942 $11,698
1/31/1992 $11,740 $11,725
2/29/1992 $11,801 $11,729
3/31/1992 $11,836 $11,733
4/30/1992 $12,011 $11,837
5/31/1992 $12,209 $11,977
6/30/1992 $12,513 $12,177
7/31/1992 $13,043 $12,543
8/31/1992 $12,746 $12,420
9/30/1992 $12,761 $12,502
10/31/1992 $12,454 $12,379
11/30/1992 $12,870 $12,600
12/31/1992 $13,042 $12,729
1/31/1993 $13,215 $12,877
2/28/1993 $13,831 $13,343
3/31/1993 $13,627 $13,202
4/30/1993 $13,789 $13,335
5/31/1993 $13,905 $13,410
6/30/1993 $14,137 $13,634
7/31/1993 $14,140 $13,652
8/31/1993 $14,453 $13,936
9/30/1993 $14,615 $14,095
10/31/1993 $14,629 $14,122
11/30/1993 $14,435 $13,997
12/31/1993 $14,806 $14,293
1/31/1994 $14,941 $14,456
2/28/1994 $14,493 $14,082
3/31/1994 $13,747 $13,508
4/30/1994 $13,801 $13,623
5/31/1994 $13,947 $13,741
6/30/1994 $13,790 $13,661
7/31/1994 $14,038 $13,907
8/31/1994 $14,107 $13,955
9/30/1994 $13,794 $13,751
10/31/1994 $13,427 $13,507
11/30/1994 $12,962 $13,262
12/31/1994 $13,422 $13,554
1/31/1995 $13,875 $13,942
2/28/1995 $14,366 $14,347
3/31/1995 $14,517 $14,512
4/30/1995 $14,514 $14,529
5/31/1995 $14,939 $14,993
6/30/1995 $14,686 $14,862
7/31/1995 $14,806 $15,002
8/31/1995 $14,991 $15,193
9/30/1995 $15,067 $15,289
10/31/1995 $15,351 $15,511
11/30/1995 $15,664 $15,769
12/31/1995 $15,824 $15,920
1/31/1996 $15,887 $16,040
2/29/1996 $15,709 $15,932
3/31/1996 $15,471 $15,728
4/30/1996 $15,449 $15,684
5/31/1996 $15,439 $15,678
6/30/1996 $15,606 $15,849
7/31/1996 $15,736 $15,992
8/31/1996 $15,696 $15,988
9/30/1996 $15,950 $16,212
10/31/1996 $16,053 $16,395
11/30/1996 $16,323 $16,695
12/31/1996 $16,239 $16,625
1/31/1997 $16,228 $16,656
2/28/1997 $16,417 $16,809
3/31/1997 $16,219 $16,585
4/30/1997 $16,354 $16,724
5/31/1997 $16,612 $16,976
6/30/1997 $16,768 $17,157
7/31/1997 $17,298 $17,632
8/31/1997 $17,091 $17,466
9/30/1997 $17,263 $17,674
10/31/1997 $17,327 $17,787
11/30/1997 $17,428 $17,892
12/31/1997 $17,750 $18,153
1/31/1998 $17,924 $18,340
2/28/1998 $17,964 $18,346
3/31/1998 $17,960 $18,362
4/30/1998 $17,758 $18,279
5/31/1998 $18,106 $18,569
6/30/1998 $18,189 $18,642
7/31/1998 $18,192 $18,688
8/31/1998 $18,535 $18,977
9/30/1998 $18,775 $19,214
10/31/1998 $18,662 $19,213
11/30/1998 $18,731 $19,281
12/31/1998 $18,763 $19,329
1/31/1999 $18,961 $19,559
2/28/1999 $18,834 $19,474
3/31/1999 $18,809 $19,501
4/30/1999 $18,859 $19,549
5/31/1999 $18,663 $19,436
6/30/1999 $18,327 $19,156
7/31/1999 $18,325 $19,226
8/31/1999 $18,027 $19,072
9/30/1999 $17,925 $19,080
10/31/1999 $17,569 $18,873
11/30/1999 $17,755 $19,074
12/31/1999 $17,549 $18,932
1/31/2000 $17,403 $18,849
2/29/2000 $17,740 $19,068
3/31/2000 $18,288 $19,485
4/30/2000 $18,119 $19,370
5/31/2000 $17,906 $19,269
6/30/2000 $18,516 $19,780
7/31/2000 $18,834 $20,055
8/31/2000 $19,146 $20,364
9/30/2000 $18,900 $20,258
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
8/30/90. The chart compares the total return of the Fund's Class B with that of
the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged national
municipal market index. Returns are calculated by determining the percentage
change in net asset value (NAV) with all distributions reinvested. The lines on
the chart represent total returns of $10,000 hypothetical investments in the
Fund and the Lehman Brothers Municipal Bond Index. An investment in Class A
shares on 4/15/94 at net asset value would have grown to $14,491 on 9/30/00;
$13,801, including the 4.75% maximum sales charge. The Index's total return does
not reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
7
<PAGE>
EATON VANCE OHIO MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF THOMAS J. FETTER]
Thomas J. Fetter
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Ohio's seasonally adjusted unemployment rate at September 30, 2000 was 4.2%,
a positive indicator amidst a broad-based economic expansion. Manufacturing
is the largest of the state's sectors - the state supplies many of the
nation's largest companies with transportation equipment, industrial
machinery, and fabricated metals.
- Appropriately, a large sector weighting in the Portfolio at September 30,
2000 was industrial development bonds. In addition to providing above-average
coupons, IDBs provide financing for projects for well-known companies,
including Continental Airlines, Kmart, and Ford Motor Company.
- Management remained very selective with respect to its hospital bond
holdings. The healthcare sector, which constitutes a major portion of
the Portfolio, has been under pressure in reaction to legislative proposals
and increasingly difficult industry fundamentals.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 34.5%
AA 13.0%
A 22.7%
BBB 11.9%
BB 2.6%
Non-Rated 15.3%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 3.74% and 3.04%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$8.92 on September 30, 2000 from $9.12 on September 30, 1999, and the
reinvestment of $0.516 per share in tax-free income and $0.004 in capital
gains distributions.(2) For Class B, this return resulted from a change in
NAV to $10.08 from $10.29, and the reinvestment of $0.500 per share in
tax-free income and $0.004 in capital gains distributions.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.81% for Class A and 5.01% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
10.40% and 8.97%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 5.23% and
4.68%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.36% and 8.38%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized)by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 44.13% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.60% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
--------------------------------------------------
Average Annual Total Returns (at net asset value)
--------------------------------------------------
<S> <C> <C>
One Year 3.74% 3.04%
Five Years 4.83 4.03
Life of Fund+ 3.85 5.51
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
--------------------------------------------------
One Year -1.14% -1.86%
Five Years 3.82 3.70
Life of Fund+ 3.11 5.51
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 4/18/91
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
OHIO MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
April 30, 1991 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
OHIO MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
4/30/1991 $10,000 $10,000
5/31/1991 $10,030 $10,089
6/30/1991 $10,007 $10,079
7/31/1991 $10,200 $10,202
8/31/1991 $10,337 $10,336
9/30/1991 $10,488 $10,471
10/31/1991 $10,592 $10,565
11/30/1991 $10,597 $10,594
12/31/1991 $10,872 $10,822
1/31/1992 $10,875 $10,846
2/29/1992 $10,886 $10,850
3/31/1992 $10,852 $10,854
4/30/1992 $10,940 $10,951
5/31/1992 $11,103 $11,080
6/30/1992 $11,312 $11,265
7/31/1992 $11,716 $11,603
8/31/1992 $11,506 $11,490
9/30/1992 $11,550 $11,565
10/31/1992 $11,266 $11,451
11/30/1992 $11,625 $11,657
12/31/1992 $11,773 $11,776
1/31/1993 $11,910 $11,913
2/28/1993 $12,388 $12,343
3/31/1993 $12,214 $12,213
4/30/1993 $12,363 $12,336
5/31/1993 $12,469 $12,405
6/30/1993 $12,684 $12,613
7/31/1993 $12,672 $12,629
8/31/1993 $12,976 $12,892
9/30/1993 $13,137 $13,039
10/31/1993 $13,147 $13,064
11/30/1993 $12,984 $12,949
12/31/1993 $13,294 $13,222
1/31/1994 $13,440 $13,373
2/28/1994 $13,042 $13,027
3/31/1994 $12,327 $12,496
4/30/1994 $12,385 $12,602
5/31/1994 $12,517 $12,711
6/30/1994 $12,402 $12,637
7/31/1994 $12,655 $12,866
8/31/1994 $12,678 $12,910
9/30/1994 $12,429 $12,721
10/31/1994 $12,082 $12,495
11/30/1994 $11,741 $12,269
12/31/1994 $12,104 $12,539
1/31/1995 $12,560 $12,897
2/28/1995 $12,990 $13,272
3/31/1995 $13,089 $13,425
4/30/1995 $13,082 $13,441
5/31/1995 $13,487 $13,870
6/30/1995 $13,298 $13,748
7/31/1995 $13,380 $13,878
8/31/1995 $13,548 $14,055
9/30/1995 $13,639 $14,143
10/31/1995 $13,874 $14,349
11/30/1995 $14,122 $14,587
12/31/1995 $14,267 $14,727
1/31/1996 $14,321 $14,839
2/29/1996 $14,163 $14,738
3/31/1996 $13,990 $14,550
4/30/1996 $13,978 $14,509
5/31/1996 $13,978 $14,503
6/30/1996 $14,117 $14,661
7/31/1996 $14,275 $14,794
8/31/1996 $14,195 $14,791
9/30/1996 $14,387 $14,997
10/31/1996 $14,521 $15,167
11/30/1996 $14,741 $15,445
12/31/1996 $14,675 $15,380
1/31/1997 $14,688 $15,409
2/28/1997 $14,819 $15,550
3/31/1997 $14,661 $15,343
4/30/1997 $14,770 $15,471
5/31/1997 $14,979 $15,704
6/30/1997 $15,094 $15,871
7/31/1997 $15,501 $16,311
8/31/1997 $15,391 $16,158
9/30/1997 $15,536 $16,350
10/31/1997 $15,651 $16,455
11/30/1997 $15,743 $16,552
12/31/1997 $15,941 $16,793
1/31/1998 $16,073 $16,966
2/28/1998 $16,080 $16,972
3/31/1998 $16,118 $16,987
4/30/1998 $16,061 $16,910
5/31/1998 $16,252 $17,178
6/30/1998 $16,298 $17,245
7/31/1998 $16,314 $17,289
8/31/1998 $16,513 $17,556
9/30/1998 $16,661 $17,775
10/31/1998 $16,617 $17,774
11/30/1998 $16,697 $17,836
12/31/1998 $16,715 $17,881
1/31/1999 $16,855 $18,094
2/28/1999 $16,784 $18,015
3/31/1999 $16,809 $18,040
4/30/1999 $16,858 $18,085
5/31/1999 $16,755 $17,980
6/30/1999 $16,507 $17,721
7/31/1999 $16,508 $17,786
8/31/1999 $16,234 $17,643
9/30/1999 $16,125 $17,651
10/31/1999 $15,860 $17,459
11/30/1999 $15,910 $17,645
12/31/1999 $15,674 $17,514
1/31/2000 $15,431 $17,437
2/29/2000 $15,684 $17,640
3/31/2000 $16,037 $18,025
4/30/2000 $15,917 $17,919
5/31/2000 $15,753 $17,826
6/30/2000 $16,196 $18,298
7/31/2000 $16,480 $18,553
8/31/2000 $16,742 $18,839
9/30/2000 $16,614 $18,741
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
4/18/91. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class B
with that of the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged
national municipal market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 12/7/93 at net asset value would have grown to
$12,942 on 9/30/00; $12,326, including the 4.75% maximum sales charge. The
Index's total return does not reflect commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
8
<PAGE>
EATON VANCE RHODE ISLAND MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Although Rhode Island lags its neighboring New England states in terms of its
economic growth and unemployment rate, the state is still enjoying a strong
performance in 2000. Unemployment plummeted to 3.7% for September, compared
to approximately 5.5% a year ago.
- The better-than-average call protection of bonds in the Portfolio meant that,
as interest rates fell, the value of the bonds increased. Two issues which,
combined, constituted the Portfolio's largest commitment, provided
exceptional call-protection: one Puerto Rico credit with an 18-year call, and
another Puerto Rico non-callable credit.
- Municipal bond supply in Rhode Island is low, so management continued its
exposure to non-traditional issuers, such as Puerto Rico, to supplement the
Rhode Island-exempt bonds. Puerto Rico issues are also exempt inthe state and
offer attractive investment characteristics (such as favorable call
protection as discussed above).
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 64.9%
AA 13.0%
A 9.3%
BBB 11.7%
Non-Rated 1.1%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 5.95% and 5.17%, respectively.(1) For Class A,
this return resulted from an increase in net asset value (NAV) per share to
$9.12 on September 30, 2000 from $9.07 on September 30, 1999, and the
reinvestment of $0.467 per share in tax-free income.(2) For Class B, this
return resulted from an increase in NAV to $9.34 from $9.28, and the
reinvestment of $0.402 per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.09% for Class A and 4.30% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
9.39% and 7.94%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 4.90% and
4.37%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.04% and 8.07%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 45.82% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.27% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
--------------------------------------------------
Average Annual Total Returns (at net asset value)
--------------------------------------------------
<S> <C> <C>
One Year 5.95% 5.17%
Five Years 4.87 4.37
Life of Fund+ 3.71 3.80
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
--------------------------------------------------
One Year 0.94% 0.17%
Five Years 3.85 4.04
Life of Fund+ 2.96 3.80
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 6/11/93
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
RHODE ISLAND MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
June 30, 1993 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE LEHMAN BROTHERS
RHODE ISLAND MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
6/30/1993 $10,000 $10,000
7/31/1993 $9,970 $10,013
8/31/1993 $10,328 $10,221
9/30/1993 $10,453 $10,338
10/31/1993 $10,406 $10,358
11/30/1993 $10,259 $10,266
12/31/1993 $10,587 $10,483
1/31/1994 $10,729 $10,603
2/28/1994 $10,297 $10,328
3/31/1994 $9,643 $9,908
4/30/1994 $9,711 $9,992
5/31/1994 $9,832 $10,078
6/30/1994 $9,740 $10,020
7/31/1994 $9,944 $10,200
8/31/1994 $9,961 $10,236
9/30/1994 $9,731 $10,086
10/31/1994 $9,458 $9,907
11/30/1994 $9,202 $9,727
12/31/1994 $9,503 $9,941
1/31/1995 $9,885 $10,226
2/28/1995 $10,200 $10,523
3/31/1995 $10,305 $10,644
4/30/1995 $10,274 $10,656
5/31/1995 $10,513 $10,996
6/30/1995 $10,290 $10,900
7/31/1995 $10,380 $11,003
8/31/1995 $10,523 $11,143
9/30/1995 $10,600 $11,214
10/31/1995 $10,802 $11,377
11/30/1995 $10,993 $11,566
12/31/1995 $11,116 $11,677
1/31/1996 $11,184 $11,765
2/29/1996 $11,045 $11,685
3/31/1996 $10,881 $11,536
4/30/1996 $10,880 $11,503
5/31/1996 $10,900 $11,499
6/30/1996 $11,005 $11,624
7/31/1996 $11,104 $11,729
8/31/1996 $11,077 $11,727
9/30/1996 $11,252 $11,891
10/31/1996 $11,341 $12,025
11/30/1996 $11,540 $12,245
12/31/1996 $11,490 $12,194
1/31/1997 $11,449 $12,217
2/28/1997 $11,557 $12,329
3/31/1997 $11,426 $12,164
4/30/1997 $11,540 $12,266
5/31/1997 $11,716 $12,451
6/30/1997 $11,834 $12,584
7/31/1997 $12,183 $12,932
8/31/1997 $12,055 $12,811
9/30/1997 $12,174 $12,963
10/31/1997 $12,230 $13,046
11/30/1997 $12,315 $13,123
12/31/1997 $12,493 $13,315
1/31/1998 $12,601 $13,452
2/28/1998 $12,611 $13,456
3/31/1998 $12,626 $13,468
4/30/1998 $12,506 $13,407
5/31/1998 $12,715 $13,619
6/30/1998 $12,736 $13,673
7/31/1998 $12,755 $13,707
8/31/1998 $12,972 $13,919
9/30/1998 $13,132 $14,092
10/31/1998 $13,059 $14,092
11/30/1998 $13,119 $14,142
12/31/1998 $13,109 $14,177
1/31/1999 $13,233 $14,346
2/28/1999 $13,136 $14,283
3/31/1999 $13,148 $14,303
4/30/1999 $13,180 $14,338
5/31/1999 $13,055 $14,255
6/30/1999 $12,845 $14,050
7/31/1999 $12,822 $14,102
8/31/1999 $12,575 $13,988
9/30/1999 $12,485 $13,994
10/31/1999 $12,261 $13,843
11/30/1999 $12,374 $13,990
12/31/1999 $12,201 $13,886
1/31/2000 $12,048 $13,825
2/29/2000 $12,295 $13,986
3/31/2000 $12,655 $14,291
4/30/2000 $12,525 $14,207
5/31/2000 $12,444 $14,133
6/30/2000 $12,824 $14,508
7/31/2000 $13,054 $14,709
8/31/2000 $13,266 $14,936
9/30/2000 $13,131 $14,858
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
6/11/93. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class B
with that of the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged
national municipal market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 12/7/93 at net asset value would have grown to
$12,816 on 9/30/00; $12,206, including the 4.75% maximum sales charge. The
Index's total return does not reflect commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
9
<PAGE>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND AS OF SEPTEMBER 30, 2000
--------------------------------------------------------------------------------
INVESTMENT UPDATE
--------------------------------------------------------------------------------
[PHOTO OF ROBERT B. MACINTOSH]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- West Virginia's seasonally adjusted unemployment rate declined from 6.6% in
August of 1999 to 5.2% in August 2000. The employment rate continued to lag
the nation's rate, but it represented an ongoing improvement in the state.
The service-producing sector added the most new jobs in the time period.
- Management reduced the number of holdings in some industrial credits, such as
paper, coal, and electric power companies. With credit spreads likely to
widen in the future, a large commitment of these types of bonds could have
had a negative impact on performance.
- The healthcare industry is another area in which management reduced the
Portfolio's exposure. The sector has been under pressure in reaction to
health care proposals and increasingly difficult industry fundamentals.
RATING DISTRIBUTION+
--------------------------------------------------------------------------------
[CHART]
<TABLE>
<S> <C>
AAA 64.0%
A 16.7%
BBB 11.8%
Non-Rated 7.5%
</TABLE>
THE FUND
--------------------------------------------------------------------------------
- During the year ended September 30, 2000, the Fund's Class A and Class B
shares had total returns of 5.39% and 4.62%, respectively.(1) For Class A,
this return resulted from a net asset value (NAV) per share of $9.29 on
September 30, 2000, unchanged from September 30, 1999, and the reinvestment
of $0.479 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $9.48 from $9.47, and the reinvestment of $0.411
per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on September 30, 2000, the
distribution rates were 5.06% for Class A and 4.34% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
8.96% and 7.69%, respectively.(4)
- The SEC 30-day yields for Class A and B shares at September 30 were 4.76% and
4.32%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.43%and 7.65%.(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. (2)A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3)The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share
(annualized) by the net asset value (NAV). (4)Taxable-equivalent rates
assume maximum 43.53% combined federal and state income tax rate. A lower
rate would result in lower tax-equivalent figures. (5)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. (6)Returns are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 97.90% of the total dividends paid by the Fund from net investment
income during the year ended September 30, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
+May not represent the Portfolio's current or future investments.
--------------------------------------------------------------------------------
FUND INFORMATION
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) CLASS A CLASS B
--------------------------------------------------
Average Annual Total Returns (at net asset value)
--------------------------------------------------
<S> <C> <C>
One Year 5.39% 4.62%
Five Years 5.12 4.35
Life of Fund+ 4.07 3.88
SEC Average Annual Total Returns (including sales
charge or applicable CDSC)
--------------------------------------------------
One Year 0.42% -0.38%
Five Years 4.10 4.01
Life of Fund+ 3.33 3.88
</TABLE>
+Inception date: Class A: 12/13/93; Class B: 6/11/93
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE WEST
VIRGINIA MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL BOND
INDEX*
June 30, 1993 - September 30, 2000
[CHART]
<TABLE>
<CAPTION>
DATE EATON VANCE WEST LEHMAN BROTHERS
VIRGINIA MUNICIPALS MUNICIPAL BOND
FUND, CLASS B INDEX
<S> <C> <C>
6/30/1993 $10,000 $10,000
7/31/1993 $9,910 $10,013
8/31/1993 $10,201 $10,221
9/30/1993 $10,347 $10,338
10/31/1993 $10,321 $10,358
11/30/1993 $10,184 $10,266
12/31/1993 $10,483 $10,483
1/31/1994 $10,614 $10,603
2/28/1994 $10,294 $10,328
3/31/1994 $9,691 $9,908
4/30/1994 $9,726 $9,992
5/31/1994 $9,835 $10,078
6/30/1994 $9,710 $10,020
7/31/1994 $9,934 $10,200
8/31/1994 $9,949 $10,236
9/30/1994 $9,761 $10,086
10/31/1994 $9,519 $9,907
11/30/1994 $9,231 $9,727
12/31/1994 $9,508 $9,941
1/31/1995 $9,844 $10,226
2/28/1995 $10,212 $10,523
3/31/1995 $10,304 $10,644
4/30/1995 $10,305 $10,656
5/31/1995 $10,607 $10,996
6/30/1995 $10,417 $10,900
7/31/1995 $10,483 $11,003
8/31/1995 $10,624 $11,143
9/30/1995 $10,678 $11,214
10/31/1995 $10,889 $11,377
11/30/1995 $11,101 $11,566
12/31/1995 $11,257 $11,677
1/31/1996 $11,301 $11,765
2/29/1996 $11,172 $11,685
3/31/1996 $10,985 $11,536
4/30/1996 $10,948 $11,503
5/31/1996 $10,956 $11,499
6/30/1996 $11,047 $11,624
7/31/1996 $11,154 $11,729
8/31/1996 $11,137 $11,727
9/30/1996 $11,321 $11,891
10/31/1996 $11,419 $12,025
11/30/1996 $11,615 $12,245
12/31/1996 $11,563 $12,194
1/31/1997 $11,557 $12,217
2/28/1997 $11,663 $12,329
3/31/1997 $11,508 $12,164
4/30/1997 $11,621 $12,266
5/31/1997 $11,783 $12,451
6/30/1997 $11,888 $12,584
7/31/1997 $12,221 $12,932
8/31/1997 $12,118 $12,811
9/30/1997 $12,247 $12,963
10/31/1997 $12,302 $13,046
11/30/1997 $12,410 $13,123
12/31/1997 $12,610 $13,315
1/31/1998 $12,728 $13,452
2/28/1998 $12,738 $13,456
3/31/1998 $12,739 $13,468
4/30/1998 $12,631 $13,407
5/31/1998 $12,837 $13,619
6/30/1998 $12,856 $13,673
7/31/1998 $12,874 $13,707
8/31/1998 $13,075 $13,919
9/30/1998 $13,207 $14,092
10/31/1998 $13,148 $14,092
11/30/1998 $13,181 $14,142
12/31/1998 $13,197 $14,177
1/31/1999 $13,320 $14,346
2/28/1999 $13,250 $14,283
3/31/1999 $13,238 $14,303
4/30/1999 $13,283 $14,338
5/31/1999 $13,160 $14,255
6/30/1999 $12,913 $14,050
7/31/1999 $12,905 $14,102
8/31/1999 $12,675 $13,988
9/30/1999 $12,627 $13,994
10/31/1999 $12,418 $13,843
11/30/1999 $12,518 $13,990
12/31/1999 $12,361 $13,886
1/31/2000 $12,224 $13,825
2/29/2000 $12,443 $13,986
3/31/2000 $12,759 $14,291
4/30/2000 $12,659 $14,207
5/31/2000 $12,538 $14,133
6/30/2000 $12,875 $14,508
7/31/2000 $13,118 $14,709
8/31/2000 $13,329 $14,936
9/30/2000 $13,210 $14,858
</TABLE>
* Source: Towers Data Systems, Bethesda, MD. Investment operations commenced on
6/11/93. Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's Class B
with that of the Lehman Brothers Municipal Bond Index, a broad-based, unmanaged
national municipal market index. Returns are calculated by determining the
percentage change in net asset value (NAV) with all distributions reinvested.
The lines on the chart represent total returns of $10,000 hypothetical
investments in the Fund and the Lehman Brothers Municipal Bond Index. An
investment in Class A shares on 12/13/93 at net asset value would have grown to
$13,120 on 9/30/00; $12,496, including the 4.75% maximum sales charge. The
Index's total return does not reflect commissions or expenses that would have
been incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
10
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $225,479,110 $279,395,500 $176,721,501 $15,348,048
Unrealized appreciation
(depreciation) 13,341,040 (1,538,596) 438,750 334,678
-------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $238,820,150 $277,856,904 $177,160,251 $15,682,726
-------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 347,911 $ 173,544 $ 46,851 $ 1,272
Miscellaneous receivable 2,978 -- -- --
-------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $239,171,039 $278,030,448 $177,207,102 $15,683,998
-------------------------------------------------------------------------------------------------------------
Liabilities
-------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 166,663 $ 719,090 $ 462,326 $ 6,503
Dividends payable 499,434 538,858 339,581 28,406
Payable to affiliate for Trustees' fees -- 40 -- --
Accrued expenses 194,562 186,553 132,724 23,569
-------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 860,659 $ 1,444,541 $ 934,631 $ 58,478
-------------------------------------------------------------------------------------------------------------
NET ASSETS $238,310,380 $276,585,907 $176,272,471 $15,625,520
-------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-------------------------------------------------------------------------------------------------------------
Paid-in capital $243,600,783 $279,181,342 $184,037,440 $16,660,726
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (18,481,688) (1,058,778) (7,933,598) (1,395,511)
Accumulated undistributed (distributions
in excess of) net investment income (149,755) 1,939 (270,121) 25,627
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of identified
cost) 13,341,040 (1,538,596) 438,750 334,678
-------------------------------------------------------------------------------------------------------------
TOTAL $238,310,380 $276,585,907 $176,272,471 $15,625,520
-------------------------------------------------------------------------------------------------------------
Class A Shares
-------------------------------------------------------------------------------------------------------------
NET ASSETS $ 17,616,943 $ 12,557,809 $ 11,212,054 $ 1,269,230
SHARES OUTSTANDING 1,715,269 1,254,407 1,243,233 136,349
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.27 $ 10.01 $ 9.02 $ 9.31
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.78 $ 10.51 $ 9.47 $ 9.77
-------------------------------------------------------------------------------------------------------------
Class B Shares
-------------------------------------------------------------------------------------------------------------
NET ASSETS $220,693,437 $264,028,098 $157,801,278 $14,356,290
SHARES OUTSTANDING 23,250,642 25,720,139 15,698,586 1,507,085
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.49 $ 10.27 $ 10.05 $ 9.53
-------------------------------------------------------------------------------------------------------------
Class I Shares
-------------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ -- $ 7,259,139 $ --
SHARES OUTSTANDING -- -- 779,805 --
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
-------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ -- $ 9.31 $ --
-------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $324,368,781 $186,760,159 $37,644,675 $24,860,688
Unrealized appreciation
(depreciation) 11,119,306 (2,792,458) (32,061) (72,947)
------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $335,488,087 $183,967,701 $37,612,614 $24,787,741
------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 117,919 $ 118,387 $ 73,281 $ --
------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $335,606,006 $184,086,088 $37,685,895 $24,787,741
------------------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 346,111 $ 525,887 $ 12,134 $ 5,109
Dividends payable 620,497 382,451 75,107 43,626
Payable to affiliate for Trustees' fees -- 56 -- 1,052
Accrued expenses 215,319 162,238 36,967 33,730
------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,181,927 $ 1,070,632 $ 124,208 $ 83,517
------------------------------------------------------------------------------------------------------------
NET ASSETS $334,424,079 $183,015,456 $37,561,687 $24,704,224
------------------------------------------------------------------------------------------------------------
Sources of Net Assets
------------------------------------------------------------------------------------------------------------
Paid-in capital $326,375,419 $186,142,927 $40,104,067 $26,004,342
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (2,450,149) (419,863) (2,506,881) (1,183,545)
Accumulated undistributed (distributions
in excess of) net investment income (620,497) 84,850 (3,438) (43,626)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of identified
cost) 11,119,306 (2,792,458) (32,061) (72,947)
------------------------------------------------------------------------------------------------------------
TOTAL $334,424,079 $183,015,456 $37,561,687 $24,704,224
------------------------------------------------------------------------------------------------------------
Class A Shares
------------------------------------------------------------------------------------------------------------
NET ASSETS $ 11,410,922 $ 8,051,603 $ 4,245,455 $ 2,309,749
SHARES OUTSTANDING 1,151,030 902,212 465,760 248,694
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.91 $ 8.92 $ 9.12 $ 9.29
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.40 $ 9.36 $ 9.57 $ 9.75
------------------------------------------------------------------------------------------------------------
Class B Shares
------------------------------------------------------------------------------------------------------------
NET ASSETS $323,013,157 $174,963,853 $33,316,232 $22,394,475
SHARES OUTSTANDING 30,178,520 17,363,614 3,568,587 2,362,158
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.70 $ 10.08 $ 9.34 $ 9.48
------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
Investment Income
-------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $15,260,541 $18,871,423 $11,835,303 $ 967,281
Expenses allocated from Portfolio (1,394,497) (1,548,917) (976,066) (73,324)
-------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $13,866,044 $17,322,506 $10,859,237 $ 893,957
-------------------------------------------------------------------------------------------------------------
Expenses
-------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 4,423 $ 3,206 $ 4,422 $ 222
Distribution and service fees
Class A 29,105 26,914 23,552 2,172
Class B 956,220 2,605,948 1,553,371 139,553
Legal and accounting services 29,393 29,900 28,499 24,744
Printing and postage 18,550 27,436 19,617 2,943
Custodian fee 23,531 2,049 18,566 5,534
Transfer and dividend disbursing agent
fees 219,768 240,416 155,627 15,105
Registration fees 1,479 5,930 2,300 100
Miscellaneous 19,679 33,153 28,647 7,510
-------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,302,148 $ 2,974,952 $ 1,834,601 $ 197,883
-------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $12,563,896 $14,347,554 $ 9,024,636 $ 696,074
-------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
-------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (433,700) $ (731,229) $ 806,621 $ 5,634
Financial futures contracts (109,410) (125,821) (412,303) (7,227)
-------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (543,110) $ (857,050) $ 394,318 $ (1,593)
-------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (999,969) $(1,871,030) $(2,752,999) $(103,473)
Financial futures contracts -- -- (27,516) --
-------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (999,969) $(1,871,030) $(2,780,515) $(103,473)
-------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,543,079) $(2,728,080) $(2,386,197) $(105,066)
-------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $11,020,817 $11,619,474 $ 6,638,439 $ 591,008
-------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $21,772,764 $12,765,251 $2,319,330 $1,479,103
Expenses allocated from Portfolio (1,941,612) (1,113,595) (152,387) (106,531)
-----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $19,831,152 $11,651,656 $2,166,943 $1,372,572
-----------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 4,423 $ 3,212 $ 221 $ --
Distribution and service fees
Class A 20,411 12,833 6,295 3,911
Class B 3,213,946 1,721,911 320,915 207,671
Legal and accounting services 16,115 31,237 24,053 25,061
Printing and postage 34,209 22,594 4,726 4,587
Custodian fee 26,113 22,098 5,762 5,962
Transfer and dividend disbursing agent
fees 292,508 163,686 30,645 20,411
Registration fees 1,101 4,600 299 1,000
Miscellaneous 20,609 21,075 8,630 10,209
-----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 3,629,435 $ 2,003,246 $ 401,546 $ 278,812
-----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $16,201,717 $ 9,648,410 $1,765,397 $1,093,760
-----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
-----------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(2,135,289) $ 146,566 $ (401,663) $ (78,492)
Financial futures contracts (187,750) (125,865) -- (1,465)
-----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $(2,323,039) $ 20,701 $ (401,663) $ (79,957)
-----------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 3,047,937 $(4,682,142) $ 472,241 $ 71,326
-----------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,047,937 $(4,682,142) $ 472,241 $ 71,326
-----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 724,898 $(4,661,441) $ 70,578 $ (8,631)
-----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $16,926,615 $ 4,986,969 $1,835,975 $1,085,129
-----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 12,563,896 $ 14,347,554 $ 9,024,636 $ 696,074
Net realized gain (loss) (543,110) (857,050) 394,318 (1,593)
Net change in unrealized appreciation
(depreciation) (999,969) (1,871,030) (2,780,515) (103,473)
-------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 11,020,817 $ 11,619,474 $ 6,638,439 $ 591,008
-------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (865,911) $ (719,785) $ (700,166) $ (56,317)
Class B (11,893,295) (13,363,789) (7,734,888) (655,435)
Class I -- -- (458,128) --
In excess of net investment income
Class A (30,147) -- (27,652) (2,099)
Class B (101,540) -- -- --
In excess of net realized gains
Class A -- (150,602) -- --
Class B -- (3,791,295) -- --
-------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(12,890,893) $(18,025,471) $ (8,920,834) $ (713,851)
-------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 5,445,845 $ 9,571,286 $ 5,301,458 $ 335,853
Class B 11,077,588 10,408,420 6,163,438 377,257
Class I -- -- 160,208 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 362,635 331,861 365,326 22,936
Class B 4,649,557 6,120,513 3,577,547 264,488
Class I -- -- 37,555 --
Cost of shares redeemed
Class A (4,829,901) (9,880,028) (10,081,064) (521,472)
Class B (46,113,284) (78,635,073) (35,547,462) (2,485,653)
Class I -- -- (3,099,134) --
Contingent deferred sales charges
Class B 150,183 -- -- --
-------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(29,257,377) $(62,083,021) $(33,122,128) $(2,006,591)
-------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(31,127,453) $(68,489,018) $(35,404,523) $(2,129,434)
-------------------------------------------------------------------------------------------------------------
Net Assets
-------------------------------------------------------------------------------------------------------------
At beginning of year $269,437,833 $345,074,925 $211,676,994 $17,754,954
-------------------------------------------------------------------------------------------------------------
AT END OF YEAR $238,310,380 $276,585,907 $176,272,471 $15,625,520
-------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
-------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (149,755) $ 1,939 $ (270,121) $ 25,627
-------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 16,201,717 $ 9,648,410 $ 1,765,397 $ 1,093,760
Net realized gain (loss) (2,323,039) 20,701 (401,663) (79,957)
Net change in unrealized appreciation
(depreciation) 3,047,937 (4,682,142) 472,241 71,326
------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 16,926,615 $ 4,986,969 $ 1,835,975 $ 1,085,129
------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (611,854) $ (468,273) $ (191,074) $ (104,574)
Class B (15,589,863) (9,300,206) (1,521,786) (989,186)
In excess of net investment income
Class A (12,491) (4,338) -- (4,588)
Class B (94,505) -- -- (23,589)
From net realized gain
Class A -- (1,091) -- --
Class B -- (19,610) -- --
In excess of net realized gains
Class A -- (3,449) -- --
Class B -- (69,889) -- --
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(16,308,713) $ (9,866,856) $(1,712,860) $(1,121,937)
------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 2,668,062 $ 1,959,116 $ 1,641,715 $ 543,087
Class B 8,477,237 7,383,182 2,911,486 878,270
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 281,190 181,252 115,060 73,294
Class B 8,100,110 4,406,887 798,662 468,286
Cost of shares redeemed
Class A (4,252,832) (3,078,468) (831,548) (176,779)
Class B (82,102,002) (38,561,508) (8,261,737) (3,764,936)
------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(66,828,235) $(27,709,539) $(3,626,362) $(1,978,778)
------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(66,210,333) $(32,589,426) $(3,503,247) $(2,015,586)
------------------------------------------------------------------------------------------------------------
Net Assets
------------------------------------------------------------------------------------------------------------
At beginning of year $400,634,412 $215,604,882 $41,064,934 $26,719,810
------------------------------------------------------------------------------------------------------------
AT END OF YEAR $334,424,079 $183,015,456 $37,561,687 $24,704,224
------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (620,497) $ 84,850 $ (3,438) $ (43,626)
------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,929,303 $ 17,322,276 $ 10,540,479 $ 839,370
Net realized gain 3,046,334 8,737,267 2,848,960 220,833
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,391) (1,662,971)
--------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(12,996,733) $ (18,441,095) $ (9,864,952) $ (602,768)
--------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (673,875) $ (647,333) $ (787,162) $ (80,289)
Class B (12,531,445) (16,164,899) (9,070,180) (756,146)
Class I -- -- (583,125) --
In excess of net investment income
Class A (18,068) -- (1,110) --
--------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(13,223,388) $ (16,812,232) $(10,441,577) $ (836,435)
--------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 10,176,447 $ 7,154,899 $ 10,418,813 $ 155,969
Class B 16,221,926 15,328,815 11,998,918 1,703,665
Class I -- -- 149,838 --
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 311,225 260,728 354,184 52,749
Class B 5,124,488 5,557,296 4,415,774 335,333
Class I -- -- 87,260 --
Cost of shares redeemed
Class A (2,140,679) (5,168,562) (6,857,743) (574,250)
Class B (44,902,318) (97,432,555) (38,273,941) (3,026,851)
Class I -- -- (401,900) --
Contingent deferred sales charges
Class B 212,719 -- -- --
--------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(14,996,192) $ (74,299,379) $(18,108,797) $(1,353,385)
--------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,216,313) $(109,552,706) $(38,415,326) $(2,792,588)
--------------------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------------------
At beginning of year $310,654,146 $ 454,627,631 $250,092,320 $20,547,542
--------------------------------------------------------------------------------------------------------------
AT END OF YEAR $269,437,833 $ 345,074,925 $211,676,994 $17,754,954
--------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
--------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 177,242 $ (262,431) $ (373,923) $ 43,404
--------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 19,380,976 $ 10,789,819 $ 1,802,289 $ 1,225,530
Net realized gain (loss) (66,830) (146,960) (41,515) 267,495
Net change in unrealized appreciation
(depreciation) (38,370,630) (17,608,483) (3,915,177) (2,750,676)
------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(19,056,484) $ (6,965,624) $(2,154,403) $(1,257,651)
------------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (655,858) $ (417,394) $ (127,239) $ (91,400)
Class B (18,642,328) (10,498,716) (1,656,262) (1,134,130)
In excess of net investment income
Class A (858) -- -- (1,694)
Class B -- -- -- (23,972)
From net realized gain
Class A (162,192) (57,623) -- --
Class B (6,002,259) (1,824,977) -- --
------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(25,463,495) $(12,798,710) $(1,783,501) $(1,251,196)
------------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 12,294,400 $ 4,653,870 $ 1,481,209 $ 489,184
Class B 17,698,837 9,597,881 5,679,068 1,242,913
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 459,289 192,883 72,084 64,901
Class B 14,114,731 6,474,876 976,983 598,864
Cost of shares redeemed
Class A (10,456,245) (1,560,998) (210,877) (362,350)
Class B (74,072,217) (37,977,963) (4,953,374) (4,467,339)
------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM FUND SHARE TRANSACTIONS $(39,961,205) $(18,619,451) $ 3,045,093 $(2,433,827)
------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(84,481,184) $(38,383,785) $ (892,811) $(4,942,674)
------------------------------------------------------------------------------------------------------------
Net Assets
------------------------------------------------------------------------------------------------------------
At beginning of year $485,115,596 $253,988,667 $41,957,745 $31,662,484
------------------------------------------------------------------------------------------------------------
AT END OF YEAR $400,634,412 $215,604,882 $41,064,934 $26,719,810
------------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (744,078) $ 209,257 $ (55,975) $ (36,607)
------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS A
--------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------
2000(1) 1999 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.320 $11.340 $10.900
------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------
Net investment income $ 0.536 $ 0.544 $ 0.556
Net realized and unrealized
gain (loss) (0.031) (1.007) 0.468
------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.505 $(0.463) $ 1.024
------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------
From net investment income $(0.536) $(0.542) $(0.564)
In excess of net investment
income (0.019) (0.015) (0.020)
------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.555) $(0.557) $(0.584)
------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.270 $10.320 $11.340
------------------------------------------------------------------------
TOTAL RETURN(2) 5.17% (4.25)% 9.65%
------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $17,617 $16,675 $ 9,740
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.89% 0.78% 0.79%
Expenses after custodian
fee reduction(3) 0.88% 0.76% 0.77%
Net investment income 5.35% 4.93% 5.02%
Portfolio Turnover of the
Portfolio 13% 28% 16%
------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS B
-----------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------------------------
2000(1) 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.520 $ 10.420 $ 10.010 $ 9.540 $ 9.410
---------------------------------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------------------------------
Net investment income $ 0.475 $ 0.474 $ 0.431 $ 0.451 $ 0.464
Net realized and unrealized
gain (loss) (0.024) (0.934) 0.428 0.477 0.135
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.451 $ (0.460) $ 0.859 $ 0.928 $ 0.599
---------------------------------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------------------------------
From net investment income $ (0.483) $ (0.448) $ (0.431) $ (0.451) $ (0.465)
In excess of net investment
income (0.004) -- (0.018) (0.007) (0.004)
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.487) $ (0.448) $ (0.449) $ (0.458) $ (0.469)
---------------------------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES
CHARGES $ 0.006 $ 0.008 $ -- $ -- $ --
---------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.490 $ 9.520 $ 10.420 $ 10.010 $ 9.540
---------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.06% (4.50)% 8.80% 9.98% 6.49%
---------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $220,693 $252,763 $300,914 $321,157 $361,255
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.13% 1.18% 1.66% 1.69% 1.66%
Expenses after custodian
fee reduction(3) 1.12% 1.16% 1.64% 1.68% 1.65%
Net investment income 5.13% 4.70% 4.25% 4.66% 4.87%
Portfolio Turnover of the
Portfolio 13% 28% 16% 12% 14%
---------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS A
--------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------
2000(1) 1999 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.190 $11.150 $10.640
------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------
Net investment income $ 0.535 $ 0.549 $ 0.528
Net realized and unrealized
gain (loss) (0.051) (0.979) 0.532
------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.484 $(0.430) $ 1.060
------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------
From net investment income $(0.539) $(0.530) $(0.528)
In excess of net investment
income -- -- (0.022)
In excess of net realized gain (0.125) -- --
------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.664) $(0.530) $(0.550)
------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.010 $10.190 $11.150
------------------------------------------------------------------------
TOTAL RETURN(2) 5.05% (4.02)% 10.20%
------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $12,558 $12,818 $11,764
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.89% 0.75% 0.73%
Expenses after custodian
fee reduction(3) 0.84% 0.70% 0.69%
Net investment income 5.42% 5.07% 4.82%
Portfolio Turnover of the
Portfolio 12% 39% 25%
------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
oustanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS B
-----------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------------------------
2000(1) 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.430 $ 11.420 $ 10.900 $ 10.780 $ 10.720
---------------------------------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------------------------------
Net investment income $ 0.479 $ 0.466 $ 0.447 $ 0.488 $ 0.505
Net realized and unrealized
gain (loss) (0.046) (1.001) 0.546 0.136 0.067
---------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.433 $ (0.535) $ 0.993 $ 0.624 $ 0.572
---------------------------------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------------------------------
From net investment income $ (0.468) $ (0.455) $ (0.447) $ (0.488) $ (0.506)
In excess of net investment
income -- -- (0.026) (0.016) (0.006)
In excess of net realized gain (0.125) -- -- -- --
---------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.593) $ (0.455) $ (0.473) $ (0.504) $ (0.512)
---------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.270 $ 10.430 $ 11.420 $ 10.900 $ 10.780
---------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.38% (4.84)% 9.30% 5.89% 5.43%
---------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $264,028 $332,227 $442,863 $504,057 $612,438
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.58% 1.58% 1.55% 1.57% 1.55%
Expenses after custodian
fee reduction(3) 1.53% 1.53% 1.51% 1.53% 1.52%
Net investment income 4.73% 4.23% 4.01% 4.50% 4.67%
Portfolio Turnover of the
Portfolio 12% 39% 25% 54% 51%
---------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
oustanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS A
-----------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.110 $ 9.940 $ 9.620
---------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------
Net investment income $ 0.478 $ 0.504 $ 0.493
Net realized and unrealized
gain (loss) (0.071) (0.828) 0.357
---------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.407 $(0.324) $ 0.850
---------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------
From net investment income $(0.478) $(0.505) $(0.493)
In excess of net investment
income (0.019) (0.001) (0.037)
---------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.497) $(0.506) $(0.530)
---------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.020 $ 9.110 $ 9.940
---------------------------------------------------------------------------
TOTAL RETURN(2) 4.70% (3.42)% 9.07%
---------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $11,212 $15,825 $13,282
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.87% 0.70% 0.74%
Expenses after custodian
fee reduction(3) 0.85% 0.68% 0.72%
Net investment income 5.49% 5.23% 5.04%
Portfolio Turnover of the
Portfolio 15% 24% 28%
---------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS B
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.130 $ 11.070 $ 10.690 $ 10.330 $ 10.270
-----------------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------------
Net investment income $ 0.468 $ 0.470 $ 0.468 $ 0.487 $ 0.491
Net realized and unrealized
gain (loss) (0.088) (0.945) 0.396 0.360 0.066
-----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.380 $ (0.475) $ 0.864 $ 0.847 $ 0.557
-----------------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------------
From net investment income $ (0.460) $ (0.465) $ (0.468) $ (0.487) $ (0.492)
In excess of net investment
income -- -- (0.016) -- (0.005)
-----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.460) $ (0.465) $ (0.484) $ (0.487) $ (0.497)
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.050 $ 10.130 $ 11.070 $ 10.690 $ 10.330
-----------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.93% (4.44)% 8.28% 8.41% 5.53%
-----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $157,801 $185,540 $225,371 $239,838 $267,398
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.61% 1.57% 1.60% 1.61% 1.59%
Expenses after custodian
fee reduction(3) 1.59% 1.55% 1.58% 1.59% 1.58%
Net investment income 4.74% 4.37% 4.32% 4.70% 4.75%
Portfolio Turnover of the
Portfolio 15% 24% 28% 35% 51%
-----------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS I
-----------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.390 $10.260 $ 9.890
---------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------
Net investment income $ 0.519 $ 0.528 $ 0.527
Net realized and unrealized
gain (loss) (0.079) (0.869) 0.373
---------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.440 $(0.341) $ 0.900
---------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------
From net investment income $(0.520) $(0.529) $(0.527)
In excess of net investment
income -- -- (0.003)
---------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.520) $(0.529) $(0.530)
---------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.310 $ 9.390 $10.260
---------------------------------------------------------------------------
TOTAL RETURN(2) 4.92% (3.53)% 9.34%
---------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 7,259 $10,311 $11,439
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.68% 0.64% 0.66%
Expenses after custodian
fee reduction(3) 0.66% 0.62% 0.64%
Net investment income 5.67% 5.30% 5.24%
Portfolio Turnover of the
Portfolio 15% 24% 28%
---------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS A
--------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------
2000(1) 1999(1) 1998
<S> <C> <C> <C>
------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.350 $10.060 $ 9.740
------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------
Net investment income $ 0.459 $ 0.487 $ 0.474
Net realized and unrealized
gain (loss) (0.023) (0.715) 0.331
------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.436 $(0.228) $ 0.805
------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------
From net investment income $(0.459) $(0.482) $(0.478)
In excess of net investment
income (0.017) -- (0.007)
------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.476) $(0.482) $(0.485)
------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.310 $ 9.350 $10.060
------------------------------------------------------------------------
TOTAL RETURN(2) 4.87% (2.37)% 8.47%
------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 1,269 $ 1,455 $ 1,932
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.02% 0.70% 0.72%
Expenses after custodian
fee reduction(3) 1.00% 0.68% 0.70%
Net investment income 5.02% 4.97% 4.77%
Portfolio Turnover of the
Portfolio 4% 16% 17%
------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS B
--------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------------
2000(1) 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.560 $10.300 $ 9.970 $ 9.610 $ 9.480
------------------------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------------------------
Net investment income $ 0.404 $ 0.417 $ 0.419 $ 0.433 $ 0.451
Net realized and unrealized
gain (loss) (0.023) (0.741) 0.337 0.362 0.122
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.381 $(0.324) $ 0.756 $ 0.795 $ 0.573
------------------------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------------------------
From net investment income $(0.411) $(0.416) $(0.426) $(0.435) $(0.443)
------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.530 $ 9.560 $10.300 $ 9.970 $ 9.610
------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.14% (3.25)% 7.75% 8.45% 6.17%
------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $14,356 $16,300 $18,615 $20,924 $23,862
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.76% 1.51% 1.50% 1.60% 1.44%
Net expenses after
custodian fee
reduction(3) 1.74% 1.49% 1.48% 1.59% 1.41%
Net investment income 4.28% 4.16% 4.12% 4.39% 4.64%
Portfolio Turnover of the
Portfolio 4% 16% 17% 6% 12%
------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the
investment adviser fee, an allocation of expenses to the Investment Adviser or Administrator,
or both. Had such actions not been taken, the ratios and net investment income per share
would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.55%
Expenses after custodian
fee reduction(3) 1.52%
Net investment income 4.53%
Net investment income per
share $ 0.440
------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS A
-----------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.860 $10.920 $10.510
---------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------
Net investment income $ 0.515 $ 0.532 $ 0.538
Net realized and unrealized
gain (loss) 0.061 (0.907) 0.446
---------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.576 $(0.375) $ 0.984
---------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------
From net investment income $(0.515) $(0.533) $(0.538)
In excess of net investment
income (0.011) (0.001) (0.013)
From net realized gain -- (0.151) (0.023)
---------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.526) $(0.685) $(0.574)
---------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.910 $ 9.860 $10.920
---------------------------------------------------------------------------
TOTAL RETURN(2) 6.09% (3.63)% 9.62%
---------------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $11,411 $12,683 $11,720
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.83% 0.77% 0.77%
Expenses after custodian
fee reduction(3) 0.83% 0.76% 0.75%
Net investment income 5.29% 5.09% 5.03%
Portfolio Turnover of the
Portfolio 27% 41% 55%
---------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS B
-------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.640 $ 11.760 $ 11.300 $ 10.930 $ 10.830
-----------------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------------
Net investment income $ 0.474 $ 0.483 $ 0.488 $ 0.506 $ 0.506
Net realized and unrealized
gain (loss) 0.063 (0.972) 0.478 0.375 0.116
-----------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.537 $ (0.489) $ 0.966 $ 0.881 $ 0.622
-----------------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------------
From net investment income $ (0.474) $ (0.480) $ (0.483) $ (0.506) $ (0.508)
In excess of net investment
income (0.003) -- -- (0.005) (0.014)
From net realized gain -- (0.151) (0.023) -- --
-----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.477) $ (0.631) $ (0.506) $ (0.511) $ (0.522)
-----------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.700 $ 10.640 $ 11.760 $ 11.300 $ 10.930
-----------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.24% (4.35)% 8.76% 8.23% 5.87%
-----------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $323,013 $387,951 $473,396 $517,393 $590,397
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.59% 1.57% 1.58% 1.63% 1.54%
Expenses after custodian
fee reduction(3) 1.59% 1.56% 1.56% 1.63% 1.51%
Net investment income 4.54% 4.27% 4.26% 4.56% 4.64%
Portfolio Turnover of the
Portfolio 27% 41% 55% 44% 47%
-----------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS A
--------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------
2000 1999 1998
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.120 $ 9.930 $ 9.680
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.506 $ 0.511 $ 0.514
Net realized and unrealized
gain (loss) (0.186) (0.725) 0.249
------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.320 $(0.214) $ 0.763
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.511) $(0.513) $(0.513)
In excess of net investment
income (0.005) -- --
From net realized gain (0.001) (0.083) --
In excess of net realized gain (0.003) -- --
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.520) $(0.596) $(0.513)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 8.920 $ 9.120 $ 9.930
------------------------------------------------------------------
TOTAL RETURN(1) 3.74% (2.31)% 8.07%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 8,052 $ 9,203 $ 6,622
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.88% 0.77% 0.80%
Expenses after custodian
fee reduction(2) 0.88% 0.76% 0.78%
Net investment income 5.74% 5.32% 5.25%
Portfolio Turnover of the
Portfolio 28% 59% 17%
------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset 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.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.290 $ 11.210 $ 10.930 $ 10.590 $ 10.510
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.495 $ 0.490 $ 0.495 $ 0.499 $ 0.494
Net realized and unrealized
gain (loss) (0.201) (0.832) 0.280 0.328 0.071
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.294 $ (0.342) $ 0.775 $ 0.827 $ 0.565
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $ (0.500) $ (0.495) $ (0.495) $ (0.487) $ (0.485)
From net realized gain (0.001) (0.083) -- -- --
In excess of net realized gain (0.003) -- -- -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.504) $ (0.578) $ (0.495) $ (0.487) $ (0.485)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.080 $ 10.290 $ 11.210 $ 10.930 $ 10.590
-----------------------------------------------------------------------------------------------
TOTAL RETURN(1) 3.04% (3.21)% 7.24% 7.98% 5.48%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $174,964 $206,401 $247,367 $267,001 $289,829
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.65% 1.61% 1.62% 1.63% 1.63%
Expenses after custodian
fee reduction(2) 1.65% 1.60% 1.60% 1.62% 1.61%
Net investment income 4.96% 4.50% 4.46% 4.65% 4.66%
Portfolio Turnover of the
Portfolio 28% 59% 17% 30% 35%
-----------------------------------------------------------------------------------------------
</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.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS A
-----------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------
2000 1999(1) 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.070 $ 9.940 $ 9.610
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.471 $ 0.474 $ 0.471
Net realized and unrealized
gain (loss) 0.046 (0.872) 0.328
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.517 $(0.398) $ 0.799
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.467) $(0.472) $(0.469)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.120 $ 9.070 $ 9.940
---------------------------------------------------------------------
TOTAL RETURN(2) 5.95% (4.16)% 8.52%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 4,245 $ 3,290 $ 2,200
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.79% 0.69% 0.69%
Expenses after custodian
fee reduction(3) 0.76% 0.65% 0.66%
Net investment income 5.27% 4.94% 4.83%
Portfolio Turnover of the
Portfolio 15% 18% 24%
---------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS B
-----------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-----------------------------------------------------------
2000 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.280 $10.170 $ 9.840 $ 9.510 $ 9.400
---------------------------------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------------------------------
Net investment income $ 0.414 $ 0.409 $ 0.422 $ 0.427 $ 0.440
Net realized and unrealized
gain (loss) 0.048 (0.894) 0.334 0.334 0.125
---------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.462 $(0.485) $ 0.756 $ 0.761 $ 0.565
---------------------------------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------------------------------
From net investment income $(0.402) $(0.405) $(0.422) $(0.427) $(0.444)
In excess of net investment
income -- -- (0.004) (0.004) (0.011)
---------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.402) $(0.405) $(0.426) $(0.431) $(0.455)
---------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.340 $ 9.280 $10.170 $ 9.840 $ 9.510
---------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.17% (4.92)% 7.87% 8.19% 6.14%
---------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
---------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $33,316 $37,775 $39,758 $38,234 $39,488
Ratios (As a percentage of
average daily net assets):
Net expenses(3) 1.56% 1.49% 1.46% 1.40% 1.35%
Net expenses after
custodian fee
reduction(3) 1.53% 1.45% 1.43% 1.35% 1.32%
Net investment income 4.56% 4.15% 4.23% 4.43% 4.63%
Portfolio Turnover of the
Portfolio 15% 18% 24% 39% 25%
---------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the
investment advisor fee, an allocation of expenses to the Investment Advisor or
Administrator, or both. Had such actions not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.52% 1.47%
Expenses after custodian
fee reduction(3) 1.47% 1.44%
Net investment income 4.31% 4.51%
Net investment income per
share $ 0.415 $ 0.429
---------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS A
--------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------
2000(1) 1999(1) 1998
<S> <C> <C> <C>
------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.290 $10.120 $ 9.790
------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------
Net investment income $ 0.459 $ 0.476 $ 0.504
Net realized and unrealized
gain (loss) 0.020 (0.821) 0.325
------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.479 $(0.345) $ 0.829
------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------
From net investment income $(0.459) $(0.476) $(0.499)
In excess of net investment
income (0.020) (0.009) --
------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.479) $(0.485) $(0.499)
------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.290 $ 9.290 $10.120
------------------------------------------------------------------------
TOTAL RETURN(2) 5.39% (3.55)% 8.68%
------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 2,310 $ 1,866 $ 1,839
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.91% 0.70% 0.66%
Expenses after custodian
fee reduction(3) 0.89% 0.68% 0.63%
Net investment income 5.02% 4.84% 5.06%
Portfolio Turnover of the
Portfolio 7% 32% 16%
------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS B
--------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------------
2000(1) 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.470 $10.320 $ 9.970 $ 9.620 $ 9.500
------------------------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------------------------
Net investment income $ 0.402 $ 0.403 $ 0.430 $ 0.419 $ 0.420
Net realized and unrealized
gain (loss) 0.019 (0.842) 0.336 0.351 0.147
------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.421 $(0.439) $ 0.766 $ 0.770 $ 0.567
------------------------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------------------------
From net investment income $(0.402) $(0.402) $(0.416) $(0.419) $(0.427)
In excess of net investment
income (0.009) (0.009) -- (0.001) (0.020)
------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.411) $(0.411) $(0.416) $(0.420) $(0.447)
------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.480 $ 9.470 $10.320 $ 9.970 $ 9.620
------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.62% (4.40)% 7.84% 8.18% 6.02%
------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $22,394 $24,854 $29,824 $31,524 $37,708
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.62% 1.53% 1.48% 1.53% 1.55%
Expenses after custodian
fee reduction(3) 1.60% 1.51% 1.45% 1.51% 1.51%
Net investment income 4.32% 4.02% 4.25% 4.31% 4.30%
Portfolio Turnover of the
Portfolio 7% 32% 16% 24% 43%
------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each diversified, are included in these financial statements. They
include Eaton Vance California Municipals Fund (California Fund), Eaton Vance
Florida Municipals Fund (Florida Fund), Eaton Vance Massachusetts Municipals
Fund (Massachusetts Fund), Eaton Vance Mississippi Municipals Fund
(Mississippi Fund), Eaton Vance New York Municipals Fund (New York Fund),
Eaton Vance Ohio Municipals Fund (Ohio Fund), Eaton Vance Rhode Island
Municipals Fund (Rhode Island Fund) and Eaton Vance West Virginia Municipals
Fund (West Virginia Fund). The California Fund, the Florida Fund, the
Mississippi Fund, the New York Fund, the Ohio Fund, the Rhode Island Fund and
the West Virginia Fund offer two classes of shares. The Massachusetts Fund
offers three classes of shares. Class A shares are generally sold subject to
a sales charge imposed at time of purchase. Class B shares are sold at net
asset value and are subject to a declining contingent deferred sales charge
(see Note 6). Class I shares of the Massachusetts Fund are sold at net asset
value. Each class represents a pro rata interest in the Fund, but votes
separately on class-specific matters and (as noted below) is subject to
different expenses. Realized and unrealized gains and losses are allocated
daily to each class of shares based on the relative net assets of each class
to the total net assets of the Fund. Net investment income, other than class
specific expenses, is allocated daily to each class of shares based upon the
ratio of the value of each class' paid shares to the total value of all paid
shares. Each class of shares differs in its distribution plan and certain
other class specific expenses. Each Fund invests all of its investable assets
in interests in a separate corresponding open-end management investment
company (a Portfolio), a New York Trust, having the same investment objective
as its corresponding Fund. The California Fund invests its assets in the
California Municipals Portfolio, the Florida Fund invests its assets in the
Florida Municipals Portfolio, the Massachusetts Fund invests its assets in
the Massachusetts Municipals Portfolio, the Mississippi Fund invests its
assets in the Mississippi Municipals Portfolio, the New York Fund invests its
assets in the New York Municipals Portfolio, the Ohio Fund invests its assets
in the Ohio Municipals Portfolio, the Rhode Island Fund invests its assets in
the Rhode Island Municipals Portfolio and the West Virginia Fund invests its
assets in the West Virginia Municipals Portfolio. The value of each Fund's
investment in its corresponding Portfolio reflects the Fund's proportionate
interest in the net assets of that Portfolio (approximately 99.9% at
September 30, 2000 for each Fund except Mississippi, Rhode Island and West
Virginia which were 99.1%, 99.6% and 99.4%, respectively). The performance of
each Fund is directly affected by the performance of its corresponding
Portfolio. The financial statements of each Portfolio, including the
portfolio of investments, are included elsewhere in this report and should be
read in conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of the Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 2000, the Funds, for federal income tax purposes, had capital
loss carryovers which will reduce taxable income arising from future net
realized gain on investments, if any, to the extent permitted by the Internal
Revenue Code, and thus will reduce the amount of the distributions to
shareholders which would otherwise be necessary to relieve the Funds of any
liability for federal income or excise tax. A portion of such capital loss
carryovers was acquired through the
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
Fund Reorganization and may be subject to certain limitations. The amounts
and expiration dates of the capital loss carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
-------------------------------------------------------------------------
California Fund $ 663,911 September 30, 2008
17,095,660 September 30, 2004
Florida Fund 863,997 September 30, 2008
Massachusetts Fund 2,135 September 30, 2005
7,889,824 September 30, 2004
Mississippi Fund 1,397,104 September 30, 2004
New York Fund 311,316 September 30, 2008
7,756 September 30, 2007
Ohio Fund 243,991 September 30, 2008
Rhode Island Fund 184,964 September 30, 2008
34,703 September 30, 2005
1,523,162 September 30, 2004
426,784 September 30, 2003
21,699 September 30, 2002
West Virginia Fund 526 September 30, 2008
170,463 September 30, 2006
835,610 September 30, 2005
</TABLE>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay exempt-interest dividends. The portion of such interest, if any, earned
on private activity bonds issued after August 7, 1986 may be considered a tax
preference item to shareholders. Pursuant to section 852 of the Internal
Revenue Code, the Florida Fund and the Ohio Fund designate $3,941,897 and
$94,039, respectively, of distributions from tax-exempt income as long-term
capital gain distributions for the taxable year ended September 30, 2000.
Additionally, at September 30, 2000, California Fund, Mississippi Fund, New
York Fund, Ohio Fund, Rhode Island Fund and West Virginia Fund had net
capital losses of $60,345, $1,250, $1,566,598, $70,786, $315,428 and
$160,741, respectively, attributable to security transactions incurred after
October 31, 1999. These capital losses are treated as arising on the first
day of each of the Fund's net taxable year.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Funds or the Portfolios maintain with
IBT. All significant credit balances used to reduce each Fund's custodian
fees are reported as a reduction of total expenses in the Statements of
Operations.
E Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on a trade-date basis.
2 Distributions to Shareholders
-------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. Distributions of allocated realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of the Fund at the net asset value as of the ex-dividend
date.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
3 Shares of Beneficial Interest
-------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 546,977 924,993
Issued to shareholders electing to
receive payments of distributions in
Fund shares 36,124 28,544
Redemptions (483,965) (196,430)
------------------------------------------------------------------
NET INCREASE 99,136 757,107
------------------------------------------------------------------
<CAPTION>
CALIFORNIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 1,193,240 1,604,914
Issued to shareholders electing to
receive payments of distributions in
Fund shares 502,584 508,868
Redemptions (4,992,828) (4,454,400)
------------------------------------------------------------------
NET DECREASE (3,297,004) (2,340,618)
------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 973,379 652,645
Issued to shareholders electing to
receive payments of distributions in
Fund shares 33,609 24,149
Redemptions (1,010,788) (473,493)
------------------------------------------------------------------
NET INCREASE (DECREASE) (3,800) 203,301
------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 1,028,808 1,375,863
Issued to shareholders electing to
receive payments of distributions in
Fund shares 604,600 501,473
Redemptions (7,773,032) (8,793,156)
------------------------------------------------------------------
NET DECREASE (6,139,624) (6,915,820)
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 600,896 1,080,772
Issued to shareholders electing to
receive payments of distributions in
Fund shares 41,096 36,852
Redemptions (1,135,000) (717,242)
------------------------------------------------------------------
NET INCREASE (DECREASE) (493,008) 400,382
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 624,377 1,108,959
Issued to shareholders electing to
receive payments of distributions in
Fund shares 361,923 411,088
Redemptions (3,600,056) (3,569,046)
------------------------------------------------------------------
NET DECREASE (2,613,756) (2,048,999)
------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS I 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 17,822 15,073
Issued to shareholders electing to
receive payments of distributions in
Fund shares 4,095 8,761
Redemptions (340,121) (40,852)
------------------------------------------------------------------
NET DECREASE (318,204) (17,018)
------------------------------------------------------------------
<CAPTION>
MISSISSIPPI FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 35,782 15,723
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,509 5,365
Redemptions (57,606) (57,512)
------------------------------------------------------------------
NET DECREASE (19,315) (36,424)
------------------------------------------------------------------
</TABLE>
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
MISSISSIPPI FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 40,254 168,593
Issued to shareholders electing to
receive payments of distributions in
Fund shares 28,187 33,450
Redemptions (265,542) (305,972)
------------------------------------------------------------------
NET DECREASE (197,101) (103,929)
------------------------------------------------------------------
<CAPTION>
NEW YORK FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 276,495 1,167,623
Issued to shareholders electing to
receive payments of distributions in
Fund shares 28,995 43,894
Redemptions (440,852) (998,505)
------------------------------------------------------------------
NET INCREASE (DECREASE) (135,362) 213,012
------------------------------------------------------------------
<CAPTION>
NEW YORK FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 812,779 1,559,455
Issued to shareholders electing to
receive payments of distributions in
Fund shares 773,581 1,244,490
Redemptions (7,878,326) (6,578,544)
------------------------------------------------------------------
NET DECREASE (6,291,966) (3,774,599)
------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 223,122 486,478
Issued to shareholders electing to
receive payments of distributions in
Fund shares 20,562 20,066
Redemptions (350,810) (163,880)
------------------------------------------------------------------
NET INCREASE (DECREASE) (107,126) 342,664
------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 746,460 879,762
Issued to shareholders electing to
receive payments of distributions in
Fund shares 442,088 593,879
Redemptions (3,877,897) (3,491,296)
------------------------------------------------------------------
NET DECREASE (2,689,349) (2,017,655)
------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 183,845 155,911
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,927 7,535
Redemptions (93,818) (21,897)
------------------------------------------------------------------
NET INCREASE 102,954 141,549
------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 316,927 570,367
Issued to shareholders electing to
receive payments of distributions in
Fund shares 87,630 99,187
Redemptions (906,586) (508,534)
------------------------------------------------------------------
NET INCREASE (DECREASE) (502,029) 161,020
------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 59,365 49,303
Issued to shareholders electing to
receive payments of distributions in
Fund shares 8,050 6,635
Redemptions (19,548) (36,776)
------------------------------------------------------------------
NET INCREASE 47,867 19,162
------------------------------------------------------------------
</TABLE>
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
WEST VIRGINIA FUND
------------------------
YEAR ENDED SEPTEMBER 30,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 94,358 123,118
Issued to shareholders electing to
receive payments of distributions in
Fund shares 50,350 59,766
Redemptions (406,510) (448,800)
------------------------------------------------------------------
NET DECREASE (261,802) (265,916)
------------------------------------------------------------------
</TABLE>
4 Transactions with Affiliates
-------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios has engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. Certain officers and
Trustees of the Funds and of the Portfolios are officers of the above
organizations. Except for Trustees of the Funds and Portfolios who are not
members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to each fund out of the investment adviser
fee earned by BMR. The Funds were informed that Eaton Vance Distributors,
Inc. (EVD), a subsidiary of EVM and the Funds' principal underwriter,
received $2,607, $5,151, $2,788, $811, $4,594, $3,509, $1,909 and $1,337 from
the California Fund, Florida Fund, Massachusetts Fund, Mississippi Fund, New
York Fund, Ohio Fund, Rhode Island Fund and West Virginia Fund, respectively,
as its portion of the sales charge on sales of Class A shares for the year
ended September 30, 2000.
5 Distribution and Service Plans
-------------------------------------------
Each Fund has in effect a distribution plan for Class B shares (Class B
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan for Class A shares (Class A Plans) (collectively, the Plans).
The Class B Plans require each Fund to pay EVD amounts equal to 1/365 of
0.75% of each Fund's average daily net assets attributable to Class B 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% of the aggregate amount received by the Fund
for Class B shares sold, plus (ii) interest calculated by applying the rate
of 1% over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of contingent
deferred sales charges (Note 6) and amounts theretofore paid to EVD. The
amount payable to EVD with respect to each day is accrued on such day as a
liability of each Class B share and, accordingly, reduces the Class B's net
assets. For the year ended September 30, 2000, Florida Fund, Massachusetts
Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund, paid $2,164,704, $1,246,371, $112,080, $2,578,766, $1,389,272,
$258,184 and $171,625 respectively, to EVD, representing 0.75% of each Fund's
Class B average daily net assets. The California Fund paid $429,328
representing 0.19% of the Fund's Class B average daily net assets. At
September 30, 2000, the amount of Uncovered Distribution Charges of EVD
calculated under the Class B Plans for Florida Fund, Massachusetts Fund,
Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund were approximately $5,689,000, $3,496,000, $599,000,
$3,501,000, $3,423,000, $1,290,000 and $766,000, respectively. The California
Fund had no Uncovered Distribution Charges at September 30, 2000.
The Plans authorize the Funds to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of each
Fund's average daily net assets attributable to Class A and Class B shares
for any fiscal year. The Trustees initially implemented the Plans by
authorizing each class to make quarterly service fee payments to EVD and
investment dealers equal to 0.20% (0.25% for the California Fund) per annum
of each Fund's average daily net assets attributable to both Class A and
Class B shares based on the value of Fund shares sold by such persons and
remaining outstanding for at least one year. On October 4, 1999 the Trustees
approved service fee payments equal to 0.20% (0.25% for the California Fund)
per annum of the Fund's average daily net assets attributable to Class A and
Class B shares for any fiscal year on shares of the Funds sold on or after
October 12, 1999. Service fee payments are made for personal services and/or
maintenance of shareholder accounts. Service fees are separate and distinct
from the sales commissions and distribution fees payable by each Fund to EVD,
and as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD. For the year ended
September 30, 2000, California Fund, Florida Fund, Massachusetts Fund,
Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund paid or accrued service fees to or payable to EVD in the amount
of $29,105, $26,914, $23,552, $2,172, $20,411, $12,833, $6,295 and $3,911,
respectively, for Class A Shares and $526,892, $441,244, $307,000, $27,473,
$635,180, $332,639, $62,731 and $36,046, respectively, for Class B shares.
Certain officers and Trustees of the Funds are officers or directors of EVD.
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class B shares acquired by reinvestment of
dividends or capital gains distributions. The CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second
year after purchase, declining one percentage point each subsequent year. No
CDSC is levied on Class B shares which have been sold to EVD or its
affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Distribution Plan (see Note 5). CDSC charges received when no
Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $260,000, $135,000, $9,000, $379,000, $134,000,
$76,000 and $22,000 of CDSC paid by Class B shareholders of Florida Fund,
Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island
Fund and West Virginia, respectively, for the year ended September 30, 2000.
EVD also received $173,485 of CDSC paid by Class B shareholders of California
Fund of which $150,183 was paid directly to the Fund for days when no
Uncovered Distribution Charges existed.
7 Investment Transactions
-------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
<S> <C>
------------------------------------------------------
Increases $ 16,589,267
Decreases 60,292,260
<CAPTION>
FLORIDA FUND
<S> <C>
------------------------------------------------------
Increases $ 19,982,661
Decreases 103,592,435
<CAPTION>
MASSACHUSETTS FUND
<S> <C>
------------------------------------------------------
Increases $ 11,730,651
Decreases 55,320,524
<CAPTION>
MISSISSIPPI FUND
<S> <C>
------------------------------------------------------
Increases $ 713,894
Decreases 3,620,082
<CAPTION>
NEW YORK FUND
<S> <C>
------------------------------------------------------
Increases $ 11,046,414
Decreases 98,232,465
<CAPTION>
OHIO FUND
<S> <C>
------------------------------------------------------
Increases $ 9,285,921
Decreases 48,772,440
<CAPTION>
RHODE ISLAND FUND
<S> <C>
------------------------------------------------------
Increases $ 4,482,382
Decreases 10,705,416
<CAPTION>
WEST VIRGINIA FUND
<S> <C>
------------------------------------------------------
Increases $ 1,421,464
Decreases 4,823,779
</TABLE>
41
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE MUNICIPALS TRUST:
---------------------------------------------
We have audited the accompanying statements of assets and liabilities of Eaton
Vance California Municipals Fund, Eaton Vance Florida Municipals Fund, Eaton
Vance Massachusetts Municipals Fund, Eaton Vance Mississippi Municipals Fund,
Eaton Vance New York Municipals Fund, Eaton Vance Ohio Municipals Fund, Eaton
Vance Rhode Island Municipals Fund and Eaton Vance West Virginia Municipals Fund
(the Funds) (certain of the series constituting Eaton Vance Municipals Trust) as
of September 30, 2000, the related statements of operations for the year then
ended, the statements of changes in net assets for the years ended September 30,
2000 and 1999 and the financial highlights for each of the years in the
five-year period ended September 30, 2000. These financial statements and
financial highlights are the responsibility of the Trust's management. Our
responsibility is to express an opinion on these financial statements and
financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial positions of the
aforementioned Funds of Eaton Vance Municipals Trust at September 30, 2000, the
results of their operations, the changes in their net assets and their financial
highlights for the respective stated periods in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 3, 2000
42
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Cogeneration -- 2.6%
-------------------------------------------------------------------------
$ 6,000 Sacramento Power Authority, (Campbell's
Soup), 6.00%, 7/1/22 $ 6,097,800
-------------------------------------------------------------------------
$ 6,097,800
-------------------------------------------------------------------------
Education -- 2.0%
-------------------------------------------------------------------------
$ 2,500 California Educational Facilities
Authority, (Santa Clara University),
5.00%, 9/1/23 $ 2,330,450
2,500 California Educational Facilities
Authority, (Santa Clara University),
5.25%, 9/1/26 2,412,425
-------------------------------------------------------------------------
$ 4,742,875
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 28.1%
-------------------------------------------------------------------------
$ 3,910 Fontana Public Financing Authority,
Prerefunded to 10/1/02, 7.00%, 9/1/21 $ 4,021,396
15,000 Foothill/Eastern Corridor Agency, Toll
Road Bonds, Escrowed to Maturity, (FSA),
0.00%, 1/1/28 3,062,550
3,455 Northern California Power Agency,
(MBIA), Prerefunded to 9/3/02,
Variable Rate, 8/1/25(1) 3,865,281
10,900 Sacramento Cogeneration Authority,
(Procter & Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 12,101,071
6,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.25%, 1/1/21 7,843,500
14,285 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.50%, 11/1/16 19,051,190
12,000 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/14 6,025,680
5,765 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/26 1,325,835
35,975 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/27 7,805,855
2,000 Southern California Public Power
Authority, (FGIC), Escrowed to Maturity,
Variable Rate, 7/1/12(1) 1,997,500
-------------------------------------------------------------------------
$ 67,099,858
-------------------------------------------------------------------------
General Obligations -- 1.0%
-------------------------------------------------------------------------
$ 2,600 Capistrano Unified School District,
5.75%, 9/1/29 $ 2,448,394
-------------------------------------------------------------------------
$ 2,448,394
-------------------------------------------------------------------------
Hospital -- 2.8%
-------------------------------------------------------------------------
$ 1,500 California Statewide Communities
Development Authority, (Sonoma County
Indian Health), 6.40%, 9/1/29 $ 1,350,600
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Hospital (continued)
-------------------------------------------------------------------------
$ 830 Eastern Plumas Health Care District,
7.50%, 8/1/07 $ 836,872
3,200 San Benito Health Care District,
5.40%, 10/1/20 2,647,232
1,000 San Gorgonio Memorial Health Care
District, 5.75%, 5/1/20 821,750
1,250 Washington Township Health Care
District, 5.25%, 7/1/29 1,140,450
-------------------------------------------------------------------------
$ 6,796,904
-------------------------------------------------------------------------
Housing -- 5.1%
-------------------------------------------------------------------------
$ 2,650 California Statewide Communities
Development Authority, (Chesapeake Bay
Apartments), 6.00%, 6/1/32 $ 2,363,853
1,500 California Statewide Communities
Development Authority, (Corporate Fund
for Housing), 6.50%, 12/1/29 1,437,555
500 California Statewide Communities
Development Authority, (Corporate Fund
for Housing), 7.25%, 12/1/34 498,045
2,750 California Statewide Communities
Development Authority, (Nantucket Bay
Apartments), 6.00%, 6/1/32 2,453,055
2,600 California Statewide Communities
Development Authority, (Oaks at Sunset
Apartments), 6.00%, 6/1/36 2,310,334
1,500 Commerce, (Hermitage III Senior
Apartments), 6.50%, 12/1/29 1,435,740
450 Commerce, (Hermitage III Senior
Apartments), 6.85%, 12/1/29 444,901
1,125 Oakland, Housing Finance Agency,
7.10%, 1/1/10 1,149,311
-------------------------------------------------------------------------
$ 12,092,794
-------------------------------------------------------------------------
Industrial Development Revenue -- 2.9%
-------------------------------------------------------------------------
$ 5,500 California Pollution Control Financing
Authority, (Browning Ferris Industries),
(AMT), 5.80%, 12/1/16 $ 4,881,030
3,000 California Pollution Control Financing
Authority, (Laidlaw Environmental),
(AMT), 6.70%, 7/1/07(2) 114,000
2,000 California Statewide Communities
Development Authority, (United
Airlines), (AMT), 5.70%, 10/1/33 1,836,680
-------------------------------------------------------------------------
$ 6,831,710
-------------------------------------------------------------------------
Insured-Electric Utilities -- 7.9%
-------------------------------------------------------------------------
$ 4,100 California Pollution Control Financing
Authority, (San Diego Gas and Electric),
(MBIA), 5.90%, 6/1/14 $ 4,485,441
4,195 Northern California Power Agency,
(MBIA), Variable Rate, 8/1/25(1) 4,624,987
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Electric Utilities (continued)
-------------------------------------------------------------------------
$ 7,070 Southern California Public Power
Authority, (MBIA), 0.00%, 7/1/15 $ 3,237,000
6,915 Southern California Public Power
Authority, (MBIA), 5.00%, 1/1/20 6,605,692
-------------------------------------------------------------------------
$ 18,953,120
-------------------------------------------------------------------------
Insured-General Obligations -- 0.3%
-------------------------------------------------------------------------
$ 2,285 Merced Unified School District, (FGIC),
0.00%, 8/1/19 $ 797,694
-------------------------------------------------------------------------
$ 797,694
-------------------------------------------------------------------------
Insured-Hospital -- 2.5%
-------------------------------------------------------------------------
$ 1,500 California Health Facilities Financing
Authority, (Stanford Health Care),
(AMBAC), 5.00%, 11/15/28 $ 1,376,145
1,640 California Statewide Communities
Development Authority, (Sutter Health),
(FSA), Variable Rate, 8/15/27(3)(4) 1,732,086
3,050 California Statewide Communities
Development, (Children's Hospital Los
Angeles), (MBIA), 5.25%, 8/15/29 2,904,119
-------------------------------------------------------------------------
$ 6,012,350
-------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 6.8%
-------------------------------------------------------------------------
$11,280 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/30 $ 1,983,024
6,500 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/22 1,853,995
3,500 San Mateo County Joint Powers Financing
Authority, (FSA),
Variable Rate, 7/15/29(1)(3) 2,982,245
4,350 Stockton, Wastewater Treatment Plant,
(FGIC), 6.80%, 9/1/24 4,835,982
13,985 Visalia Unified School District, (MBIA),
0.00%, 12/1/17 4,570,158
-------------------------------------------------------------------------
$ 16,225,404
-------------------------------------------------------------------------
Insured-Solid Waste -- 0.7%
-------------------------------------------------------------------------
$ 1,500 Inland Empire Solid Waste Finance
Authority, (FSA), (AMT), 6.25%, 8/1/11 $ 1,669,935
-------------------------------------------------------------------------
$ 1,669,935
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation -- 1.7%
-------------------------------------------------------------------------
$ 2,195 San Francisco City and County Airports,
(International Airport), (FSA),
4.75%, 5/1/29 $ 1,926,178
1,665 San Francisco City and County Airports,
(International Airport), (MBIA),
6.75%, 5/1/13 1,789,209
1,800 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
(MBIA), 0.00%, 1/15/24 465,066
-------------------------------------------------------------------------
$ 4,180,453
-------------------------------------------------------------------------
Insured-Water and Sewer -- 3.6%
-------------------------------------------------------------------------
$ 5,000 East Bay, Municipal Utilities District,
Water System, (MBIA),
Variable Rate, 6/1/08(1) $ 5,243,750
3,000 San Diego County Water Authority,
(FGIC), Variable Rate, 4/22/09(1) 3,382,500
-------------------------------------------------------------------------
$ 8,626,250
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 20.0%
-------------------------------------------------------------------------
$ 6,500 California Public Works, (University of
California), 5.00%, 6/1/23 $ 6,045,520
5,000 California Public Works, (University of
California), 5.25%, 6/1/20 4,939,850
6,500 California Public Works, (University of
California), 5.50%, 6/1/14 6,901,505
5,115 Los Angeles County, (Disney Parking),
0.00%, 3/1/16 2,091,063
1,925 Los Angeles County, (Disney Parking),
0.00%, 3/1/17 733,194
5,000 Los Angeles County, (Disney Parking),
0.00%, 9/1/17 1,849,250
5,370 Los Angeles County, (Disney Parking),
0.00%, 3/1/18 1,905,867
3,100 Los Angeles County, (Disney Parking),
0.00%, 3/1/20 958,644
6,925 Los Angeles County, (Disney Parking),
0.00%, 9/1/20 2,077,708
7,000 Los Angeles County, (Marina Del Ray),
6.50%, 7/1/08 7,408,170
8,000 Pasadena Parking Facility,
6.25%, 1/1/18 8,885,360
4,000 Sacramento City Financing Authority,
5.40%, 11/1/20 3,988,600
-------------------------------------------------------------------------
$ 47,784,731
-------------------------------------------------------------------------
Special Tax Revenue -- 7.7%
-------------------------------------------------------------------------
$ 2,500 Bonita Canyon Public Financing
Authority, 5.375%, 9/1/28 $ 2,212,625
995 Brentwood Infrastructure Financing
Authority, 5.625%, 9/2/29 916,574
1,675 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/22 1,667,831
500 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/29 494,220
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Special Tax Revenue (continued)
-------------------------------------------------------------------------
$ 1,850 Contra Costa Public Financing Authority,
7.10%, 8/1/22 $ 1,919,653
1,650 Corona Public Financing Authority,
5.80%, 9/1/20 1,575,899
1,935 Fairfield, (North Cordelia District),
7.375%, 9/2/18 2,002,532
3,325 Irvine, Improvement Bond Act 1915,
(Assessment District North 97-16, Group
Two), 5.50%, 9/2/22 3,075,924
2,485 Lincoln Public Financing Authority,
Improvement Bond Act 1915, (Twelve
Bridges), 6.20%, 9/2/25 2,477,023
1,000 Roseville Special Tax, 6.30%, 9/1/25 1,002,830
1,000 Torrance Redevelopment Agency,
5.625%, 9/1/28 935,990
-------------------------------------------------------------------------
$ 18,281,101
-------------------------------------------------------------------------
Water and Sewer -- 2.6%
-------------------------------------------------------------------------
$ 1,670 California Water Resources, (Central
Valley), Variable Rate, 12/1/28(1)(3) $ 1,512,903
3,000 Metropolitan Water District, (Southern
California Waterworks),
Variable Rate, 7/1/27(3)(4) 2,384,580
2,300 Santa Margarita Water District,
6.20%, 9/1/20 2,318,906
-------------------------------------------------------------------------
$ 6,216,389
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $221,516,722) $234,857,762
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 3,962,408
-------------------------------------------------------------------------
Net Assets -- 100.0% $238,820,170
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 27.8% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 0.6% to 16.1% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Non-income producing security.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Cogeneration -- 3.2%
-------------------------------------------------------------------------
$ 4,600 Palm Beach County, (Okeelanta Power),
(AMT), 6.85%, 2/15/21(1) $ 2,626,600
11,000 Palm Beach County, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 6,281,000
-------------------------------------------------------------------------
$ 8,907,600
-------------------------------------------------------------------------
Education -- 0.8%
-------------------------------------------------------------------------
$ 1,800 Florida Capital Projects Finance
Authority, Student Housing Revenue,
(Florida University), 7.75%, 8/15/20 $ 1,776,438
500 Florida Capital Projects Finance
Authority, Student Housing Revenue,
(Florida University), 9.50%, 8/15/05 507,055
-------------------------------------------------------------------------
$ 2,283,493
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.7%
-------------------------------------------------------------------------
$ 9,225 Dade County, (Baptist Hospital of
Miami), Escrowed to Maturity,
5.75%, 5/1/21 $ 9,478,964
3,835 Dade County, Professional Sports
Franchise, (MBIA), Escrowed to Maturity,
0.00%, 10/1/23 1,032,689
2,830 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.),
Prerefunded to 10/1/03, 6.75%, 10/1/14 3,043,495
1,675 Florida Mid-Bay Bridge Authority,
Escrowed to Maturity, 6.875%, 10/1/22 1,936,702
5,600 St. Lucie Utility System, Escrowed to
Maturity, 6.00%, 10/1/20 5,884,760
-------------------------------------------------------------------------
$ 21,376,610
-------------------------------------------------------------------------
General Obligations -- 3.7%
-------------------------------------------------------------------------
$ 1,000 Florida, Variable Rate, 7/1/27(2)(3) $ 812,120
10,000 Florida Board of Education,
4.75%, 6/1/22 8,707,700
2,300 Puerto Rico, 0.00%, 7/1/18 868,641
-------------------------------------------------------------------------
$ 10,388,461
-------------------------------------------------------------------------
Hospital -- 4.1%
-------------------------------------------------------------------------
$ 2,500 Cape Canaveral Hospital District,
5.25%, 1/1/28 $ 1,924,750
1,000 Halifax Medical Center, 7.25%, 10/1/24 947,950
500 Halifax Medical Center, 7.25%, 10/1/29 464,270
4,750 Jacksonville HFA, (St. Luke's Hospital
Association), 6.75%, 11/15/13 4,940,807
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Hospital (continued)
-------------------------------------------------------------------------
$ 3,500 Orange County Health Facilities
Authority, (Westminister Community
Care), 6.60%, 4/1/24 $ 3,129,700
-------------------------------------------------------------------------
$ 11,407,477
-------------------------------------------------------------------------
Housing -- 7.8%
-------------------------------------------------------------------------
$ 1,300 Clay County Housing Finance Authority,
Multifamily, (GNMA), 7.40%, 12/1/25 $ 1,329,679
835 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT),
7.25%, 9/1/19 852,694
1,465 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.90%, 10/1/21 1,539,173
1,705 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.95%, 10/1/27 1,786,516
2,360 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.40%, 10/1/23 2,419,991
1,065 Florida Housing Finance Authority,
6.35%, 6/1/14 1,090,315
2,115 Florida Housing Finance Authority,
(AMT), 6.35%, 7/1/28 2,173,480
4,000 Muni Mae Tax Exempt Bond, LLC, (AMT),
Variable Rate, 6/30/09 3,984,360
6,205 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.60%, 4/1/28 6,386,248
-------------------------------------------------------------------------
$ 21,562,456
-------------------------------------------------------------------------
Industrial Development Revenue -- 1.0%
-------------------------------------------------------------------------
$ 3,000 Broward County IDR, (Lynxs Cargoport),
(AMT), 6.75%, 6/1/19 $ 2,775,720
-------------------------------------------------------------------------
$ 2,775,720
-------------------------------------------------------------------------
Insured-Electric Utilities -- 7.3%
-------------------------------------------------------------------------
$ 5,000 Florida Municipal Power Agency Stanton
II, (AMBAC),
Variable Rate, 10/1/20(2)(3) $ 5,540,150
1,540 Manatee County Public Utility, (FGIC),
0.00%, 10/1/12 820,389
2,200 Puerto Rico Electric Power Authority,
STRIPES, (FSA),
Variable Rate, 7/1/03(2) 2,343,000
2,200 Puerto Rico Electric Power Authority,
STRIPES, (FSA),
Variable Rate, 7/1/02(2) 2,293,500
7,750 Sunrise Utilities Systems, (AMBAC),
5.00%, 10/1/28 7,094,350
2,250 Sunrise Utilities Systems, (AMBAC),
5.20%, 10/1/22 2,136,667
-------------------------------------------------------------------------
$ 20,228,056
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Hospital -- 6.7%
-------------------------------------------------------------------------
$ 8,000 Charlotte County Health Care,
(Bon-Secours Health System), (FSA),
Variable Rate, 8/26/27(2) $ 8,230,000
3,000 Orange County HFA, (Orlando Regional
Medical Center), (MBIA),
Variable Rate, 10/29/21(2) 3,225,000
7,500 Sarasota County Public Hospital Board,
(Sarasota Memorial Hospital), (MBIA),
5.25%, 7/1/24 7,142,625
-------------------------------------------------------------------------
$ 18,597,625
-------------------------------------------------------------------------
Insured-Housing -- 4.6%
-------------------------------------------------------------------------
$ 3,000 Florida HFA, (Brittany of Rosemont),
(AMBAC), (AMT), 6.875%, 8/1/26 $ 3,167,100
6,530 Florida HFA, (Maitland Club Apartments),
(AMBAC), (AMT), 6.875%, 8/1/26 6,893,721
2,675 Lee County Housing Finance, SCA
Multifamily, (FSA), (AMT),
7.05%, 1/1/30 2,834,403
-------------------------------------------------------------------------
$ 12,895,224
-------------------------------------------------------------------------
Insured-Miscellaneous -- 0.4%
-------------------------------------------------------------------------
$ 1,110 Escambia County, (MBIA), 7.20%, 1/1/15 $ 1,128,959
-------------------------------------------------------------------------
$ 1,128,959
-------------------------------------------------------------------------
Insured-Pooled Loans -- 0.3%
-------------------------------------------------------------------------
$ 706 Osceola County IDA, Community Provider
Pooled Loan Program, (FSA),
7.75%, 7/1/10 $ 721,751
-------------------------------------------------------------------------
$ 721,751
-------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.2%
-------------------------------------------------------------------------
$ 500 Alachua County Health Facility, (Mental
Health Services), (FSA), 7.75%, 7/1/10 $ 511,175
-------------------------------------------------------------------------
$ 511,175
-------------------------------------------------------------------------
Insured-Solid Waste -- 0.5%
-------------------------------------------------------------------------
$ 1,500 St. John's County Solid Waste Disposal,
(FGIC), 7.25%, 11/1/10 $ 1,532,910
-------------------------------------------------------------------------
$ 1,532,910
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 7.3%
-------------------------------------------------------------------------
$ 3,175 Dade County, Special Obligation,
(AMBAC), Variable Rate, 10/1/35(2) $ 2,526,220
1,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/11 558,410
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Special Tax Revenue (continued)
-------------------------------------------------------------------------
$ 2,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/12 $ 1,046,920
1,185 Opa-Locka Sales Tax, (FGIC),
7.00%, 1/1/14 1,281,589
1,250 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(2)(3) 1,067,662
2,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/10 1,206,580
1,760 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/12 937,587
2,840 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/14 1,325,598
4,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/15 1,750,200
4,140 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/16 1,695,785
2,525 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/17 970,105
2,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/18 720,040
6,800 Tampa Utility Tax, (AMBAC),
0.00%, 4/1/19 2,362,592
5,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/19 1,688,300
4,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/20 1,270,680
-------------------------------------------------------------------------
$ 20,408,268
-------------------------------------------------------------------------
Insured-Transportation -- 15.0%
-------------------------------------------------------------------------
$ 3,475 Dade County Aviation Facilities, (MBIA),
(AMT), 6.00%, 10/1/24 $ 3,584,045
4,000 Dade County Aviation Facilities, (MBIA),
(AMT), 6.55%, 10/1/13 4,194,600
13,750 Florida Turnpike Authority, (FGIC),
4.50%, 7/1/27 11,323,262
6,500 Florida Turnpike Authority, (FSA),
4.50%, 7/1/28 5,315,960
7,650 Greater Orlando Aviation Authority,
(FGIC), (AMT), 6.375%, 10/1/21 7,939,094
2,900 Greater Orlando Aviation Authority,
(FGIC), (AMT), Variable Rate, 10/1/18 2,365,037
2,000 Orlando and Orange County Expressway
Authority, (FGIC), 8.25%, 7/1/14 2,601,500
5,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 4,290,000
-------------------------------------------------------------------------
$ 41,613,498
-------------------------------------------------------------------------
Insured-Water and Sewer -- 3.4%
-------------------------------------------------------------------------
$ 1,500 Cocoa Water and Sewer, (FGIC),
4.50%, 10/1/26 $ 1,235,445
5,000 Fort Myers Utility, (FGIC),
Variable Rate, 10/1/29(2) 4,787,200
1,000 Tampa Bay Water Utility System, (FGIC),
4.75%, 10/1/27 862,610
3,375 Tampa Bay Water Utility System, (FGIC),
Variable Rate, 10/1/27(2)(3) 2,447,618
-------------------------------------------------------------------------
$ 9,332,873
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Nursing Home -- 5.5%
-------------------------------------------------------------------------
$ 365 Charlotte County IDA, (Beverly
Enterprises), 10.00%, 6/1/11 $ 381,983
5,075 Dade County IDA, (Gramercy Park Nursing
Care), (FHA), 6.60%, 8/1/23 5,119,508
1,590 Highlands County IDA, (Beverly
Enterprises), 9.25%, 7/1/07 1,670,931
3,750 Jacksonville Health Facilities
Authority, (Cypress Village),
7.00%, 12/1/22 3,777,713
500 Lee County IDA, (Shell Point Village),
5.50%, 11/15/21 427,640
2,775 Lee County IDA, (Shell Point Village),
5.50%, 11/15/29 2,289,764
570 Orange County IDA, (Beverly
Enterprises), 9.25%, 8/1/10 595,553
1,000 Winter Garden, (Beverly Enterprises),
8.75%, 7/1/12 1,052,120
-------------------------------------------------------------------------
$ 15,315,212
-------------------------------------------------------------------------
Pooled Loans -- 1.8%
-------------------------------------------------------------------------
$ 5,000 Osceola County IDA, Community Pooled
Loan-93, 7.75%, 7/1/17 $ 5,100,200
-------------------------------------------------------------------------
$ 5,100,200
-------------------------------------------------------------------------
Senior Living / Life Care -- 5.5%
-------------------------------------------------------------------------
$ 6,895 Atlantic Beach, (Fleet Landing),
8.00%, 10/1/24 $ 7,936,697
3,990 North Miami Health Facilities Authority,
(Imperial Club), 6.75%, 1/1/33 3,413,525
2,855 Okaloosa County, Retirement Rental
Housing, (Encore Retirement Partners),
6.125%, 2/1/14 2,402,968
1,750 Plantation Health Facilities Authority,
(Covenant Village of Florida),
5.125%, 12/1/22 1,445,255
-------------------------------------------------------------------------
$ 15,198,445
-------------------------------------------------------------------------
Solid Waste -- 1.1%
-------------------------------------------------------------------------
$ 3,095 Broward County, (Waste Energy Co., L.P.
North), 7.95%, 12/1/08 $ 3,193,823
-------------------------------------------------------------------------
$ 3,193,823
-------------------------------------------------------------------------
Special Tax Revenue -- 3.9%
-------------------------------------------------------------------------
$ 2,150 Fleming Island Plantation Community
Development District, 6.30%, 2/1/05 $ 2,159,869
1,185 Lexington Oaks Community Development
District, 7.20%, 5/1/30 1,205,726
1,700 Longleaf Community Development District,
6.20%, 5/1/09 1,626,356
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Special Tax Revenue (continued)
-------------------------------------------------------------------------
$ 1,760 Longleaf Community Development District,
6.65%, 5/1/20 $ 1,670,522
3,500 University Square Community Development
District, 6.75%, 5/1/20 3,475,325
685 Vista Lakes Community Development
District, 7.20%, 5/1/32 688,946
-------------------------------------------------------------------------
$ 10,826,744
-------------------------------------------------------------------------
Transportation -- 4.3%
-------------------------------------------------------------------------
$ 4,000 Florida Mid-Bay Bridge Authority,
6.125%, 10/1/22 $ 3,978,400
8,000 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 7,879,840
-------------------------------------------------------------------------
$ 11,858,240
-------------------------------------------------------------------------
Water and Sewer -- 1.3%
-------------------------------------------------------------------------
$ 2,500 Hillsborough County Utility,
6.625%, 8/1/11 $ 2,574,775
1,015 Northern Palm Beach County, (Water
Control and Improvements),
6.00%, 8/1/25 966,544
-------------------------------------------------------------------------
$ 3,541,319
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.4%
(identified cost $272,244,736) $270,706,139
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.6% $ 7,150,784
-------------------------------------------------------------------------
Net Assets -- 100.0% $277,856,923
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 47.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 9.8% to 14.3% 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.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.8%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Assisted Living -- 0.9%
-------------------------------------------------------------------------
$ 1,500 Massachusetts IFA, (Briscoe House),
(FHA), 7.125%, 2/1/36 $ 1,606,530
-------------------------------------------------------------------------
$ 1,606,530
-------------------------------------------------------------------------
Cogeneration -- 1.4%
-------------------------------------------------------------------------
$ 1,000 Massachusetts Development Finance
Agency, Resource Recovery, (Ogden
Haverhill), 5.50%, 12/1/19 $ 871,420
1,750 Massachusetts IFA, Resource Recovery,
(Ogden Haverhill), (AMT),
5.60%, 12/1/19 1,543,710
-------------------------------------------------------------------------
$ 2,415,130
-------------------------------------------------------------------------
Education -- 5.9%
-------------------------------------------------------------------------
$ 2,750 Massachusetts Development Finance
Agency, (Boston University),
5.45%, 5/15/59 $ 2,512,537
1,000 Massachusetts Development Finance
Agency, (Wheeler School),
6.50%, 12/1/29 1,009,140
2,000 Massachusetts IFA, (Belmont Hill
School), 5.25%, 9/1/28 1,787,480
1,250 Massachusetts IFA, (Dana Hall),
5.90%, 7/1/27 1,171,050
2,000 Massachusetts IFA, (St. Johns High
School, Inc.), 5.35%, 6/1/28 1,751,720
2,000 New England Educational Loan Marketing
Corp., (AMT), 6.90%, 11/1/09 2,206,920
-------------------------------------------------------------------------
$ 10,438,847
-------------------------------------------------------------------------
Electric Utilities -- 9.7%
-------------------------------------------------------------------------
$ 5,060 Massachusetts Municipal Wholesale
Electric Co., 6.625%, 7/1/18 $ 5,173,698
3,500 Massachusetts Municipal Wholesale
Electric Co., 6.75%, 7/1/11 3,657,710
3,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 1,208,640
13,230 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 5,330,102
2,000 Puerto Rico Electric Power Authority,
RITES, Variable Rate, 7/1/29(1) 1,779,900
-------------------------------------------------------------------------
$ 17,150,050
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 14.8%
-------------------------------------------------------------------------
$ 110 Massachusetts HEFA, (MBIA), Prerefunded
to 1/1/01, 7.20%, 7/1/09 $ 111,858
100 Massachusetts Turnpike Authority,
(MBIA), Escrowed to Maturity,
5.00%, 1/1/20 94,042
29,870 Massachusetts Turnpike Authority,
Escrowed to Maturity, 0.00%, 1/1/28 6,188,168
21,065 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20(2) 19,809,947
-------------------------------------------------------------------------
$ 26,204,015
-------------------------------------------------------------------------
General Obligations -- 1.0%
-------------------------------------------------------------------------
$ 1,700 Nantucket, 6.80%, 12/1/11 $ 1,778,523
-------------------------------------------------------------------------
$ 1,778,523
-------------------------------------------------------------------------
Hospital -- 24.9%
-------------------------------------------------------------------------
$ 1,600 Massachusetts HEFA, (Cape Cod
Healthcare), 5.45%, 11/15/23 $ 1,319,312
2,000 Massachusetts HEFA, (Daughters of
Charity Health System), 6.10%, 7/1/14 2,135,580
3,610 Massachusetts HEFA, (Jordan Hospital),
5.25%, 10/1/23 2,861,719
1,465 Massachusetts HEFA, (Jordan Hospital),
5.375%, 10/1/28 1,153,614
1,020 Massachusetts HEFA, (Jordan Hospital),
6.875%, 10/1/15 1,018,572
800 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.25%, 7/15/18 620,728
1,720 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.375%, 7/15/28 1,273,316
3,300 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 2,918,520
2,600 Massachusetts HEFA, (North Adams
Hospital), 6.625%, 7/1/18 2,409,498
6,000 Massachusetts HEFA, (Partners Healthcare
System), 5.25%, 7/1/29 5,149,800
5,255 Massachusetts HEFA, (Sisters of
Providence Health System),
6.50%, 11/15/08 5,643,502
8,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/08 5,361,920
9,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/09 5,707,350
11,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/10 6,587,240
-------------------------------------------------------------------------
$ 44,160,671
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Industrial Development Revenue -- 3.0%
-------------------------------------------------------------------------
$ 2,075 Massachusetts IFA, (American Hingham
Water Co.), (AMT), 6.60%, 12/1/15 $ 2,145,259
3,000 Massachusetts IFA, (American Hingham
Water Co.), (AMT), 6.90%, 12/1/29 3,144,480
-------------------------------------------------------------------------
$ 5,289,739
-------------------------------------------------------------------------
Insured-Education -- 5.5%
-------------------------------------------------------------------------
$ 190 Massachusetts Educational Finance
Authority, (MBIA), (AMT), 7.25%, 1/1/09 $ 194,731
1,150 Massachusetts HEFA, (Berklee College of
Music), (MBIA), Variable Rate,
10/1/27(1) 941,563
775 Massachusetts HEFA, (Berklee College of
Music), (MBIA), 7.20%, 7/1/09 784,285
400 Massachusetts HEFA, (Boston University),
RIBS, (MBIA), Variable Rate, 10/1/31(1) 428,500
2,650 Massachusetts HEFA, (Brandeis
University), (MBIA), 4.75%, 10/1/28 2,239,939
1,000 Massachusetts IFA, (College of the Holy
Cross), (MBIA), 5.00%, 9/1/23 904,500
5,000 Massachusetts IFA, (Tufts University),
(MBIA), 4.75%, 2/15/28 4,234,800
-------------------------------------------------------------------------
$ 9,728,318
-------------------------------------------------------------------------
Insured-General Obligations -- 1.4%
-------------------------------------------------------------------------
$ 2,600 Ipswich, (FGIC), 5.00%, 11/15/19 $ 2,410,928
-------------------------------------------------------------------------
$ 2,410,928
-------------------------------------------------------------------------
Insured-Health Care Miscellaneous -- 0.4%
-------------------------------------------------------------------------
$ 750 Massachusetts HEFA, (Harvard Pilgrim
Health), (FSA), 5.00%, 7/1/05 $ 756,413
-------------------------------------------------------------------------
$ 756,413
-------------------------------------------------------------------------
Insured-Hospital -- 9.2%
-------------------------------------------------------------------------
$ 3,750 Massachusetts HEFA, (Beth Israel
Hospital), (AMBAC), (AMT), Variable
Rate, 7/1/25(1) $ 3,768,750
995 Massachusetts HEFA, (Beverly Hospital),
(MBIA), 7.30%, 7/1/13 1,006,910
1,000 Massachusetts HEFA, (Caregroup), (MBIA),
4.75%, 7/1/20 856,890
2,000 Massachusetts HEFA, (St. Elizabeth
Hospital), (FSA), Variable Rate,
8/12/21(1) 2,135,000
2,600 Massachusetts HEFA, (St. Luke's
Hospital), (MBIA), Variable Rate,
8/15/13(1) 2,674,750
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Hospital (continued)
-------------------------------------------------------------------------
$ 2,600 Massachusetts HEFA, (St. Luke's
Hospital), (MBIA), Variable Rate,
8/15/23(1) $ 2,515,500
3,000 Massachusetts HEFA, (The Medical Center
of Central Massachusetts), (AMBAC),
Variable Rate, 6/23/22(1) 3,431,250
-------------------------------------------------------------------------
$ 16,389,050
-------------------------------------------------------------------------
Insured-Transportation -- 3.1%
-------------------------------------------------------------------------
$10,750 Massachusetts Turnpike Authority
Metropolitan Highway System, (MBIA),
0.00%, 1/1/22 $ 3,175,550
1,500 Masschusetts Turnpike Authority
Metropolitan Highway System, (MBIA),
5.25%, 3/1/13 1,497,900
1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 858,000
-------------------------------------------------------------------------
$ 5,531,450
-------------------------------------------------------------------------
Nursing Home -- 3.1%
-------------------------------------------------------------------------
$ 2,400 Massachusetts HEFA, (Christopher House),
6.875%, 1/1/29 $ 2,189,472
3,225 Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 3,340,649
-------------------------------------------------------------------------
$ 5,530,121
-------------------------------------------------------------------------
Senior Living / Life Care -- 0.9%
-------------------------------------------------------------------------
$ 1,900 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 $ 1,624,918
-------------------------------------------------------------------------
$ 1,624,918
-------------------------------------------------------------------------
Solid Waste -- 0.4%
-------------------------------------------------------------------------
$ 795 Pittsfield, Solid Waste Disposal, (Vicon
Recovery Associates), 7.95%, 11/1/04 $ 801,599
-------------------------------------------------------------------------
$ 801,599
-------------------------------------------------------------------------
Special Tax Revenue -- 3.2%
-------------------------------------------------------------------------
$ 1,250 Massachusetts Bay Transportation
Authority, Sales Tax, 5.50%, 7/1/30 $ 1,216,875
4,455 Puerto Rico Infrastructure Financing
Authority, 5.50%, 10/1/34(3) 4,423,770
-------------------------------------------------------------------------
$ 5,640,645
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Transportation -- 2.6%
-------------------------------------------------------------------------
$ 3,500 Massachusetts Bay Transportation
Authority, Variable Rate, 3/1/27(1)(4) $ 2,742,145
2,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,782,140
-------------------------------------------------------------------------
$ 4,524,285
-------------------------------------------------------------------------
Water and Sewer -- 9.4%
-------------------------------------------------------------------------
$12,185 Boston IDA, (Harbor Electric Energy
Co.), (AMT), 7.375%, 5/15/15(5) $ 12,511,192
4,165 Massachusetts Water Resources Authority,
5.25%, 12/1/15 4,145,300
-------------------------------------------------------------------------
$ 16,656,492
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.8%
(identified cost $178,168,610) $178,637,724
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- (0.8)% $ (1,477,450)
-------------------------------------------------------------------------
Net Assets -- 100.0% $177,160,274
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 19.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.3% to 12.1% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) When-issued security.
(4) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(5) Security (or a portion thereof) has been segregated to cover when-
issued securities.
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 96.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 6.3%
------------------------------------------------------------------------
$ 500 Mississippi State University Educational
Building Corp., (Facilities Renovation),
6.15%, 6/15/15 $ 509,070
470 University of Mississippi Educational
Building Corp., (Athletic Facilities),
6.20%, 6/1/16 490,953
------------------------------------------------------------------------
$ 1,000,023
------------------------------------------------------------------------
Electric Utilities -- 2.9%
------------------------------------------------------------------------
$ 450 Warren County, (Mississippi Power &
Light), 7.00%, 4/1/22 $ 464,148
------------------------------------------------------------------------
$ 464,148
------------------------------------------------------------------------
Escrowed / Prerefunded -- 10.5%
------------------------------------------------------------------------
$ 500 Mississippi Educational Facilities
Authority, (Milsaps College), (MBIA),
Prerefunded to 11/1/04, 6.50%, 11/1/19 $ 544,005
2,500 Mississippi Housing Finance Corp., SFMR,
Escrowed to Maturity, (AMT),
0.00%, 6/1/15 1,111,750
------------------------------------------------------------------------
$ 1,655,755
------------------------------------------------------------------------
Hospital -- 5.5%
------------------------------------------------------------------------
$ 300 Corinth and Alcorn County, (Magnolia
Health Center), 5.50%, 10/1/21 $ 257,679
500 Jones County, (South Central Regional
Medical Center), 5.50%, 12/1/17 439,740
200 Mississippi Hospital Equipment and
Facilities Authority, (Rush Medical
Foundation), 6.00%, 1/1/22 170,778
------------------------------------------------------------------------
$ 868,197
------------------------------------------------------------------------
Housing -- 15.0%
------------------------------------------------------------------------
$ 500 Hinds County, (Woodridge Apartments),
(FHA), 6.25%, 11/1/27 $ 506,920
500 Mississippi Home Corp., SFM, (GNMA),
(AMT), 6.625%, 4/1/27 510,965
495 Mississippi Home Corp., SFM, (GNMA),
(AMT), 7.55%, 12/1/27 538,307
260 Mississippi Home Corp., SFM, (GNMA),
(AMT), 8.10%, 12/1/24 280,101
505 Mississippi Home Corp., SFM, (GNMA),
(AMT), 8.125%, 12/1/24 543,360
------------------------------------------------------------------------
$ 2,379,653
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue -- 15.5%
------------------------------------------------------------------------
$ 500 Grenada County, (Georgia-Pacific),
5.45%, 9/1/14 $ 452,350
750 Lowndes County, (Weyerhaeuser),
6.80%, 4/1/22 826,680
500 Mississippi Business Finance Corp.,
(E.I. DuPont deNemours), (AMT),
7.15%, 5/1/16 519,120
250 Mississippi Business Finance Corp.,
(System Energy Resources),
5.90%, 5/1/22 233,527
400 Warren County, (International Paper),
(AMT), 6.70%, 8/1/18 415,412
------------------------------------------------------------------------
$ 2,447,089
------------------------------------------------------------------------
Insured-Education -- 3.1%
------------------------------------------------------------------------
$ 500 Mississippi State University Educational
Building Corp., (MBIA), 5.25%, 8/1/17 $ 490,380
------------------------------------------------------------------------
$ 490,380
------------------------------------------------------------------------
Insured-Electric Utilities -- 5.1%
------------------------------------------------------------------------
$ 550 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 $ 484,418
300 Puerto Rico Electric Power Authority,
STRIPES, (FSA),
Variable Rate, 7/1/03(1) 319,500
------------------------------------------------------------------------
$ 803,918
------------------------------------------------------------------------
Insured-General Obligations -- 6.4%
------------------------------------------------------------------------
$ 500 Hinds County, (MBIA), 6.25%, 3/1/11 $ 551,760
500 Mississippi Development Bank, (Capital
Projects & Equipment Acquisition),
(AMBAC), 5.00%, 7/1/24 458,050
------------------------------------------------------------------------
$ 1,009,810
------------------------------------------------------------------------
Insured-Hospital -- 12.1%
------------------------------------------------------------------------
$ 750 Gulfport, (Gulfport Memorial Hospital),
(MBIA), 6.20%, 7/1/18 $ 770,580
600 Hinds County, (Mississippi Methodist
Hospital), (AMBAC), 5.60%, 5/1/12 623,952
500 Mississippi Hospital Equipment and
Facilities Authority, (Mississippi
Baptist Medical Center), (MBIA),
6.00%, 5/1/13 520,210
------------------------------------------------------------------------
$ 1,914,742
------------------------------------------------------------------------
Insured-Water and Sewer -- 5.8%
------------------------------------------------------------------------
$ 400 Harrison County, Wastewater Management
and Solid Waste, (FGIC), 4.75%, 2/1/27 $ 339,096
435 Mississippi Development Bank, (Combined
Water and Sewer System), (AMBAC),
5.00%, 7/1/23 391,548
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Water and Sewer (continued)
------------------------------------------------------------------------
$ 200 Mississippi Development Bank,
(Diberville Combined Water and Sewer
System), (AMBAC), 5.00%, 7/1/23 $ 180,958
------------------------------------------------------------------------
$ 911,602
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.8%
------------------------------------------------------------------------
$ 750 Mississippi Development Bank, (Golden
Triangle Solid Waste), 6.00%, 7/1/15 $ 755,610
------------------------------------------------------------------------
$ 755,610
------------------------------------------------------------------------
Nursing Home -- 1.8%
------------------------------------------------------------------------
$ 295 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 $ 294,310
------------------------------------------------------------------------
$ 294,310
------------------------------------------------------------------------
Senior Living / Life Care -- 1.2%
------------------------------------------------------------------------
$ 190 Ridgeland, Urban Renewal, (The Orchard),
7.75%, 12/1/15 $ 196,631
------------------------------------------------------------------------
$ 196,631
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 96.0%
(identified cost $14,856,025) $15,191,868
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 4.0% $ 635,063
------------------------------------------------------------------------
Net Assets -- 100.0% $15,826,931
------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Mississippi
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 37.4% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 2.1% to 22.1% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 101.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Assisted Living -- 1.6%
-------------------------------------------------------------------------
$ 3,830 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 4,038,314
2,935 North Syracuse Village Housing
Authority, (AJM Senior Housing, Inc.,
Janus Park), 8.00%, 6/1/24(1) 1,526,464
-------------------------------------------------------------------------
$ 5,564,778
-------------------------------------------------------------------------
Cogeneration -- 2.0%
-------------------------------------------------------------------------
$ 1,500 Port Authority of New York and New
Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,516,875
4,250 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 3,626,907
435 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 2/1/15 432,468
350 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 347,963
360 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 357,905
300 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 298,254
-------------------------------------------------------------------------
$ 6,580,372
-------------------------------------------------------------------------
Education -- 27.6%
-------------------------------------------------------------------------
$ 5,580 Monroe County IDA, (Wilmur Assoc.),
7.25%, 12/1/16 $ 5,707,503
8,000 New York Dormitory Authority, (City
University), 5.625%, 7/1/16 8,154,480
8,500 New York Dormitory Authority, (City
University), 6.00%, 7/1/20 8,876,380
5,100 New York Dormitory Authority, (City
University), 7.00%, 7/1/09 5,588,631
4,325 New York Dormitory Authority, (City
University), 7.50%, 7/1/10 4,930,457
1,750 New York Dormitory Authority,
(Rockefeller University), 4.75%, 7/1/37 1,475,705
9,985 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/15 9,979,309
28,775 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/19(2) 28,154,323
14,680 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/21 14,220,810
2,000 New York Dormitory Authority, (State
University Educational Facilities),
5.50%, 5/15/19 2,007,980
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education (continued)
-------------------------------------------------------------------------
$ 2,670 Rensselaer County IDA, (Polytechnic
Institute Dormitory), 5.125%, 8/1/29 $ 2,399,929
1,000 Tompkins County IDA, (Cornell
University), 5.75%, 7/1/30 1,007,480
-------------------------------------------------------------------------
$ 92,502,987
-------------------------------------------------------------------------
Electric Utilities -- 5.0%
-------------------------------------------------------------------------
$ 7,200 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/23 $ 6,912,648
1,000 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/29 945,210
2,450 New York Energy Research and Development
Authority, (AMT),
Variable Rate, 8/1/22(3) 2,715,751
2,500 New York Energy Research and Development
Authority, (Brooklyn Union Gas), (AMT),
Variable Rate, 7/1/26(3) 2,859,375
3,000 New York Energy Research and Development
Authority, (LILCO), (AMT),
6.90%, 8/1/22(3) 3,381,420
-------------------------------------------------------------------------
$ 16,814,404
-------------------------------------------------------------------------
General Obligations -- 5.2%
-------------------------------------------------------------------------
$ 2,000 New York, 5.00%, 8/15/22 $ 1,792,720
3,500 New York, 6.00%, 5/15/30 3,586,310
5,000 New York City, 5.00%, 3/15/21 4,504,900
5,200 New York City, 5.875%, 2/15/19 5,274,100
1,125 Puerto Rico, 0.00%, 7/1/17 453,240
5,075 Puerto Rico, 0.00%, 7/1/18 1,916,675
-------------------------------------------------------------------------
$ 17,527,945
-------------------------------------------------------------------------
Hospital -- 5.7%
-------------------------------------------------------------------------
$ 1,250 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 1,172,000
3,250 Chautauqua County IDA, (Womans Christian
Association), 6.40%, 11/15/29 2,793,570
2,750 Fulton County IDA, (Nathan Littauer
Hospital), 6.00%, 11/1/18 2,347,372
1,250 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 1,172,200
5,050 New York Dormitory Authority, Mental
Health Facilities, 5.375%, 2/15/26 4,725,033
6,600 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.25%, 2/15/31 6,879,774
-------------------------------------------------------------------------
$ 19,089,949
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Housing -- 1.8%
-------------------------------------------------------------------------
$ 4,268 New York City HDC, Allerville,
6.50%, 11/15/18 $ 4,270,975
1,872 New York City HDC, Dayton,
6.50%, 11/15/18 1,913,540
-------------------------------------------------------------------------
$ 6,184,515
-------------------------------------------------------------------------
Insured-Education -- 6.7%
-------------------------------------------------------------------------
$11,325 New York Dormitory Authority, (State
University Educational Facilities),
(FSA), 4.75%, 5/15/28 $ 9,642,785
12,500 New York State Dormitory Authority, (New
York University), (MBIA), 5.75%, 7/1/27 12,862,750
-------------------------------------------------------------------------
$ 22,505,535
-------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
-------------------------------------------------------------------------
$ 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/08 $ 808,465
700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/09 817,033
700 Jamestown, (AMBAC), 7.10%, 3/15/11 825,174
675 Jamestown, (AMBAC), 7.10%, 3/15/12 798,228
675 Jamestown, (AMBAC), 7.10%, 3/15/13 799,666
515 Jamestown, (AMBAC), 7.10%, 3/15/14 612,134
4,500 Puerto Rico, (FSA),
Variable Rate, 7/1/22(3)(4) 4,691,250
-------------------------------------------------------------------------
$ 9,351,950
-------------------------------------------------------------------------
Insured-Solid Waste -- 1.5%
-------------------------------------------------------------------------
$ 4,495 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 4,899,865
-------------------------------------------------------------------------
$ 4,899,865
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.8%
-------------------------------------------------------------------------
$ 5,045 New York City Trust Cultural Resources,
(AMBAC), Variable Rate, 7/1/29(3)(4) $ 5,100,091
1,225 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(5) 936,782
-------------------------------------------------------------------------
$ 6,036,873
-------------------------------------------------------------------------
Insured-Transportation -- 7.4%
-------------------------------------------------------------------------
$10,700 Metropolitan Transportation Authority of
New York, (FGIC), 4.75%, 4/1/28 $ 9,116,721
1,750 Niagara Frontier Airport Authority,
(Buffalo Niagara International Airport),
(MBIA), (AMT),
Variable Rate, 4/1/29(3)(4) 1,662,710
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation (continued)
-------------------------------------------------------------------------
$ 4,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 3,432,000
3,000 Triborough Bridge and Tunnel Authority,
RITES, (AMBAC),
Variable Rate, 1/1/12(3)(4) 3,220,200
7,000 VRDC-IVRC Trust, (New York MTA), (MBIA),
Variable Rate, 6/26/02(3)(4) 7,297,500
-------------------------------------------------------------------------
$ 24,729,131
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 10.0%
-------------------------------------------------------------------------
$ 5,000 New York Housing Finance Agency, New
York City Health Facilities,
Variable Rate, 5/1/06(3)(4) $ 5,459,550
27,940 New York UDC, 5.70%, 4/1/20 28,153,182
-------------------------------------------------------------------------
$ 33,612,732
-------------------------------------------------------------------------
Senior Living / Life Care -- 0.1%
-------------------------------------------------------------------------
$ 380 New York City IDA, (A Very Special
Place), 5.75%, 1/1/29 $ 302,913
-------------------------------------------------------------------------
$ 302,913
-------------------------------------------------------------------------
Special Tax Revenue -- 13.0%
-------------------------------------------------------------------------
$ 7,595 New York City Transitional Finance
Authority, 5.50%, 5/1/25 $ 7,399,884
5,700 New York City, Transitional Finance
Authority, 4.75%, 11/1/23 4,920,696
19,830 New York LGAC, 5.00%, 4/1/21 18,401,249
10,500 Puerto Rico Infrastructure Financing
Authority, 5.50%, 10/1/32(6) 10,451,385
2,950 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(3)(4) 2,487,293
-------------------------------------------------------------------------
$ 43,660,507
-------------------------------------------------------------------------
Transportation -- 6.0%
-------------------------------------------------------------------------
$ 3,165 Monroe County Airport Authority, (AMT),
Variable Rate, 1/1/19(3)(4) $ 3,387,436
1,200 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 1,162,824
12,080 Triborough Bridge and Tunnel Authority,
5.50%, 1/1/17 12,288,501
3,000 Triborough Bridge and Tunnel Authority,
6.125%, 1/1/21 3,236,580
-------------------------------------------------------------------------
$ 20,075,341
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Water and Sewer -- 3.1%
-------------------------------------------------------------------------
$ 4,000 New York City Municipal Water Finance
Authority, 5.75%, 6/15/30 $ 4,001,080
6,500 New York City Municipal Water Finance
Authority, 5.75%, 6/15/29 6,505,395
-------------------------------------------------------------------------
$ 10,506,475
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 101.3%
(identified cost $328,670,526) $339,946,272
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.3)% $ (4,458,161)
-------------------------------------------------------------------------
Net Assets -- 100.0% $335,488,111
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 19.9% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 2.7% to 7.9% of
total investments.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(3) Security has been issued as an inverse floater bond.
(4) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(5) Security has been issued as a leveraged inverse floater bond.
(6) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 103.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education -- 2.9%
-------------------------------------------------------------------------
$ 550 Ohio Higher Educational Facilities,
(Case Western University),
6.50%, 10/1/20 $ 613,932
5,875 Ohio Higher Educational Facilities,
(Oberlin College),
Variable Rate, 10/1/29(1)(2) 4,661,166
-------------------------------------------------------------------------
$ 5,275,098
-------------------------------------------------------------------------
Electric Utilities -- 6.7%
-------------------------------------------------------------------------
$ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 1,945,140
3,295 Ohio Air Quality Development Authority,
RITES, Variable Rate, 5/1/26 2,509,769
4,750 Ohio Water Development Authority,
Pollution Control Facilities, (Cleveland
Electric), (AMT), 6.10%, 8/1/20 4,493,880
4,000 Puerto Rico Electric Power Authority,
4.75%, 7/1/24 3,457,080
-------------------------------------------------------------------------
$ 12,405,869
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.0%
-------------------------------------------------------------------------
$ 1,000 Clermont County, (Mercy Health System),
(AMBAC), Prerefunded to 9/25/01,
Variable Rate, 10/5/21(1) $ 1,077,500
1,750 Lorain County, (Lakeland County
Hospital), Escrowed to Maturity,
6.50%, 11/15/12 1,895,040
600 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 623,880
-------------------------------------------------------------------------
$ 3,596,420
-------------------------------------------------------------------------
General Obligations -- 4.7%
-------------------------------------------------------------------------
$ 1,000 Tuscarawas County Public Library
Improvement, 6.90%, 12/1/11 $ 1,036,540
6,855 Youngstown, 7.35%, 7/1/05 7,542,008
-------------------------------------------------------------------------
$ 8,578,548
-------------------------------------------------------------------------
Hospital -- 16.2%
-------------------------------------------------------------------------
$ 1,000 Allen County LIMA, (Convalescent Home
Foundation), (GNMA), 6.40%, 1/1/21 $ 1,001,300
1,000 Butler County, (Hamilton-Hughe
Hospital), 7.50%, 1/1/10 1,027,740
2,100 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/28 1,652,721
2,100 Cuyahoga County, (Fairview General
Hospital), 6.25%, 8/15/10 2,199,708
1,000 East Liverpool, (City Hospital),
8.00%, 10/1/21 1,031,800
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Hospital (continued)
-------------------------------------------------------------------------
$ 4,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08(3) $ 4,157,440
5,115 Hamilton County, (Bethesda Hospital,
Inc.), 6.25%, 1/1/12 5,321,288
1,000 Hamilton County, (Wesley Hall),
6.50%, 3/1/15 1,053,710
2,200 Highland County, (Township Hospital),
6.75%, 12/1/29 1,978,020
3,800 Miami, (Upper Valley Medical Center),
6.375%, 5/15/26 3,420,988
1,000 Parma, (Parma Community General Hospital
Association), 5.35%, 11/1/18 880,670
4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 3,609,100
2,500 Richland County Hospital Facilities,
(Medcentral Health Systems),
6.375%, 11/15/30 2,429,750
-------------------------------------------------------------------------
$ 29,764,235
-------------------------------------------------------------------------
Housing -- 8.6%
-------------------------------------------------------------------------
$ 2,945 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 $ 2,825,109
2,500 Franklin County, (Tuttle Park), (FHA),
(AMT), 6.50%, 3/1/26 2,583,325
5,985 Franklin County, (Tuttle Park), (FHA),
(AMT), 6.60%, 3/1/36 6,183,463
2,905 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 2,724,890
435 Ohio HFA SFMR, (GNMA), (AMT),
Variable Rate, 3/31/31(1) 455,662
1,000 Ohio HFA, (Aristocrat), (FHA), (AMT),
7.30%, 8/1/31 1,031,110
-------------------------------------------------------------------------
$ 15,803,559
-------------------------------------------------------------------------
Industrial Development Revenue -- 19.1%
-------------------------------------------------------------------------
$ 4,500 Cleveland Airport, (Continental
Airlines), (AMT), 5.70%, 12/1/19 $ 3,921,435
2,950 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 2,712,318
485 Ohio Economic Development Commission,
(Burrows Paper), (AMT), 7.625%, 6/1/11 501,631
165 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.50%, 12/1/04 167,508
530 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.90%, 12/1/09 551,454
1,370 Ohio Economic Development Commission,
(Consolidated Biscuit), (AMT),
7.00%, 12/1/09 1,472,175
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Industrial Development Revenue (continued)
-------------------------------------------------------------------------
$ 2,950 Ohio Economic Development Commission,
(J J & W LP), (AMT), 6.70%, 12/1/14 $ 3,058,176
1,020 Ohio Economic Development Commission,
(Kmart), 6.75%, 5/15/07 1,033,739
375 Ohio Economic Development Commission,
(Luigino's, Inc.), (AMT), 6.85%, 6/1/01 375,638
1,525 Ohio Economic Development Commission,
(Progress Plastic Products), (AMT),
7.80%, 12/1/09 1,683,737
260 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 261,313
1,000 Ohio Economic Development Commission,
(Royal Appliance Manufacturing), (AMT),
7.625%, 12/1/11 1,039,380
680 Ohio Economic Development Commission,
(Royal Appliance Manufacturing), (AMT),
7.625%, 12/1/11 706,778
880 Ohio Economic Development Commission,
(VSM Corp.), (AMT), 7.375%, 12/1/11 912,199
2,500 Ohio Environmental Facilities, (Ford
Motor), 6.15%, 6/1/30 2,566,600
1,000 Ohio Environmental Facilities, (Ford
Motor), (AMT), 5.95%, 9/1/29 1,008,490
2,200 Ohio Environmental Improvement, (USX
Corp.), 5.625%, 5/1/29 1,990,736
1,000 Ohio Pollution Control, (Standard Oil),
6.75%, 12/1/15 1,139,070
5,000 Ohio Sewer and Solid Waste Disposal
Facilities Revenue, (Anheuser Busch),
6.00%, 7/1/35 5,023,250
4,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 5.65%, 3/1/33 3,581,840
1,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 6.05%, 8/1/34 951,700
2,750 Ohio Solid Waste Revenue, (Republic
Engineered Steels), (AMT),
9.00%, 6/1/21 543,510
-------------------------------------------------------------------------
$ 35,202,677
-------------------------------------------------------------------------
Insured-Education -- 1.1%
-------------------------------------------------------------------------
$ 2,000 University of Akron, (FGIC),
Variable Rate, 1/1/29(1)(2) $ 2,019,600
-------------------------------------------------------------------------
$ 2,019,600
-------------------------------------------------------------------------
Insured-Electric Utilities -- 1.1%
-------------------------------------------------------------------------
$ 2,000 Cuyahoga County Utility Systems,
(Medical Center Co.), (MBIA), (AMT),
6.10%, 8/15/15 $ 2,073,940
-------------------------------------------------------------------------
$ 2,073,940
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-General Obligations -- 5.2%
-------------------------------------------------------------------------
$ 1,250 Athens City School District, (FSA),
6.00%, 12/1/24 $ 1,303,138
2,110 Hudson Local School District, (FGIC),
0.00%, 12/15/09 1,335,229
1,500 Lima City School District, (AMBAC),
6.00%, 12/1/22 1,562,400
2,600 Norwalk City School District, (AMBAC),
4.75%, 12/1/26 2,242,006
3,000 Puerto Rico, (FSA),
Variable Rate, 7/1/22(1)(2) 3,127,500
-------------------------------------------------------------------------
$ 9,570,273
-------------------------------------------------------------------------
Insured-Hospital -- 7.3%
-------------------------------------------------------------------------
$ 4,495 Cuyahoga County, (Cleveland Clinic),
(MBIA), 5.125%, 1/1/29(3) $ 4,084,112
3,000 Hamilton County, (Childrens Hospital
Medical Center), (MBIA), 4.75%, 5/15/28 2,539,920
1,000 Montgomery County, (Miami Valley
Hospital), (AMBAC), 6.25%, 11/15/16(3) 1,029,320
5,565 Portage County, (Robinson Memorial
Hospital), (MBIA), 5.80%, 11/15/15 5,679,361
-------------------------------------------------------------------------
$ 13,332,713
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.8%
-------------------------------------------------------------------------
$ 2,990 Hamilton County Sales Tax, (Hamilton
County Football), (MBIA), 5.00%, 12/1/27 $ 2,690,910
1,500 Hamilton County Sales Tax, (MBIA),
4.75%, 12/1/27 1,282,125
1,575 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(4) 1,204,434
-------------------------------------------------------------------------
$ 5,177,469
-------------------------------------------------------------------------
Insured-Transportation -- 5.9%
-------------------------------------------------------------------------
$ 1,600 Ohio Turnpike Commission, (FGIC),
4.50%, 2/15/24 $ 1,322,160
7,000 Ohio Turnpike Commission, (FGIC),
5.50%, 2/15/24 6,976,690
3,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 2,574,000
-------------------------------------------------------------------------
$ 10,872,850
-------------------------------------------------------------------------
Nursing Home -- 6.9%
-------------------------------------------------------------------------
$ 2,000 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/17 $ 1,669,440
1,305 Cuyahoga County, (Maple Care Center),
(GNMA), (AMT), 8.00%, 8/20/16 1,516,162
1,205 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
6.10%, 9/20/16 1,270,914
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Nursing Home (continued)
-------------------------------------------------------------------------
$ 6,455 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
9.55%, 3/20/32 $ 8,267,370
-------------------------------------------------------------------------
$ 12,723,886
-------------------------------------------------------------------------
Senior Living / Life Care -- 3.8%
-------------------------------------------------------------------------
$ 1,985 Franklin County, (Kensington Place),
6.75%, 1/1/34 $ 2,052,708
1,000 Hamilton County Hospital Facilities,
(Episcopal Retirement Home),
6.80%, 1/1/08 1,031,800
2,400 Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners),
6.75%, 3/1/19 2,085,240
2,250 Summit County Healthcare Facilities,
(Village at Saint Edward),
5.75%, 12/1/25 1,875,263
-------------------------------------------------------------------------
$ 7,045,011
-------------------------------------------------------------------------
Solid Waste -- 1.0%
-------------------------------------------------------------------------
$ 2,400 Ohio Water Development Authority, Solid
Waste Disposal Revenue, (Bay Shore
Power), (AMT), 5.875%, 9/1/20 $ 1,922,136
-------------------------------------------------------------------------
$ 1,922,136
-------------------------------------------------------------------------
Special Tax Revenue -- 6.3%
-------------------------------------------------------------------------
$ 1,430 Cuyahoga County, Economic Development
Revenue, (Shaker Square), 6.75%, 12/1/30 $ 1,501,972
9,000 Puerto Rico Infrastructure Financing
Authority, 5.50%, 10/1/32(5) 8,958,330
1,350 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) 1,138,253
-------------------------------------------------------------------------
$ 11,598,555
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Transportation -- 1.1%
-------------------------------------------------------------------------
$ 2,500 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38(3) $ 2,097,800
-------------------------------------------------------------------------
$ 2,097,800
-------------------------------------------------------------------------
Water and Sewer -- 0.6%
-------------------------------------------------------------------------
$ 1,000 Vermilion Water, 7.25%, 8/15/15 $ 1,029,560
-------------------------------------------------------------------------
$ 1,029,560
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 103.3%
(identified cost $192,876,033) $190,090,199
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- (3.3)% $ (6,122,475)
-------------------------------------------------------------------------
Net Assets -- 100.0% $183,967,724
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 23.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.7% to 9.7% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(4) Security has been issued as a leveraged inverse floater bond.
(5) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.5%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 2.0%
------------------------------------------------------------------------
$ 750 Rhode Island Student Loan Authority,
(AMT), 5.60%, 12/1/12 $ 746,212
------------------------------------------------------------------------
$ 746,212
------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.5%
------------------------------------------------------------------------
$ 255 Rhode Island Clean Water Protection
Finance Agency, Water Pollution Control,
(MBIA), Prerefunded to 10/1/04,
5.85%, 10/1/09 $ 270,356
1,000 Rhode Island Depositors Economic
Protection Corp., (MBIA), Escrowed to
Maturity, 5.80%, 8/1/12 1,068,450
------------------------------------------------------------------------
$ 1,338,806
------------------------------------------------------------------------
General Obligations -- 2.1%
------------------------------------------------------------------------
$ 225 Puerto Rico, 0.00%, 7/1/16 $ 96,588
500 Puerto Rico Public Buildings Authority,
5.25%, 7/1/21 480,115
230 Rhode Island Depositors Economic
Protection Corp., 5.75%, 8/1/21 233,765
------------------------------------------------------------------------
$ 810,468
------------------------------------------------------------------------
Hospital -- 7.5%
------------------------------------------------------------------------
$ 500 Rhode Island HEFA, (Newport Hospital),
5.30%, 7/1/29 $ 410,680
1,250 Rhode Island HEFA, (South County
Hospital), 5.75%, 11/15/26 1,114,862
725 Rhode Island HEFA, (St. Joseph Health
Services), 5.50%, 10/1/29 548,361
830 Rhode Island HEFA, (Westerly Hospital),
6.00%, 7/1/14 750,552
------------------------------------------------------------------------
$ 2,824,455
------------------------------------------------------------------------
Housing -- 14.4%
------------------------------------------------------------------------
$ 500 Guam Housing Corp., Single Family,
(AMT), 5.75%, 9/1/31 $ 501,775
1,740 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.60%, 10/1/25 1,796,480
875 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.80%, 10/1/25 906,692
175 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.10%, 10/1/23 182,154
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Housing (continued)
------------------------------------------------------------------------
$2,000 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.55%, 10/1/22 $ 2,058,600
------------------------------------------------------------------------
$ 5,445,701
------------------------------------------------------------------------
Insured-Education -- 6.9%
------------------------------------------------------------------------
$1,500 Rhode Island HEFA, (Johnson and Wales
University), (MBIA), 5.00%, 4/1/29 $ 1,327,005
500 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/24 447,465
400 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/28 354,136
500 Rhode Island HEFA, (University of Rhode
Island), (MBIA), 5.50%, 9/15/19 496,790
------------------------------------------------------------------------
$ 2,625,396
------------------------------------------------------------------------
Insured-Electric Utilities -- 4.8%
------------------------------------------------------------------------
$ 750 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 662,715
1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 716,643
500 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 440,380
------------------------------------------------------------------------
$ 1,819,738
------------------------------------------------------------------------
Insured-General Obligations -- 14.1%
------------------------------------------------------------------------
$1,500 Kent County Water Authority, (MBIA),
6.35%, 7/15/14 $ 1,600,125
900 North Kingstown, (FGIC),
5.875%, 10/1/25 916,794
500 Providence, Public Building Authority,
(School and Public Facilities Projects),
(FSA), 5.00%, 12/15/18 457,705
375 Rhode Island Consolidated Capital
Development, (FGIC), 4.75%, 9/1/17 337,193
500 Rhode Island Depositors Economic
Protection Corp., (MBIA), 5.80%, 8/1/09 536,565
250 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/23 223,868
1,400 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/28 1,237,166
------------------------------------------------------------------------
$ 5,309,416
------------------------------------------------------------------------
Insured-Hospital -- 5.8%
------------------------------------------------------------------------
$2,400 Rhode Island HEFA, (Lifespan), (MBIA),
5.25%, 5/15/26(1) $ 2,202,408
------------------------------------------------------------------------
$ 2,202,408
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Housing -- 1.4%
------------------------------------------------------------------------
$ 500 Villa Excelsior Housing Development
Corp., (MBIA), 6.85%, 1/1/24 $ 521,600
------------------------------------------------------------------------
$ 521,600
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 14.1%
------------------------------------------------------------------------
$3,000 Convention Center Authority of Rhode
Island, (MBIA), 5.00%, 5/15/20 $ 2,732,160
2,300 Convention Center Authority of Rhode
Island, (MBIA), 5.25%, 5/15/15 2,284,774
420 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) 321,182
------------------------------------------------------------------------
$ 5,338,116
------------------------------------------------------------------------
Insured-Transportation -- 4.0%
------------------------------------------------------------------------
$1,750 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 1,501,500
------------------------------------------------------------------------
$ 1,501,500
------------------------------------------------------------------------
Insured-Water and Sewer -- 3.8%
------------------------------------------------------------------------
$ 750 Rhode Island Clean Water, Safe Drinking
Water, (AMBAC), 6.70%, 1/1/15 $ 814,178
350 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.40%, 10/1/15 350,249
245 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.85%, 10/1/09 255,947
------------------------------------------------------------------------
$ 1,420,374
------------------------------------------------------------------------
Nursing Home -- 3.0%
------------------------------------------------------------------------
$ 500 Rhode Island HEFA, (Roger Williams
Realty), 6.50%, 8/1/29 $ 515,440
725 Rhode Island HEFA, (Steere House),
5.80%, 7/1/20 618,113
------------------------------------------------------------------------
$ 1,133,553
------------------------------------------------------------------------
Senior Living / Life Care -- 2.4%
------------------------------------------------------------------------
$1,000 Rhode Island HEFA, (Tockwotton Home),
6.25%, 8/15/22 $ 897,040
------------------------------------------------------------------------
$ 897,040
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Special Tax Revenue -- 9.5%
------------------------------------------------------------------------
$1,500 Providence, Tax Increment, 7.65%, 6/1/16 $ 1,612,020
1,545 Puerto Rico Infrastructure Financing
Authority, 5.50%, 10/1/32(3) 1,537,847
500 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(4)(5) 421,575
------------------------------------------------------------------------
$ 3,571,442
------------------------------------------------------------------------
Transportation -- 1.2%
------------------------------------------------------------------------
$ 500 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 $ 441,370
------------------------------------------------------------------------
$ 441,370
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.5%
(identified cost $37,979,663) $37,947,595
------------------------------------------------------------------------
Other Assets, Less Liabilities -- (0.5)% $ (192,976)
------------------------------------------------------------------------
Net Assets -- 100.0% $37,754,619
------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Rhode Island
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 58.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.3% to 39.0% of
total investments.
(1) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(2) Security has been issued as a leveraged inverse floater bond.
(3) When-issued security.
(4) Security has been issued as an inverse floater bond.
(5) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.8%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Electric Utilities -- 3.9%
------------------------------------------------------------------------
$ 500 Mason PCR, (Appalacian Power),
6.85%, 6/1/22 $ 506,710
1,130 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 455,254
------------------------------------------------------------------------
$ 961,964
------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.1%
------------------------------------------------------------------------
$ 2,500 Kanawha-Putnam, Single Family, (AMBAC),
Escrowed to Maturity, 0.00%, 12/1/16 $ 1,015,350
------------------------------------------------------------------------
$ 1,015,350
------------------------------------------------------------------------
General Obligations -- 0.9%
------------------------------------------------------------------------
$ 500 Puerto Rico, 0.00%, 7/1/16 $ 214,640
------------------------------------------------------------------------
$ 214,640
------------------------------------------------------------------------
Hospital -- 12.7%
------------------------------------------------------------------------
$ 1,250 Berkeley Building Commission, (City
Hospital), 6.50%, 11/1/22 $ 1,174,812
750 Philippi Health System, (Davis Health
System - Broaddus Hospital),
5.50%, 11/1/24 683,423
250 Princeton, (Community Hospital),
6.10%, 5/1/29 211,045
1,000 West Virginia Health Facilities
Authority, (Charleston Area Medical
Center), 6.50%, 9/1/23 1,085,810
------------------------------------------------------------------------
$ 3,155,090
------------------------------------------------------------------------
Industrial Development Revenue -- 10.9%
------------------------------------------------------------------------
$ 1,375 Jefferson, (Royal Venders), (AMT),
5.90%, 8/1/04 $ 1,388,956
300 Kanawha, (Union Carbide Chemicals and
Plastics), (AMT), 8.00%, 8/1/20 306,486
1,000 Upshur Solid Waste, (TJI), (AMT),
7.00%, 7/15/25 1,024,230
------------------------------------------------------------------------
$ 2,719,672
------------------------------------------------------------------------
Insured-Education -- 6.2%
------------------------------------------------------------------------
$ 500 West Virginia Board of Directors (West
Virginia State College System
Improvements), (AMBAC), 5.125%, 4/1/27 $ 458,190
500 West Virginia University, (AMBAC),
5.75%, 4/1/16 507,985
550 West Virginia University, (AMBAC),
6.00%, 4/1/12 575,905
------------------------------------------------------------------------
$ 1,542,080
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Electric Utilities -- 8.6%
------------------------------------------------------------------------
$ 700 Marshall PCR, (Ohio Power), (MBIA),
5.45%, 7/1/14 $ 702,506
250 Pleasant County PCR, (Potomac Edison),
(AMBAC), (AMT), 5.50%, 4/1/29 237,105
1,000 Pleasant County PCR, (West Penn. Power),
(AMBAC), (AMT), 5.50%, 4/1/29 948,420
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA),
Variable Rate, 7/1/03(1) 266,250
------------------------------------------------------------------------
$ 2,154,281
------------------------------------------------------------------------
Insured-General Obligations -- 1.6%
------------------------------------------------------------------------
$ 150 West Virginia, (FGIC), 5.25%, 11/1/26 $ 140,979
250 West Virginia, (FGIC), 5.75%, 11/1/21 252,640
------------------------------------------------------------------------
$ 393,619
------------------------------------------------------------------------
Insured-Hospital -- 15.6%
------------------------------------------------------------------------
$ 500 Randolph County Commission Health
System, (Davis Health System Inc.),
(FSA), 5.20%, 11/1/21 $ 462,195
1,300 West Virginia Health Facilities
Authority, (Cabell Huntington Hospital),
(AMBAC), 6.25%, 1/1/19 1,336,985
850 West Virginia Health Facilities
Authority, (Charleston Area Medical
Center), (MBIA), 5.75%, 9/1/13 874,115
1,200 West Virginia Health Facilities
Authority, (MBIA), 6.10%, 1/1/18 1,216,824
------------------------------------------------------------------------
$ 3,890,119
------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 2.0%
------------------------------------------------------------------------
$ 500 West Virginia School Building Authority,
(AMBAC), 5.60%, 7/1/17 $ 503,495
------------------------------------------------------------------------
$ 503,495
------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 1.8%
------------------------------------------------------------------------
$ 500 Harrison County Building Commission,
(Maplewood Retirement), (AMBAC),
5.25%, 4/1/28 $ 457,500
------------------------------------------------------------------------
$ 457,500
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.5%
------------------------------------------------------------------------
$ 175 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(2) $ 133,826
------------------------------------------------------------------------
$ 133,826
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Transportation -- 6.7%
------------------------------------------------------------------------
$ 1,000 West Virginia Parkways, Economic
Development and Tourism Authority,
(FGIC), 0.00%, 5/15/04 $ 840,720
1,000 West Virginia State Roads, (FGIC),
4.50%, 6/1/23 835,440
------------------------------------------------------------------------
$ 1,676,160
------------------------------------------------------------------------
Insured-Water and Sewer -- 15.4%
------------------------------------------------------------------------
$ 250 Berkeley Public Service District Sewer,
(MBIA), 5.75%, 10/1/25 $ 250,555
500 Crab Orchard Public Service District,
(AMBAC), 5.50%, 10/1/25 485,140
1,000 Fairmont Waterworks, (AMBAC),
4.50%, 7/1/24 820,040
1,000 Parkersburg Waterworks and Sewer, (FSA),
5.80%, 9/1/19 1,013,180
500 West Virginia Water Development (Loan
Program III), (AMBAC), (AMT),
5.65%, 7/1/40 475,370
750 West Virginia Water Development, (Loan
Program II), (FSA), 6.00%, 11/1/14 791,498
------------------------------------------------------------------------
$ 3,835,783
------------------------------------------------------------------------
Nursing Home -- 1.8%
------------------------------------------------------------------------
$ 500 Kanawha County, (Beverly Enterprises),
5.50%, 11/1/08 $ 459,565
------------------------------------------------------------------------
$ 459,565
------------------------------------------------------------------------
Solid Waste -- 3.8%
------------------------------------------------------------------------
$ 1,000 Braxton County, (Weyerhaeuser), (AMT),
5.80%, 6/1/27 $ 940,740
------------------------------------------------------------------------
$ 940,740
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Special Tax Revenue -- 1.3%
------------------------------------------------------------------------
$ 400 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) $ 337,260
------------------------------------------------------------------------
$ 337,260
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.8%
(identified cost $24,466,709) $24,391,144
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.2% $ 539,238
------------------------------------------------------------------------
Net Assets -- 100.0% $24,930,382
------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by West Virginia
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at September 30, 2000, 64.0% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 8.5% to 32.6% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security has been issued as a leveraged 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.
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $221,516,722 $272,244,736 $178,168,610 $14,856,025
Unrealized appreciation
(depreciation) 13,341,040 (1,538,597) 469,114 335,843
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $234,857,762 $270,706,139 $178,637,724 $15,191,868
---------------------------------------------------------------------------------------------------------------------------------
Cash $ 245,296 $ -- $ 512,766 $ 375,955
Receivable for investments sold 671,080 1,960,999 -- --
Interest receivable 3,105,583 5,348,863 2,441,325 280,463
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $238,879,721 $278,016,001 $181,591,815 $15,848,286
---------------------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin on
open financial futures contracts $ -- $ -- $ 8,531 $ --
Demand note payable -- 100,000 -- --
Payable for when-issued securities -- -- 4,387,507 --
Due to bank -- 10,205 -- --
Payable to affiliate for Trustees' fees -- 296 -- --
Accrued expenses 59,551 48,577 35,503 21,355
---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 59,551 $ 159,078 $ 4,431,541 $ 21,355
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $238,820,170 $277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
---------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $225,479,130 $279,395,520 $176,718,676 $15,491,088
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 13,341,040 (1,538,597) 441,598 335,843
---------------------------------------------------------------------------------------------------------------------------------
TOTAL $238,820,170 $277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Assets
-----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $328,670,526 $192,876,033 $37,979,663 $24,466,709
Unrealized appreciation
(depreciation) 11,275,746 (2,785,834) (32,068) (75,565)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $339,946,272 $190,090,199 $37,947,595 $24,391,144
-----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 329,414 $ 170,700
Receivable for investments sold 1,625,342 -- 300,000 --
Interest receivable 6,047,287 2,928,427 731,409 389,960
-----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $347,618,901 $193,018,626 $39,308,418 $24,951,804
-----------------------------------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------------------------------
Demand note payable $ 1,700,000 $ 100,000 $ -- $ --
Payable for when-issued securities 10,390,590 8,906,220 1,528,901 --
Due to bank 3,278 948 -- --
Payable to affiliate for Trustees' fees -- 1,650 -- 21
Accrued expenses 36,922 42,084 24,898 21,401
-----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 12,130,790 $ 9,050,902 $ 1,553,799 $ 21,422
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $335,488,111 $183,967,724 $37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $324,212,365 $186,753,558 $37,786,687 $25,005,947
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 11,275,746 (2,785,834) (32,068) (75,565)
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $335,488,111 $183,967,724 $37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
Investment Income
---------------------------------------------------------------------------------------------------------------------------------
Interest $15,260,541 $18,871,423 $11,835,303 $ 975,571
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $15,260,541 $18,871,423 $11,835,303 $ 975,571
---------------------------------------------------------------------------------------------------------------------------------
Expenses
---------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,190,867 $ 1,373,668 $ 819,748 $ 26,004
Trustees fees and expenses 19,061 20,953 16,407 544
Legal and accounting services 76,167 77,732 62,272 29,696
Custodian fee 119,602 150,620 104,530 15,834
Miscellaneous 17,026 76,564 16,351 4,798
---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,422,723 $ 1,699,537 $ 1,019,308 $ 76,876
---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 28,226 $ 150,620 $ 43,242 $ 2,926
---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 28,226 $ 150,620 $ 43,242 $ 2,926
---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,394,497 $ 1,548,917 $ 976,066 $ 73,950
---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $13,866,044 $17,322,506 $10,859,237 $ 901,621
---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (433,700) $ (731,229) $ 806,621 $ 5,646
Financial futures contracts (109,410) (125,821) (412,303) (7,294)
---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (543,110) $ (857,050) $ 394,318 $ (1,648)
---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (999,969) $(1,871,031) $(2,752,999) $(103,693)
Financial futures contracts -- -- (27,516) --
---------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (999,969) $(1,871,031) $(2,780,515) $(103,693)
---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,543,079) $(2,728,081) $(2,386,197) $(105,341)
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $12,322,965 $14,594,425 $ 8,473,040 $ 796,280
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------------------------
Interest $21,772,764 $12,765,252 $2,327,517 $1,487,139
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $21,772,764 $12,765,252 $2,327,517 $1,487,139
-----------------------------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,626,137 $ 865,332 $ 91,393 $ 48,279
Trustees fees and expenses 24,368 16,454 2,526 1,356
Legal and accounting services 56,957 62,158 35,611 35,529
Custodian fee 137,685 99,307 27,315 21,223
Miscellaneous 96,465 70,344 7,576 5,970
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,941,612 $ 1,113,595 $ 164,421 $ 112,357
-----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 11,498 $ 5,240
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 11,498 $ 5,240
-----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,941,612 $ 1,113,595 $ 152,923 $ 107,117
-----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $19,831,152 $11,651,657 $2,174,594 $1,380,022
-----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(2,135,289) $ 146,567 $ (403,028) $ (79,061)
Financial futures contracts (187,750) (125,865) -- (1,471)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $(2,323,039) $ 20,702 $ (403,028) $ (80,532)
-----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 3,047,938 $(4,682,143) $ 474,390 $ 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,047,938 $(4,682,143) $ 474,390 $ 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 724,899 $(4,661,441) $ 71,362 $ (8,201)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $20,556,051 $ 6,990,216 $2,245,956 $1,371,821
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,866,044 $ 17,322,506 $ 10,859,237 $ 901,621
Net realized gain (loss) (543,110) (857,050) 394,318 (1,648)
Net change in unrealized appreciation
(depreciation) (999,969) (1,871,031) (2,780,515) (103,693)
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 12,322,965 $ 14,594,425 $ 8,473,040 $ 796,280
---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 16,589,267 $ 19,982,661 $ 11,730,651 $ 713,894
Withdrawals (60,292,260) (103,592,435) (55,320,524) (3,620,082)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(43,702,993) $ (83,609,774) $(43,589,873) $(2,906,188)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(31,380,028) $ (69,015,349) $(35,116,833) $(2,109,908)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets
---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $238,820,170 $ 277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 19,831,152 $ 11,651,657 $ 2,174,594 $ 1,380,022
Net realized gain (loss) (2,323,039) 20,702 (403,028) (80,532)
Net change in unrealized appreciation
(depreciation) 3,047,938 (4,682,143) 474,390 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 20,556,051 $ 6,990,216 $ 2,245,956 $ 1,371,821
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 11,046,414 $ 9,285,921 $ 4,482,382 $ 1,421,464
Withdrawals (98,232,465) (48,772,440) (10,705,416) (4,823,779)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(87,186,051) $(39,486,519) $ (6,223,034) $(3,402,315)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(66,630,000) $(32,496,303) $ (3,977,078) $(2,030,494)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $402,118,111 $216,464,027 $ 41,731,697 $26,960,876
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $335,488,111 $183,967,724 $ 37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
Net realized gain 3,046,334 8,737,267 2,848,962 222,390
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,394) (1,674,816)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $ (14,289,697) $ (7,622,484) $ (390,501)
---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 26,307,078 $ 22,428,860 $ 22,537,239 $ 1,934,210
Withdrawals (56,905,888) (117,286,711) (53,364,100) (4,346,534)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(30,598,810) $ (94,857,851) $(30,826,861) $(2,412,324)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,808,485) $(109,147,548) $(38,449,345) $(2,802,825)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets
---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
Net realized gain (loss) (66,830) (146,960) (41,650) 268,614
Net change in unrealized appreciation
(depreciation) (38,370,632) (17,608,485) (3,927,649) (2,763,471)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 31,675,644 $ 15,132,326 $ 7,437,315 $ 1,765,713
Withdrawals (101,151,980) (49,186,424) (6,067,386) (5,785,114)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (69,476,336) $(34,054,098) $ 1,369,929 $(4,019,401)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (83,945,905) $(38,566,423) $ (339,675) $(4,958,668)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 486,064,016 $255,030,450 $42,071,372 $31,919,544
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 402,118,111 $216,464,027 $41,731,697 $26,960,876
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.58% 0.56% 0.55% 0.57% 0.57%
Expenses after custodian
fee reduction 0.57% 0.54% 0.53% 0.56% 0.56%
Net investment income 5.65% 5.30% 5.33% 5.76% 5.93%
Portfolio Turnover 13% 28% 16% 12% 14%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $238,820 $270,200 $312,009 $327,004 $370,590
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.56% 0.52% 0.51% 0.52% 0.52%
Expenses after custodian
fee reduction 0.51% 0.48% 0.47% 0.48% 0.49%
Net investment income 5.72% 5.26% 5.03% 5.53% 5.67%
Portfolio Turnover 12% 40% 25% 54% 51%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $277,857 $346,843 $456,020 $514,201 $624,374
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.52% 0.54% 0.53% 0.55%
Expenses after custodian
fee reduction 0.52% 0.50% 0.52% 0.52% 0.54%
Net investment income 5.79% 5.40% 5.36% 5.75% 5.77%
Portfolio Turnover 15% 24% 28% 35% 51%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $177,160 $212,277 $250,726 $253,675 $281,129
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.47% 0.36% 0.37% 0.38% 0.29%
Net expenses after
custodian fee reduction 0.45% 0.34% 0.35% 0.37% 0.26%
Net investment income 5.55% 5.30% 5.21% 5.59% 5.77%
Portfolio Turnover 4% 16% 17% 6% 12%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $15,827 $17,937 $20,740 $22,127 $25,280
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment
Adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.40%
Expenses after custodian
fee reduction 0.37%
Net investment income 5.66%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.53% 0.53% 0.57% 0.52%
Expenses after custodian
fee reduction 0.54% 0.52% 0.51% 0.57% 0.49%
Net investment income 5.56% 5.30% 5.28% 5.60% 5.64%
Portfolio Turnover 27% 41% 55% 44% 47%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $335,488 $402,118 $486,064 $527,604 $604,530
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.57% 0.55% 0.56% 0.56% 0.57%
Expenses after custodian
fee reduction 0.57% 0.54% 0.54% 0.55% 0.56%
Net investment income 6.00% 5.54% 5.50% 5.70% 5.69%
Portfolio Turnover 28% 59% 17% 30% 35%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $183,968 $216,464 $255,030 $271,269 $292,671
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.43% 0.39% 0.39% 0.27% 0.27%
Net expenses after
custodian fee reduction 0.40% 0.35% 0.36% 0.23% 0.24%
Net investment income 5.66% 5.24% 5.28% 5.54% 5.69%
Portfolio Turnover 15% 18% 24% 39% 25%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $37,755 $41,732 $42,071 $40,218 $42,167
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment
Adviser fee, an allocation of expenses to the Investment Advisor, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.39% 0.40%
Expenses after custodian
fee reduction 0.35% 0.37%
Net investment income 5.42% 5.56%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.45% 0.40% 0.37% 0.38% 0.42%
Expenses after custodian
fee reduction 0.43% 0.38% 0.34% 0.36% 0.38%
Net investment income 5.48% 5.13% 5.34% 5.44% 5.41%
Portfolio Turnover 7% 32% 16% 24% 43%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $24,930 $26,961 $31,920 $33,503 $39,501
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
California Municipals Portfolio (California Portfolio), Florida Municipals
Portfolio (Florida Portfolio), Massachusetts Municipals Portfolio
(Massachusetts Portfolio), Mississippi Municipals Portfolio (Mississippi
Portfolio), New York Municipals Portfolio (New York Portfolio), Ohio
Municipals Portfolio (Ohio Portfolio), Rhode Island Municipals Portfolio
(Rhode Island Portfolio) and West Virginia Municipals Portfolio (West
Virginia Portfolio), collectively, the Portfolios, are registered under the
Investment Company Act of 1940, as amended, as diversified, open-end
management investment companies. The Portfolios were organized as trusts
under the laws of the State of New York on May 1, 1992. The Declarations of
Trust permit the trustees to issue interests in the Portfolios. The following
is a summary of significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements. The policies are
in conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts and options on
futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on futures contracts are normally
valued at the mean between the latest bid and asked prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are not readily available are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for Federal income tax purposes.
C Income Taxes -- The Portfolios are treated as a partnership for federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for its investors to
satisfy them. The Portfolios will allocate at least annually among their
respective investors, each investor's distributive share of the Portfolios'
net taxable (if any) and tax-exempt investment income, net realized capital
gains, and any other items of income, gain, loss, deduction or credit.
Interest income received by the Portfolios on investments in municipal bonds,
which is excludable from gross income under the Internal Revenue Code, will
retain its status as income exempt from federal income tax when allocated to
each Portfolio's investors. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986 may be considered a tax
preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed for both hedging
against anticipated future changes in interest rates and investment purposes.
Should interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, a Portfolio will realize a gain or loss depending on whether the
sales proceeds from the closing sale transaction are greater or less than the
cost of the option. When a Portfolio exercises a put option, settlement is
made in cash. The risk associated with purchasing put options is limited to
the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G Legal Fees -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
result in the restructuring of or a plan of reorganization for an investment
are recorded as realized losses. Ongoing expenditures to protect or enhance
an investment are treated as operating expenses.
H Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statement of Operations.
2 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended September 30, 2000, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE
<S> <C> <C>
--------------------------------------------------------------------
California $1,190,867 0.49%
Florida 1,373,668 0.45%
Massachusetts 819,748 0.44%
Mississippi 26,004 0.16%
New York 1,626,137 0.46%
Ohio 865,332 0.45%
Rhode Island 91,393 0.24%
West Virginia 48,279 0.19%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Certain officers and Trustees of the Portfolios are officers of the above
organizations. Trustees of the Portfolios that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the year ended September 30, 2000, no significant
amounts have been deferred.
3 Investments -- Purchases and sales of investments, other than U.S. Government
securities, purchased option transactions and short-term obligations, for the
year ended September 30, 2000 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 30,775,592
Sales 59,979,799
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 35,217,837
Sales 117,869,719
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 27,633,630
Sales 60,126,591
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 714,696
Sales 2,962,793
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 95,445,703
Sales 165,930,114
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 54,254,693
Sales 75,445,420
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 5,730,696
Sales 8,677,523
</TABLE>
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 1,840,205
Sales 4,082,763
</TABLE>
4 Federal Income Tax Basis of Investments -- The cost and unrealized
appreciation (depreciation) in the value of the investments owned by each
Portfolio at September 30, 2000, as computed on a federal income tax basis,
were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $221,516,722
------------------------------------------------------
Gross unrealized appreciation $ 20,388,162
Gross unrealized depreciation (7,047,122)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,341,040
------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $272,370,550
------------------------------------------------------
Gross unrealized appreciation $ 10,805,202
Gross unrealized depreciation (12,469,613)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,664,411)
------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $178,168,610
------------------------------------------------------
Gross unrealized appreciation $ 6,767,917
Gross unrealized depreciation (6,298,803)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 469,114
------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 14,856,025
------------------------------------------------------
Gross unrealized appreciation $ 595,986
Gross unrealized depreciation (260,143)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 335,843
------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $328,670,725
------------------------------------------------------
Gross unrealized appreciation $ 15,717,160
Gross unrealized depreciation (4,441,613)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 11,275,547
------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $192,876,033
------------------------------------------------------
Gross unrealized appreciation $ 4,752,974
Gross unrealized depreciation (7,538,808)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,785,834)
------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 37,979,663
------------------------------------------------------
Gross unrealized appreciation $ 973,039
Gross unrealized depreciation (1,005,107)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (32,068)
------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 24,482,934
------------------------------------------------------
Gross unrealized appreciation $ 571,515
Gross unrealized depreciation (663,305)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (91,790)
------------------------------------------------------
</TABLE>
5 Line of Credit -- Each Portfolio participates with other portfolios and funds
managed by BMR and EVM and its affiliates in a $150 million unsecured line of
credit agreement with a group of banks. Borrowings will be made by the
Portfolios solely to facilitate the handling of unusual and/or unanticipated
short-term cash requirements. Interest is charged to each participating
portfolio or fund based on its borrowings at an amount above either the
Eurodollar rate or federal funds rate. In addition, a fee computed at an
annual rate of 0.10% on the daily unused portion of the line of credit is
allocated among the participating portfolios and funds at the end of each
quarter. At September 30, 2000, the Florida Portfolio, New York Portfolio and
Ohio Portfolio had a balance outstanding pursuant to this line of credit of
$100,000,
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
$1,700,000 and $100,000, respectively. The Portfolios did not have any
significant borrowings or allocated fees during the year ended September 30,
2000.
6 Financial Instruments -- The Portfolios regularly trade in financial
instruments with off-balance sheet risk in the normal course of their
investing activities to assist in managing exposure to various market risks.
These financial instruments include futures contracts and may involve, to a
varying degree, elements of risk in excess of the amounts recognized for
financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at September 30,
2000 is as follows:
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
----------------------------------------------------------------
FUTURES CONTRACTS
----------------------------------------------------------------
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C>
----------------------------------------------------------------
12/00 91 U.S. Treasury Bond Short (27,516)
</TABLE>
At September 30, 2000, the Portfolio had sufficient cash and/or
securities to cover margin requirements on open future contracts.
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF THE CALIFORNIA MUNICIPALS PORTFOLIO, FLORIDA
MUNICIPALS PORTFOLIO, MASSACHUSETTS MUNICIPALS PORTFOLIO, MISSISSIPPI MUNICIPALS
PORTFOLIO, NEW YORK MUNICIPALS PORTFOLIO, OHIO MUNICIPALS PORTFOLIO, RHODE
ISLAND MUNICIPALS PORTFOLIO, AND WEST VIRGINIA MUNICIPALS PORTFOLIO
---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments, of the California Municipals Portfolio, Florida
Municipals Portfolio, Massachusetts Municipals Portfolio, Mississippi Municipals
Portfolio, New York Municipals Portfolio, Ohio Municipals Portfolio, Rhode
Island Municipals Portfolio, and West Virginia Municipals Portfolio (the
Portfolios) as of September 30, 2000, the related statements of operations for
the year then ended, the statements of changes in net assets for the years ended
September 30, 2000 and 1999 and the supplementary data for each of years in the
five-year period ended September 30, 2000. These financial statements and
supplementary data are the responsibility of the Portfolios' management. Our
responsibility is to express an opinion on these financial statements and
supplementary data based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities held as of September 30, 2000 by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
audit procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at September 30, 2000, the results of their operations, the changes
in their net assets and their supplementary data for the respective stated
periods in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 3, 2000
84
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
INVESTMENT MANAGEMENT
EATON VANCE MUNICIPALS FUNDS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Operating Officer,
Hellman, Jordan Management Co.
President, Jordan Simmons Capital LLC
and Unicorn
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolios
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts,
Rhode Island, and West Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio Manager
of California, Florida, and Mississippi
Municipals Portfolios
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Operating Officer,
Hellman, Jordan Management Co.
President, Jordan Simmons Capital LLC
and Unicorn
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
85
<PAGE>
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<PAGE>
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<PAGE>
PORTFOLIO INVESTMENT ADVISER
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
FUND ADMINISTRATOR
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC, INC.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
INDEPENDENT AUDITORS
DELOITTE & TOUCHE LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
================================================================================
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
================================================================================
438-11/00 MUNISRC
