<PAGE>
MUTUAL FUNDS
FOR PEOPLE
[LOGO]
WHO PAY
EATON VANCE-Registered Trademark-
MUTUAL FUNDS TAXES-Registered Trademark-
[GRAPHIC] EDUCATION
Annual Report August 31, 2000
Alabama
Arkansas
EATON VANCE
[GRAPHIC] Georgia
MUNICIPALS
Kentucky
TRUST
Louisiana
Maryland
[GRAPHIC] 75 YEARS OF EXCELLENCE
EATON VANCE Missouri
75TH
ANNIVERSARY North Carolina
Oregon
South Carolina
Tennessee
Virginia
<PAGE>
EATON VANCE MUNICIPALS FUNDS as of August 31, 2000
LETTER TO SHAREHOLDERS
[PHOTO]
Thomas J. Fetter
President
While municipal bond investors have faced the challenge of rising interest rates
for much of the past year, the market has mounted a recovery in recent months.
In its fight against inflation, the Federal Reserve has aggressively hiked
interest rates, voicing concerns over higher labor costs, despite improvements
in productivity. Now, after raising its key Federal Funds rate on six occasions
since June 1999 for a total of 175 basis points (1.75%), there are at last some
signs that the economy may have moderated from its blistering pace of the last
year.
Following a sustained rise in interest rates in the second half of 1999, the
bond market rallied early in 2000, as investors sought some refuge from the
increasingly volatile equity markets. The rally stalled in April and May in
anticipation of another Fed rate hike. However, by the end of the period, the
Fed was hinting that it may be near the end of its interest-rate hike cycle,
which cheered bond investors. For the year ended August 31, 2000, the Lehman
Brothers Municipal Bond Index* - a widely recognized, unmanaged index of
municipal bonds - posted a return of 6.77%.
MUNICIPAL BONDS REMAIN AN UNDERVALUED ASSET CLASS...
We believe that municipal bonds remain significantly undervalued relative to
Treasury bonds. The numbers are most compelling. At August 31, 2000, municipal
yields exceeded Treasury yields. Market anomalies such as this historically have
created unusual opportunities. Indeed, considering their tax-exempt status,
municipal bonds are currently an excellent bargain for income-oriented
investors.
[DATA TO COME]
THE OUTLOOK FOR MUNICIPAL BONDS APPEARS TO BE IMPROVING...
While municipal bond investors have endured difficulties over the past year, we
believe the outlook has improved. First, municipal issuance has declined
dramatically. Second, a surge in Federal tax receipts has resulted in rising
estimates for the Federal budget surplus, sharply reducing the Treasury's
borrowing needs. Third, the Treasury Department has announced that it will buy
back at least $30 billion of 10 to 30-year bonds this fiscal year. That might,
over time, contribute to lower long-term interest rates.
Finally, we are encouraged that, in the midst of an election year, Congress and
the Administration have continued to exercise a high degree of fiscal
discipline. While we will closely monitor the economic proposals of the major
party nominees for president, we are confident that the progress of recent years
can be maintained. That could result in a much improved outlook for all
fixed-income areas, including the municipal bond market.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
October 12, 2000
*It is not possible to invest directly in an Index.
--------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
--------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE ALABAMA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- Alabama's economic growth has slowed somewhat in 2000, as rising interest
rates have taken a toll on new home construction. Nonetheless, the state has
continued to post good job growth in services and trade. The state's jobless
rate fell to 4.5% in August 2000 from 4.9% a year ago.
- Huntsville has been ranked 5th in the nation for its concentration of
software employment. The city has 7,290 software-related jobs, a density
twice that of the nation, according to the Software/Infotech Association.
- DaimlerChrysler has announced plans to double production of the Mercedes
sports utility vehicle at its Vance-based plant. The move will increase
output to 160,000 vehicles annually and add 2,000 new jobs.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.22% and 4.38%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.41
on August 31, 2000 from $9.43 on August 31, 1999, and the reinvestment of
$0.486 per share in tax-free income.(2) For Class B, this return resulted
from a decline in NAV to $10.35 from $10.37, and the reinvestment of $0.450
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.41 per
share for Class A and $10.35 per share for Class B, the Fund's distribution
rates were 5.14% and 4.35%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 8.96% and 7.58%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.34%
and 3.76%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 7.56% and 6.55%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Escrowed bonds were the Portfolio's largest sector weighting, 16.3% at August
31, 2000. While escrowed bonds are backed by Treasury bonds and considered
very high quality, they also typically provide above-average income.
- Insured(6) water and sewer issues remained among the Portfolio's largest
holdings at 14.1%. These bonds have financed the expansion of local water
projects needed to keep pace with Alabama's recent growth.
- The Portfolio balanced its performance-minded insured(6) bonds with
industrial development revenue bonds. These issues provided excellent income
opportunities in non-rated and lower investment-grade issues.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 59.5%
AA 6.3%
A 11.2%
BBB 18.9%
Non-Rated 4.1%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Alabama income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC returns for Class A reflect the
maximum 4.75% sales charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.22% 4.38%
Five Years 4.97 4.28
Life of Fund+ 4.15 5.25
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.23% -0.61%
Five Years 3.96 3.94
Life of Fund+ 3.40 5.25
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 5/1/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Alabama
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
May 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Alabama Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
5/31/1992 $10,000.00 $10,000.00
6/30/1992 $10,224.99 $10,167.61
7/31/1992 $10,685.10 $10,472.56
8/31/1992 $10,438.11 $10,370.47
9/30/1992 $10,476.23 $10,438.31
10/31/1992 $10,231.47 $10,335.55
11/30/1992 $10,570.69 $10,520.78
12/31/1992 $10,701.89 $10,628.20
1/31/1993 $10,806.34 $10,751.91
2/28/1993 $11,255.07 $11,140.67
3/31/1993 $11,093.67 $11,022.95
4/30/1993 $11,229.18 $11,134.02
5/31/1993 $11,293.73 $11,196.54
6/30/1993 $11,468.89 $11,383.77
7/31/1993 $11,466.11 $11,398.40
8/31/1993 $11,722.12 $11,635.85
9/30/1993 $11,847.06 $11,768.54
10/31/1993 $11,874.97 $11,791.15
11/30/1993 $11,732.83 $11,687.06
12/31/1993 $12,031.81 $11,933.82
1/31/1994 $12,151.78 $12,070.17
2/28/1994 $11,806.49 $11,757.57
3/31/1994 $11,150.38 $11,278.68
4/30/1994 $11,223.26 $11,374.46
5/31/1994 $11,330.27 $11,472.90
6/30/1994 $11,211.92 $11,406.05
7/31/1994 $11,473.82 $11,611.91
8/31/1994 $11,469.98 $11,652.14
9/30/1994 $11,262.87 $11,481.21
10/31/1994 $10,976.76 $11,277.35
11/30/1994 $10,708.77 $11,073.16
12/31/1994 $11,061.16 $11,316.93
1/31/1995 $11,475.55 $11,640.51
2/28/1995 $11,853.92 $11,979.05
3/31/1995 $11,953.64 $12,116.73
4/30/1995 $11,944.67 $12,131.03
5/31/1995 $12,301.02 $12,518.12
6/30/1995 $12,091.94 $12,408.71
7/31/1995 $12,176.30 $12,526.11
8/31/1995 $12,316.55 $12,685.07
9/30/1995 $12,353.03 $12,765.21
10/31/1995 $12,591.28 $12,950.78
11/30/1995 $12,829.53 $13,165.95
12/31/1995 $12,961.09 $13,292.32
1/31/1996 $13,034.90 $13,392.75
2/29/1996 $12,890.98 $13,302.29
3/31/1996 $12,696.50 $13,132.36
4/30/1996 $12,685.74 $13,095.11
5/31/1996 $12,697.28 $13,090.12
6/30/1996 $12,822.32 $13,232.79
7/31/1996 $12,927.64 $13,352.51
8/31/1996 $12,913.95 $13,349.52
9/30/1996 $13,112.33 $13,536.08
10/31/1996 $13,195.26 $13,689.06
11/30/1996 $13,381.41 $13,939.81
12/31/1996 $13,343.43 $13,880.94
1/31/1997 $13,378.95 $13,907.22
2/28/1997 $13,521.03 $14,034.92
3/31/1997 $13,336.85 $13,847.69
4/30/1997 $13,459.94 $13,963.75
5/31/1997 $13,661.18 $14,173.93
6/30/1997 $13,776.62 $14,324.91
7/31/1997 $14,131.72 $14,721.65
8/31/1997 $13,989.66 $14,583.64
9/30/1997 $14,118.04 $14,756.57
10/31/1997 $14,167.82 $14,851.68
11/30/1997 $14,248.59 $14,939.14
12/31/1997 $14,438.61 $15,156.97
1/31/1998 $14,568.32 $15,313.27
2/28/1998 $14,583.87 $15,317.92
3/31/1998 $14,576.50 $15,331.56
4/30/1998 $14,494.49 $15,262.39
5/31/1998 $14,598.49 $15,503.82
6/30/1998 $14,637.51 $15,565.01
7/31/1998 $14,661.83 $15,603.92
8/31/1998 $14,852.61 $15,845.03
9/30/1998 $14,996.84 $16,042.57
10/31/1998 $14,926.77 $16,042.23
11/30/1998 $14,968.59 $16,098.44
12/31/1998 $15,005.09 $16,139.01
1/31/1999 $15,127.41 $16,330.89
2/28/1999 $15,086.98 $16,259.73
3/31/1999 $15,092.47 $16,282.34
4/30/1999 $15,132.39 $16,322.58
5/31/1999 $15,035.65 $16,228.13
6/30/1999 $14,780.26 $15,994.68
7/31/1999 $14,776.19 $16,052.88
8/31/1999 $14,552.80 $15,924.18
9/30/1999 $14,450.66 $15,930.83
10/31/1999 $14,221.53 $15,758.23
11/30/1999 $14,332.27 $15,925.84
12/31/1999 $14,128.75 $15,807.12
1/31/2000 $13,945.81 $15,738.28
2/29/2000 $14,195.70 $15,921.18
3/31/2000 $14,548.97 $16,269.04
4/30/2000 $14,433.98 $16,172.93
5/31/2000 $14,296.11 $16,088.79
6/30/2000 $14,700.04 $16,515.13
7/31/2000 $14,946.99 $16,744.93
8/31/2000 $15,189.52 $17,003.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 5/1/92.
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 shares with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in 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 $13,153 on August
31, 2000; $12,527, including the 4.75% sales charge. The Index's total
return does not reflect commissions or expenses that would have been
incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.64% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.(3)
--------------------------------------------------------------------------------
3
<PAGE>
EATON VANCE ARKANSAS MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Thomas M. Metzold
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- The Arkansas economy has moderated in 2000, reflecting the nationwide trend.
Higher interest rates and high fuel prices have impacted some key industries,
resulting in lower demand for durable goods. The state's jobless rate was
4.1% in August 2000, down from 4.4% a year earlier.
- Arkansas manufacturers have benefited from the trend toward higher
productivity in recent years. Productivity gains of nearly 3.0% in the past
two years have allowed employers to raise wages, a favorable development in
an increasingly tight labor market.
- Agriculture has continued to provide roughly one-fourth of all Arkansas jobs.
The farm sector represents around 15% of state domestic product, nearly
triple the level of the nation as a whole.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.62% and 4.75%, respectively.(1) For Class A, this
return resulted from an increase in net asset value (NAV) per share to $9.52
on August 31, 2000 from $9.51 on August 31, 1999, and the reinvestment of
$0.499 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.21 from $10.19, and the reinvestment of
$0.444 per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.52 per
share for Class A and $10.21 per share for Class B, the Fund's distribution
rates were 5.24% and 4.36%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.33% and 7.76%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.53%
and 4.41%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.06% and 7.85%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Although Arkansas' hospitals have felt the reimbursement pressures
experienced elsewhere in the country, the Portfolio has sought to avoid those
difficulties by focusing its hospital investments on sound institutions, such
as Little Rock's Baptist Medical Center, which appear well-positioned in
their communities.
- The Portfolio's industrial development revenue bond (IDRs) holdings have
financed local economic projects while providing excellent income
opportunities. The Portfolio's IDRs financed projects for a wide range of
companies, including American Airline, Georgia-Pacific Corp. and
International Paper Co.
- Housing bonds again played a prominent role in the Portfolio. Housing
investments were diversified, including state and local issues for single and
multi-family projects.
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 29.9%
AA 13.5%
A 33.6%
BBB 17.6%
Non-Rated 5.4%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the
Fund's Class A shares or the applicable contingent deferred sales charges
(CDSC) for Class B shares. (2) A portion of the Fund's income may be subject
to federal and/or alternative minimum tax and Arkansas income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume maximum
43.83% 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) Rating Distributions and Portfolio holdings may not be
representative of the Portfolio's current or future investments and are
subject to change. (7) Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales
charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.62% 4.75%
Five Years 5.11 4.37
Life of Fund+ 4.36 5.02
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.647% -0.25%
Five Years 4.09 4.03
Life of Fund+ 3.59 5.02
</TABLE>
+Inception date: Class A: 2/9/94; Class B: 10/2/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Arkansas
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
October 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Arkansas Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
10/31/1992 $10,000.00 $10,000.00
11/30/1992 $10,330.85 $10,179.22
12/31/1992 $10,482.33 $10,283.15
1/31/1993 $10,648.29 $10,402.84
2/28/1993 $11,129.83 $10,778.98
3/31/1993 $11,008.23 $10,665.08
4/30/1993 $11,123.78 $10,772.55
5/31/1993 $11,199.36 $10,833.04
6/30/1993 $11,387.14 $11,014.19
7/31/1993 $11,395.80 $11,028.35
8/31/1993 $11,633.14 $11,258.08
9/30/1993 $11,770.19 $11,386.47
10/31/1993 $11,766.31 $11,408.35
11/30/1993 $11,645.31 $11,307.64
12/31/1993 $11,925.14 $11,546.38
1/31/1994 $12,078.42 $11,678.30
2/28/1994 $11,730.13 $11,375.85
3/31/1994 $11,034.71 $10,912.51
4/30/1994 $11,162.10 $11,005.18
5/31/1994 $11,290.77 $11,100.42
6/30/1994 $11,181.46 $11,035.75
7/31/1994 $11,432.63 $11,234.92
8/31/1994 $11,472.47 $11,273.85
9/30/1994 $11,262.47 $11,108.47
10/31/1994 $10,950.11 $10,911.23
11/30/1994 $10,610.13 $10,713.67
12/31/1994 $10,929.97 $10,949.52
1/31/1995 $11,323.63 $11,262.59
2/28/1995 $11,715.71 $11,590.14
3/31/1995 $11,815.67 $11,723.35
4/30/1995 $11,806.06 $11,737.19
5/31/1995 $12,141.05 $12,111.72
6/30/1995 $11,941.74 $12,005.86
7/31/1995 $12,038.03 $12,119.44
8/31/1995 $12,178.80 $12,273.24
9/30/1995 $12,262.56 $12,350.78
10/31/1995 $12,478.10 $12,530.33
11/30/1995 $12,717.48 $12,738.51
12/31/1995 $12,861.56 $12,860.77
1/31/1996 $12,911.25 $12,957.95
2/29/1996 $12,753.61 $12,870.43
3/31/1996 $12,545.07 $12,706.01
4/30/1996 $12,509.31 $12,669.97
5/31/1996 $12,483.63 $12,665.14
6/30/1996 $12,595.56 $12,803.18
7/31/1996 $12,700.23 $12,919.01
8/31/1996 $12,672.53 $12,916.12
9/30/1996 $12,858.36 $13,096.62
10/31/1996 $12,940.40 $13,244.63
11/30/1996 $13,126.32 $13,487.24
12/31/1996 $13,086.45 $13,430.29
1/31/1997 $13,082.62 $13,455.71
2/28/1997 $13,198.68 $13,579.27
3/31/1997 $13,050.03 $13,398.11
4/30/1997 $13,146.99 $13,510.41
5/31/1997 $13,322.48 $13,713.76
6/30/1997 $13,449.95 $13,859.84
7/31/1997 $13,754.45 $14,243.70
8/31/1997 $13,648.63 $14,110.17
9/30/1997 $13,789.26 $14,277.49
10/31/1997 $13,863.91 $14,369.51
11/30/1997 $13,943.48 $14,454.13
12/31/1997 $14,133.35 $14,664.89
1/31/1998 $14,235.96 $14,816.11
2/28/1998 $14,263.00 $14,820.62
3/31/1998 $14,267.41 $14,833.81
4/30/1998 $14,196.54 $14,766.88
5/31/1998 $14,393.07 $15,000.48
6/30/1998 $14,417.25 $15,059.69
7/31/1998 $14,426.65 $15,097.33
8/31/1998 $14,630.47 $15,330.61
9/30/1998 $14,746.95 $15,521.73
10/31/1998 $14,701.85 $15,521.41
11/30/1998 $14,742.22 $15,575.79
12/31/1998 $14,763.56 $15,615.05
1/31/1999 $14,898.69 $15,800.70
2/28/1999 $14,828.87 $15,731.84
3/31/1999 $14,847.21 $15,753.72
4/30/1999 $14,900.09 $15,792.66
5/31/1999 $14,829.32 $15,701.28
6/30/1999 $14,599.02 $15,475.40
7/31/1999 $14,607.94 $15,531.71
8/31/1999 $14,395.67 $15,407.19
9/30/1999 $14,334.07 $15,413.62
10/31/1999 $14,087.83 $15,246.63
11/30/1999 $14,269.31 $15,408.80
12/31/1999 $14,135.38 $15,293.93
1/31/2000 $13,993.65 $15,227.32
2/29/2000 $14,230.17 $15,404.29
3/31/2000 $14,541.71 $15,740.85
4/30/2000 $14,468.93 $15,647.87
5/31/2000 $14,329.51 $15,566.46
6/30/2000 $14,676.98 $15,978.96
7/31/2000 $14,880.83 $16,201.29
8/31/2000 $15,080.12 $16,451.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
10/2/92. 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 shares with that of the Lehman Brothers Municipal Bond Index,
a broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in 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 2/9/94 at net asset value would have grown to $13,514 on August
31, 2000; $12,870, including the 4.75% sales charge. The Index's total
return does not reflect commissions or expenses that would have been
incurred if an investor individually purchased or sold the securities
represented in the Index. It is not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.68% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
4
<PAGE>
EATON VANCE GEORGIA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- The Georgia economy remains strong, although moving at a less torrid pace
than last year. While retail and services have been fairly robust,
manufacturing and commodity-related areas have expanded at a slower rate. The
state's jobless rate fell to 3.7% in August, 2000 from 4.0% a year earlier.
- Savannah's Economic Development Authority continues to seek new opportunities
for expansion. The city's new $100 million Convention Center on Hutchinson
Island and its larger hotel capacity are expected to draw increased numbers
of visitors.
- Communications jobs have continued to represent an increasing share of
Atlanta's new employment. Atlanta ranks fifth among the nation's metropolitan
areas in the number of communications jobs.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 6.00% and 5.09%, respectively.(1) For Class A, this
return resulted from an increase in net asset value (NAV) per share to $9.02
on August 31, 2000 from $8.99 on August 31, 1999, and the reinvestment of
$0.480 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $9.63 from $9.60, and the reinvestment of $0.434
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.02 per
share for Class A and $9.63 per share for Class B, the Fund's distribution
rates were 5.28% and 4.52%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.30% and 7.96%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.72%
and 4.51%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.31% and 7.94%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Industrial development revenue bonds (IDRs) constituted the Portfolio's
largest weighting at August 31, 2000, at 17.6%. The Portfolio's IDR issues
represented a variety of industries, including a project for the nation's
largest personal care product company, Proctor & Gamble.
- The growth of Atlanta has required the financing of a variety of major
infrastructural projects. The Portfolio's holdings included insured(6) water
and sewer issues for both the City of Atlanta and Fulton County.
- The prolonged market decline in late 1999 and early 2000 provided an
opportunity to establish tax losses to offset possible future gains. The
Portfolio in turn purchased bonds with more attractive yields and trading
characteristics.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 48.0%
AA 11.4%
A 21.5%
BBB 11.9%
Non-Rated 7.2%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the
Fund's Class A shares or the applicable contingent deferred sales charges
(CDSC) for Class B shares. (2) A portion of the Fund's income may be
subject to federal and/or alternative minimum tax and Georgia income
tax.(3) The Fund's distribution rate represents actual distributions paid
to shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.22% 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC returns for Class A reflect the
maximum 4.75% sales charge. SEC returns 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.
FUND INFORMATION
as of August 31, 2000
<TABLE>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 6.00% 5.09%
Five Years 4.93 4.26
Life of Fund+ 3.61 4.59
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.94% 0.09%
Five Years 3.91 3.93
Life of Fund+ 2.86 4.59
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 12/23/91
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Georgia
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
December 31, 1991 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Georgia Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
12/31/1991 $10,000.00 $10,000.00
1/31/1992 $9,880.00 $10,022.81
2/29/1992 $9,908.01 $10,026.22
3/31/1992 $9,885.62 $10,029.62
4/30/1992 $9,968.23 $10,119.17
5/31/1992 $10,153.89 $10,238.34
6/30/1992 $10,373.71 $10,409.94
7/31/1992 $10,799.30 $10,722.17
8/31/1992 $10,586.83 $10,617.64
9/30/1992 $10,585.26 $10,687.10
10/31/1992 $10,280.94 $10,581.89
11/30/1992 $10,621.63 $10,771.54
12/31/1992 $10,751.35 $10,881.51
1/31/1993 $10,858.96 $11,008.17
2/28/1993 $11,365.66 $11,406.20
3/31/1993 $11,155.20 $11,285.67
4/30/1993 $11,305.68 $11,399.39
5/31/1993 $11,361.12 $11,463.40
6/30/1993 $11,552.52 $11,655.09
7/31/1993 $11,504.78 $11,670.07
8/31/1993 $11,779.77 $11,913.18
9/30/1993 $11,918.75 $12,049.03
10/31/1993 $11,912.96 $12,072.18
11/30/1993 $11,786.21 $11,965.61
12/31/1993 $12,054.25 $12,218.25
1/31/1994 $12,187.21 $12,357.85
2/28/1994 $11,837.05 $12,037.79
3/31/1994 $11,197.85 $11,547.50
4/30/1994 $11,258.71 $11,645.56
5/31/1994 $11,308.93 $11,746.34
6/30/1994 $11,194.38 $11,677.90
7/31/1994 $11,416.77 $11,888.66
8/31/1994 $11,432.54 $11,929.86
9/30/1994 $11,237.42 $11,754.85
10/31/1994 $10,936.79 $11,546.14
11/30/1994 $10,608.04 $11,337.08
12/31/1994 $10,900.81 $11,586.65
1/31/1995 $11,269.30 $11,917.94
2/28/1995 $11,612.35 $12,264.56
3/31/1995 $11,726.05 $12,405.52
4/30/1995 $11,702.58 $12,420.16
5/31/1995 $11,998.34 $12,816.48
6/30/1995 $11,802.42 $12,704.46
7/31/1995 $11,838.16 $12,824.65
8/31/1995 $11,993.23 $12,987.40
9/30/1995 $12,089.33 $13,069.46
10/31/1995 $12,308.94 $13,259.45
11/30/1995 $12,553.16 $13,479.74
12/31/1995 $12,686.75 $13,609.12
1/31/1996 $12,747.83 $13,711.95
2/29/1996 $12,595.22 $13,619.34
3/31/1996 $12,390.27 $13,445.35
4/30/1996 $12,350.74 $13,407.22
5/31/1996 $12,346.99 $13,402.11
6/30/1996 $12,475.75 $13,548.18
7/31/1996 $12,584.17 $13,670.75
8/31/1996 $12,581.62 $13,667.69
9/30/1996 $12,786.64 $13,858.70
10/31/1996 $12,884.71 $14,015.32
11/30/1996 $13,102.96 $14,272.05
12/31/1996 $13,049.43 $14,211.78
1/31/1997 $13,033.04 $14,238.68
2/28/1997 $13,179.57 $14,369.42
3/31/1997 $13,013.40 $14,177.73
4/30/1997 $13,127.17 $14,296.56
5/31/1997 $13,295.69 $14,511.75
6/30/1997 $13,374.79 $14,666.33
7/31/1997 $13,743.23 $15,072.52
8/31/1997 $13,607.68 $14,931.22
9/30/1997 $13,766.99 $15,108.27
10/31/1997 $13,844.66 $15,205.65
11/30/1997 $13,913.91 $15,295.20
12/31/1997 $14,124.28 $15,518.22
1/31/1998 $14,258.28 $15,678.24
2/28/1998 $14,245.84 $15,683.01
3/31/1998 $14,209.50 $15,696.97
4/30/1998 $14,109.14 $15,626.15
5/31/1998 $14,340.71 $15,873.34
6/30/1998 $14,352.45 $15,935.99
7/31/1998 $14,362.74 $15,975.83
8/31/1998 $14,560.32 $16,222.68
9/30/1998 $14,751.74 $16,424.92
10/31/1998 $14,704.45 $16,424.58
11/30/1998 $14,745.64 $16,482.12
12/31/1998 $14,724.59 $16,523.66
1/31/1999 $14,892.54 $16,720.12
2/28/1999 $14,804.93 $16,647.26
3/31/1999 $14,722.45 $16,670.41
4/30/1999 $14,747.21 $16,711.61
5/31/1999 $14,629.33 $16,614.91
6/30/1999 $14,331.57 $16,375.89
7/31/1999 $14,281.21 $16,435.48
8/31/1999 $14,060.14 $16,303.71
9/30/1999 $13,980.47 $16,310.52
10/31/1999 $13,709.33 $16,133.81
11/30/1999 $13,822.47 $16,305.41
12/31/1999 $13,652.70 $16,183.86
1/31/2000 $13,504.33 $16,113.38
2/29/2000 $13,748.68 $16,300.65
3/31/2000 $14,085.85 $16,656.79
4/30/2000 $13,978.69 $16,558.39
5/31/2000 $13,848.08 $16,472.25
6/30/2000 $14,283.39 $16,908.75
7/31/2000 $14,554.79 $17,144.02
8/31/2000 $14,775.89 $17,408.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
12/23/91. 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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 $12,698 on August 31, 2000; $12,094, including the 4.75% sales charge.
The Index's total return does not reflect commissions or expenses that
would have been incurred if an investor individually purchased or sold the
securities represented in the Index. It is not possible to invest directly
in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 98.96% of the total dividends paid by the Fund from net
investment income during the year ended August 31, 2000 was designated as
an exempt-interest dividend.
--------------------------------------------------------------------------------
5
<PAGE>
EATON VANCE KENTUCKY MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- The Kentucky economy has felt the impact of slowing demand for textiles and
durable goods in 2000. While the manufacturing picture was mixed, technology
remained a growing source of new jobs. The Commonwealth's unemployment rate
declined to 3.8% in August 2000 from 4.4% a year earlier.
- A Gatton College survey forecasts faster growth for Kentucky than for the
nation as a whole in coming years. The services, trade and government sectors
are expected to add the most new jobs, more than compensating for a modest
loss in manufacturing.
- More favorable weather patterns in 2000 have resulted in improved conditions
for Kentucky's agriculture sector. A harsh drought in 1999 led to withered
crops for farmers and the destruction of 150,000 acres of forest.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 2.87% and 2.21%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.16
on August 31, 2000 from $9.41 on August 31, 1999, and the reinvestment of
$0.502 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $9.87 from $10.12, and the reinvestment of $0.459
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.16 per
share for Class A and $9.87 per share for Class B, the Fund's distribution
rates were 5.48% and 4.66%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.65% and 8.21%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.79%
and 4.20%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.44% and 7.40%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Industrial development bonds (IDRs) remained the Portfolio's largest sector
weighting at August 31, 2000, at 27.8%. The Portfolio's IDR holdings included
an issue providing financing for solid waste disposal facilities for Ashland
Oil Co.
- Insured(6) transportation bonds were in ample supply and represented a
large weighting, 16.2%, in the Portfolio. Area airports such as
Louisville and Cincinnati/Northern Kentucky International Airport have
witnessed a sharp increase in traffic and become important regional hubs.
- The Portfolio continued to upgrade call protection. Management sought bonds
with 10 years or more of call protection to improve the Portfolio's
appreciation potential in the event of a decline in interest rates.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 44.9%
AA 13.1%
A 18.9%
BBB 10.8%
BB 2.4%
Non-Rated 9.9%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Kentucky income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.22% 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are historical
and are calculated by determining the percentage change in NAV with all
distributions reinvested. SEC returns for Class A reflect the maximum
4.75% sales charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 2.87% 2.21%
Five Years 5.00 4.32
Life of Fund+ 3.90 4.86
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year -2.02% -2.67%
Five Years 3.99 3.99
Life of Fund+ 3.15 4.86
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 12/23/91
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Kentucky
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
December 31, 1991 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Kentucky Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
12/31/1991 $10,000.00 $10,000.00
1/31/1992 $9,840.00 $10,022.81
2/29/1992 $9,918.66 $10,026.22
3/31/1992 $9,863.33 $10,029.62
4/30/1992 $9,975.61 $10,119.17
5/31/1992 $10,160.32 $10,238.34
6/30/1992 $10,358.64 $10,409.94
7/31/1992 $10,760.74 $10,722.17
8/31/1992 $10,526.75 $10,617.64
9/30/1992 $10,545.16 $10,687.10
10/31/1992 $10,261.26 $10,581.89
11/30/1992 $10,611.24 $10,771.54
12/31/1992 $10,725.51 $10,881.51
1/31/1993 $10,843.47 $11,008.17
2/28/1993 $11,327.52 $11,406.20
3/31/1993 $11,149.75 $11,285.67
4/30/1993 $11,300.03 $11,399.39
5/31/1993 $11,377.07 $11,463.40
6/30/1993 $11,589.35 $11,655.09
7/31/1993 $11,563.21 $11,670.07
8/31/1993 $11,782.11 $11,913.18
9/30/1993 $11,921.29 $12,049.03
10/31/1993 $11,938.22 $12,072.18
11/30/1993 $11,801.63 $11,965.61
12/31/1993 $12,080.30 $12,218.25
1/31/1994 $12,202.70 $12,357.85
2/28/1994 $11,831.59 $12,037.79
3/31/1994 $11,172.35 $11,547.50
4/30/1994 $11,245.91 $11,645.56
5/31/1994 $11,343.36 $11,746.34
6/30/1994 $11,207.44 $11,677.90
7/31/1994 $11,453.87 $11,888.66
8/31/1994 $11,471.04 $11,929.86
9/30/1994 $11,230.98 $11,754.85
10/31/1994 $10,920.59 $11,546.14
11/30/1994 $10,640.80 $11,337.08
12/31/1994 $10,958.30 $11,586.65
1/31/1995 $11,387.45 $11,917.94
2/28/1995 $11,755.50 $12,264.56
3/31/1995 $11,858.46 $12,405.52
4/30/1995 $11,848.58 $12,420.16
5/31/1995 $12,217.88 $12,816.48
6/30/1995 $11,999.41 $12,704.46
7/31/1995 $12,073.19 $12,824.65
8/31/1995 $12,229.46 $12,987.40
9/30/1995 $12,301.96 $13,069.46
10/31/1995 $12,534.75 $13,259.45
11/30/1995 $12,792.28 $13,479.74
12/31/1995 $12,926.75 $13,609.12
1/31/1996 $12,976.36 $13,711.95
2/29/1996 $12,812.42 $13,619.34
3/31/1996 $12,646.27 $13,445.35
4/30/1996 $12,607.78 $13,407.22
5/31/1996 $12,605.06 $13,402.11
6/30/1996 $12,745.71 $13,548.18
7/31/1996 $12,815.30 $13,670.75
8/31/1996 $12,773.92 $13,667.69
9/30/1996 $12,965.32 $13,858.70
10/31/1996 $13,075.63 $14,015.32
11/30/1996 $13,254.25 $14,272.05
12/31/1996 $13,239.14 $14,211.78
1/31/1997 $13,274.41 $14,238.68
2/28/1997 $13,407.07 $14,369.42
3/31/1997 $13,266.92 $14,177.73
4/30/1997 $13,353.65 $14,296.56
5/31/1997 $13,534.50 $14,511.75
6/30/1997 $13,679.15 $14,666.33
7/31/1997 $14,033.56 $15,072.52
8/31/1997 $13,938.95 $14,931.22
9/30/1997 $14,071.75 $15,108.27
10/31/1997 $14,149.74 $15,205.65
11/30/1997 $14,232.98 $15,295.20
12/31/1997 $14,416.33 $15,518.22
1/31/1998 $14,523.36 $15,678.24
2/28/1998 $14,552.59 $15,683.01
3/31/1998 $14,585.48 $15,696.97
4/30/1998 $14,499.73 $15,626.15
5/31/1998 $14,689.86 $15,873.34
6/30/1998 $14,715.98 $15,935.99
7/31/1998 $14,740.70 $15,975.83
8/31/1998 $14,910.43 $16,222.68
9/30/1998 $15,031.77 $16,424.92
10/31/1998 $14,972.35 $16,424.58
11/30/1998 $15,015.24 $16,482.12
12/31/1998 $15,052.62 $16,523.66
1/31/1999 $15,193.48 $16,720.12
2/28/1999 $15,136.84 $16,647.26
3/31/1999 $15,156.84 $16,670.41
4/30/1999 $15,212.76 $16,711.61
5/31/1999 $15,155.66 $16,614.91
6/30/1999 $14,962.69 $16,375.89
7/31/1999 $14,973.70 $16,435.48
8/31/1999 $14,785.30 $16,303.71
9/30/1999 $14,738.10 $16,310.52
10/31/1999 $14,500.03 $16,133.81
11/30/1999 $14,601.24 $16,305.41
12/31/1999 $14,464.54 $16,183.86
1/31/2000 $14,364.64 $16,113.38
2/29/2000 $14,506.54 $16,300.65
3/31/2000 $14,815.80 $16,656.79
4/30/2000 $14,652.01 $16,558.39
5/31/2000 $14,373.71 $16,472.25
6/30/2000 $14,705.25 $16,908.75
7/31/2000 $14,903.13 $17,144.02
8/31/2000 $15,111.55 $17,408.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
12/23/91. 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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 August 31, 2000; $12,325, including the 4.75% sales charge.
The Index's total return does not reflect commissions or expenses that
would have been incurred if an investor individually purchased or sold the
securities represented in the Index. It is not possible to invest directly
in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.76% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
6
<PAGE>
EATON VANCE LOUISIANA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- Louisiana's economy has registered moderate growth in 2000. Health services,
trade and multi-family construction have helped fuel job growth, while the
manufacturing outlook remained uncertain. Louisiana's unemployment rate was
4.7% in August, 2000, down from 4.9% a year earlier.
- New Orlean's tourism industry has fared relatively well in 2000. Visitors
were drawn by new tourist attractions, including Harrah's New Orleans Casino,
the National D-Day Museum and the Jazzland Theme Park.
- Responding to high energy prices, the number of active oil exploration rigs
has risen sharply in the past year. Smaller drilling companies have
complained of a shortage of available labor.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.43% and 4.66%, respectively.(1) For Class A, this
return resulted from no change in net asset value (NAV) per share on August
31, 2000 from $9.24 on August 31, 1999, and the reinvestment of $0.473 per
share in tax-free income.(2) For Class B, this return resulted from an
increase in NAV to $9.77 from $9.76, and the reinvestment of $0.421 per
share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.24 per
share for Class A and $9.77 per share for Class B, the Fund's distribution
rates were 5.08% and 4.32%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 8.95% and 7.61%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 5.14%
and 4.62%, respectively.(5) The SEC 30-day yields of Class A and Class B
are equivalent to taxable yields of 9.05% and 8.13%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- The Portfolio's largest sector weighting at August 31, 2000 was in housing
bonds, at 16.7%. The Portfolio's housing investments were predominantly in
single-family projects in GNMA and FNMA-backed issues.
- In a light trading environment, management increased its focus on insured(6)
issues. Some local issuers within the state have encountered deteriorating
credit quality as a high property tax threshold has resulted in a revenue
crunch for selected communities.
- Among its industrial development revenue bonds, the Portfolio reduced its
exposure somewhat to old-line industrial issuers. In addition, management
focused on bonds with more call protection and better trading
characteristics.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 70.0%
A 10.3%
BBB 14.1%
Non-Rated 5.6%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the
Fund's Class A shares or the applicable contingent deferred sales charges
(CDSC) for Class B shares. (2) A portion of the Fund's income may be
subject to federal and/or alternative minimum tax and Louisiana income
tax. (3) The Fund's distribution rate represents actual distributions
paid to shareholders and is calculated by dividing the last distribution
per share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.22% 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are historical
and are calculated by determining the percentage change in NAV with all
distributions reinvested. SEC returns for Class A reflect the maximum
4.75% sales charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.43% 4.66%
Five Years 5.02 4.25
Life of Fund+ 4.13 4.78
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.43% -0.34%
Five Years 4.01 3.92
Life of Fund+ 3.36 4.78
</TABLE>
+Inception date: Class A: 2/14/94; Class B: 10/2/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Louisiana
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
October 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Louisiana Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
10/31/1992 $10,000.00 $10,000.00
11/30/1992 $10,439.39 $10,179.22
12/31/1992 $10,601.48 $10,283.15
1/31/1993 $10,778.23 $10,402.84
2/28/1993 $11,303.41 $10,778.98
3/31/1993 $11,159.78 $10,665.08
4/30/1993 $11,306.75 $10,772.55
5/31/1993 $11,382.17 $10,833.04
6/30/1993 $11,613.00 $11,014.19
7/31/1993 $11,578.38 $11,028.35
8/31/1993 $11,880.62 $11,258.08
9/30/1993 $12,050.91 $11,386.47
10/31/1993 $12,047.38 $11,408.35
11/30/1993 $11,904.58 $11,307.64
12/31/1993 $12,218.50 $11,546.38
1/31/1994 $12,364.33 $11,678.30
2/28/1994 $11,912.17 $11,375.85
3/31/1994 $11,165.28 $10,912.51
4/30/1994 $11,264.12 $11,005.18
5/31/1994 $11,409.37 $11,100.42
6/30/1994 $11,267.48 $11,035.75
7/31/1994 $11,514.23 $11,234.92
8/31/1994 $11,500.88 $11,273.85
9/30/1994 $11,267.88 $11,108.47
10/31/1994 $10,954.04 $10,911.23
11/30/1994 $10,646.70 $10,713.67
12/31/1994 $10,962.76 $10,949.52
1/31/1995 $11,377.63 $11,262.59
2/28/1995 $11,767.33 $11,590.14
3/31/1995 $11,847.86 $11,723.35
4/30/1995 $11,817.18 $11,737.19
5/31/1995 $12,065.29 $12,111.72
6/30/1995 $11,864.09 $12,005.86
7/31/1995 $11,952.01 $12,119.44
8/31/1995 $12,085.03 $12,273.24
9/30/1995 $12,171.71 $12,350.78
10/31/1995 $12,392.70 $12,530.33
11/30/1995 $12,613.49 $12,738.51
12/31/1995 $12,761.71 $12,860.77
1/31/1996 $12,776.61 $12,957.95
2/29/1996 $12,579.86 $12,870.43
3/31/1996 $12,393.19 $12,706.01
4/30/1996 $12,395.32 $12,669.97
5/31/1996 $12,445.50 $12,665.14
6/30/1996 $12,563.54 $12,803.18
7/31/1996 $12,686.21 $12,919.01
8/31/1996 $12,661.22 $12,916.12
9/30/1996 $12,867.44 $13,096.62
10/31/1996 $12,992.98 $13,244.63
11/30/1996 $13,199.47 $13,487.24
12/31/1996 $13,162.19 $13,430.29
1/31/1997 $13,174.74 $13,455.71
2/28/1997 $13,284.48 $13,579.27
3/31/1997 $13,161.38 $13,398.11
4/30/1997 $13,237.82 $13,510.41
5/31/1997 $13,381.74 $13,713.76
6/30/1997 $13,489.70 $13,859.84
7/31/1997 $13,858.35 $14,243.70
8/31/1997 $13,740.08 $14,110.17
9/30/1997 $13,861.38 $14,277.49
10/31/1997 $13,968.43 $14,369.51
11/30/1997 $14,067.47 $14,454.13
12/31/1997 $14,252.31 $14,664.89
1/31/1998 $14,320.53 $14,816.11
2/28/1998 $14,325.00 $14,820.62
3/31/1998 $14,360.04 $14,833.81
4/30/1998 $14,222.10 $14,766.88
5/31/1998 $14,496.77 $15,000.48
6/30/1998 $14,483.74 $15,059.69
7/31/1998 $14,497.06 $15,097.33
8/31/1998 $14,752.80 $15,330.61
9/30/1998 $14,946.43 $15,521.73
10/31/1998 $14,831.22 $15,521.41
11/30/1998 $14,902.44 $15,575.79
12/31/1998 $14,897.50 $15,615.05
1/31/1999 $15,066.67 $15,800.70
2/28/1999 $14,937.43 $15,731.84
3/31/1999 $14,911.56 $15,753.72
4/30/1999 $14,935.25 $15,792.66
5/31/1999 $14,787.92 $15,701.28
6/30/1999 $14,519.06 $15,475.40
7/31/1999 $14,496.52 $15,531.71
8/31/1999 $14,216.73 $15,407.19
9/30/1999 $14,121.37 $15,413.62
10/31/1999 $13,791.67 $15,246.63
11/30/1999 $13,917.07 $15,408.80
12/31/1999 $13,746.70 $15,293.93
1/31/2000 $13,567.85 $15,227.32
2/29/2000 $13,838.79 $15,404.29
3/31/2000 $14,217.07 $15,740.85
4/30/2000 $14,064.00 $15,647.87
5/31/2000 $13,932.87 $15,566.46
6/30/2000 $14,348.55 $15,978.96
7/31/2000 $14,616.31 $16,201.29
8/31/2000 $14,879.87 $16,451.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 10/2/92.
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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 2/14/94 at net asset value would have grown
to $13,034 on August 31, 2000; $12,414, including the 4.75% sales charge.
The Index's total return does not reflect commissions or expenses that
would have been incurred if an investor individually purchased or sold the
securities represented in the Index. It is not possible to invest directly
in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.10% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
7
<PAGE>
EATON VANCE MARYLAND MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- While slightly behind last year's pace, the Maryland economy has continued to
grow in 2000. The economy has benefited from strong growth in biotechnology,
finance and commercial construction. The state's August 2000 unemployment
rate was 3.5%, slightly above the 3.4% level of a year ago.
- Gaithersburg is among the nation's premier incubators of biotechnology
companies. The past year has seen sharply rising employment and new product
approvals at several area companies, including Celera Corp., MedImmune, Inc.
and Human Genome Sciences, Inc.
- After successful efforts to broaden its economic base, Maryland has remained
among the leaders in federal procurement spending. The state took in more
than $18 billion last year for federal contracts and wages.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 4.35% and 3.50%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.16
on August 31, 2000 from $9.23 on August 31, 1999, and the reinvestment of
$0.450 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $10.00 from $10.08, and the reinvestment of $0.414
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.16 per
share for Class A and $10.00 per share for Class B, the Fund's distribution
rates were 4.73% and 3.97%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 8.50% and 7.13%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 5.01%
and 4.53%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.00% and 8.14%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Insured(6) hospital bonds were the Portfolio's largest weighting at August,
2000, at 13.0%. The Portfolio's investments included an issue for Johns
Hopkins Medical as well as issues for Medlantic/Helix, one of the largest
health care providers in Baltimore.
- Housing bonds afforded the Portfolio a measure of stability during a volatile
interest rate period. The Portfolio's holdings included single-family and
multi-family projects from state and county issuers, and provided
above-average coupons.
- Industrial development revenue bonds (IDRs) constituted a large commitment.
The Portfolio's IDRs represented a wide range of industries, including cargo,
food, chemicals and packaging companies.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 49.2%
AA 21.5%
A 11.1%
BBB 9.8%
CCC 2.3%
Non-Rated 6.1%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the
Fund's Class A shares or the applicable contingent deferred sales charges
(CDSC) for Class B shares. (2) A portion of the Fund's income may be
subject to federal and/or alternative minimum tax and Maryland income
tax. (3) The Fund's distribution rate represents actual distributions
paid to shareholders and is calculated by dividing the last distribution
per share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 44.35% 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC returns for Class A reflect the
maximum 4.75% sales charge. SEC returns 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.
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 4.35% 3.50%
Five Years 4.66 3.96
Life of Fund+ 3.73 4.83
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year -0.60% -1.46%
Five Years 3.64 3.62
Life of Fund+ 2.98 4.83
</TABLE>
+Inception date: Class A: 12/10/93; Class B: 2/3/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Maryland
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
February 29, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Maryland Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
2/29/1992 $10,000.00 $10,000.00
3/31/1992 $9,999.32 $10,003.40
4/30/1992 $10,098.08 $10,092.71
5/31/1992 $10,238.27 $10,211.57
6/30/1992 $10,432.22 $10,382.72
7/31/1992 $10,871.38 $10,694.13
8/31/1992 $10,647.93 $10,589.87
9/30/1992 $10,675.50 $10,659.15
10/31/1992 $10,319.54 $10,554.22
11/30/1992 $10,665.44 $10,743.37
12/31/1992 $10,829.96 $10,853.06
1/31/1993 $10,987.43 $10,979.39
2/28/1993 $11,433.80 $11,376.37
3/31/1993 $11,277.28 $11,256.16
4/30/1993 $11,424.91 $11,369.58
5/31/1993 $11,499.81 $11,433.42
6/30/1993 $11,721.35 $11,624.61
7/31/1993 $11,674.18 $11,639.56
8/31/1993 $11,945.94 $11,882.03
9/30/1993 $12,127.96 $12,017.52
10/31/1993 $12,134.07 $12,040.62
11/30/1993 $11,966.23 $11,934.32
12/31/1993 $12,258.04 $12,186.30
1/31/1994 $12,402.12 $12,325.53
2/28/1994 $12,003.19 $12,006.32
3/31/1994 $11,252.48 $11,517.30
4/30/1994 $11,281.18 $11,615.11
5/31/1994 $11,400.97 $11,715.62
6/30/1994 $11,279.03 $11,647.37
7/31/1994 $11,534.60 $11,857.57
8/31/1994 $11,575.63 $11,898.67
9/30/1994 $11,328.20 $11,724.11
10/31/1994 $11,011.28 $11,515.94
11/30/1994 $10,677.92 $11,307.43
12/31/1994 $11,049.35 $11,556.36
1/31/1995 $11,449.01 $11,886.78
2/28/1995 $11,894.33 $12,232.49
3/31/1995 $12,007.44 $12,373.08
4/30/1995 $11,973.67 $12,387.68
5/31/1995 $12,361.43 $12,782.97
6/30/1995 $12,086.99 $12,671.24
7/31/1995 $12,184.42 $12,791.12
8/31/1995 $12,352.26 $12,953.44
9/30/1995 $12,425.92 $13,035.28
10/31/1995 $12,682.15 $13,224.78
11/30/1995 $12,962.77 $13,444.49
12/31/1995 $13,134.44 $13,573.54
1/31/1996 $13,234.85 $13,676.10
2/29/1996 $13,050.58 $13,583.73
3/31/1996 $12,839.43 $13,410.19
4/30/1996 $12,803.77 $13,372.16
5/31/1996 $12,790.83 $13,367.07
6/30/1996 $12,918.60 $13,512.75
7/31/1996 $13,038.86 $13,635.01
8/31/1996 $13,024.46 $13,631.95
9/30/1996 $13,240.08 $13,822.46
10/31/1996 $13,337.46 $13,978.67
11/30/1996 $13,553.34 $14,234.73
12/31/1996 $13,501.37 $14,174.62
1/31/1997 $13,486.01 $14,201.45
2/28/1997 $13,618.30 $14,331.85
3/31/1997 $13,429.37 $14,140.66
4/30/1997 $13,555.17 $14,259.18
5/31/1997 $13,747.96 $14,473.80
6/30/1997 $13,878.95 $14,627.98
7/31/1997 $14,242.52 $15,033.11
8/31/1997 $14,149.38 $14,892.18
9/30/1997 $14,293.79 $15,068.77
10/31/1997 $14,371.08 $15,165.89
11/30/1997 $14,466.79 $15,255.20
12/31/1997 $14,661.15 $15,477.64
1/31/1998 $14,793.76 $15,637.25
2/28/1998 $14,782.34 $15,642.00
3/31/1998 $14,787.93 $15,655.92
4/30/1998 $14,690.01 $15,585.29
5/31/1998 $14,918.51 $15,831.83
6/30/1998 $14,930.76 $15,894.32
7/31/1998 $14,927.89 $15,934.05
8/31/1998 $15,136.79 $16,180.26
9/30/1998 $15,242.76 $16,381.97
10/31/1998 $15,198.23 $16,381.63
11/30/1998 $15,073.60 $16,439.03
12/31/1998 $15,041.06 $16,480.46
1/31/1999 $15,222.18 $16,676.40
2/28/1999 $15,207.48 $16,603.73
3/31/1999 $15,197.15 $16,626.82
4/30/1999 $15,235.95 $16,667.91
5/31/1999 $14,964.23 $16,571.47
6/30/1999 $14,729.49 $16,333.07
7/31/1999 $14,738.22 $16,392.50
8/31/1999 $14,493.17 $16,261.08
9/30/1999 $14,401.41 $16,267.87
10/31/1999 $14,092.75 $16,091.62
11/30/1999 $14,204.61 $16,262.78
12/31/1999 $14,064.38 $16,141.54
1/31/2000 $13,930.39 $16,071.25
2/29/2000 $14,167.32 $16,258.02
3/31/2000 $14,495.07 $16,613.24
4/30/2000 $14,401.89 $16,515.09
5/31/2000 $14,270.35 $16,429.18
6/30/2000 $14,587.62 $16,864.54
7/31/2000 $14,818.35 $17,099.20
8/31/2000 $15,000.16 $17,363.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
2/3/92. 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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 12/10/93 at net asset value would have
grown to $12,796 on August 31, 2000; $12,186, including the 4.75% sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest
directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 95.70% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
8
<PAGE>
EATON VANCE MISSOURI MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- The Missouri economy has registered further job growth in 2000, with the
service sector accounting for the lion's share of new positions.
Manufacturing saw a continued decline, mainly in aircraft manufacture. The
state's unemployment rate declined to 2.6% in August, 2000 from 3.4% a year
earlier.
- Missouri has made significant progress with its Youth Opportunities Program,
which offers tax credits in exchange for job opportunities. Since 1995, the
Program has distributed more than $16 million in tax credits, covering 184
separate employment projects.
- The Department of Economic Development continues its efforts to attract
European investment. Recent successes included a $435 million expansion by
Daimler Chrysler and a $200 million investment by Bayer.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 4.60% and 3.62%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.55
on August 31, 2000 from $9.63 on August 31, 1999, and the reinvestment of
$0.497 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $10.55 from $10.65, and the reinvestment of $0.463
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.55 per
share for Class A and $10.55 per share for Class B, the Fund's distribution
rates were 5.20% and 4.46%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.16% and 7.85%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 5.21%
and 4.51%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.18% and 7.94%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- The Portfolio's largest sector weighting at August 31, 2000 was in hospital
bonds, at 14.7%. Management focused on solid institutions with good
demographics and sound fundamentals. Barnes Jewish Christian of St. Louis was
the Portfolio's largest hospital investment.
- Industrial development revenue bonds (IDRs) remained a major emphasis of the
Portfolio. The largest IDR holdings spanned a wide range of industries and
companies, including Anheuser-Busch Co., Proctor & Gamble Co. and American
Cyanamid.
- The Portfolio maintained an exposure to selected nursing home and life care
issues. The non-rated bonds are especially research-intensive and have
typically provided an attractive yield advantage.
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 44.1%
AA 12.7%
A 15.4%
BBB 11.7%
BB 3.4%
Non-Rated 12.7%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Missouri income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.22% 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) Rating Distributions and Portfolio holdings may not be
representative of the Portfolio's current or future investments and are
subject to change. (7) Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales
charge. SEC returns 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.
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 4.60% 3.62%
Five Years 5.32 4.51
Life of Fund+ 4.38 5.54
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year -0.36% -1.34%
Five Years 4.31 4.18
Life of Fund+ 3.63 5.54
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 5/1/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Missouri
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
May 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Missouri Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
5/31/1992 $10,000.00 $10,000.00
6/30/1992 $10,245.28 $10,167.61
7/31/1992 $10,635.25 $10,472.56
8/31/1992 $10,479.52 $10,370.47
9/30/1992 $10,528.03 $10,438.31
10/31/1992 $10,192.45 $10,335.55
11/30/1992 $10,592.92 $10,520.78
12/31/1992 $10,721.54 $10,628.20
1/31/1993 $10,857.14 $10,751.91
2/28/1993 $11,379.34 $11,140.67
3/31/1993 $11,259.12 $11,022.95
4/30/1993 $11,395.31 $11,134.02
5/31/1993 $11,481.48 $11,196.54
6/30/1993 $11,679.01 $11,383.77
7/31/1993 $11,645.14 $11,398.40
8/31/1993 $11,913.20 $11,635.85
9/30/1993 $12,071.36 $11,768.54
10/31/1993 $12,057.19 $11,791.15
11/30/1993 $11,894.17 $11,687.06
12/31/1993 $12,174.83 $11,933.82
1/31/1994 $12,317.12 $12,070.17
2/28/1994 $11,937.62 $11,757.57
3/31/1994 $11,235.54 $11,278.68
4/30/1994 $11,276.08 $11,374.46
5/31/1994 $11,395.10 $11,472.90
6/30/1994 $11,310.42 $11,406.05
7/31/1994 $11,540.15 $11,611.91
8/31/1994 $11,548.05 $11,652.14
9/30/1994 $11,306.68 $11,481.21
10/31/1994 $10,997.18 $11,277.35
11/30/1994 $10,682.84 $11,073.16
12/31/1994 $11,037.16 $11,316.93
1/31/1995 $11,476.88 $11,640.51
2/28/1995 $11,892.03 $11,979.05
3/31/1995 $11,981.09 $12,116.73
4/30/1995 $11,995.94 $12,131.03
5/31/1995 $12,424.58 $12,518.12
6/30/1995 $12,225.96 $12,408.71
7/31/1995 $12,274.92 $12,526.11
8/31/1995 $12,450.97 $12,685.07
9/30/1995 $12,522.64 $12,765.21
10/31/1995 $12,749.47 $12,950.78
11/30/1995 $13,024.14 $13,165.95
12/31/1995 $13,179.87 $13,292.32
1/31/1996 $13,265.71 $13,392.75
2/29/1996 $13,084.50 $13,302.29
3/31/1996 $12,828.33 $13,132.36
4/30/1996 $12,780.59 $13,095.11
5/31/1996 $12,779.58 $13,090.12
6/30/1996 $12,918.02 $13,232.79
7/31/1996 $13,049.02 $13,352.51
8/31/1996 $13,023.47 $13,349.52
9/30/1996 $13,248.08 $13,536.08
10/31/1996 $13,381.70 $13,689.06
11/30/1996 $13,606.72 $13,939.81
12/31/1996 $13,544.22 $13,880.94
1/31/1997 $13,542.72 $13,907.22
2/28/1997 $13,698.70 $14,034.92
3/31/1997 $13,501.71 $13,847.69
4/30/1997 $13,613.21 $13,963.75
5/31/1997 $13,828.60 $14,173.93
6/30/1997 $13,957.91 $14,324.91
7/31/1997 $14,366.55 $14,721.65
8/31/1997 $14,250.49 $14,583.64
9/30/1997 $14,380.06 $14,756.57
10/31/1997 $14,456.70 $14,851.68
11/30/1997 $14,551.52 $14,939.14
12/31/1997 $14,782.17 $15,156.97
1/31/1998 $14,913.05 $15,313.27
2/28/1998 $14,955.78 $15,317.92
3/31/1998 $14,975.41 $15,331.56
4/30/1998 $14,867.17 $15,262.39
5/31/1998 $15,105.31 $15,503.82
6/30/1998 $15,131.80 $15,565.01
7/31/1998 $15,143.47 $15,603.92
8/31/1998 $15,362.59 $15,845.03
9/30/1998 $15,508.01 $16,042.57
10/31/1998 $15,451.85 $16,042.23
11/30/1998 $15,508.23 $16,098.44
12/31/1998 $15,531.76 $16,139.01
1/31/1999 $15,668.85 $16,330.89
2/28/1999 $15,587.43 $16,259.73
3/31/1999 $15,565.44 $16,282.34
4/30/1999 $15,605.55 $16,322.58
5/31/1999 $15,509.02 $16,228.13
6/30/1999 $15,239.57 $15,994.68
7/31/1999 $15,236.24 $16,052.88
8/31/1999 $14,984.73 $15,924.18
9/30/1999 $14,911.21 $15,930.83
10/31/1999 $14,597.31 $15,758.23
11/30/1999 $14,723.24 $15,925.84
12/31/1999 $14,520.50 $15,807.12
1/31/2000 $14,309.89 $15,738.28
2/29/2000 $14,575.95 $15,921.18
3/31/2000 $14,931.34 $16,269.04
4/30/2000 $14,831.93 $16,172.93
5/31/2000 $14,681.58 $16,088.79
6/30/2000 $15,074.57 $16,515.13
7/31/2000 $15,310.24 $16,744.93
8/31/2000 $15,526.49 $17,003.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 5/1/92.
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 shares with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in 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 $13,354 on August 31, 2000;
$12,718, including the 4.75% sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.10% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
9
<PAGE>
EATON VANCE NORTH CAROLINA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- While North Carolina's economy remained strong, the pace of growth eased
somewhat. Nonetheless, the labor market remained tight, with temporary
employment services experiencing robust demand. The state's August, 2000
jobless rate was 3.5%, somewhat higher than last year's 3.2% rate.
- Wake County remains a major beneficiary of its proximity to Research Triangle
Park and to the region's universities. Networking, telecom and software
developers, including Cisco Systems and MCI Communications have become major
employers in the area.
- State transportation officials continue to push for high-speed rail service.
The Southeast Corridor proposal would cost $500 million and forge a rail link
between key state communities and Washington, D.C.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.51% and 4.79%, respectively.(1) For Class A, this
return resulted from no change in net asset value (NAV) per share on August
31, 2000 from $9.26 on August 31, 1999, and the reinvestment of $0.484 per
share in tax-free income.(2) For Class B, this return resulted from an
increase in NAV to $9.97 from $9.96, and the reinvestment of $0.445 per
share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.26 per
share for Class A and $9.97 per share for Class B, the Fund's distribution
rates were 5.15% and 4.46%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.24% and 8.00%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.70%
and 4.19%, respectively.(5) The SEC 30-day yields of Class A and Class B
are equivalent to taxable yields of 8.44% and 7.52%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Electric utility bonds played a major role in the Portfolio, at 13.3%,
especially Municipal Power Agency Bonds. With the increasing trend towards
joint energy agencies and pooled energy resources, there is a growing
likelihood that older electric utility bonds may be escrowed by the state.
- Within the industrial development revenue bond sector, the Portfolio limited
its investments in older industrial bonds, such as paper companies. Examples
of non-industrial industries included Campbell Soup Co. and American
Airlines, Inc.
- The Portfolio continued to scale back its exposure to certificates of
participation for state projects. The perception of an increasing
appropriation risk has impaired the trading environment for these vehicles.
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 36.6%
AA 25.1%
A 15.4%
BBB 21.8%
Non-Rated 1.1%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax. (3) The Fund's distribution rate
represents actual distributions paid to shareholders and is calculated by
dividing the last distribution per share (annualized) by the NAV. (4)
Taxable-equivalent rates assume maximum 44.28% 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) Rating
Distributions and Portfolio holdings may not be representative of the
Portfolio's current or future investments and are subject to change. (7)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC returns for Class A
reflect the maximum 4.75% sales charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.51% 4.79%
Five Years 5.28 4.59
Life of Fund+ 4.04 5.00
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.52% -0.21%
Five Years 4.26 4.25
Life of Fund+ 3.29 5.00
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 10/23/91
Comparison of Change in Value of a $10,000 Investment in Eaton Vance North
Carolina Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
October 31, 1991 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance North Carolina Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
10/31/1991 $10,000.00 $10,000.00
11/30/1991 $9,920.24 $10,027.90
12/31/1991 $10,226.19 $10,243.09
1/31/1992 $10,207.60 $10,266.45
2/29/1992 $10,217.04 $10,269.94
3/31/1992 $10,213.93 $10,273.43
4/30/1992 $10,307.43 $10,365.15
5/31/1992 $10,473.85 $10,487.22
6/30/1992 $10,695.21 $10,662.99
7/31/1992 $11,111.15 $10,982.81
8/31/1992 $10,844.71 $10,875.74
9/30/1992 $10,842.67 $10,946.88
10/31/1992 $10,525.37 $10,839.12
11/30/1992 $10,899.47 $11,033.38
12/31/1992 $11,051.58 $11,146.03
1/31/1993 $11,170.81 $11,275.76
2/28/1993 $11,605.75 $11,683.47
3/31/1993 $11,426.18 $11,560.00
4/30/1993 $11,566.97 $11,676.49
5/31/1993 $11,633.91 $11,742.06
6/30/1993 $11,826.76 $11,938.41
7/31/1993 $11,789.74 $11,953.75
8/31/1993 $12,089.02 $12,202.77
9/30/1993 $12,218.82 $12,341.92
10/31/1993 $12,191.71 $12,365.64
11/30/1993 $12,043.01 $12,256.48
12/31/1993 $12,320.51 $12,515.26
1/31/1994 $12,467.84 $12,658.25
2/28/1994 $12,107.35 $12,330.42
3/31/1994 $11,445.18 $11,828.20
4/30/1994 $11,497.19 $11,928.64
5/31/1994 $11,573.13 $12,031.88
6/30/1994 $11,448.90 $11,961.78
7/31/1994 $11,651.27 $12,177.66
8/31/1994 $11,681.31 $12,219.86
9/30/1994 $11,487.80 $12,040.60
10/31/1994 $11,188.37 $11,826.81
11/30/1994 $10,848.57 $11,612.67
12/31/1994 $11,180.38 $11,868.31
1/31/1995 $11,576.67 $12,207.65
2/28/1995 $11,947.46 $12,562.69
3/31/1995 $12,063.57 $12,707.08
4/30/1995 $12,042.01 $12,722.07
5/31/1995 $12,341.09 $13,128.03
6/30/1995 $12,121.84 $13,013.29
7/31/1995 $12,159.86 $13,136.40
8/31/1995 $12,268.52 $13,303.11
9/30/1995 $12,354.25 $13,387.16
10/31/1995 $12,626.21 $13,581.77
11/30/1995 $12,910.66 $13,807.41
12/31/1995 $13,046.55 $13,939.94
1/31/1996 $13,084.51 $14,045.27
2/29/1996 $12,920.00 $13,950.41
3/31/1996 $12,715.46 $13,772.19
4/30/1996 $12,715.32 $13,733.13
5/31/1996 $12,700.36 $13,727.90
6/30/1996 $12,804.96 $13,877.52
7/31/1996 $12,888.84 $14,003.07
8/31/1996 $12,861.02 $13,999.93
9/30/1996 $13,067.75 $14,195.58
10/31/1996 $13,166.89 $14,356.01
11/30/1996 $13,386.95 $14,618.98
12/31/1996 $13,307.57 $14,557.25
1/31/1997 $13,304.72 $14,584.80
2/28/1997 $13,413.15 $14,718.72
3/31/1997 $13,233.23 $14,522.37
4/30/1997 $13,348.22 $14,644.09
5/31/1997 $13,558.13 $14,864.51
6/30/1997 $13,691.60 $15,022.84
7/31/1997 $14,129.78 $15,438.91
8/31/1997 $13,953.64 $15,294.18
9/30/1997 $14,073.89 $15,475.53
10/31/1997 $14,166.23 $15,575.28
11/30/1997 $14,236.58 $15,667.00
12/31/1997 $14,435.04 $15,895.44
1/31/1998 $14,584.02 $16,059.36
2/28/1998 $14,572.08 $16,064.24
3/31/1998 $14,577.60 $16,078.54
4/30/1998 $14,463.31 $16,006.00
5/31/1998 $14,682.81 $16,259.20
6/30/1998 $14,737.08 $16,323.37
7/31/1998 $14,748.01 $16,364.18
8/31/1998 $14,989.56 $16,617.03
9/30/1998 $15,154.40 $16,824.19
10/31/1998 $15,092.72 $16,823.84
11/30/1998 $15,148.26 $16,882.78
12/31/1998 $15,141.40 $16,925.33
1/31/1999 $15,267.19 $17,126.57
2/28/1999 $15,193.87 $17,051.93
3/31/1999 $15,198.02 $17,075.65
4/30/1999 $15,223.57 $17,117.85
5/31/1999 $15,120.65 $17,018.80
6/30/1999 $14,880.83 $16,773.97
7/31/1999 $14,890.07 $16,835.00
8/31/1999 $14,654.43 $16,700.03
9/30/1999 $14,605.08 $16,707.01
10/31/1999 $14,348.75 $16,526.00
11/30/1999 $14,463.60 $16,701.78
12/31/1999 $14,279.44 $16,577.27
1/31/2000 $14,146.83 $16,505.07
2/29/2000 $14,378.24 $16,696.89
3/31/2000 $14,718.00 $17,061.70
4/30/2000 $14,626.96 $16,960.90
5/31/2000 $14,481.69 $16,872.67
6/30/2000 $14,874.41 $17,319.78
7/31/2000 $15,117.57 $17,560.77
8/31/2000 $15,356.14 $17,831.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 10/23/91.
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 shares with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in 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 $13,056 on August 31, 2000;
$12,434, including the 4.75% sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 98.22% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
10
<PAGE>
EATON VANCE OREGON MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Thomas M. Metzold
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- Following a sluggish start in 2000, the Oregon economy has gathered momentum
in recent months. Job growth averaged a healthy 4.3% in the second quarter,
paced by robust construction activity. The state's August 2000 unemployment
rate was 5.3%, down from 5.8% a year ago.
- The state's manufacturing sector experienced continued job cuts in 2000.
Producers of lumber and wood products, mobile homes, paper and industrial
machinery and equipment were among the businesses posting job losses.
- Oregon businesses have felt the impact of increasing energy rates due to
unusually warm summer temperatures and reduced river flows. Some commercial
users were forced to alter production schedules.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.39% and 4.52%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.37
on August 31, 2000 from $9.38 on August 31, 1999, and the reinvestment of
$0.488 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $10.25 from $10.26, and the reinvestment of $0.451
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.37 per
share for Class A and $10.25 per share for Class B, the Fund's distribution
rates were 5.21% and 4.41%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.48% and 8.02%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.73%
and 4.20%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.61% and 7.64%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Housing bonds represented a large portion of Oregon's municipal issuance and
were again the Portfolio's largest sector weighting at August 31, 2000, at
23.5%. The Portfolio's housing investments were well diversified throughout
the state and included city, county and state issues for single- and
multi-family projects alike.
- General obligations constituted a significant investment for the Portfolio,
at 16.2%. A sound Oregon economy has resulted in strong tax revenue growth,
improving the fiscal outlook for issuers at the state and local level.
- Industrial development revenue bonds (IDRs) provided financing for projects
benefiting some of Oregon's largest employers. The Portfolio's IDR
investments included some of the state's major paper and packaging companies,
such as James River and Georgia-Pacific.
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 25.0%
AA 40.8%
A 10.4%
BBB 12.1%
Non-Rated 11.7%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Oregon income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 45.04% 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) Rating Distributions and Portfolio holdings may not be
representative of the Portfolio's current or future investments and are
subject to change. (7) Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales
charge. SEC returns 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.
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.39% 4.52%
Five Years 5.05 4.32
Life of Fund+ 4.10 5.22
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.36% -0.47%
Five Years 4.03 3.98
Life of Fund+ 3.34 5.22
</TABLE>
+Inception date: Class A: 12/28/93; Class B: 12/24/91
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Oregon
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
December 31, 1991 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Oregon Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
12/31/1991 $10,000.00 $10,000.00
1/31/1992 $9,990.00 $10,022.81
2/29/1992 $10,053.87 $10,026.22
3/31/1992 $10,028.00 $10,029.62
4/30/1992 $10,148.37 $10,119.17
5/31/1992 $10,330.91 $10,238.34
6/30/1992 $10,506.25 $10,409.94
7/31/1992 $10,866.04 $10,722.17
8/31/1992 $10,682.44 $10,617.64
9/30/1992 $10,709.61 $10,687.10
10/31/1992 $10,403.73 $10,581.89
11/30/1992 $10,771.89 $10,771.54
12/31/1992 $10,943.10 $10,881.51
1/31/1993 $11,101.70 $11,008.17
2/28/1993 $11,550.93 $11,406.20
3/31/1993 $11,468.77 $11,285.67
4/30/1993 $11,585.75 $11,399.39
5/31/1993 $11,661.95 $11,463.40
6/30/1993 $11,873.92 $11,655.09
7/31/1993 $11,902.79 $11,670.07
8/31/1993 $12,165.23 $11,913.18
9/30/1993 $12,259.42 $12,049.03
10/31/1993 $12,253.79 $12,072.18
11/30/1993 $12,128.41 $11,965.61
12/31/1993 $12,405.46 $12,218.25
1/31/1994 $12,562.14 $12,357.85
2/28/1994 $12,191.61 $12,037.79
3/31/1994 $11,487.62 $11,547.50
4/30/1994 $11,538.91 $11,645.56
5/31/1994 $11,625.47 $11,746.34
6/30/1994 $11,501.64 $11,677.90
7/31/1994 $11,713.85 $11,888.66
8/31/1994 $11,743.25 $11,929.86
9/30/1994 $11,480.55 $11,754.85
10/31/1994 $11,171.01 $11,546.14
11/30/1994 $10,856.54 $11,337.08
12/31/1994 $11,232.01 $11,586.65
1/31/1995 $11,659.83 $11,917.94
2/28/1995 $12,098.09 $12,264.56
3/31/1995 $12,176.28 $12,405.52
4/30/1995 $12,165.60 $12,420.16
5/31/1995 $12,557.67 $12,816.48
6/30/1995 $12,350.88 $12,704.46
7/31/1995 $12,411.56 $12,824.65
8/31/1995 $12,591.15 $12,987.40
9/30/1995 $12,663.22 $13,069.46
10/31/1995 $12,882.94 $13,259.45
11/30/1995 $13,114.77 $13,479.74
12/31/1995 $13,248.50 $13,609.12
1/31/1996 $13,310.03 $13,711.95
2/29/1996 $13,158.80 $13,619.34
3/31/1996 $12,967.83 $13,445.35
4/30/1996 $12,941.72 $13,407.22
5/31/1996 $12,938.77 $13,402.11
6/30/1996 $13,053.98 $13,548.18
7/31/1996 $13,123.45 $13,670.75
8/31/1996 $13,069.65 $13,667.69
9/30/1996 $13,260.53 $13,858.70
10/31/1996 $13,344.95 $14,015.32
11/30/1996 $13,510.22 $14,272.05
12/31/1996 $13,469.48 $14,211.78
1/31/1997 $13,413.87 $14,238.68
2/28/1997 $13,546.38 $14,369.42
3/31/1997 $13,393.97 $14,177.73
4/30/1997 $13,454.21 $14,296.56
5/31/1997 $13,608.23 $14,511.75
6/30/1997 $13,712.92 $14,666.33
7/31/1997 $14,052.17 $15,072.52
8/31/1997 $14,010.28 $14,931.22
9/30/1997 $14,088.16 $15,108.27
10/31/1997 $14,191.70 $15,205.65
11/30/1997 $14,260.10 $15,295.20
12/31/1997 $14,441.75 $15,518.22
1/31/1998 $14,547.55 $15,678.24
2/28/1998 $14,589.29 $15,683.01
3/31/1998 $14,621.18 $15,696.97
4/30/1998 $14,562.29 $15,626.15
5/31/1998 $14,750.59 $15,873.34
6/30/1998 $14,789.41 $15,935.99
7/31/1998 $14,826.95 $15,975.83
8/31/1998 $15,022.47 $16,222.68
9/30/1998 $15,170.01 $16,424.92
10/31/1998 $15,165.94 $16,424.58
11/30/1998 $15,235.64 $16,482.12
12/31/1998 $15,257.87 $16,523.66
1/31/1999 $15,368.65 $16,720.12
2/28/1999 $15,311.36 $16,647.26
3/31/1999 $15,344.64 $16,670.41
4/30/1999 $15,399.25 $16,711.61
5/31/1999 $15,327.22 $16,614.91
6/30/1999 $15,091.59 $16,375.89
7/31/1999 $15,087.08 $16,435.48
8/31/1999 $14,884.51 $16,303.71
9/30/1999 $14,793.12 $16,310.52
10/31/1999 $14,541.18 $16,133.81
11/30/1999 $14,626.01 $16,305.41
12/31/1999 $14,445.19 $16,183.86
1/31/2000 $14,330.20 $16,113.38
2/29/2000 $14,588.75 $16,300.65
3/31/2000 $14,924.47 $16,656.79
4/30/2000 $14,835.68 $16,558.39
5/31/2000 $14,678.38 $16,472.25
6/30/2000 $15,066.32 $16,908.75
7/31/2000 $15,322.02 $17,144.02
8/31/2000 $15,558.01 $17,408.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 12/24/91.
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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 12/28/93 at net asset value would have
grown to $13,079 on August 31, 2000; $12,456, including the 4.75% sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest
directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.60% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
11
<PAGE>
EATON VANCE SOUTH CAROLINA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Thomas J. Fetter
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- The South Carolina economy has remained brisk in 2000, although the pace of
growth in manufacturing and services has eased somewhat. Light industry has
been especially strong, adding to an already tight labor market. The state's
jobless rate was 4.20% in August 2000, down from 4.5% a year ago.
- Network leader Cisco Systems is expanding its Cisco Networking Academy to
more South Carolina public schools. The industry-certified program provides
technical education that gives students the skills needed to move directly
into high-tech professions.
- South Carolina is continuing its efforts to further its foreign trade ties.
A trade delegation recently traveled to Queensland to promote enhanced trade
and tourism with Australia.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 4.30% and 3.32%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.20
on August 31, 2000 from $9.32 on August 31, 1999, and the reinvestment of
$0.498 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $9.76 from $9.90, and the reinvestment of $0.452
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.20 per
share for Class A and $9.76 per share for Class B, the Fund's distribution
rates were 5.41% and 4.63%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.63% and 8.24%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.86%
and 4.20%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.65% and 7.47%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Industrial development revenue bonds (IDRs) were the Portfolio's largest
sector weighting at August 31, 2000, at 18.4%. The Portfolio's bonds financed
transportation and pollution control projects for companies in the chemicals,
oil, coal, steel and paper industries.
- Insured(6) water and sewer bonds were a major emphasis of the Portfolio.
South Carolina's population surge in recent years has necessitated the
issuance of more bonds to fund water infrastructure and resulted in new
opportunities for investors.
- As part of its strategy, the Portfolio balanced its higher-yielding bonds
with insured(6) electric utilities. These issues provided, in management's
view, excellent quality for the Portfolio and increased interest rate
sensitivity in the event of a market rally during the period.
RATING DISTRIBUTION(7)
--------------------------------------------------------------------------------
[PIE CHART]
<TABLE>
<S> <C>
AAA 42.4%
AA 15.7%
A 16.3%
BBB 19.1%
Non-Rated 6.5%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and South Carolina income tax. (3)
The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.83% 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) Private insurance does not decrease the risk of loss of
principal associated with these investments. (7) Rating Distributions and
Portfolio holdings may not be representative of the Portfolio's current
or future investments and are subject to change. (8) Returns are
historical and are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC returns for Class A reflect the
maximum 4.75% sales charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(8) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 4.30% 3.32%
Five Years 4.73 4.10
Life of Fund+ 3.79 4.48
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year -0.60% -1.61%
Five Years 3.72 3.77
Life of Fund 3.02 4.48
</TABLE>
Inception date: Class A: 2/14/94; Class B: 10/2/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance South
Carolina Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
October 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance South Carolina Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
10/31/1992 $10,000.00 $10,000.00
11/30/1992 $10,285.91 $10,179.22
12/31/1992 $10,434.48 $10,283.15
1/31/1993 $10,576.78 $10,402.84
2/28/1993 $11,064.59 $10,778.98
3/31/1993 $10,940.85 $10,665.08
4/30/1993 $11,063.72 $10,772.55
5/31/1993 $11,115.20 $10,833.04
6/30/1993 $11,268.13 $11,014.19
7/31/1993 $11,263.51 $11,028.35
8/31/1993 $11,539.73 $11,258.08
9/30/1993 $11,695.87 $11,386.47
10/31/1993 $11,679.58 $11,408.35
11/30/1993 $11,535.65 $11,307.64
12/31/1993 $11,834.15 $11,546.38
1/31/1994 $11,941.09 $11,678.30
2/28/1994 $11,570.96 $11,375.85
3/31/1994 $10,911.68 $10,912.51
4/30/1994 $10,982.76 $11,005.18
5/31/1994 $11,054.85 $11,100.42
6/30/1994 $10,956.84 $11,035.75
7/31/1994 $11,161.54 $11,234.92
8/31/1994 $11,189.46 $11,273.85
9/30/1994 $11,002.59 $11,108.47
10/31/1994 $10,714.01 $10,911.23
11/30/1994 $10,409.39 $10,713.67
12/31/1994 $10,692.14 $10,949.52
1/31/1995 $11,059.43 $11,262.59
2/28/1995 $11,402.18 $11,590.14
3/31/1995 $11,535.26 $11,723.35
4/30/1995 $11,501.25 $11,737.19
5/31/1995 $11,810.09 $12,111.72
6/30/1995 $11,633.92 $12,005.86
7/31/1995 $11,669.64 $12,119.44
8/31/1995 $11,820.38 $12,273.24
9/30/1995 $11,890.53 $12,350.78
10/31/1995 $12,127.38 $12,530.33
11/30/1995 $12,400.08 $12,738.51
12/31/1995 $12,542.17 $12,860.77
1/31/1996 $12,602.39 $12,957.95
2/29/1996 $12,420.11 $12,870.43
3/31/1996 $12,235.66 $12,706.01
4/30/1996 $12,186.56 $12,669.97
5/31/1996 $12,196.28 $12,665.14
6/30/1996 $12,334.10 $12,803.18
7/31/1996 $12,476.76 $12,919.01
8/31/1996 $12,401.37 $12,916.12
9/30/1996 $12,600.42 $13,096.62
10/31/1996 $12,733.62 $13,244.63
11/30/1996 $12,932.99 $13,487.24
12/31/1996 $12,857.46 $13,430.29
1/31/1997 $12,893.31 $13,455.71
2/28/1997 $13,010.90 $13,579.27
3/31/1997 $12,851.66 $13,398.11
4/30/1997 $12,924.49 $13,510.41
5/31/1997 $13,113.95 $13,713.76
6/30/1997 $13,242.92 $13,859.84
7/31/1997 $13,548.23 $14,243.70
8/31/1997 $13,444.53 $14,110.17
9/30/1997 $13,573.81 $14,277.49
10/31/1997 $13,663.11 $14,369.51
11/30/1997 $13,744.47 $14,454.13
12/31/1997 $13,922.57 $14,664.89
1/31/1998 $14,040.00 $14,816.11
2/28/1998 $14,069.11 $14,820.62
3/31/1998 $14,101.58 $14,833.81
4/30/1998 $14,005.97 $14,766.88
5/31/1998 $14,230.87 $15,000.48
6/30/1998 $14,270.29 $15,059.69
7/31/1998 $14,294.99 $15,097.33
8/31/1998 $14,514.25 $15,330.61
9/30/1998 $14,632.47 $15,521.73
10/31/1998 $14,587.14 $15,521.41
11/30/1998 $14,640.77 $15,575.79
12/31/1998 $14,634.41 $15,615.05
1/31/1999 $14,769.15 $15,800.70
2/28/1999 $14,671.43 $15,731.84
3/31/1999 $14,689.45 $15,753.72
4/30/1999 $14,714.22 $15,792.66
5/31/1999 $14,643.48 $15,701.28
6/30/1999 $14,189.94 $15,475.40
7/31/1999 $14,185.07 $15,531.71
8/31/1999 $13,987.20 $15,407.19
9/30/1999 $13,940.10 $15,413.62
10/31/1999 $13,665.82 $15,246.63
11/30/1999 $13,748.09 $15,408.80
12/31/1999 $13,571.91 $15,293.93
1/31/2000 $13,459.88 $15,227.32
2/29/2000 $13,654.09 $15,404.29
3/31/2000 $13,966.90 $15,740.85
4/30/2000 $13,865.82 $15,647.87
5/31/2000 $13,756.13 $15,566.46
6/30/2000 $14,105.08 $15,978.96
7/31/2000 $14,280.74 $16,201.29
8/31/2000 $14,451.82 $16,451.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 10/2/92.
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 shares with that of the Lehman Brothers Municipal Bond
Index, a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in 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 2/14/94 at net asset value would have grown
to $12,773 on August 31, 2000; $12,151 including the 4.75% sales charge.
The Index's total return does not reflect commissions or expenses that
would have been incurred if an investor individually purchased or sold the
securities represented in the Index. It is not possible to invest directly
in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.35% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
12
<PAGE>
EATON VANCE TENNESSEE MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- Tennessee's economy has expanded moderately in 2000, fueled by new technology
and auto jobs and a strong service sector. The pace of residential
construction has cooled somewhat, but commercial activity remains quite
strong. Tennessee's August 2000 jobless rate was 3.6%, down from 4.0% a year
ago.
- Reflecting the growing allure of Tennessee for technology companies, Dell
Computer announced that it would manufacture its Inspiron notebook PCs at the
company's middle-Tennessee operation. Previously, the facility produced only
desktops and service operations.
- Opry Mills, a 1.2 million-square feet entertainment and shopping mall located
in Nashville, opened to rave reviews in May. When fully staffed, it is
estimated that the facility will produce 3,500 new jobs.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 5.57% and 4.82%, respectively.(1) For Class A, this
return resulted from an increase in net asset value (NAV) per share to $9.48
on August 31, 2000 from $9.46 on August 31, 1999, and the reinvestment of
$0.482 per share in tax-free income.(2) For Class B, this return resulted
from an increase in NAV to $10.32 from $10.28, and the reinvestment of
$0.434 per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.48 per
share for Class A and $10.32 per share for Class B, the Fund's distribution
rates were 5.04% and 4.22%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 8.88% and 7.43%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.81%
and 4.27%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.47% and 7.52%, respectively.(4)
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Industrial development revenue bonds (IDRs), at 22.9%, was the Portfolio's
largest sector weighting at August 31, 2000. The Portfolio's bonds included a
number of the nation's best-known companies, including automaker Saturn
Corp., air freight leader Federal Express and chemicals giant E.I. duPont de
Nemours.
- Housing bonds, at 10.4%, represented a measure of stability during a period
of fluctuating interest rates. The Portfolio's holdings included projects
from the Tennessee Housing Development Agency as well as local issues from
Nashville and Knoxville.
- The Portfolio owned several bonds that financed new luggage facilities and
gate expansions at Memphis-Shelby County Airport. Northwest Airlines'
decision to increase flights to its Memphis hub is expected to inject an
additional $350 million into the local economy.
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
AAA 41.1%
AA 22.3%
A 18.4%
BBB 12.9%
Non-Rated 5.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Tennessee income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.22% 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) Rating Distributions and Portfolio holdings may not be
representative of the Portfolio's current or future investments and are
subject to change. (7) Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales
charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 5.57% 4.82%
Five Years 5.62 4.86
Life of Fund+ 4.38 5.30
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year 0.57% -0.18%
Five Years 4.58 4.53
Life of Fund+ 3.62 5.30
</TABLE>
+Inception date: Class A: 12/9/93; Class B: 8/25/92
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Tennessee
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
August 31, 1992 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Tennessee Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
8/31/1992 $10,000.00 $10,000.00
9/30/1992 $9,970.12 $10,065.42
10/31/1992 $9,708.95 $9,966.33
11/30/1992 $10,109.90 $10,144.95
12/31/1992 $10,276.34 $10,248.52
1/31/1993 $10,436.66 $10,367.82
2/28/1993 $10,864.58 $10,742.69
3/31/1993 $10,733.39 $10,629.17
4/30/1993 $10,905.67 $10,736.28
5/31/1993 $11,008.27 $10,796.56
6/30/1993 $11,241.73 $10,977.10
7/31/1993 $11,237.67 $10,991.21
8/31/1993 $11,519.59 $11,220.18
9/30/1993 $11,662.21 $11,348.13
10/31/1993 $11,656.66 $11,369.93
11/30/1993 $11,504.91 $11,269.56
12/31/1993 $11,766.81 $11,507.50
1/31/1994 $11,917.20 $11,638.98
2/28/1994 $11,550.64 $11,337.54
3/31/1994 $10,875.65 $10,875.77
4/30/1994 $10,903.77 $10,968.12
5/31/1994 $11,020.83 $11,063.05
6/30/1994 $10,913.66 $10,998.59
7/31/1994 $11,173.86 $11,197.09
8/31/1994 $11,203.10 $11,235.89
9/30/1994 $10,962.85 $11,071.06
10/31/1994 $10,632.59 $10,874.49
11/30/1994 $10,308.70 $10,677.59
12/31/1994 $10,637.20 $10,912.65
1/31/1995 $11,073.16 $11,224.67
2/28/1995 $11,484.80 $11,551.12
3/31/1995 $11,550.10 $11,683.88
4/30/1995 $11,518.50 $11,697.67
5/31/1995 $11,862.49 $12,070.93
6/30/1995 $11,642.07 $11,965.43
7/31/1995 $11,713.96 $12,078.63
8/31/1995 $11,888.61 $12,231.91
9/30/1995 $11,959.74 $12,309.20
10/31/1995 $12,196.73 $12,488.13
11/30/1995 $12,469.32 $12,695.61
12/31/1995 $12,647.73 $12,817.47
1/31/1996 $12,672.95 $12,914.32
2/29/1996 $12,516.90 $12,827.09
3/31/1996 $12,334.59 $12,663.22
4/30/1996 $12,311.22 $12,627.31
5/31/1996 $12,322.27 $12,622.50
6/30/1996 $12,434.87 $12,760.07
7/31/1996 $12,552.25 $12,875.51
8/31/1996 $12,501.67 $12,872.63
9/30/1996 $12,699.60 $13,052.53
10/31/1996 $12,819.54 $13,200.04
11/30/1996 $13,030.18 $13,441.83
12/31/1996 $12,979.82 $13,385.07
1/31/1997 $12,977.66 $13,410.40
2/28/1997 $13,094.36 $13,533.54
3/31/1997 $12,935.73 $13,353.00
4/30/1997 $13,057.63 $13,464.92
5/31/1997 $13,232.08 $13,667.59
6/30/1997 $13,358.96 $13,813.17
7/31/1997 $13,725.33 $14,195.74
8/31/1997 $13,620.97 $14,062.66
9/30/1997 $13,734.68 $14,229.41
10/31/1997 $13,808.63 $14,321.13
11/30/1997 $13,900.48 $14,405.46
12/31/1997 $14,075.69 $14,615.51
1/31/1998 $14,164.40 $14,766.23
2/28/1998 $14,178.10 $14,770.72
3/31/1998 $14,208.73 $14,783.86
4/30/1998 $14,125.24 $14,717.16
5/31/1998 $14,320.01 $14,949.97
6/30/1998 $14,330.70 $15,008.98
7/31/1998 $14,353.35 $15,046.50
8/31/1998 $14,555.32 $15,278.99
9/30/1998 $14,697.68 $15,469.47
10/31/1998 $14,652.98 $15,469.15
11/30/1998 $14,719.98 $15,523.35
12/31/1998 $14,727.57 $15,562.47
1/31/1999 $14,847.89 $15,747.50
2/28/1999 $14,805.16 $15,678.87
3/31/1999 $14,808.06 $15,700.68
4/30/1999 $14,858.72 $15,739.48
5/31/1999 $14,801.02 $15,648.41
6/30/1999 $14,585.71 $15,423.29
7/31/1999 $14,593.38 $15,479.41
8/31/1999 $14,381.97 $15,355.31
9/30/1999 $14,319.87 $15,361.72
10/31/1999 $14,131.25 $15,195.29
11/30/1999 $14,239.29 $15,356.91
12/31/1999 $14,091.48 $15,242.43
1/31/2000 $13,978.38 $15,176.05
2/29/2000 $14,182.82 $15,352.42
3/31/2000 $14,475.65 $15,687.85
4/30/2000 $14,402.24 $15,595.18
5/31/2000 $14,220.08 $15,514.05
6/30/2000 $14,634.87 $15,925.15
7/31/2000 $14,849.74 $16,146.74
8/31/2000 $15,074.87 $16,396.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 8/25/92.
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 shares with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in 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
12/9/93 at net asset value would have grown to $13,340 on August 31, 2000;
$12,705, including the 4.75% sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.66% of the total dividends paid by the Fund from net
investment income during the year ended August 31, 2000 was designated as
an exempt-interest dividend.
--------------------------------------------------------------------------------
13
<PAGE>
EATON VANCE VIRGINIA MUNICIPALS FUND as of August 31, 2000
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
--------------------------------------------------------------------------------
- Virginia has produced impressive employment growth in 2000. Higher wages
helped fuel strong consumer spending, contributing to a rise in purchases by
Virginians of durable goods and housing. The Commonwealth's August, 2000
jobless rate was 2.5%, down from 2.8% a year ago.
- Northern Virginia remained a major source of employment, adding new jobs at a
very healthy 4% annual rate. The area continued to witness momentum in
technology, professional services, air transportation, construction and
telecommunications.
- Virginia's construction sector has registered strong employment growth in
2000. Despite the prolonged rise in interest rates, single-family housing
permits rose to an 11-year high in the first quarter alone.
THE FUND
--------------------------------------------------------------------------------
- During the year ended August 31, 2000, the Fund's Class A and Class B shares
had total returns of 4.66% and 3.80%, respectively.(1) For Class A, this
return resulted from a decrease in net asset value (NAV) per share to $9.22
on August 31, 2000 from $9.30 on August 31, 1999, and the reinvestment of
$0.489 per share in tax-free income.(2) For Class B, this return resulted
from a decrease in NAV to $10.20 from $10.29, and the reinvestment of $0.461
per share in tax-free income.(2)
- Based on the most recent dividends and NAVs on August 31, 2000 of $9.22 per
share for Class A and $10.20 per share for Class B, the Fund's distribution
rates were 5.26% and 4.52%, respectively.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.24% and 7.94%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at August 31, 2000 were 4.79%
and 4.29%, respectively.(5) The SEC 30-day yields of Class A and Class B
are equivalent to taxable yields of 8.41% and 7.54%, respectively (4).
MANAGEMENT UPDATE
--------------------------------------------------------------------------------
- Industrial development revenue bonds (IDRs), at 22.0%, were again the
Portfolio's largest weighting at August 31, 2000. The Portfolio's IDR
holdings have been diversified to include non-industrial companies, such as
Anheuser-Busch Co., the nation's leading brewer.
- As the outlook for interest rates improved somewhat, the Portfolio reduced
its exposure to escrowed bonds in favor of bonds management viewed as having
more upside potential. The proceeds were generally directed at general
obligations and water and sewer bonds.
- The Portfolio continued its efforts to upgrade call protection. Improving
call protection may help the Portfolio participate more fully in the event of
a bond market rally. The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 8.41% and 7.54%, respectively.(4)
RATING DISTRIBUTION(6)
--------------------------------------------------------------------------------
<TABLE>
<S> <C>
AAA 51.1%
AA 11.9%
A 12.4%
BBB 14.2%
BB 4.1%
Non-Rated 6.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for the Fund's
Class A shares or the applicable contingent deferred sales charges (CDSC)
for Class B shares. (2) A portion of the Fund's income may be subject to
federal and/or alternative minimum tax and Virginia income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the NAV. (4) Taxable-equivalent rates assume
maximum 43.07% 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) Rating Distributions and Portfolio holdings may not be
representative of the Portfolio's current or future investments and are
subject to change. (7) Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales
charge. SEC returns 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.
--------------------------------------------------------------------------------
FUND INFORMATION
as of August 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) Class A Class B
----------------------------------------------------------------------------
<S> <C> <C>
Average Annual Total Returns (at net asset value)
----------------------------------------------------------------------------
One Year 4.66% 3.80%
Five Years 5.13 4.42
Life of Fund 4.06 5.32
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
One Year -0.28% -1.16%
Five Years 4.10 4.08
Life of Fund 3.31 5.32
</TABLE>
Inception date: Class A: 12/17/93; Class B: 7/26/91
Comparison of Change in Value of a $10,000 Investment in Eaton Vance Virginia
Municipals Fund Class B vs. the Lehman Brothers Municipal Bond Index*
July 31, 1991 - August 31, 2000
<TABLE>
<CAPTION>
Date Eaton Vance Virginia Municipals Fund Class B Lehman Brothers Municipal Bond Index*
<S> <C> <C>
7/31/1991 $10,000.00 $10,000.00
8/31/1991 $10,079.84 $10,131.83
9/30/1991 $10,261.87 $10,263.66
10/31/1991 $10,374.14 $10,356.12
11/30/1991 $10,368.91 $10,385.02
12/31/1991 $10,654.90 $10,607.87
1/31/1992 $10,606.46 $10,632.07
2/29/1992 $10,617.56 $10,635.68
3/31/1992 $10,563.74 $10,639.29
4/30/1992 $10,680.87 $10,734.28
5/31/1992 $10,830.47 $10,860.69
6/30/1992 $11,035.84 $11,042.73
7/31/1992 $11,439.51 $11,373.93
8/31/1992 $11,223.52 $11,263.05
9/30/1992 $11,201.81 $11,336.73
10/31/1992 $10,891.51 $11,225.12
11/30/1992 $11,284.94 $11,426.30
12/31/1992 $11,414.47 $11,542.96
1/31/1993 $11,538.52 $11,677.32
2/28/1993 $11,995.00 $12,099.54
3/31/1993 $11,836.81 $11,971.68
4/30/1993 $11,971.87 $12,092.32
5/31/1993 $12,009.34 $12,160.22
6/30/1993 $12,197.60 $12,363.56
7/31/1993 $12,185.66 $12,379.46
8/31/1993 $12,437.41 $12,637.34
9/30/1993 $12,582.44 $12,781.45
10/31/1993 $12,578.91 $12,806.01
11/30/1993 $12,428.37 $12,692.96
12/31/1993 $12,734.94 $12,960.96
1/31/1994 $12,874.44 $13,109.04
2/28/1994 $12,508.07 $12,769.53
3/31/1994 $11,905.22 $12,249.43
4/30/1994 $11,948.51 $12,353.45
5/31/1994 $11,992.66 $12,460.36
6/30/1994 $11,856.25 $12,387.76
7/31/1994 $12,040.70 $12,611.33
8/31/1994 $12,085.23 $12,655.04
9/30/1994 $11,913.95 $12,469.39
10/31/1994 $11,610.86 $12,247.99
11/30/1994 $11,290.50 $12,026.22
12/31/1994 $11,605.55 $12,290.97
1/31/1995 $12,010.76 $12,642.40
2/28/1995 $12,414.39 $13,010.08
3/31/1995 $12,546.08 $13,159.61
4/30/1995 $12,525.41 $13,175.14
5/31/1995 $12,918.16 $13,595.55
6/30/1995 $12,683.32 $13,476.72
7/31/1995 $12,723.23 $13,604.22
8/31/1995 $12,885.29 $13,776.86
9/30/1995 $12,973.93 $13,863.91
10/31/1995 $13,227.02 $14,065.45
11/30/1995 $13,505.47 $14,299.13
12/31/1995 $13,696.02 $14,436.38
1/31/1996 $13,748.66 $14,545.45
2/29/1996 $13,556.45 $14,447.21
3/31/1996 $13,336.11 $14,262.65
4/30/1996 $13,298.43 $14,222.20
5/31/1996 $13,323.24 $14,216.78
6/30/1996 $13,456.53 $14,371.73
7/31/1996 $13,555.73 $14,501.75
8/31/1996 $13,488.71 $14,498.50
9/30/1996 $13,713.23 $14,701.12
10/31/1996 $13,828.09 $14,867.27
11/30/1996 $14,066.31 $15,139.60
12/31/1996 $13,999.44 $15,075.67
1/31/1997 $13,957.12 $15,104.20
2/28/1997 $14,081.74 $15,242.89
3/31/1997 $13,885.66 $15,039.55
4/30/1997 $14,044.01 $15,165.60
5/31/1997 $14,245.00 $15,393.87
6/30/1997 $14,368.08 $15,557.84
7/31/1997 $14,760.34 $15,988.73
8/31/1997 $14,609.10 $15,838.84
9/30/1997 $14,746.10 $16,026.66
10/31/1997 $14,840.76 $16,129.95
11/30/1997 $14,926.99 $16,224.94
12/31/1997 $15,129.64 $16,461.52
1/31/1998 $15,254.20 $16,631.27
2/28/1998 $15,242.81 $16,636.33
3/31/1998 $15,291.28 $16,651.14
4/30/1998 $15,189.84 $16,576.01
5/31/1998 $15,442.31 $16,838.23
6/30/1998 $15,455.64 $16,904.68
7/31/1998 $15,467.42 $16,946.94
8/31/1998 $15,685.34 $17,208.80
9/30/1998 $15,810.56 $17,423.34
10/31/1998 $15,764.08 $17,422.98
11/30/1998 $15,837.14 $17,484.02
12/31/1998 $15,832.01 $17,528.08
1/31/1999 $15,976.55 $17,736.48
2/28/1999 $15,933.18 $17,659.19
3/31/1999 $15,895.13 $17,683.75
4/30/1999 $15,952.60 $17,727.45
5/31/1999 $15,849.86 $17,624.88
6/30/1999 $15,637.38 $17,371.33
7/31/1999 $15,633.86 $17,434.54
8/31/1999 $15,411.01 $17,294.76
9/30/1999 $15,332.75 $17,301.98
10/31/1999 $15,043.63 $17,114.53
11/30/1999 $15,162.55 $17,296.57
12/31/1999 $14,946.70 $17,167.62
1/31/2000 $14,798.69 $17,092.86
2/29/2000 $15,051.42 $17,291.51
3/31/2000 $15,430.02 $17,669.30
4/30/2000 $15,324.10 $17,564.92
5/31/2000 $15,162.76 $17,473.54
6/30/2000 $15,564.68 $17,936.58
7/31/2000 $15,767.56 $18,186.15
8/31/2000 $15,996.76 $18,466.00
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 7/26/91.
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 shares with that of the Lehman Brothers Municipal Bond Index, a broad-based,
unmanaged market index. Returns are calculated by determining the percentage
change in 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
12/17/93 at net asset value would have grown to $13,064 on August 31, 2000;
$12,442, including the 4.75% sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It is
not possible to invest directly in an Index.
--------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 97.13% of the total dividends paid by the Fund from net investment
income during the year ended August 31, 2000 was designated as an
exempt-interest dividend.
--------------------------------------------------------------------------------
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
Assets
--------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $65,914,858 $41,295,515 $62,788,116 $80,960,351
Unrealized appreciation 738,502 937,688 278,791 747,448
--------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $66,653,360 $42,233,203 $63,066,907 $81,707,799
--------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 3,224 $ -- $ 821 $ 37,359
--------------------------------------------------------------------------------------------------
TOTAL ASSETS $66,656,584 $42,233,203 $63,067,728 $81,745,158
--------------------------------------------------------------------------------------------------
Liabilities
--------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 376,956 $ 20,556 $ 33,116 $ 94,975
Dividends payable 132,782 88,678 139,178 158,029
Accrued expenses 45,312 27,276 36,399 44,737
--------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 555,050 $ 136,510 $ 208,693 $ 297,741
--------------------------------------------------------------------------------------------------
NET ASSETS $66,101,534 $42,096,693 $62,859,035 $81,447,417
--------------------------------------------------------------------------------------------------
Sources of Net Assets
--------------------------------------------------------------------------------------------------
Paid-in capital $67,207,277 $43,159,236 $68,379,119 $82,912,597
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (1,711,463) (1,930,720) (5,659,697) (2,054,599)
Accumulated distributions in excess of
net investment income (132,782) (69,511) (139,178) (158,029)
Net unrealized appreciation from
Portfolio (computed on the basis
of identified cost) 738,502 937,688 278,791 747,448
--------------------------------------------------------------------------------------------------
TOTAL $66,101,534 $42,096,693 $62,859,035 $81,447,417
--------------------------------------------------------------------------------------------------
Class A Shares
--------------------------------------------------------------------------------------------------
NET ASSETS $ 6,197,690 $ 4,756,820 $ 7,613,864 $ 5,857,730
SHARES OUTSTANDING 658,845 499,806 844,499 639,765
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.41 $ 9.52 $ 9.02 $ 9.16
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.88 $ 9.99 $ 9.47 $ 9.62
--------------------------------------------------------------------------------------------------
Class B Shares
--------------------------------------------------------------------------------------------------
NET ASSETS $59,903,844 $37,339,873 $55,245,171 $75,589,687
SHARES OUTSTANDING 5,789,379 3,655,736 5,735,777 7,658,492
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.35 $ 10.21 $ 9.63 $ 9.87
--------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
Assets
-----------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $28,322,709 $85,179,861 $57,941,938 $105,386,236
Unrealized appreciation
(depreciation) 118,306 (3,504,022) 984,617 5,106,867
-----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $28,441,015 $81,675,839 $58,926,555 $110,493,103
-----------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ -- $ 50,735 $ -- $ 5,027
-----------------------------------------------------------------------------------------------------------
TOTAL ASSETS $28,441,015 $81,726,574 $58,926,555 $110,498,130
-----------------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 36,344 $ 69,507 $ 114,906 $ 281,323
Dividends payable 52,319 140,002 115,539 232,926
Accrued expenses 8,007 45,370 32,839 44,060
-----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 96,670 $ 254,879 $ 263,284 $ 558,309
-----------------------------------------------------------------------------------------------------------
NET ASSETS $28,344,345 $81,471,695 $58,663,271 $109,939,821
-----------------------------------------------------------------------------------------------------------
Sources of Net Assets
-----------------------------------------------------------------------------------------------------------
Paid-in capital $30,793,146 $85,163,930 $58,090,484 $113,854,334
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (2,514,788) (48,211) (620,229) (8,789,648)
Accumulated undistributed (distributions
in excess of) net investment income (52,319) (140,002) 208,399 (231,732)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis
of identified cost) 118,306 (3,504,022) 984,617 5,106,867
-----------------------------------------------------------------------------------------------------------
TOTAL $28,344,345 $81,471,695 $58,663,271 $109,939,821
-----------------------------------------------------------------------------------------------------------
Class A Shares
-----------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,565,800 $ 3,199,649 $ 4,132,380 $ 12,695,838
SHARES OUTSTANDING 494,112 349,129 432,913 1,370,509
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.24 $ 9.16 $ 9.55 $ 9.26
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.70 $ 9.62 $ 10.03 $ 9.72
-----------------------------------------------------------------------------------------------------------
Class B Shares
-----------------------------------------------------------------------------------------------------------
NET ASSETS $23,778,545 $78,272,046 $54,530,891 $ 97,243,983
SHARES OUTSTANDING 2,433,447 7,826,734 5,167,335 9,755,383
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.77 $ 10.00 $ 10.55 $ 9.97
-----------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $82,058,361 $34,850,890 $43,776,951 $113,980,426
Unrealized appreciation 1,654,047 218,819 1,238,202 1,795,609
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $83,712,408 $35,069,709 $45,015,153 $115,776,035
---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 32,603 $ 36,378 $ 20,970 $ 57,388
---------------------------------------------------------------------------------------------------------
TOTAL ASSETS $83,745,011 $35,106,087 $45,036,123 $115,833,423
---------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 324,768 $ 1,052 $ 1,436 $ 247,809
Dividends payable 165,256 72,017 82,024 227,520
Payable to affiliate for Trustees' fees -- 70 -- 140
Accrued expenses 39,387 27,690 23,361 63,352
---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 529,411 $ 100,829 $ 106,821 $ 538,821
---------------------------------------------------------------------------------------------------------
NET ASSETS $83,215,600 $35,005,258 $44,929,302 $115,294,602
---------------------------------------------------------------------------------------------------------
Sources of Net Assets
---------------------------------------------------------------------------------------------------------
Paid-in capital $84,868,017 $38,281,232 $45,260,117 $117,710,754
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (3,282,213) (3,511,430) (1,588,705) (3,984,241)
Accumulated undistributed (distributions
in excess of) net investment income (24,251) 16,637 19,688 (227,520)
Net unrealized appreciation from
Portfolio (computed on the basis
of identified cost) 1,654,047 218,819 1,238,202 1,795,609
---------------------------------------------------------------------------------------------------------
TOTAL $83,215,600 $35,005,258 $44,929,302 $115,294,602
---------------------------------------------------------------------------------------------------------
Class A Shares
---------------------------------------------------------------------------------------------------------
NET ASSETS $ 3,459,257 $ 1,553,183 $ 3,557,088 $ 3,632,360
SHARES OUTSTANDING 368,989 168,807 375,237 394,120
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.37 $ 9.20 $ 9.48 $ 9.22
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.84 $ 9.66 $ 9.95 $ 9.68
---------------------------------------------------------------------------------------------------------
Class B Shares
---------------------------------------------------------------------------------------------------------
NET ASSETS $79,756,343 $33,452,075 $41,372,214 $111,662,242
SHARES OUTSTANDING 7,780,449 3,428,420 4,009,778 10,950,698
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.25 $ 9.76 $ 10.32 $ 10.20
---------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
Investment Income
--------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $4,333,898 $2,750,197 $3,913,675 $ 5,395,780
Expenses allocated from Portfolio (346,468) (203,582) (300,159) (430,259)
--------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $3,987,430 $2,546,615 $3,613,516 $ 4,965,521
--------------------------------------------------------------------------------------------------
Expenses
--------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,206 $ 216 $ 2,206 $ 2,211
Distribution and service fees
Class A 8,994 8,557 5,690 6,022
Class B 619,612 377,919 538,048 778,272
Legal and accounting services 25,488 23,014 24,013 25,189
Printing and postage 8,454 5,724 8,546 10,485
Custodian fee 10,893 7,407 7,768 11,846
Transfer and dividend disbursing agent
fees 60,488 33,637 50,089 66,162
Registration fees 2,927 4,314 2,304 2,415
Miscellaneous 11,121 10,032 11,524 11,894
--------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 750,183 $ 470,820 $ 650,188 $ 914,496
--------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $3,237,247 $2,075,795 $2,963,328 $ 4,051,025
--------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
--------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (299,131) $ (328,997) $ (243,029) $ (116,631)
Financial futures contracts (12,185) 2,054 (29,176) (16,122)
--------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (311,316) $ (326,943) $ (272,205) $ (132,753)
--------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (243,545) $ 178,231 $ 185,594 $(2,302,504)
--------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (243,545) $ 178,231 $ 185,594 $(2,302,504)
--------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (554,861) $ (148,712) $ (86,611) $(2,435,257)
--------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $2,682,386 $1,927,083 $2,876,717 $ 1,615,768
--------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $1,772,277 $ 4,864,328 $ 3,828,721 $7,123,119
Expenses allocated from Portfolio (103,330) (417,078) (293,135) (562,277)
-----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $1,668,947 $ 4,447,250 $ 3,535,586 $6,560,842
-----------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 221 $ 2,211 $ 2,221 $ 4,412
Distribution and service fees
Class A 6,381 1,997 5,077 25,327
Class B 239,668 766,685 531,755 946,885
Legal and accounting services 13,925 25,189 24,111 26,113
Printing and postage 3,272 10,868 7,903 10,934
Custodian fee 4,941 11,668 9,738 8,434
Transfer and dividend disbursing agent
fees 28,028 68,604 55,749 86,482
Registration fees 2,050 4,473 3,907 1,500
Miscellaneous 7,829 12,929 11,528 14,609
-----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 306,315 $ 904,624 $ 651,989 $1,124,696
-----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,362,632 $ 3,542,626 $ 2,883,597 $5,436,146
-----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
-----------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (387,649) $ 154,893 $ 286,889 $ (50,337)
Financial futures contracts (63,431) (8,578) (25,529) (149,516)
-----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (451,080) $ 146,315 $ 261,360 $ (199,853)
-----------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 289,800 $(1,178,574) $(1,256,379) $ (218,796)
Financial futures contracts (2,045) -- -- (5,338)
-----------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 287,755 $(1,178,574) $(1,256,379) $ (224,134)
-----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (163,325) $(1,032,259) $ (995,019) $ (423,987)
-----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,199,307 $ 2,510,367 $ 1,888,578 $5,012,159
-----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Investment Income
---------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $5,242,947 $2,346,527 $2,759,987 $ 7,569,091
Expenses allocated from Portfolio (427,998) (159,605) (194,394) (650,041)
---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $4,814,949 $2,186,922 $2,565,593 $ 6,919,050
---------------------------------------------------------------------------------------------------------
Expenses
---------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,211 $ 286 $ 221 $ 4,563
Distribution and service fees
Class A 2,042 563 6,407 4,664
Class B 764,013 339,565 394,412 1,096,460
Legal and accounting services 23,639 23,014 22,941 26,143
Printing and postage 11,524 5,751 5,826 16,726
Custodian fee 12,679 6,151 7,780 16,219
Transfer and dividend disbursing agent
fees 71,538 33,355 37,532 95,743
Registration fees 910 2,309 2,400 1,530
Miscellaneous 14,535 9,569 9,970 15,953
---------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 903,091 $ 420,563 $ 487,489 $ 1,278,001
---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $3,911,858 $1,766,359 $2,078,104 $ 5,641,049
---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
---------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (181,612) $ 20,515 $ 22,996 $ 970,975
Financial futures contracts -- (25,568) (20,058) (261,449)
---------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (181,612) $ (5,053) $ 2,938 $ 709,526
---------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (192,845) $ (728,586) $ (60,446) $(2,382,962)
Financial futures contracts -- -- -- (9,543)
---------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (192,845) $ (728,586) $ (60,446) $(2,392,505)
---------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (374,457) $ (733,639) $ (57,508) $(1,682,979)
---------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $3,537,401 $1,032,720 $2,020,596 $ 3,958,070
---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,237,247 $ 2,075,795 $ 2,963,328 $ 4,051,025
Net realized loss (311,316) (326,943) (272,205) (132,753)
Net change in unrealized appreciation
(depreciation) (243,545) 178,231 185,594 (2,302,504)
--------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 2,682,386 $ 1,927,083 $ 2,876,717 $ 1,615,768
--------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (316,264) $ (223,468) $ (232,992) $ (221,694)
Class B (2,921,438) (1,820,762) (2,730,336) (3,829,331)
In excess of net investment income
Class A (2,985) (4,383) (5,524) (9,986)
Class B (17,510) -- (25,804) (33,304)
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(3,258,197) $ (2,048,613) $ (2,994,656) $ (4,094,315)
--------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,195,188 $ 1,507,991 $ 5,242,351 $ 4,892,432
Class B 4,590,933 1,330,010 3,204,044 1,450,538
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 122,290 45,056 44,771 175,726
Class B 1,256,975 926,691 1,113,247 1,831,682
Cost of shares redeemed
Class A (1,294,940) (989,038) (369,573) (639,852)
Class B (20,866,687) (10,846,354) (17,244,279) (21,176,181)
--------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(14,996,241) $ (8,025,644) $ (8,009,439) $(13,465,655)
--------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(15,572,052) $ (8,147,174) $ (8,127,378) $(15,944,202)
--------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------
At beginning of year $81,673,586 $ 50,243,867 $ 70,986,413 $ 97,391,619
--------------------------------------------------------------------------------------------------
AT END OF YEAR $66,101,534 $ 42,096,693 $ 62,859,035 $ 81,447,417
--------------------------------------------------------------------------------------------------
Accumulated distributions
in excess of net investment
income included in net assets
--------------------------------------------------------------------------------------------------
AT END OF YEAR $ (132,782) $ (69,511) $ (139,178) $ (158,029)
--------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,362,632 $ 3,542,626 $ 2,883,597 $ 5,436,146
Net realized gain (loss) (451,080) 146,315 261,360 (199,853)
Net change in unrealized appreciation
(depreciation) 287,755 (1,178,574) (1,256,379) (224,134)
-----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,199,307 $ 2,510,367 $ 1,888,578 $ 5,012,159
-----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (234,515) $ (168,028) $ (214,194) $ (680,982)
Class B (1,125,679) (3,374,598) (2,565,772) (4,732,391)
In excess of net investment income
Class A -- (2,175) -- (369)
Class B -- (115,975) -- --
-----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(1,360,194) $ (3,660,776) $ (2,779,966) $ (5,413,742)
-----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 2,310,544 $ 1,505,834 $ 1,502,498 $ 1,603,272
Class B 1,542,144 3,652,386 1,553,774 2,666,881
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 158,732 105,835 111,817 187,292
Class B 361,994 1,607,344 1,226,533 2,166,173
Cost of shares redeemed
Class A (2,004,636) (1,917,029) (2,105,315) (1,782,858)
Class B (6,507,542) (17,226,486) (10,896,393) (23,305,945)
-----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(4,138,764) $(12,272,116) $ (8,607,086) $(18,465,185)
-----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(4,299,651) $(13,422,525) $ (9,498,474) $(18,866,768)
-----------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------
At beginning of year $32,643,996 $ 94,894,220 $ 68,161,745 $128,806,589
-----------------------------------------------------------------------------------------------------------
AT END OF YEAR $28,344,345 $ 81,471,695 $ 58,663,271 $109,939,821
-----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
-----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (52,319) $ (140,002) $ 208,399 $ (231,732)
-----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,911,858 $ 1,766,359 $ 2,078,104 $ 5,641,049
Net realized gain (loss) (181,612) (5,053) 2,938 709,526
Net change in unrealized appreciation
(depreciation) (192,845) (728,586) (60,446) (2,392,505)
----------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,537,401 $ 1,032,720 $ 2,020,596 $ 3,958,070
----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (144,764) $ (81,558) $ (172,091) $ (193,548)
Class B (3,755,266) (1,711,959) (1,835,749) (5,447,501)
In excess of net investment income
Class A -- -- -- (3,080)
Class B -- -- -- (79,649)
----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (3,900,030) $ (1,793,517) $(2,007,840) $ (5,723,778)
----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,219,648 $ 564,080 $ 1,350,945 $ 2,415,547
Class B 6,073,341 1,911,357 2,189,616 4,744,989
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 48,171 29,848 105,691 123,210
Class B 1,984,260 692,651 855,090 2,606,111
Cost of shares redeemed
Class A (485,772) (763,682) (793,867) (2,403,188)
Class B (19,214,519) (11,025,236) (8,050,349) (27,476,994)
----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(10,374,871) $ (8,590,982) $(4,342,874) $(19,990,325)
----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,737,500) $ (9,351,779) $(4,330,118) $(21,756,033)
----------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------
At beginning of year $ 93,953,100 $ 44,357,037 $49,259,420 $137,050,635
----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 83,215,600 $ 35,005,258 $44,929,302 $115,294,602
----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (24,251) $ 16,637 $ 19,688 $ (227,520)
----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,716,975 $ 2,273,316 $ 3,426,894 $ 4,643,930
Net realized gain 1,822,633 765,766 1,152,983 987,147
Net change in unrealized appreciation
(depreciation) (7,171,552) (3,759,621) (7,104,170) (6,310,408)
--------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,631,944) $ (720,539) $ (2,524,293) $ (679,331)
--------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (273,893) $ (134,735) $ (120,402) $ (66,923)
Class B (3,448,983) (2,138,581) (3,306,492) (4,577,007)
In excess of net investment income
Class A -- (1,553) (2,744) (1,279)
Class B (103,265) (24,429) (69,736) (73,211)
--------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(3,826,141) $(2,299,298) $ (3,499,374) $ (4,718,420)
--------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,728,724 $ 3,455,084 $ 1,076,371 $ 303,922
Class B 5,603,743 2,226,973 4,887,411 5,902,302
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 138,087 38,595 65,272 52,077
Class B 1,798,421 1,107,738 1,475,296 2,414,303
Cost of shares redeemed
Class A (433,969) (391,394) (425,348) (201,869)
Class B (16,164,402) (9,115,134) (16,942,132) (17,998,919)
--------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(7,329,396) $(2,678,138) $ (9,863,130) $ (9,528,184)
--------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(12,787,481) $(5,697,975) $(15,886,797) $(14,925,935)
--------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------
At beginning of year $94,461,067 $55,941,842 $ 86,873,210 $112,317,554
--------------------------------------------------------------------------------------------------
AT END OF YEAR $81,673,586 $50,243,867 $ 70,986,413 $ 97,391,619
--------------------------------------------------------------------------------------------------
Accumulated distributions
in excess of net investment
income included in net assets
--------------------------------------------------------------------------------------------------
AT END OF YEAR $ (114,167) $ (96,693) $ (134,945) $ (183,193)
--------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,489,224 $ 4,102,202 $ 3,108,763 $ 6,137,956
Net realized gain (loss) (132,083) 1,057,195 531,101 1,052,274
Net change in unrealized appreciation
(depreciation) (2,534,220) (9,405,694) (5,290,347) (10,001,534)
-----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,177,079) $ (4,246,297) $(1,650,483) $ (2,811,304)
-----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (226,135) $ (109,175) $ (188,860) $ (659,797)
Class B (1,263,089) (3,993,027) (2,883,597) (5,478,159)
In excess of net investment income
Class A (6,814) (6,852) -- (5,970)
Class B (59,171) (236,051) -- (100,614)
-----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(1,555,209) $ (4,345,105) $(3,072,457) $ (6,244,540)
-----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,106,212 $ 3,289,092 $ 3,030,569 $ 1,198,422
Class B 3,037,552 8,242,955 4,126,558 5,852,796
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 80,885 60,937 120,445 196,774
Class B 592,446 2,104,432 1,442,178 2,704,594
Cost of shares redeemed
Class A (1,633,134) (1,146,216) (847,082) (798,040)
Class B (4,229,343) (13,997,652) (9,239,481) (23,584,395)
-----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(1,045,382) $ (1,446,452) $(1,366,813) $(14,429,849)
-----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,777,670) $(10,037,854) $(6,089,753) $(23,485,693)
-----------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------
At beginning of year $36,421,666 $104,932,074 $74,251,498 $152,292,282
-----------------------------------------------------------------------------------------------------------
AT END OF YEAR $32,643,996 $ 94,894,220 $68,161,745 $128,806,589
-----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
-----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (62,407) $ (176,261) $ 104,768 $ (254,136)
-----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,193,694 $ 2,132,390 $ 2,231,602 $ 6,177,245
Net realized gain (loss) 1,043,805 (175,546) 111,739 1,479,464
Net change in unrealized appreciation
(depreciation) (6,028,924) (3,664,757) (2,876,878) (9,945,786)
----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (791,425) $(1,707,913) $ (533,537) $ (2,289,077)
----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (75,205) $ (88,628) $ (188,489) $ (135,278)
Class B (4,117,449) (2,043,137) (2,025,466) (6,041,967)
In excess of net investment income
Class A -- -- -- (521)
Class B (28,994) -- -- (130,541)
----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (4,221,648) $(2,131,765) $(2,213,955) $ (6,308,307)
----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 2,074,921 $ 1,093,370 $ 870,700 $ 2,275,635
Class B 8,483,806 5,463,697 4,407,750 9,796,312
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 47,100 48,765 129,366 76,553
Class B 2,313,890 877,041 1,019,918 3,097,056
Cost of shares redeemed
Class A (273,367) (554,261) (1,325,138) (753,738)
Class B (17,165,026) (8,609,880) (6,597,919) (19,862,551)
----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (4,518,676) $(1,681,268) $(1,495,323) $ (5,370,733)
----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,531,749) $(5,520,946) $(4,242,815) $(13,968,117)
----------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------
At beginning of year $103,484,849 $49,877,983 $53,502,235 $151,018,752
----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 93,953,100 $44,357,037 $49,259,420 $137,050,635
----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (36,079) $ 43,795 $ (50,576) $ (256,049)
----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALABAMA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.430 $10.040 $ 9.860
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.481 $ 0.481 $ 0.493
Net realized and unrealized
gain (loss) (0.015) (0.599) 0.181
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.466 $(0.118) $ 0.674
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.481) $(0.492) $(0.494)
In excess of net investment
income (0.005) -- --
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.486) $(0.492) $(0.494)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.410 $ 9.430 $10.040
---------------------------------------------------------------------
TOTAL RETURN(2) 5.22% (1.29)% 6.98%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 6,198 $ 6,198 $ 5,140
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.81% 0.77% 0.78%
Expenses after custodian
fee reduction(3) 0.80% 0.76% 0.76%
Net investment income 5.26% 4.87% 4.93%
Portfolio Turnover of the
Portfolio 8% 23% 23%
---------------------------------------------------------------------
</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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALABAMA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.370 $11.040 $10.850 $10.460 $ 10.440
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.449 $ 0.447 $ 0.455 $ 0.469 $ 0.470
Net realized and unrealized
gain (loss) (0.017) (0.657) 0.200 0.386 0.030
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.432 $(0.210) $ 0.655 $ 0.855 $ 0.500
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.449) $(0.447) $(0.464) $(0.465) $ (0.480)
In excess of net investment
income (0.003) (0.013) (0.001) -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.452) $(0.460) $(0.465) $(0.465) $ (0.480)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.350 $10.370 $11.040 $10.850 $ 10.460
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.38% (2.02)% 6.17% 8.33% 4.85%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $59,904 $75,475 $89,321 $96,154 $101,692
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.62% 1.54% 1.57% 1.60% 1.57%
Expenses after custodian
fee reduction(3) 1.61% 1.53% 1.55% 1.59% 1.52%
Net investment income 4.48% 4.11% 4.15% 4.39% 4.44%
Portfolio Turnover of the
Portfolio 8% 23% 23% 23% 52%
-----------------------------------------------------------------------------------------------
</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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARKANSAS FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.510 $10.070 $ 9.810
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.489 $ 0.497 $ 0.492
Net realized and unrealized
gain (loss) 0.020 (0.555) 0.272
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.509 $(0.058) $ 0.764
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.489) $(0.497) $(0.492)
In excess of net investment
income (0.010) (0.005) (0.012)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.499) $(0.502) $(0.504)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.520 $ 9.510 $10.070
---------------------------------------------------------------------
TOTAL RETURN(2) 5.62% (0.67)% 7.95%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 4,757 $ 4,167 $ 1,286
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.84% 0.71% 0.73%
Expenses after custodian
fee reduction(3) 0.83% 0.69% 0.72%
Net investment income 5.25% 4.94% 4.93%
Portfolio Turnover of the
Portfolio 14% 24% 13%
---------------------------------------------------------------------
</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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARKANSAS FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.190 $10.800 $10.510 $10.190 $10.250
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.454 $ 0.443 $ 0.442 $ 0.445 $ 0.450
Net realized and unrealized
gain (loss) 0.011 (0.605) 0.298 0.324 (0.038)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.465 $(0.162) $ 0.740 $ 0.769 $ 0.412
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.445) $(0.443) $(0.442) $(0.445) $(0.471)
In excess of net investment
income -- (0.005) (0.008) (0.004) (0.001)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.445) $(0.448) $(0.450) $(0.449) $(0.472)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.210 $10.190 $10.800 $10.510 $10.190
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.75% (1.60)% 7.19% 7.70% 4.05%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $37,340 $46,077 $54,655 $61,322 $72,868
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.58% 1.56% 1.53% 1.60% 1.56%
Expenses after custodian
fee reduction(3) 1.57% 1.54% 1.52% 1.59% 1.54%
Net investment income 4.56% 4.17% 4.14% 4.31% 4.34%
Portfolio Turnover of the
Portfolio 14% 24% 13% 17% 11%
-----------------------------------------------------------------------------------------------
</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
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GEORGIA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000 1999(1) 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 8.990 $ 9.730 $ 9.500
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.479 $ 0.476 $ 0.476
Net realized and unrealized
gain (loss) 0.031 (0.730) 0.245
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.510 $(0.254) $ 0.721
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.469) $(0.476) $(0.484)
In excess of net investment
income (0.011) (0.010) (0.007)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.480) $(0.486) $(0.491)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.020 $ 8.990 $ 9.730
---------------------------------------------------------------------
TOTAL RETURN(2) 6.00% (2.78)% 7.75%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 7,614 $ 2,554 $ 2,043
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.79% 0.80% 0.83%
Expenses after custodian
fee reduction(3) 0.77% 0.76% 0.82%
Net investment income 5.29% 4.97% 4.92%
Portfolio Turnover of the
Portfolio 13% 38% 19%
---------------------------------------------------------------------
</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
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GEORGIA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.600 $10.380 $10.140 $ 9.810 $ 9.790
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.426 $ 0.433 $ 0.434 $ 0.449 $ 0.451
Net realized and unrealized
gain (loss) 0.039 (0.771) 0.261 0.336 0.024
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.465 $(0.338) $ 0.695 $ 0.785 $ 0.475
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.431) $(0.433) $(0.437) $(0.455) $ (0.455)
In excess of net investment
income (0.004) (0.009) (0.018) -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.435) $(0.442) $(0.455) $(0.455) $ (0.455)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.630 $ 9.600 $10.380 $10.140 $ 9.810
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 5.09% (3.44)% 7.00% 8.16% 4.91%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $55,245 $68,432 $84,830 $93,128 $106,992
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.58% 1.55% 1.56% 1.59% 1.58%
Expenses after custodian
fee reduction(3) 1.56% 1.51% 1.55% 1.57% 1.52%
Net investment income 4.64% 4.24% 4.22% 4.48% 4.55%
Portfolio Turnover of the
Portfolio 13% 38% 19% 13% 21%
-----------------------------------------------------------------------------------------------
</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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.410 $ 9.910 $ 9.680
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.498 $ 0.493 $ 0.497
Net realized and unrealized
gain (loss) (0.246) (0.491) 0.235
---------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.252 $ 0.002 $ 0.732
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.480) $(0.493) $(0.497)
In excess of net investment
income (0.022) (0.009) (0.005)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.502) $(0.502) $(0.502)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.160 $ 9.410 $ 9.910
---------------------------------------------------------------------
TOTAL RETURN(2) 2.87% (0.05)% 7.72%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 5,858 $ 1,387 $ 1,303
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.82% 0.83% 0.83%
Expenses after custodian
fee reduction(3) 0.80% 0.81% 0.82%
Net investment income 5.40% 5.03% 5.05%
Portfolio Turnover of the
Portfolio 11% 11% 15%
---------------------------------------------------------------------
</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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.120 $10.660 $ 10.410 $ 9.970 $ 9.990
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.451 $ 0.453 $ 0.456 $ 0.456 $ 0.450
Net realized and unrealized
gain (loss) (0.241) (0.533) 0.254 0.435 (0.009)(2)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.210 $(0.080) $ 0.710 $ 0.891 $ 0.441
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.456) $(0.453) $ (0.456) $ (0.451) $ (0.450)
In excess of net investment
income (0.004) (0.007) (0.004) -- (0.011)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.460) $(0.460) $ (0.460) $ (0.451) $ (0.461)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.870 $10.120 $ 10.660 $ 10.410 $ 9.970
-----------------------------------------------------------------------------------------------
TOTAL RETURN(3) 2.21% (0.84)% 6.97% 9.12% 4.45%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $75,590 $96,005 $111,015 $121,376 $131,357
Ratios (As a percentage of
average daily net assets):
Expenses(4) 1.62% 1.56% 1.57% 1.60% 1.57%
Expenses after custodian
fee reduction(4) 1.60% 1.54% 1.56% 1.57% 1.54%
Net investment income 4.67% 4.30% 4.32% 4.50% 4.45%
Portfolio Turnover of the
Portfolio 11% 11% 15% 28% 28%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The per share amounts are not in accord with the net realized and
unrealized gain (loss) for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized
gains and losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested on the reinvestment date. Total return is not computed on an
annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.240 $ 9.990 $ 9.750
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.472 $ 0.486 $ 0.480
Net realized and unrealized
gain (loss) 0.001 (0.735) 0.294
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.473 $(0.249) $ 0.774
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.473) $(0.486) $(0.515)
In excess of net investment
income -- (0.015) (0.019)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.473) $(0.501) $(0.534)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.240 $ 9.240 $ 9.990
---------------------------------------------------------------------
TOTAL RETURN(2) 5.43% (2.73)% 8.13%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 4,566 $ 4,102 $ 4,886
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.73% 0.63% 0.71%
Expenses after custodian
fee reduction(3) 0.69% 0.60% 0.66%
Net investment income 5.28% 4.93% 4.79%
Portfolio Turnover of the
Portfolio 14% 20% 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 AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.760 $10.570 $10.310 $ 9.960 $ 9.980
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.424 $ 0.429 $ 0.436 $ 0.482 $ 0.486
Net realized and unrealized
gain (loss) 0.008 (0.790) 0.306 0.350 (0.016)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.432 $(0.361) $ 0.742 $ 0.832 $ 0.470
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.422) $(0.429) $(0.446) $(0.482) $(0.490)
In excess of net investment
income -- (0.020) (0.036) -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.422) $(0.449) $(0.482) $(0.482) $(0.490)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.770 $ 9.760 $10.570 $10.310 $ 9.960
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.66% (3.63)% 7.37% 8.52% 4.77%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $23,779 $28,542 $31,536 $31,996 $32,994
Ratios (As a percentage of
average daily net assets):
Net Expenses(3) 1.55% 1.47% 1.49% 1.54% 1.41%
Net Expenses after
custodian fee
reduction(3) 1.51% 1.44% 1.44% 1.52% 1.34%
Net investment income 4.49% 4.08% 4.18% 4.74% 4.82%
Portfolio Turnover of the
Portfolio 14% 20% 43% 27% 99%
-----------------------------------------------------------------------------------------------
+ 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) 1.53%
Expenses after custodian
fee reduction(3) 1.45%
Net investment income 4.70%
Net investment income per
share $ 0.474
-----------------------------------------------------------------------------------------------
</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
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MARYLAND FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.230 $10.050 $ 9.810
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.445 $ 0.451 $ 0.476
Net realized and unrealized
gain (loss) (0.065) (0.785) 0.262
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.380 $(0.334) $ 0.738
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.444) $(0.457) $(0.476)
In excess of net investment
income (0.006) (0.029) (0.022)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.450) $(0.486) $(0.498)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.160 $ 9.230 $10.050
---------------------------------------------------------------------
TOTAL RETURN(2) 4.35% (3.47)% 7.68%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 3,200 $ 3,574 $ 1,625
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.73% 0.81% 0.82%
Expenses after custodian
fee reduction(3) 0.71% 0.78% 0.78%
Net investment income 4.98% 4.65% 4.76%
Portfolio Turnover of the
Portfolio 9% 31% 30%
---------------------------------------------------------------------
</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
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MARYLAND FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.080 $10.980 $ 10.710 $ 10.300 $ 10.230
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.401 $ 0.425 $ 0.441 $ 0.453 $ 0.464
Net realized and unrealized
gain (loss) (0.067) (0.874) 0.291 0.419 0.086
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.334 $(0.449) $ 0.732 $ 0.872 $ 0.550
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.400) $(0.425) $ (0.447) $ (0.462) $ (0.480)
In excess of net investment
income (0.014) (0.026) (0.015) -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.414) $(0.451) $ (0.462) $ (0.462) $ (0.480)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.000 $10.080 $ 10.980 $ 10.710 $ 10.300
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.50% (4.25)% 6.98% 8.64% 5.44%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $78,272 $91,321 $103,307 $105,671 $109,243
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.58% 1.56% 1.57% 1.57%
Expenses after custodian
fee reduction(3) 1.58% 1.55% 1.52% 1.54% 1.55%
Net investment income 4.11% 3.98% 4.05% 4.30% 4.46%
Portfolio Turnover of the
Portfolio 9% 31% 30% 30% 33%
-----------------------------------------------------------------------------------------------
</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
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSOURI FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000 1999 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.630 $10.270 $ 9.930
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.520 $ 0.495 $ 0.503
Net realized and unrealized
gain (loss) (0.103) (0.638) 0.334
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.417 $(0.143) $ 0.837
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.497) $(0.497) $(0.497)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.497) $(0.497) $(0.497)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.550 $ 9.630 $10.270
---------------------------------------------------------------------
TOTAL RETURN(1) 4.60% (1.52)% 8.61%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 4,132 $ 4,692 $ 2,665
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.81% 0.72% 0.79%
Expenses after custodian
fee reduction(2) 0.80% 0.70% 0.77%
Net investment income 5.54% 5.10% 5.00%
Portfolio Turnover of the
Portfolio 8% 21% 11%
---------------------------------------------------------------------
</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
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSOURI FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.650 $11.380 $11.010 $10.510 $10.510
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.486 $ 0.471 $ 0.477 $ 0.478 $ 0.476
Net realized and unrealized
gain (loss) (0.121) (0.736) 0.364 0.493 0.003
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.365 $(0.265) $ 0.841 $ 0.971 $ 0.479
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.465) $(0.465) $(0.471) $(0.471) $(0.476)
In excess of net investment
income -- -- -- -- (0.003)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.465) $(0.465) $(0.471) $(0.471) $(0.479)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.550 $10.650 $11.380 $11.010 $10.510
-----------------------------------------------------------------------------------------------
TOTAL RETURN(1) 3.62% (2.46)% 7.81% 9.42% 4.60%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $54,531 $63,470 $71,586 $77,479 $82,385
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.62% 1.56% 1.56% 1.57% 1.56%
Expenses after custodian
fee reduction(2) 1.61% 1.54% 1.54% 1.56% 1.54%
Net investment income 4.69% 4.19% 4.25% 4.44% 4.47%
Portfolio Turnover of the
Portfolio 8% 21% 11% 5% 36%
-----------------------------------------------------------------------------------------------
</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
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NORTH CAROLINA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.260 $ 9.880 $ 9.610
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.481 $ 0.483 $ 0.490
Net realized and unrealized
gain (loss) 0.003 (0.616) 0.282
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.484 $(0.133) $ 0.772
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.483) $(0.483) $(0.490)
In excess of net investment
income (0.001) (0.004) (0.012)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.484) $(0.487) $(0.502)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.260 $ 9.260 $ 9.880
---------------------------------------------------------------------
TOTAL RETURN(2) 5.51% (1.46)% 8.22%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $12,696 $12,697 $12,967
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.85% 0.79% 0.83%
Expenses after custodian
fee reduction(3) 0.82% 0.78% 0.80%
Net investment income 5.34% 4.97% 5.03%
Portfolio Turnover of the
Portfolio 17% 3% 26%
---------------------------------------------------------------------
</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
41
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NORTH CAROLINA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.960 $ 10.630 $ 10.340 $ 9.970 $ 9.960
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.449 $ 0.438 $ 0.447 $ 0.452 $ 0.452
Net realized and unrealized
gain (loss) 0.006 (0.662) 0.303 0.378 0.026
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.455 $ (0.224) $ 0.750 $ 0.830 $ 0.478
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.445) $ (0.438) $ (0.447) $ (0.455) $ (0.455)
In excess of net investment
income -- (0.008) (0.013) (0.005) (0.013)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.445) $ (0.446) $ (0.460) $ (0.460) $ (0.468)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.970 $ 9.960 $ 10.630 $ 10.340 $ 9.970
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.79% (2.24)% 7.42% 8.50% 4.83%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $97,244 $116,110 $139,325 $151,564 $169,889
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.57% 1.58% 1.58% 1.60% 1.59%
Expenses after custodian
fee reduction(3) 1.54% 1.57% 1.55% 1.58% 1.54%
Net investment income 4.63% 4.19% 4.26% 4.48% 4.47%
Portfolio Turnover of the
Portfolio 17% 3% 26% 42% 54%
-----------------------------------------------------------------------------------------------
</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
42
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OREGON FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.380 $ 9.870 $ 9.600
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.490 $ 0.489 $ 0.483
Net realized and unrealized
gain (loss) (0.012) (0.491) 0.275
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.478 $(0.002) $ 0.758
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.488) $(0.488) $(0.483)
In excess of net investment
income -- -- (0.005)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.488) $(0.488) $(0.488)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.370 $ 9.380 $ 9.870
---------------------------------------------------------------------
TOTAL RETURN(2) 5.39% (0.11)% 8.08%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 3,459 $ 2,658 $ 914
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.75% 0.71% 0.78%
Expenses after custodian
fee reduction(3) 0.74% 0.70% 0.78%
Net investment income 5.38% 5.02% 4.95%
Portfolio Turnover of the
Portfolio 25% 35% 9%
---------------------------------------------------------------------
</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
43
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OREGON FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.260 $10.800 $ 10.510 $ 10.240 $ 10.310
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.452 $ 0.449 $ 0.450 $ 0.456 $ 0.450
Net realized and unrealized
gain (loss) (0.010) (0.537) 0.292 0.266 (0.061)
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.442 $(0.088) $ 0.742 $ 0.722 $ 0.389
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.452) $(0.449) $ (0.451) $ (0.452) $ (0.457)
In excess of net investment
income -- (0.003) (0.001) -- (0.002)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.452) $(0.452) $ (0.452) $ (0.452) $ (0.459)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.250 $10.260 $ 10.800 $ 10.510 $ 10.240
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.52% (0.92)% 7.22% 7.20% 3.80%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $79,756 $91,295 $102,571 $112,586 $128,580
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.57% 1.56% 1.63% 1.56%
Expenses after custodian
fee reduction(3) 1.59% 1.56% 1.56% 1.63% 1.53%
Net investment income 4.56% 4.19% 4.22% 4.41% 4.33%
Portfolio Turnover of the
Portfolio 25% 35% 9% 22% 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
44
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SOUTH CAROLINA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000 1999 1998
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.320 $10.090 $ 9.760
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.502 $ 0.490 $ 0.495
Net realized and unrealized
gain (loss) (0.123) (0.767) 0.328
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.379 $(0.277) $ 0.823
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.499) $(0.493) $(0.493)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.499) $(0.493) $(0.493)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.200 $ 9.320 $10.090
---------------------------------------------------------------------
TOTAL RETURN(1) 4.30% (2.91)% 8.62%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 1,553 $ 1,757 $ 1,316
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.70% 0.78% 0.77%
Expenses after custodian
fee reduction(2) 0.68% 0.75% 0.76%
Net investment income 5.54% 4.98% 5.03%
Portfolio Turnover of the
Portfolio 12% 26% 21%
---------------------------------------------------------------------
</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
45
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SOUTH CAROLINA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.900 $10.720 $10.380 $10.020 $10.000
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.446 $ 0.448 $ 0.455 $ 0.463 $ 0.467
Net realized and unrealized
gain (loss) (0.134) (0.820) 0.352 0.364 0.021
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.312 $(0.372) $ 0.807 $ 0.827 $ 0.488
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.452) $(0.448) $(0.467) $(0.467) $(0.468)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.452) $(0.448) $(0.467) $(0.467) $(0.468)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.760 $ 9.900 $10.720 $10.380 $10.020
-----------------------------------------------------------------------------------------------
TOTAL RETURN(1) 3.32% (3.63)% 7.96% 8.41% 4.92%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $33,452 $42,600 $48,562 $52,686 $57,217
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.59% 1.51% 1.52% 1.63% 1.60%
Expenses after custodian
fee reduction(2) 1.57% 1.48% 1.51% 1.62% 1.58%
Net investment income 4.65% 4.26% 4.30% 4.50% 4.60%
Portfolio Turnover of the
Portfolio 12% 26% 21% 8% 36%
-----------------------------------------------------------------------------------------------
</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
46
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TENNESSEE FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.460 $ 9.980 $ 9.740
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.482 $ 0.489 $ 0.491
Net realized and unrealized
gain (loss) 0.020 (0.519) 0.257
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.502 $(0.030) $ 0.748
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.482) $(0.490) $(0.491)
In excess of net investment
income -- -- (0.017)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.482) $(0.490) $(0.508)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.480 $ 9.460 $ 9.980
---------------------------------------------------------------------
TOTAL RETURN(2) 5.57% (0.39)% 7.85%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 3,557 $ 2,870 $ 3,413
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.83% 0.70% 0.67%
Expenses after custodian
fee reduction(3) 0.81% 0.69% 0.65%
Net investment income 5.23% 4.96% 4.94%
Portfolio Turnover of the
Portfolio 9% 13% 21%
---------------------------------------------------------------------
</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
47
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TENNESSEE FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.280 $10.840 $10.580 $10.150 $10.110
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.452 $ 0.446 $ 0.444 $ 0.453 $ 0.457
Net realized and unrealized
gain (loss) 0.023 (0.564) 0.266 0.436 0.059
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.475 $(0.118) $ 0.710 $ 0.889 $ 0.516
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.435) $(0.442) $(0.444) $(0.453) $(0.475)
In excess of net investment
income -- -- (0.006) (0.006) (0.001)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.435) $(0.442) $(0.450) $(0.459) $(0.476)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.320 $10.280 $10.840 $10.580 $10.150
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 4.82% (1.19)% 6.86% 8.95% 5.16%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $41,372 $46,389 $50,090 $51,712 $54,533
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.57% 1.51% 1.52% 1.54% 1.53%
Expenses after custodian
fee reduction(3) 1.55% 1.50% 1.50% 1.53% 1.51%
Net investment income 4.50% 4.15% 4.14% 4.39% 4.45%
Portfolio Turnover of the
Portfolio 9% 13% 21% 3% 39%
-----------------------------------------------------------------------------------------------
</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
48
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VIRGINIA FUND -- CLASS A
-----------------------------------
YEAR ENDED AUGUST 31,
-----------------------------------
2000(1) 1999 1998(1)
<S> <C> <C> <C>
---------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.300 $ 9.870 $ 9.620
---------------------------------------------------------------------
Income (loss) from operations
---------------------------------------------------------------------
Net investment income $ 0.481 $ 0.503 $ 0.483
Net realized and unrealized
gain (loss) (0.072) (0.582) 0.277
---------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.409 $(0.079) $ 0.760
---------------------------------------------------------------------
Less distributions
---------------------------------------------------------------------
From net investment income $(0.481) $(0.489) $(0.483)
In excess of net investment
income (0.008) (0.002) (0.027)
---------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.489) $(0.491) $(0.510)
---------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.220 $ 9.300 $ 9.870
---------------------------------------------------------------------
TOTAL RETURN(2) 4.66% (0.90)% 8.08%
---------------------------------------------------------------------
Ratios/Supplemental Data
---------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 3,632 $ 3,528 $ 2,117
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.81% 0.73% 0.85%
Expenses after custodian
fee reduction(3) 0.80% 0.71% 0.83%
Net investment income 5.34% 5.00% 4.92%
Portfolio Turnover of the
Portfolio 23% 17% 8%
---------------------------------------------------------------------
</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
49
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VIRGINIA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000(1) 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.290 $ 10.930 $ 10.630 $ 10.260 $ 10.260
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.456 $ 0.450 $ 0.454 $ 0.467 $ 0.471
Net realized and unrealized
gain (loss) (0.083) (0.629) 0.312 0.369 0.006
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.373 $ (0.179) $ 0.766 $ 0.836 $ 0.477
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $ (0.456) $ (0.451) $ (0.454) $ (0.466) $ (0.471)
In excess of net investment
income (0.007) (0.010) (0.012) -- (0.006)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.463) $ (0.461) $ (0.466) $ (0.466) $ (0.477)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.200 $ 10.290 $ 10.930 $ 10.630 $ 10.260
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 3.80% (1.75)% 7.37% 8.31% 4.67%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $111,662 $133,522 $148,902 $159,603 $175,918
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.58% 1.59% 1.60% 1.56%
Expenses after custodian
fee reduction(3) 1.59% 1.56% 1.57% 1.57% 1.53%
Net investment income 4.57% 4.19% 4.21% 4.47% 4.52%
Portfolio Turnover of the
Portfolio 23% 17% 8% 25% 30%
-----------------------------------------------------------------------------------------------
</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
50
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 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, twelve
of which, each diversified, are included in these financial statements. They
include Eaton Vance Alabama Municipals Fund (Alabama Fund), Eaton Vance
Arkansas Municipals Fund (Arkansas Fund), Eaton Vance Georgia Municipals Fund
(Georgia Fund), Eaton Vance Kentucky Municipals Fund (Kentucky Fund), Eaton
Vance Louisiana Municipals Fund (Louisiana Fund), Eaton Vance Maryland
Municipals Fund (Maryland Fund), Eaton Vance Missouri Municipals Fund
(Missouri Fund), Eaton Vance North Carolina Municipals Fund (North Carolina
Fund), Eaton Vance Oregon Municipals Fund (Oregon Fund), Eaton Vance South
Carolina Municipals Fund (South Carolina Fund), Eaton Vance Tennessee
Municipals Fund (Tennessee Fund) and Eaton Vance Virginia Municipals Fund
(Virginia Fund). The Funds offer two 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). 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 Alabama
Fund invests its assets in the Alabama Municipals Portfolio, the Arkansas
Fund invests its assets in the Arkansas Municipals Portfolio, the Georgia
Fund invests its assets in the Georgia Municipals Portfolio, the Kentucky
Fund invests its assets in the Kentucky Municipals Portfolio, the Louisiana
Fund invests its assets in the Louisiana Municipals Portfolio, the Maryland
Fund invests its assets in the Maryland Municipals Portfolio, the Missouri
Fund invests its assets in the Missouri Municipals Portfolio, the North
Carolina Fund invests its assets in the North Carolina Municipals Portfolio,
the Oregon Fund invests its assets in the Oregon Municipals Portfolio, the
South Carolina Fund invests its assets in the South Carolina Municipals
Portfolio, the Tennessee Fund invests its assets in the Tennessee Municipals
Portfolio and the Virginia Fund invests its assets in the 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 August 31, 2000 for each Fund). 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 each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At August 31, 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 a 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>
---------------------------------------------------------------------
Alabama Fund $ 272,583 August 31, 2008
94,556 August 31, 2005
988,165 August 31, 2004
317,426 August 31, 2003
</TABLE>
51
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
---------------------------------------------------------------------
Arkansas Fund $ 251,575 August 31, 2005
1,348,493 August 31, 2004
Georgia Fund 41,652 August 31, 2008
5,373,040 August 31, 2004
Kentucky Fund 233,391 August 31, 2005
1,630,637 August 31, 2004
Louisiana Fund 527,106 August 31, 2008
250,387 August 31, 2005
1,598,606 August 31, 2004
Maryland Fund 35 August 31, 2005
25,436 August 31, 2004
Missouri Fund 113,141 August 31, 2005
507,086 August 31, 2004
North Carolina Fund 73,745 August 31, 2005
8,308,960 August 31, 2004
Oregon Fund 147,651 August 31, 2008
924,680 August 31, 2005
2,175,920 August 31, 2004
South Carolina Fund 155,263 August 31, 2008
25,336 August 31, 2007
183,416 August 31, 2005
2,881,146 August 31, 2004
266,269 August 31, 2003
Tennessee Fund 246,996 August 31, 2005
1,296,022 August 31, 2004
Virginia Fund 3,971,283 August 31, 2004
</TABLE>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay tax-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.
Additionally, at August 31, 2000, Alabama Fund, Arkansas Fund, Georgia Fund,
Louisiana Fund, Maryland Fund, North Carolina Fund, Oregon Fund and Tennessee
Fund had net capital losses of $38,733, $330,651, $245,006, $140,733,
$14,954, $389,120, $33,961 and $45,688, respectively, attributable to
security transactions incurred after October 31, 1999. These capital losses
are treated as arising on the first day of each 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 operating expenses on 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 income and 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.
52
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
3 Shares of Beneficial Interest
-------------------------------------------
The Fund's Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
ALABAMA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 130,001 175,161
Issued to shareholders electing to
receive payments of distributions in
Fund shares 13,391 13,976
Redemptions (141,891) (43,692)
------------------------------------------------------------------
NET INCREASE 1,501 145,445
------------------------------------------------------------------
<CAPTION>
ALABAMA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 457,753 515,878
Issued to shareholders electing to
receive payments of distributions in
Fund shares 125,064 165,189
Redemptions (2,073,777) (1,489,503)
------------------------------------------------------------------
NET DECREASE (1,490,960) (808,436)
------------------------------------------------------------------
<CAPTION>
ARKANSAS FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 163,170 346,734
Issued to shareholders electing to
receive payments of distributions in
Fund shares 4,850 3,908
Redemptions (106,167) (40,372)
------------------------------------------------------------------
NET INCREASE 61,853 310,270
------------------------------------------------------------------
<CAPTION>
ARKANSAS FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 133,188 209,730
Issued to shareholders electing to
receive payments of distributions in
Fund shares 92,983 104,018
Redemptions (1,090,213) (855,918)
------------------------------------------------------------------
NET DECREASE (864,042) (542,170)
------------------------------------------------------------------
<CAPTION>
GEORGIA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 597,449 112,219
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,134 6,847
Redemptions (42,259) (44,970)
------------------------------------------------------------------
NET INCREASE 560,324 74,096
------------------------------------------------------------------
<CAPTION>
GEORGIA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 341,407 477,417
Issued to shareholders electing to
receive payments of distributions in
Fund shares 119,527 144,503
Redemptions (1,856,349) (1,662,425)
------------------------------------------------------------------
NET DECREASE (1,395,415) (1,040,505)
------------------------------------------------------------------
<CAPTION>
KENTUCKY FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 543,442 31,154
Issued to shareholders electing to
receive payments of distributions in
Fund shares 19,407 5,316
Redemptions (70,480) (20,537)
------------------------------------------------------------------
NET INCREASE 492,369 15,933
------------------------------------------------------------------
<CAPTION>
KENTUCKY FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 148,657 559,194
Issued to shareholders electing to
receive payments of distributions in
Fund shares 186,976 229,481
Redemptions (2,164,331) (1,716,108)
------------------------------------------------------------------
NET DECREASE (1,828,698) (927,433)
------------------------------------------------------------------
</TABLE>
53
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
LOUISIANA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 254,950 113,438
Issued to shareholders electing to
receive payments of distributions in
Fund shares 17,816 8,254
Redemptions (222,750) (166,545)
------------------------------------------------------------------
NET INCREASE (DECREASE) 50,016 (44,853)
------------------------------------------------------------------
<CAPTION>
LOUISIANA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 163,345 291,845
Issued to shareholders electing to
receive payments of distributions in
Fund shares 38,355 57,003
Redemptions (691,313) (410,172)
------------------------------------------------------------------
NET DECREASE (489,613) (61,324)
------------------------------------------------------------------
<CAPTION>
MARYLAND FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 167,240 335,934
Issued to shareholders electing to
receive payments of distributions in
Fund shares 11,869 6,272
Redemptions (216,964) (116,835)
------------------------------------------------------------------
NET INCREASE (DECREASE) (37,855) 225,371
------------------------------------------------------------------
<CAPTION>
MARYLAND FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 373,293 766,092
Issued to shareholders electing to
receive payments of distributions in
Fund shares 164,545 196,870
Redemptions (1,766,262) (1,317,904)
------------------------------------------------------------------
NET DECREASE (1,228,424) (354,942)
------------------------------------------------------------------
<CAPTION>
MISSOURI FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 160,662 299,009
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,016 11,942
Redemptions (226,937) (83,257)
------------------------------------------------------------------
NET INCREASE (DECREASE) (54,259) 227,694
------------------------------------------------------------------
<CAPTION>
MISSOURI FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 150,839 366,959
Issued to shareholders electing to
receive payments of distributions in
Fund shares 119,165 128,713
Redemptions (1,060,024) (829,815)
------------------------------------------------------------------
NET DECREASE (790,020) (334,143)
------------------------------------------------------------------
<CAPTION>
NORTH CAROLINA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 176,500 121,902
Issued to shareholders electing to
receive payments of distributions in
Fund shares 20,835 20,265
Redemptions (198,648) (82,674)
------------------------------------------------------------------
NET INCREASE (DECREASE) (1,313) 59,493
------------------------------------------------------------------
<CAPTION>
NORTH CAROLINA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 275,823 557,238
Issued to shareholders electing to
receive payments of distributions in
Fund shares 223,590 258,442
Redemptions (2,406,152) (2,257,535)
------------------------------------------------------------------
NET DECREASE (1,906,739) (1,441,855)
------------------------------------------------------------------
</TABLE>
54
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
OREGON FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 133,534 214,279
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,291 4,836
Redemptions (53,316) (28,242)
------------------------------------------------------------------
NET INCREASE 85,509 190,873
------------------------------------------------------------------
<CAPTION>
OREGON FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 609,484 793,504
Issued to shareholders electing to
receive payments of distributions in
Fund shares 199,254 216,216
Redemptions (1,930,063) (1,605,973)
------------------------------------------------------------------
NET DECREASE (1,121,325) (596,253)
------------------------------------------------------------------
<CAPTION>
SOUTH CAROLINA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 61,974 109,081
Issued to shareholders electing to
receive payments of distributions in
Fund shares 3,286 4,912
Redemptions (84,883) (56,016)
------------------------------------------------------------------
NET INCREASE (DECREASE) (19,623) 57,977
------------------------------------------------------------------
<CAPTION>
SOUTH CAROLINA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 199,569 518,929
Issued to shareholders electing to
receive payments of distributions in
Fund shares 72,308 83,516
Redemptions (1,147,848) (830,090)
------------------------------------------------------------------
NET DECREASE (875,971) (227,645)
------------------------------------------------------------------
<CAPTION>
TENNESSEE FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 146,107 87,643
Issued to shareholders electing to
receive payments of distributions in
Fund shares 11,457 13,115
Redemptions (85,693) (139,499)
------------------------------------------------------------------
NET INCREASE (DECREASE) 71,871 (38,741)
------------------------------------------------------------------
<CAPTION>
TENNESSEE FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 217,357 410,305
Issued to shareholders electing to
receive payments of distributions in
Fund shares 85,148 95,146
Redemptions (804,050) (615,845)
------------------------------------------------------------------
NET DECREASE (501,545) (110,394)
------------------------------------------------------------------
<CAPTION>
VIRGINIA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 267,828 234,327
Issued to shareholders electing to
receive payments of distributions in
Fund shares 13,680 7,909
Redemptions (266,814) (77,321)
------------------------------------------------------------------
NET INCREASE 14,694 164,915
------------------------------------------------------------------
<CAPTION>
VIRGINIA FUND
------------------------
YEAR ENDED AUGUST 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 475,169 907,245
Issued to shareholders electing to
receive payments of distributions in
Fund shares 261,449 287,613
Redemptions (2,764,394) (1,845,422)
------------------------------------------------------------------
NET DECREASE (2,027,776) (650,564)
------------------------------------------------------------------
</TABLE>
55
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
4 Transactions with Affiliates
-------------------------------------------
Eaton Vance Management (EVM) serves as the Administrator of each Fund, but
receives no compensation. Each of the Portfolios have engaged Boston
Management and Research (BMR), a subsidiary of EVM, to render investment
advisory services. See Note 2 of the Portfolios' Notes to Financial
Statements which are included elsewhere in this report. Certain officers and
Trustees of the Funds and of the Portfolios are officers of the above
organizations. Except for Trustees of the Funds and Portfolios who are not
members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to each Fund out of the investment adviser
fee earned by BMR. The Funds were informed that Eaton Vance Distributors,
Inc. (EVD), a subsidiary of EVM and the Funds' principal underwriter,
received $1,502, $79, $1,286, $1,764, $1,347, $1,232, $1,080, $1,412, $1,470,
$911, $1,376 and $1,191 from the Alabama Fund, Arkansas Fund, Georgia Fund,
Kentucky Fund, Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina
Fund, Oregon Fund, South Carolina Fund, Tennessee Fund and Virginia Fund,
respectively, as its portion of the sales charge on sales of Class A shares
for the year ended August 31, 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 Plans require the Class B shares to pay Eaton Vance Distributors, Inc.
(EVD) amounts equal to 1/365 of 0.75% of each Fund's daily net assets
attributable to Class B for providing ongoing distribution services and
facilities to the respective Fund. Each 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 daily amounts theretofore paid to EVD by Class B. The amount
payable to EVD with respect to each day is accrued on such day as a liability
of each Fund's Class B shares and, accordingly, reduces each Fund's Class B
net assets. For the year ended August 31, 2000, the Class B shares of the
Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund, Louisiana Fund,
Maryland Fund, Missouri Fund, North Carolina Fund, Oregon Fund, South
Carolina Fund, Tennessee Fund and Virginia Fund paid $489,799, $305,035,
$441,623, $615,115, $188,480, $616,629, $425,726, $771,114, $619,401,
$272,005, $317,390 and $894,543, respectively, to EVD, representing 0.75% of
each Fund's Class B average daily net assets. At August 31, 2000, the amount
of Uncovered Distribution Charges of EVD calculated under the Class B Plans
for Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund, Louisiana Fund,
Maryland Fund, Missouri Fund, North Carolina Fund, Oregon Fund, South
Carolina Fund, Tennessee Fund and Virginia Fund were approximately
$1,913,000, $1,436,000, $2,064,000, $2,181,000, $920,000, $2,344,000,
$1,365,000, $2,860,000, $2,589,000, $1,355,000, $1,226,000 and
$2,937,000, respectively.
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 for any fiscal year. The Trustees initially
implemented the Plans by authorizing the Funds to make quarterly service fee
payments to EVD and investment dealers equal to 0.20% 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% per annum of the Funds' 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 paid to EVD and investment dealers 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
August 31, 2000, Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund,
Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina Fund, Oregon
Fund, South Carolina Fund, Tennessee Fund and Virginia Fund paid or accrued
service fees to or payable to EVD in the amount of $8,994, $8,557, $5,690,
$6,022, $6,381, $1,997, $5,077, $25,327, $2,042, $563, $6,407 and $4,664,
respectively, for Class A shares, and $129,813, $72,884, $96,425, $163,157,
$51,188, $150,056, $106,029, $175,771, $144,612, $67,560, $77,022 and
$201,917, respectively, for Class B shares. Certain officers and Trustees of
the Funds are officers or directors of EVD.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class B shares acquired
56
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
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 Plan (see Note 5). CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. EVD received
approximately $123,000, $33,000, $116,000, $91,000, $59,000, $125,000,
$53,000, $98,000, $103,000, $72,000, $49,000 and $120,000 of CDSC paid by
Class B shareholders of Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky
Fund, Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina Fund,
Oregon Fund, South Carolina Fund, Tennessee Fund and Virginia Fund,
respectively, for the year ended August 31, 2000.
7 Investment Transactions
-------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended August 31, 2000 were as follows:
<TABLE>
<CAPTION>
ALABAMA FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,799,382
Decreases 24,719,837
<CAPTION>
ARKANSAS FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,877,148
Decreases 13,532,599
<CAPTION>
GEORGIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 8,502,969
Decreases 20,183,370
<CAPTION>
KENTUCKY FUND
<S> <C>
-----------------------------------------------------
Increases $ 6,340,470
Decreases 24,924,822
<CAPTION>
LOUISIANA FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,902,687
Decreases 9,634,774
<CAPTION>
MARYLAND FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,154,845
Decreases 22,117,199
<CAPTION>
MISSOURI FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,114,514
Decreases 14,992,792
<CAPTION>
NORTH CAROLINA FUND
<S> <C>
-----------------------------------------------------
Increases $ 4,312,639
Decreases 29,286,500
<CAPTION>
OREGON FUND
<S> <C>
-----------------------------------------------------
Increases $ 7,303,142
Decreases 22,348,655
<CAPTION>
SOUTH CAROLINA FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,453,688
Decreases 13,670,265
<CAPTION>
TENNESSEE FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,532,766
Decreases 10,433,144
<CAPTION>
VIRGINIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 7,123,663
Decreases 34,207,931
</TABLE>
57
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 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 Alabama Municipals Fund, Eaton Vance Arkansas Municipals Fund, Eaton Vance
Georgia Municipals Fund, Eaton Vance Kentucky Municipals Fund, Eaton Vance
Louisiana Municipals Fund, Eaton Vance Maryland Municipals Fund, Eaton Vance
Missouri Municipals Fund, Eaton Vance North Carolina Municipals Fund, Eaton
Vance Oregon Municipals Fund, Eaton Vance South Carolina Municipals Fund, Eaton
Vance Tennessee Municipals Fund and Eaton Vance Virginia Municipals Fund (the
Funds) (certain of the series of Eaton Vance Municipals Trust) as of August 31,
2000, the related statements of operations for the year then ended, and the
statements of changes in net assets for the years ended August 31, 2000 and 1999
and financial highlights for each of the years in the five-year period ended
August 31, 2000. These financial statements and financial highlights are the
responsibility of the Trust's management. Our responsibility is to express an
opinion on the 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 present
fairly, in all material respects, the financial position of the aforementioned
Funds of Eaton Vance Municipals Trust at August 31, 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
October 13, 2000
58
<PAGE>
ALABAMA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.9%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 2.2%
------------------------------------------------------------------------
$1,500 Birmingham-Southern College Building
Authority, 5.35%, 12/1/19 $ 1,446,270
------------------------------------------------------------------------
$ 1,446,270
------------------------------------------------------------------------
Electric Utilities -- 0.9%
------------------------------------------------------------------------
$ 500 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 $ 463,875
100 Tennessee Valley, Exhibit Commission,
6.70%, 6/1/10 105,036
------------------------------------------------------------------------
$ 568,911
------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.3%
------------------------------------------------------------------------
$1,000 Gadsen East Medical Clinic Board,
(Baptist Hospital), Prerefunded to
11/1/01, 7.80%, 11/1/21 $ 1,056,760
1,000 Huntsville, Health Care Facilities,
(MBIA), Prerefunded to 6/1/04,
6.50%, 6/1/13 1,087,860
5,000 Scottsboro, Water, Sewer and Gas,
(AMBAC), Prerefunded to 6/1/04,
6.50%, 12/1/14 5,442,950
2,000 Tallassee IDB, (United Technologies),
Prerefunded to 8/1/06, 6.10%, 8/1/14 2,180,520
1,000 West Morgan-East Lawrence, Water
Authority, (FSA), Prerefunded to
8/15/04, 6.85%, 8/15/25 1,104,520
------------------------------------------------------------------------
$10,872,610
------------------------------------------------------------------------
General Obligations -- 0.4%
------------------------------------------------------------------------
$ 650 Puerto Rico, Public Improvement,
0.00%, 7/1/15 $ 300,482
------------------------------------------------------------------------
$ 300,482
------------------------------------------------------------------------
Hospital -- 10.5%
------------------------------------------------------------------------
$1,800 Alexander City, (Russell Hospital),
6.00%, 12/1/22 $ 1,536,354
1,000 Baldwin County, (Thomas Hospital),
6.75%, 4/1/21 933,760
1,000 Cullman Medical Clinic Board, (Cullman
Regional Medical Center),
6.50%, 2/15/23 916,380
2,000 Marshall County Healthcare Authority,
(Boaz-Albertville Medical Center),
7.00%, 1/1/20 2,004,880
545 Montgomery, Medical Clinic Board,
(Jackson Hospital), 7.00%, 3/1/15 546,837
1,000 Oneonta Eastern Healthcare Facility
Financing Authority, 7.75%, 7/1/21 1,034,300
------------------------------------------------------------------------
$ 6,972,511
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue -- 8.1%
------------------------------------------------------------------------
$1,000 Courtland, Solid Waste Disposal,
(Champion International Corp.),
6.70%, 11/1/29 $ 1,019,560
1,500 Courtland, Solid Waste Disposal,
(Champion International Corp.), (AMT),
6.50%, 9/1/25 1,509,195
1,855 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,894,716
1,000 Selma, Solid Waste Disposal,
(International Paper), (AMT),
6.00%, 12/1/17 986,160
------------------------------------------------------------------------
$ 5,409,631
------------------------------------------------------------------------
Insured-Education -- 8.6%
------------------------------------------------------------------------
$2,900 Alabama Agricultural and Mechanical
University, (MBIA), 5.00%, 11/1/25 $ 2,671,943
7,500 University of South Alabama, (AMBAC),
0.00%, 11/15/16 3,078,975
------------------------------------------------------------------------
$ 5,750,918
------------------------------------------------------------------------
Insured-Electric Utilities -- 3.1%
------------------------------------------------------------------------
$1,500 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 1,356,090
500 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 450,710
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 268,437
------------------------------------------------------------------------
$ 2,075,237
------------------------------------------------------------------------
Insured-General Obligations -- 6.3%
------------------------------------------------------------------------
$2,000 Madison, Warrants, (MBIA), 5.00%, 9/1/27 $ 1,833,440
1,000 Madison, Warrants, (MBIA),
6.00%, 2/1/24 1,067,270
4,000 Mobile, (MBIA), 0.00%, 8/15/20 1,265,720
------------------------------------------------------------------------
$ 4,166,430
------------------------------------------------------------------------
Insured-Hospital -- 2.8%
------------------------------------------------------------------------
$2,000 Anniston Regional Medical Center Board,
(AMBAC), 5.125%, 6/1/28 $ 1,835,540
------------------------------------------------------------------------
$ 1,835,540
------------------------------------------------------------------------
Insured-Solid Waste -- 0.4%
------------------------------------------------------------------------
$ 250 Huntsville, Solid Waste Disposal,
(FGIC), (AMT), 7.00%, 10/1/08 $ 255,535
------------------------------------------------------------------------
$ 255,535
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
ALABAMA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.0%
------------------------------------------------------------------------
$1,825 Birmingham Jefferson, Civic Center
Authority, (MBIA), 0.00%, 9/1/18 $ 660,121
------------------------------------------------------------------------
$ 660,121
------------------------------------------------------------------------
Insured-Transportation -- 10.5%
------------------------------------------------------------------------
$4,500 Alabama State Docks Department, (MBIA),
(AMT), 6.30%, 10/1/21 $ 4,707,945
1,000 Huntsville-Madison County Airport,
(AMT), (MBIA), 5.40%, 7/1/19 964,090
1,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 442,240
1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 884,670
------------------------------------------------------------------------
$ 6,998,945
------------------------------------------------------------------------
Insured-Water and Sewer -- 14.1%
------------------------------------------------------------------------
$1,000 Alabama Water Pollution Control
Authority, (AMBAC), 4.75%, 8/15/18 $ 907,130
2,500 Jefferson County, Sewer, (FGIC),
5.00%, 2/1/33 2,247,600
1,000 Jefferson County, Sewer, (FGIC),
5.125%, 2/1/39 910,000
1,000 Limestone County Water and Sewer
Authority, (AMBAC), 5.00%, 12/1/24 923,960
3,075 Prichard Water and Sewer, (AMBAC),
6.125%, 11/15/14 3,288,958
1,195 Warrior River, Water Authority, (FSA),
5.25%, 8/1/23 1,148,025
------------------------------------------------------------------------
$ 9,425,673
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.7%
------------------------------------------------------------------------
$ 500 Puerto Rico, (Guaynabo Municipal
Government Center Lease), 5.625%, 7/1/22 $ 457,995
------------------------------------------------------------------------
$ 457,995
------------------------------------------------------------------------
Nursing Home -- 1.4%
------------------------------------------------------------------------
$ 300 Fairhope Midtown Medical Clinic Board,
(Beverly Enterprises), 6.375%, 6/1/09 $ 281,967
670 Mobile, Midtown Medical Clinic Board,
(Beverly Enterprises), 7.00%, 4/1/07 669,966
------------------------------------------------------------------------
$ 951,933
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Special Tax Revenue -- 0.3%
------------------------------------------------------------------------
$ 250 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 220,648
------------------------------------------------------------------------
$ 220,648
------------------------------------------------------------------------
Transportation -- 1.8%
------------------------------------------------------------------------
$ 800 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/22 $ 754,792
500 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 457,025
------------------------------------------------------------------------
$ 1,211,817
------------------------------------------------------------------------
Water and Sewer -- 8.5%
------------------------------------------------------------------------
$ 750 Birmingham, Water and Sewer,
4.75%, 1/1/21 $ 669,375
4,000 Birmingham, Water and Sewer,
4.75%, 1/1/29 3,466,160
1,500 Moulton City, Water, 6.30%, 1/1/18 1,517,760
------------------------------------------------------------------------
$ 5,653,295
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.9%
(identified cost $64,496,000) $65,234,502
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.1% $ 1,418,882
------------------------------------------------------------------------
Net Assets -- 100.0% $66,653,384
------------------------------------------------------------------------
</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 Alabama
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 August 31, 2000, 59.5% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 5.2% to 24.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
ARKANSAS MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 8.3%
------------------------------------------------------------------------
$ 700 Arkansas State Student Loan Authority,
(AMT), 6.25%, 6/1/10 $ 730,583
2,250 Conway, Public Facilities Board,
(Hendrix College), 6.00%, 10/1/26 2,317,320
500 University of Arkansas, 5.00%, 9/1/17 468,160
------------------------------------------------------------------------
$ 3,516,063
------------------------------------------------------------------------
Electric Utilities -- 3.4%
------------------------------------------------------------------------
$ 550 Jefferson, Pollution Control, (Arkansas
Power and Light), 6.30%, 6/1/18 $ 545,875
500 Pope County, Pollution Control,
(Arkansas Power and Light),
6.30%, 12/1/16 489,995
1,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 407,810
------------------------------------------------------------------------
$ 1,443,680
------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.4%
------------------------------------------------------------------------
$ 500 Harrison, Residential Housing Facility
Board, Single Family Mortgage, (FGIC),
Escrowed to Maturity, 7.40%, 9/1/11 $ 596,140
------------------------------------------------------------------------
$ 596,140
------------------------------------------------------------------------
General Obligations -- 4.1%
------------------------------------------------------------------------
$2,750 Arkansas State College Savings,
0.00%, 6/1/14 $ 1,335,977
1,000 Puerto Rico, 0.00%, 7/1/18 383,310
------------------------------------------------------------------------
$ 1,719,287
------------------------------------------------------------------------
Hospital -- 15.0%
------------------------------------------------------------------------
$ 500 Arkansas Development Finance Authority,
(Washington Regional Medical Center),
7.375%, 2/1/29 $ 502,645
800 Arkansas Development Finance Authority,
(White River Medical Center),
5.60%, 6/1/24 670,320
750 Baxter County, Community Hospital
District, 5.625%, 9/1/28 615,502
1,000 Conway, Health Facilities Board, (Conway
Regional Medical Center), 6.40%, 8/1/29 967,750
1,125 Little Rock, Health Facilities Board,
(Baptist Medical Center),
6.80%, 11/1/05 1,208,857
1,500 Paragould, Hospital, (Methodist Hospital
Corp.), 6.375%, 10/1/17 1,391,820
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Hospital (continued)
------------------------------------------------------------------------
$1,000 Pulaski County, (Children's Hospital),
6.20%, 3/1/22 $ 966,750
------------------------------------------------------------------------
$ 6,323,644
------------------------------------------------------------------------
Housing -- 13.0%
------------------------------------------------------------------------
$ 580 Arkansas Development Finance Authority,
SFM, (GNMA), (AMT), 7.45%, 1/1/27 $ 614,742
3,230 Arkansas Development Finance Authority,
SFM, (GNMA/ FNMA), (AMT), 6.70%, 7/1/27 3,327,546
2,315 Arkansas Development Finance Authority,
SFM, Subordinated, 0.00%, 12/1/11 1,027,003
530 North Little Rock, Residential Housing
Facilities, (Parkstone Place),
6.50%, 8/1/21 507,231
------------------------------------------------------------------------
$ 5,476,522
------------------------------------------------------------------------
Industrial Development Revenue -- 14.9%
------------------------------------------------------------------------
$2,000 Baxter, (Aeroquip Corp.), 5.80%, 10/1/13 $ 2,049,140
2,000 Blytheville, Solid Waste Recycling and
Sewer Treatment, (Nucor Corp.), (AMT),
6.90%, 12/1/21 2,071,620
800 Little River County, (Georgia-Pacific
Corp.), (AMT), 5.60%, 10/1/26 738,280
250 Pine Bluff, Environmental Improvements
Revenue, (International Paper Co.),
(AMT), 6.70%, 8/1/20 259,730
1,150 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,174,621
------------------------------------------------------------------------
$ 6,293,391
------------------------------------------------------------------------
Insured-Education -- 3.0%
------------------------------------------------------------------------
$ 810 Arkansas State University, (Consolidated
Building System), (AMBAC), 5.10%, 4/1/24 $ 765,904
500 University of Central Arkansas, (AMBAC),
6.125%, 4/1/26 524,505
------------------------------------------------------------------------
$ 1,290,409
------------------------------------------------------------------------
Insured-Electric Utilities -- 8.2%
------------------------------------------------------------------------
$ 250 North Little Rock, Electric System,
(MBIA), 6.50%, 7/1/10 $ 283,088
2,390 North Little Rock, Electric System,
(MBIA), 6.50%, 7/1/15 2,714,921
450 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 483,188
------------------------------------------------------------------------
$ 3,481,197
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
ARKANSAS MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-General Obligations -- 0.5%
------------------------------------------------------------------------
$ 500 Arkansas State College Savings, (FGIC),
0.00%, 6/1/17 $ 199,215
------------------------------------------------------------------------
$ 199,215
------------------------------------------------------------------------
Insured-Hospital -- 7.1%
------------------------------------------------------------------------
$2,000 Jonesboro, Residential Housing and
Health Care Facilities Board Hospital,
(Saint Bernard Regional Medical Center),
(AMBAC), 5.90%, 7/1/16 $ 2,072,960
400 Saline County, Retirement Housing and
Healthcare Facilities Board, (Evan
Lutheran Good Samaritan), (AMBAC),
5.80%, 5/1/11 418,688
500 Saline County, Retirement Housing and
Healthcare Facilities Board, (Evan
Lutheran Good Samaritan), (AMBAC),
6.00%, 6/1/18 510,590
------------------------------------------------------------------------
$ 3,002,238
------------------------------------------------------------------------
Nursing Home -- 2.5%
------------------------------------------------------------------------
$1,000 Little Rock, Health Facilities Board,
(Baptist Medical Center-Parkway
Village), 7.00%, 10/1/17 $ 1,047,190
------------------------------------------------------------------------
$ 1,047,190
------------------------------------------------------------------------
Special Tax Revenue -- 5.6%
------------------------------------------------------------------------
$2,000 Little Rock, Hotel and Restaurant Gross
Receipts Tax, 7.375%, 8/1/15 $ 2,388,160
------------------------------------------------------------------------
$ 2,388,160
------------------------------------------------------------------------
Transportation -- 4.4%
------------------------------------------------------------------------
$ 750 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 $ 766,845
1,250 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 1,082,788
------------------------------------------------------------------------
$ 1,849,633
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Water and Sewer -- 7.0%
------------------------------------------------------------------------
$1,000 Arkansas Development Finance Authority,
(Waste Water System Revenue),
5.00%, 6/1/22 $ 931,540
1,000 Little Rock, Sewer, 5.50%, 8/1/14 1,006,570
1,000 South Sebastian County, Water Users
Association, 6.15%, 6/1/23 1,006,780
------------------------------------------------------------------------
$ 2,944,890
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $40,633,990) $41,571,659
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 661,564
------------------------------------------------------------------------
Net Assets -- 100.0% $42,233,223
------------------------------------------------------------------------
</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 Arkansas
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 August 31, 2000, 20.6% 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 1.2% to 10.3% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
GEORGIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Electric Utilities -- 6.8%
------------------------------------------------------------------------
$1,000 Georgia Municipal Electric Power
Authority, 0.00%, 1/1/12 $ 514,700
2,000 Georgia Municipal Electric Power
Authority, 8.25%, 1/1/11 2,515,300
1,000 Monroe County, Development Authority
Pollution Control, (Gulf Power),
6.30%, 9/1/24 1,006,710
665 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 271,194
------------------------------------------------------------------------
$ 4,307,904
------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.2%
------------------------------------------------------------------------
$2,500 Savannah, (Saint Josephs Hospital),
Prerefunded to 7/1/03, 6.20%, 7/1/23 $ 2,660,925
------------------------------------------------------------------------
$ 2,660,925
------------------------------------------------------------------------
General Obligations -- 3.2%
------------------------------------------------------------------------
$ 300 Alpharetta, 6.50%, 5/1/10 $ 335,871
500 Georgia State, 6.30%, 3/1/08 554,575
1,000 Puerto Rico Aqueduct and Sewer
Authority, 6.25%, 7/1/12 1,127,260
------------------------------------------------------------------------
$ 2,017,706
------------------------------------------------------------------------
Hospital -- 6.2%
------------------------------------------------------------------------
$1,000 Baldwin County, Hospital Authority,
(Oconee Regional Medical Center),
5.375%, 12/1/28 $ 772,910
800 Forsyth County, Hospital Authority,
(Georgia Baptist Health Care System),
6.375%, 10/1/28 687,272
700 Royston, Hospital Authority, (Cobb
Healthcare System, Inc.), 6.50%, 7/1/27 659,414
1,785 Toombs County, Hospital Authority, (Dr.
John M. Meadows Memorial),
7.00%, 12/1/17 1,794,603
------------------------------------------------------------------------
$ 3,914,199
------------------------------------------------------------------------
Housing -- 4.1%
------------------------------------------------------------------------
$ 645 Atlanta Urban Residential Finance
Authority, (New Community John Hope),
(AMT), 7.25%, 6/1/07 $ 629,172
1,945 Georgia Housing and Finance Authority,
(AMT), 5.85%, 12/1/28 1,942,121
------------------------------------------------------------------------
$ 2,571,293
------------------------------------------------------------------------
Industrial Development Revenue -- 17.6%
------------------------------------------------------------------------
$2,500 Albany Dougherty, Payroll Development
Authority, Solid Waste Disposal,
(Proctor and Gamble), (AMT),
5.20%, 5/15/28 $ 2,314,600
1,000 Brunswick and Glynn County Development
Authority, (Georgia-Pacific Corp.),
5.55%, 3/1/26 905,430
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$ 500 Camden County, Joint Development
Authority, (Carbide Corp.),
5.00%, 1/1/12 $ 454,320
1,000 Cartersville Development Authority,
(Anheuser-Busch), (AMT), 6.125%, 5/1/27 1,023,640
1,000 Cartersville Development Authority,
(Anheuser-Busch), (AMT), 7.375%, 5/1/09 1,162,610
1,000 Effingham County, Solid Waste Disposal,
(Fort James), (AMT), 5.625%, 7/1/18 933,270
1,250 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,276,762
500 Savannah EDA, (Hershey Foods),
6.60%, 6/1/12 521,210
1,123 Savannah EDA, (Intercat-Savannah, Inc.),
(AMT), 9.00%, 1/1/15 689,809
750 Savannah EDA, (Union Camp Corp.),
6.80%, 2/1/12 776,543
1,000 Vienna Water and Sewer, (Cargill),
(AMT), 6.00%, 9/1/14 1,026,650
------------------------------------------------------------------------
$11,084,844
------------------------------------------------------------------------
Insured-Education -- 3.6%
------------------------------------------------------------------------
$1,000 Fulton County, Development Authority,
(Georgia Technology Research Corp.),
(MBIA), 5.00%, 9/1/27 $ 923,240
1,500 Georgia Private Colleges and
Universities Authority, (Agnes Scott
College), (MBIA), 4.75%, 6/1/28 1,315,830
------------------------------------------------------------------------
$ 2,239,070
------------------------------------------------------------------------
Insured-Electric Utilities -- 6.5%
------------------------------------------------------------------------
$3,100 Georgia Municipal Electric Power
Authority, (MBIA), 5.50%, 1/1/20 $ 3,162,496
900 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 966,375
------------------------------------------------------------------------
$ 4,128,871
------------------------------------------------------------------------
Insured-Hospital -- 7.6%
------------------------------------------------------------------------
$1,000 Henry County, Hospital Authority
Revenue, (Henry Medical Center, Inc.),
(AMBAC), 6.00%, 7/1/29 $ 1,050,540
1,100 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), Variable Rate, 8/1/10(1)(2) 1,210,000
1,405 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), 6.40%, 8/1/06 1,482,289
595 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), 6.40%, 8/1/06 625,089
400 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), Variable Rate, 8/1/10(1)(2) 434,500
------------------------------------------------------------------------
$ 4,802,418
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
GEORGIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.7%
------------------------------------------------------------------------
$1,000 East Point Building Authority, (FGIC),
6.00%, 2/1/10 $ 1,060,870
------------------------------------------------------------------------
$ 1,060,870
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 7.4%
------------------------------------------------------------------------
$1,000 George L. Smith, (Georgia World Congress
Center-Domed Stadium), (MBIA), (AMT),
5.50%, 7/1/20 $ 990,390
1,000 Metropolitan Atlanta Rapid Transit
Authority, (AMBAC), 6.25%, 7/1/11 1,118,160
1,000 Metropolitan Atlanta Rapid Transit
Authority, (AMBAC), 6.25%, 7/1/20 1,108,440
700 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) 576,723
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) 890,590
------------------------------------------------------------------------
$ 4,684,303
------------------------------------------------------------------------
Insured-Transportation -- 5.0%
------------------------------------------------------------------------
$1,500 Atlanta Airport, (FGIC), 5.60%, 1/1/30 $ 1,505,490
1,500 Atlanta Metropolitan Rapid
Transportation Authority, (MBIA),
Variable Rate, 7/1/20(1)(2) 1,359,435
750 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 293,025
------------------------------------------------------------------------
$ 3,157,950
------------------------------------------------------------------------
Insured-Water and Sewer -- 11.5%
------------------------------------------------------------------------
$2,500 Atlanta, Water and Wastewater, (FGIC),
5.00%, 11/1/38 $ 2,255,475
1,000 Cherokee County, Water and Sewer
Authority, (FGIC), 4.75%, 8/1/28 876,700
1,000 Cherokee County, Water and Sewer
Authority, (MBIA), 6.875%, 8/1/13 1,041,490
3,500 Fulton County, Water and Sewer, (FGIC),
4.75%, 1/1/28 3,074,820
------------------------------------------------------------------------
$ 7,248,485
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.3%
------------------------------------------------------------------------
$2,300 Fulton County, Building Authority,
Judicial Center, 0.00%, 1/1/10 $ 1,445,320
------------------------------------------------------------------------
$ 1,445,320
------------------------------------------------------------------------
Miscellaneous -- 1.6%
------------------------------------------------------------------------
$1,000 Atlanta, Downtown Development Authority,
Childcare Facilities, (Central Atlanta
Hospitality Childcare Inc.),
8.00%, 1/1/26 $ 1,036,980
------------------------------------------------------------------------
$ 1,036,980
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Senior Living / Life Care -- 1.9%
------------------------------------------------------------------------
$1,385 De Kalb County, Private Hospital
Authority, (Atlanta, Inc.),
8.50%, 3/1/25(4) $ 706,350
500 Fulton County, Residential Elderly Care
Facility Authority, (Canterbury Court),
6.30%, 10/1/24 462,770
------------------------------------------------------------------------
$ 1,169,120
------------------------------------------------------------------------
Solid Waste -- 1.6%
------------------------------------------------------------------------
$1,000 Savannah Resource Recovery, (Savannah
Energy Systems Co.), 6.30%, 12/1/06 $ 1,028,060
------------------------------------------------------------------------
$ 1,028,060
------------------------------------------------------------------------
Transportation -- 4.0%
------------------------------------------------------------------------
$2,750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 2,519,578
------------------------------------------------------------------------
$ 2,519,578
------------------------------------------------------------------------
Water and Sewer -- 1.5%
------------------------------------------------------------------------
$1,000 De Kalb County, Water & Sewer,
5.00%, 10/1/28 $ 920,560
------------------------------------------------------------------------
$ 920,560
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $61,719,666) $61,998,456
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 1,068,475
------------------------------------------------------------------------
Net Assets -- 100.0% $63,066,931
------------------------------------------------------------------------
</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 Georgia
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 August 31, 2000, 44.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.6% to 20.2% 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 has been issued as a leveraged inverse floater bond.
(4) The Portfolio is accruing only partial interest on this security.
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
KENTUCKY MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Assisted Living -- 4.0%
------------------------------------------------------------------------
$3,000 Kenton County, (Highland Terrace),
(AMT), FHA, 6.95%, 12/1/26 $ 3,229,470
------------------------------------------------------------------------
$ 3,229,470
------------------------------------------------------------------------
Electric Utilities -- 1.7%
------------------------------------------------------------------------
$3,500 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 $ 1,427,335
------------------------------------------------------------------------
$ 1,427,335
------------------------------------------------------------------------
Escrowed / Prerefunded -- 8.6%
------------------------------------------------------------------------
$1,000 Elsmmere, (Courtaulds Pkg, Inc.),
Prerefunded to 4/1/05, 6.75%, 4/1/10 $ 1,100,850
1,200 Florence, Housing Facilities, (Blue
Grass Housing), Prerefunded to 7/1/07,
7.625%, 5/1/27 1,409,220
2,000 Louisville and Jefferson County,
Metropolitan Sewer District, (AMBAC),
Prerefunded to 11/15/04, 6.75%, 5/15/25 2,212,200
1,600 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 1,698,000
545 Russell, Health Systems, Prerefunded to
7/1/06, 8.10%, 7/1/15 644,201
------------------------------------------------------------------------
$ 7,064,471
------------------------------------------------------------------------
General Obligations -- 4.6%
------------------------------------------------------------------------
$1,465 Bowling Green, 5.30%, 6/1/19 $ 1,440,110
1,000 Lexington-Fayette Urban County, (County
Detention Center), 4.75%, 5/1/20 896,620
1,100 Louisville, 4.50%, 12/1/18 958,716
1,125 Puerto Rico, 0.00%, 7/1/17 458,786
------------------------------------------------------------------------
$ 3,754,232
------------------------------------------------------------------------
Hospital -- 0.6%
------------------------------------------------------------------------
$ 430 Russell, Health Systems, 8.10%, 7/1/15 $ 504,661
------------------------------------------------------------------------
$ 504,661
------------------------------------------------------------------------
Housing -- 1.7%
------------------------------------------------------------------------
$1,375 Boone County, Multifamily Housing
Mortgage, (Walnut Creek Apartments),
FHA, 7.00%, 1/1/27 $ 1,419,234
------------------------------------------------------------------------
$ 1,419,234
------------------------------------------------------------------------
Industrial Development Revenue -- 27.5%
------------------------------------------------------------------------
$2,425 Ashland, Solid Waste Disposal, (Ashland
Oil), (AMT), 7.125%, 2/1/22 $ 2,521,321
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$2,000 Ashland, Solid Waste Disposal, (Ashland
Oil), (AMT), 7.20%, 10/1/20 $ 2,065,480
3,075 Fulton County, Industrial Building,
(Chic Jeans), (AMT), 7.50%, 2/1/10 914,812
1,500 Hancock County, (Southwire Co.), (AMT),
7.75%, 7/1/26 1,544,460
2,370 Hancock County, Solid Waste Disposal,
(Williamette Corp.), (AMT),
6.60%, 5/1/26 2,413,892
3,000 Henderson County, Solid Waste Disposal,
(MacMillan Bloedel), (AMT),
7.00%, 3/1/25 3,096,900
1,000 Jefferson County, Pollution Control,
(E.I. du Pont de Nemours),
6.30%, 7/1/12 1,052,450
3,400 Kenton County Airport, (Delta Airlines),
(AMT), 6.125%, 2/1/22 3,287,732
250 Kenton County Airport, (Delta Airlines),
(AMT), 7.50%, 2/1/12 259,427
985 Owensboro County, (KMart Corp.),
6.80%, 12/1/07 1,002,858
1,500 Perry County, Solid Waste Disposal, (TJI
International), (AMT), 6.80%, 5/1/26 1,527,555
915 Powderly, (KMart Corp.), 6.90%, 3/1/07 938,195
1,820 Wickliffe, Solid Waste Disposal,
(Westvaco Corp.), (AMT), 6.375%, 4/1/26 1,818,726
------------------------------------------------------------------------
$22,443,808
------------------------------------------------------------------------
Insured-Education -- 2.3%
------------------------------------------------------------------------
$2,000 Lexington-Fayette Urban County,
(University of Kentucky, Alumuni
Association, Inc.), (MBIA),
5.00%, 11/1/18 $ 1,904,640
------------------------------------------------------------------------
$ 1,904,640
------------------------------------------------------------------------
Insured-Electric Utilities -- 0.7%
------------------------------------------------------------------------
$ 600 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 $ 540,852
------------------------------------------------------------------------
$ 540,852
------------------------------------------------------------------------
Insured-General Obligations -- 1.6%
------------------------------------------------------------------------
$1,500 Puerto Rico Commonwealth, Public
Improvement, (AMBAC), 4.50%, 7/1/23 $ 1,300,035
------------------------------------------------------------------------
$ 1,300,035
------------------------------------------------------------------------
Insured-Hospital -- 7.9%
------------------------------------------------------------------------
$1,500 Daviess County, (ODCH, Inc.), (MBIA),
6.25%, 8/1/22 $ 1,549,995
2,500 Jefferson County, Health Facilities
Authority, (Alliant Health System),
(MBIA), 5.125%, 10/1/27 2,305,300
1,000 Jefferson County, Health Facilities
Authority, (Jewish Hospital), (AMBAC),
6.50%, 5/1/15 1,046,380
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
KENTUCKY MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Hospital (continued)
------------------------------------------------------------------------
$ 750 Jefferson County, Health Facilities
Authority, (Jewish Hospital), (AMBAC),
6.55%, 5/1/22 $ 776,483
850 Jefferson County, Health Facilities
Authority, (University Medical Center),
(MBIA), 5.25%, 7/1/22 807,075
------------------------------------------------------------------------
$ 6,485,233
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.2%
------------------------------------------------------------------------
$1,000 Puerto Rico Infrastructure Financing
Authority, (AMBAC), 5.00%, 7/1/28 $ 941,290
------------------------------------------------------------------------
$ 941,290
------------------------------------------------------------------------
Insured-Transportation -- 16.2%
------------------------------------------------------------------------
$ 500 Kenton County Airport, (FSA), (AMT),
6.30%, 3/1/15 $ 512,025
3,000 Kenton County Airport, (MBIA), (AMT),
6.30%, 3/1/15 3,198,750
1,195 Kenton County Airport, (MBIA), (AMT),
6.45%, 3/1/15 1,294,591
1,000 Kentucky EDA, (State Turnpike
Revitalization), (FGIC), 0.00%, 7/1/10 632,420
700 Lexington-Fayette Urban County Airport,
(MBIA), (AMT), 4.45%, 7/1/13 700,000
1,000 Louisville and Jefferson County,
Regional Airport Authority, (MBIA),
(AMT), 5.00%, 7/1/18 925,880
1,300 Louisville and Jefferson County,
Regional Airport Authority, (MBIA),
(AMT), 5.00%, 7/1/25 1,171,027
5,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 1,953,500
3,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 5.00%, 7/1/28 2,823,870
------------------------------------------------------------------------
$13,212,063
------------------------------------------------------------------------
Insured-Water and Sewer -- 7.0%
------------------------------------------------------------------------
$2,000 Kenton County, Water District
Waterworks, (FGIC), 6.00%, 2/1/17 $ 2,079,920
2,000 Louisville and Jefferson County,
Metropolitan Sewer District and Drainage
System, (FGIC), 4.75%, 5/15/28 1,744,520
1,000 Louisville and Jefferson County,
Metropolitan Sewer District and Drainage
System, (FGIC), 5.00%, 5/15/30 915,570
1,000 Louisville and Jefferson County,
Metropolitan Sewer District and Drainage
System, (MBIA), 5.20%, 5/15/25 953,800
------------------------------------------------------------------------
$ 5,693,810
------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation -- 10.1%
------------------------------------------------------------------------
$4,990 Jefferson County, (Capital Projects
Corp.), 0.00%, 8/15/15 $ 2,194,153
1,000 Kenton County, (Public Properties
Corp.), 5.00%, 3/1/29 898,710
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Lease Revenue / Certificates of
Participation (continued)
------------------------------------------------------------------------
$1,030 Kentucky, League of Cities Funding
Trust, Floating Indebtedness
Certificates of Participation,
6.15%, 8/1/13 $ 1,083,879
1,000 Mount Sterling, Lease, 6.15%, 3/1/13 1,031,100
1,000 Mount Sterling, Lease, 6.20%, 3/1/18 1,019,880
2,000 Owensboro County, Airport Lease,
5.875%, 6/1/15 2,023,080
------------------------------------------------------------------------
$ 8,250,802
------------------------------------------------------------------------
Solid Waste -- 1.5%
------------------------------------------------------------------------
$1,200 Morgantown, Solid Waste Revenue, (AMT),
7.45%, 5/1/22 $ 1,209,468
------------------------------------------------------------------------
$ 1,209,468
------------------------------------------------------------------------
Special Tax Revenue -- 0.3%
------------------------------------------------------------------------
$ 250 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 220,648
------------------------------------------------------------------------
$ 220,648
------------------------------------------------------------------------
Water and Sewer -- 0.8%
------------------------------------------------------------------------
$ 650 Harden County, Water District,
6.50%, 9/1/12 $ 681,961
------------------------------------------------------------------------
$ 681,961
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $79,536,566) $80,284,013
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 1,423,809
------------------------------------------------------------------------
Net Assets -- 100.0% $81,707,822
------------------------------------------------------------------------
</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 Kentucky
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 August 31, 2000, 42.3% 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 0.6% to 21.2% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
LOUISIANA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.8%
------------------------------------------------------------------------
$2,475 Jefferson Parish, Home Mortgage
Authority, Single Family, (FGIC),
Escrowed to Maturity, 0.00%, 5/1/17 $ 984,233
100 Louisiana Public Facilities Authority,
(Our Lady of the Lake Medical Center),
(MBIA), Prerefunded to 5/31/02, Variable
Rate, 11/28/14(1) 107,875
250 Saint Tammany Parish, Hospital Service
District, Prerefunded to 7/1/02,
6.50%, 7/1/22 262,952
------------------------------------------------------------------------
$ 1,355,060
------------------------------------------------------------------------
Hospital -- 7.2%
------------------------------------------------------------------------
$1,000 Lafourche Parish, Hospital Service
District, 6.00%, 10/1/23 $ 909,030
705 Louisiana Public Facilities Authority,
(General Health Systems),
6.80%, 11/1/16 706,657
500 Louisiana Public Facilities Authority,
(Tuoro Infirmary), 5.625%, 8/15/29 435,655
------------------------------------------------------------------------
$ 2,051,342
------------------------------------------------------------------------
Housing -- 16.7%
------------------------------------------------------------------------
$ 300 Guam Housing Corp., Single Family,
(AMT), 5.75%, 9/1/31 $ 303,705
510 Louisiana HFA, Single Family, (GNMA),
(AMT), 6.30%, 12/1/27 519,629
690 Louisiana HFA, Single Family, (GNMA),
(AMT), 8.00%, 3/1/25 765,258
1,980 Louisiana HFA, Single Family,
(GNMA/FNMA), 0.00%, 6/1/27 404,098
445 Louisiana HFA, Single Family,
(GNMA/FNMA), (AMT), 6.55%, 12/1/26 454,906
400 Louisiana Public Facilities Authority,
(Eden Point), 6.25%, 3/1/34 366,200
1,890 New Orleans Home Mortgage Authority,
Single Family, (GNMA/FNMA), (AMT),
6.30%, 6/1/28 1,945,150
------------------------------------------------------------------------
$ 4,758,946
------------------------------------------------------------------------
Industrial Development Revenue -- 12.8%
------------------------------------------------------------------------
$ 750 Bastrop, (International Paper Co.),
(AMT), 6.60%, 3/1/19 $ 760,657
1,000 East Baton Rouge Parish,
(Georgia-Pacific Corp.), (AMT),
5.35%, 9/1/11 940,530
1,000 Louisiana Offshore Terminal Authority,
Deepwater Port Revenue, (Loop, LLC),
5.20%, 10/1/18 930,430
500 Saint Bernard Parish, (Mobil Oil),
5.90%, 11/1/26 504,105
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$ 500 South Louisiana Port Commission,
(Cargill, Inc.), 5.85%, 4/1/17 $ 507,820
------------------------------------------------------------------------
$ 3,643,542
------------------------------------------------------------------------
Insured-Education -- 9.6%
------------------------------------------------------------------------
$1,500 Louisiana Public Facilities Authority,
(Dillard University), (AMBAC),
5.00%, 2/1/28 $ 1,373,385
250 Louisiana Public Facilities Authority,
(Tulane University), (MBIA),
5.00%, 11/15/27 228,052
1,100 Louisiana State University, (FGIC),
5.75%, 7/1/14 1,129,744
------------------------------------------------------------------------
$ 2,731,181
------------------------------------------------------------------------
Insured-Electric Utilities -- 2.6%
------------------------------------------------------------------------
$1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 $ 727,860
------------------------------------------------------------------------
$ 727,860
------------------------------------------------------------------------
Insured-General Obligations -- 13.5%
------------------------------------------------------------------------
$ 250 Calcasieu Parish, School District,
(FGIC), 5.25%, 5/1/20 $ 242,672
3,000 New Orleans, (AMBAC), 0.00%, 9/1/15 1,337,220
4,000 New Orleans, (AMBAC), 0.00%, 9/1/16 1,668,520
1,500 New Orleans, (AMBAC), 0.00%, 9/1/17 586,575
------------------------------------------------------------------------
$ 3,834,987
------------------------------------------------------------------------
Insured-Hospital -- 0.8%
------------------------------------------------------------------------
$ 250 Terrebonne Parish, Hospital Service
District No. 1, (Terrebonne General
Medical Center), (AMBAC), 5.375%, 4/1/28 $ 240,538
------------------------------------------------------------------------
$ 240,538
------------------------------------------------------------------------
Insured-Housing -- 0.0%
------------------------------------------------------------------------
$ 80 East Baton Rouge Mortgage Finance
Authority, Single Family, (MBIA),
(GNMA/FNMA), 0.00%, 10/1/15 $ 16,012
------------------------------------------------------------------------
$ 16,012
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 10.1%
------------------------------------------------------------------------
$ 345 Baton Rouge, Public Improvement, (FGIC),
4.75%, 8/1/17 $ 314,071
500 Lafayette Parish, School District,
(FGIC), 4.60%, 4/1/18 445,375
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
LOUISIANA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Special Tax Revenue (continued)
------------------------------------------------------------------------
$ 500 Louisiana Environmental Facilities and
Community Development Authority,
(Capital and Equipment Acquisition),
(AMBAC), 4.50%, 12/1/18 $ 439,935
1,500 Louisiana Stadium and Exposition,
(FGIC), 5.00%, 7/1/26 1,378,710
350 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) 288,362
------------------------------------------------------------------------
$ 2,866,453
------------------------------------------------------------------------
Insured-Transportation -- 5.3%
------------------------------------------------------------------------
$1,700 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 1,503,939
------------------------------------------------------------------------
$ 1,503,939
------------------------------------------------------------------------
Senior Living / Life Care -- 11.4%
------------------------------------------------------------------------
$ 500 Louisiana HFA, (HCC Assisted Living
Group 1), (AMT), 9.00%, 3/1/25 $ 526,790
500 Louisiana HFA, (Saint Dominic Assisted
Care Facility), (GNMA), 6.85%, 9/1/25 508,885
1,000 Louisiana HFA, (Saint Joseph's Manor
Retirement Center), (GNMA),
7.80%, 12/1/35 1,111,460
1,150 Louisiana PFA, (Glen Retirement System),
6.70%, 12/1/25 1,103,977
------------------------------------------------------------------------
$ 3,251,112
------------------------------------------------------------------------
Special Tax Revenue -- 1.4%
------------------------------------------------------------------------
$ 450 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) $ 397,166
------------------------------------------------------------------------
$ 397,166
------------------------------------------------------------------------
Transportation -- 1.9%
------------------------------------------------------------------------
$ 500 Mississippi River Bridge Authority,
Bridge Revenue, 6.75%, 11/1/12(4) $ 529,060
------------------------------------------------------------------------
$ 529,060
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.1%
(identified cost $27,786,850) $27,907,198
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.9% $ 533,839
------------------------------------------------------------------------
Net Assets -- 100.0% $28,441,037
------------------------------------------------------------------------
</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 Louisiana
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 August 31, 2000, 46.6% 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 3.9% to 21.3% 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.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
MARYLAND MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Cogeneration -- 1.6%
------------------------------------------------------------------------
$1,250 Maryland Energy Cogeneration, (AES
Warrior Run), (AMT), 7.40%, 9/1/19 $ 1,273,850
------------------------------------------------------------------------
$ 1,273,850
------------------------------------------------------------------------
Education -- 9.8%
------------------------------------------------------------------------
$1,500 Annapolis, EDA, (Saint Johns College),
5.50%, 10/1/23 $ 1,356,615
1,000 Maryland EDA, (Collegiate Housing -
Courtyard), 5.75%, 6/1/24 944,930
750 Maryland EDA, (Collegiate Housing -
Salisbury), 6.00%, 6/1/30 704,940
4,000 Maryland HEFA, (Johns Hopkins
University), 6.00%, 7/1/39 4,239,200
500 Montgomery County, EDA, (Bullis School),
5.60%, 11/1/18 474,830
350 Montgomery County, EDA, (Bullis School),
5.60%, 11/1/22 324,845
------------------------------------------------------------------------
$ 8,045,360
------------------------------------------------------------------------
Electric Utilities -- 5.7%
------------------------------------------------------------------------
$1,500 Calvert, Pollution Control Revenue,
(Baltimore Gas and Electric),
5.55%, 7/15/14 $ 1,525,800
750 Guam Power Authority, 6.625%, 10/1/14 830,370
2,225 Prince George's County, Pollution
Control Revenue, (Potomac Electric),
6.375%, 1/15/23 2,311,819
------------------------------------------------------------------------
$ 4,667,989
------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.0%
------------------------------------------------------------------------
$1,125 Baltimore, SFMR, (Inner Harbor),
Escrowed to Maturity, 8.00%, 12/1/10 $ 1,417,713
2,500 Maryland HEFA, (Union Hospital of
Cecil), Prerefunded to 7/1/02,
6.70%, 7/1/22 2,647,775
------------------------------------------------------------------------
$ 4,065,488
------------------------------------------------------------------------
General Obligations -- 2.0%
------------------------------------------------------------------------
$1,000 Baltimore County, 4.75%, 7/1/13 $ 979,710
1,100 Puerto Rico, 0.00%, 7/1/16 477,543
190 Worcester, Sanitary District,
6.55%, 8/15/17 198,521
------------------------------------------------------------------------
$ 1,655,774
------------------------------------------------------------------------
Hospital -- 10.2%
------------------------------------------------------------------------
$ 465 Berlin, (Atlantic General Hospital),
8.375%, 6/1/22 $ 480,382
1,000 Maryland HEFA, (Doctors Community
Hospital), 5.50%, 7/1/24 798,910
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Hospital (continued)
------------------------------------------------------------------------
$1,175 Maryland HEFA, (Good Samaritan
Hospital), 5.75%, 7/1/19 $ 1,195,433
3,000 Maryland HEFA, (Johns Hopkins Hospital),
4.50%, 5/15/35 2,446,830
1,000 Maryland HEFA, (Kennedy Krieger Issue),
5.125%, 7/1/22 767,800
800 Maryland HEFA, (University of Maryland
Medical System), 6.75%, 7/1/30 819,664
1,355 Prince George's County, (Greater
SouthEast Healthcare System),
6.375%, 1/1/13(1) 474,494
3,800 Prince George's County, (Greater
SouthEast Healthcare System),
6.375%, 1/1/23(1) 1,330,760
------------------------------------------------------------------------
$ 8,314,273
------------------------------------------------------------------------
Housing -- 9.6%
------------------------------------------------------------------------
$1,000 Maryland Community Development
Administration Multifamily, FHA, (AMT),
6.70%, 5/15/36 $ 1,040,300
2,985 Maryland Community Development
Administration Single Family, (AMT),
6.75%, 4/1/26 3,052,819
665 Maryland Community Development
Administration Single Family, (AMT),
6.80%, 4/1/22 684,657
730 Maryland Community Development
Administration Single Family, (AMT),
6.80%, 4/1/24 751,579
1,000 Montgomery County, Housing Opportunities
Commission, SFMR, 0.00%, 7/1/28 190,850
2,160 Prince George's County, Housing
Authority, (Langely Gardens), (AMT),
5.875%, 2/20/39 2,091,269
------------------------------------------------------------------------
$ 7,811,474
------------------------------------------------------------------------
Industrial Development Revenue -- 7.3%
------------------------------------------------------------------------
$1,350 Allegany, Pollution Control Revenue,
(Westvaco Corp.), 6.20%, 1/1/08 $ 1,433,471
2,000 Baltimore, Port Facilities,
(Consolidated Coal Sales Co. - E.I. du
Pont de Nemours), 6.50%, 10/1/11 2,109,640
1,425 Frederick, EDA, (Cargill, Inc.),
6.30%, 11/1/09 1,502,549
1,000 Maryland EDA, (AFCO Cargo), (AMT),
6.50%, 7/1/24 910,130
------------------------------------------------------------------------
$ 5,955,790
------------------------------------------------------------------------
Insured-Education -- 8.2%
------------------------------------------------------------------------
$ 460 Maryland HEFA, (College Of Notre Dame),
(MBIA), 5.30%, 10/1/18 $ 462,374
1,000 Maryland HEFA, (Loyola College), (MBIA),
5.00%, 10/1/39 919,960
4,100 Maryland HEFA, (Loyola College), (MBIA),
5.375%, 10/1/26 3,998,771
1,200 Morgan State University, Academic and
Facilities, (MBIA), 6.10%, 7/1/20 1,315,128
------------------------------------------------------------------------
$ 6,696,233
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
MARYLAND MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Electric Utilities -- 1.4%
------------------------------------------------------------------------
$1,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/21 $ 916,300
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(2) 268,438
------------------------------------------------------------------------
$ 1,184,738
------------------------------------------------------------------------
Insured-General Obligations -- 3.2%
------------------------------------------------------------------------
$2,700 Baltimore County, (FSA), 5.25%, 10/15/20 $ 2,639,169
------------------------------------------------------------------------
$ 2,639,169
------------------------------------------------------------------------
Insured-Hospital -- 13.0%
------------------------------------------------------------------------
$3,000 Maryland HEFA, (Helix Health Issue),
(AMBAC), 5.00%, 7/1/27 $ 2,804,580
990 Maryland HEFA, (Johns Hopkins
Medicine-Howard County General Hospital
Acquisition), (MBIA), 5.00%, 7/1/29 915,394
3,850 Maryland HEFA, (Medlantic/Helix Issue),
(AMBAC), 5.25%, 8/15/38 3,567,949
3,150 Puerto Rico ITEM & EC, (Auxilio Mutuo
Obligated Group), (MBIA), 6.25%, 7/1/24 3,301,169
------------------------------------------------------------------------
$10,589,092
------------------------------------------------------------------------
Insured-Housing -- 0.6%
------------------------------------------------------------------------
$ 500 Prince George's County, (Keystone
Apartments), FHA, (MBIA), 6.80%, 7/1/25 $ 515,360
------------------------------------------------------------------------
$ 515,360
------------------------------------------------------------------------
Insured-Solid Waste -- 6.4%
------------------------------------------------------------------------
$5,000 NE Maryland Solid Waste Disposal,
(MBIA), (AMT), 6.30%, 7/1/16 $ 5,201,450
------------------------------------------------------------------------
$ 5,201,450
------------------------------------------------------------------------
Insured-Transportation -- 3.7%
------------------------------------------------------------------------
$2,000 Baltimore, International Airport,
(FGIC), (AMT), 6.25%, 7/1/14 $ 2,106,600
1,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 5.00%, 7/1/28 941,290
------------------------------------------------------------------------
$ 3,047,890
------------------------------------------------------------------------
Insured-Water and Sewer -- 3.7%
------------------------------------------------------------------------
$1,000 Baltimore, Wastewater, (FGIC),
5.00%, 7/1/22 $ 950,840
2,000 Baltimore, Wastewater, (MBIA),
5.65%, 7/1/20 2,065,200
------------------------------------------------------------------------
$ 3,016,040
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Solid Waste -- 2.1%
------------------------------------------------------------------------
$2,000 Northeast Waste Disposal Authority,
Resources Recovery Revenue, (Baltimore
Resco Retrofit), (AMT), 4.75%, 1/1/12 $ 1,703,500
------------------------------------------------------------------------
$ 1,703,500
------------------------------------------------------------------------
Special Tax Revenue -- 2.3%
------------------------------------------------------------------------
$1,000 Frederick County, Urbana Community
Development Authority, 6.625%, 7/1/25 $ 977,280
1,000 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(2)(3) 882,590
------------------------------------------------------------------------
$ 1,859,870
------------------------------------------------------------------------
Transportation -- 1.0%
------------------------------------------------------------------------
$ 500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 $ 503,275
335 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(3)(4) 337,767
------------------------------------------------------------------------
$ 841,042
------------------------------------------------------------------------
Water and Sewer -- 1.3%
------------------------------------------------------------------------
$1,000 Maryland Water Quality Financing
Administration Revolving Loan Fund,
6.55%, 9/1/14 $ 1,047,450
------------------------------------------------------------------------
$ 1,047,450
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.1%
(identified cost $83,635,854) $80,131,832
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.9% $ 1,544,030
------------------------------------------------------------------------
Net Assets -- 100.0% $81,675,862
------------------------------------------------------------------------
</TABLE>
The Portfolio invests primarily in debt securities issued by Maryland
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 August 31, 2000, 41.0% 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 3.8% to 23.3% 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.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
MISSOURI MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.8%
------------------------------------------------------------------------
$ 875 Kansas City IDA, (Kingswood United
Methodist Manor), Prerefunded to
11/15/03, 9.00%, 11/15/13 $ 999,521
1,000 Lake of The Ozarks, (Community Bridge
Corp.), Prerefunded to 12/1/06,
6.40%, 12/1/25 1,118,440
1,005 Missouri HEFA, (Lake of the Ozarks
General Hospital), Prerefunded to
2/15/06, 6.50%, 2/15/21 1,108,525
575 Missouri HEFA, (Saint Louis Children's),
(MBIA), Escrowed to Maturity,
0.00%, 5/15/08 396,273
1,000 Saint Louis County, Mortgage Revenue,
(GNMA), (AMT), Escrowed to Maturity,
5.40%, 1/1/16 999,400
------------------------------------------------------------------------
$ 4,622,159
------------------------------------------------------------------------
Hospital -- 14.7%
------------------------------------------------------------------------
$2,200 Missouri HEFA, (Barnes Jewish
Christian), 5.25%, 5/15/14 $ 2,205,148
1,500 Missouri HEFA, (Childrens Mercy
Hospital), 5.30%, 5/15/28 1,301,640
1,000 Missouri HEFA, (Freeman Health Systems),
5.25%, 2/15/18 824,310
1,900 Missouri HEFA, (Jefferson Memorial
Hospital), 6.80%, 5/15/25 1,848,852
495 Missouri HEFA, (Lake of the Ozarks
General Hospital), 6.50%, 2/15/21 475,537
1,250 Taney County IDA, (The Skaggs Community
Hospital Association), 5.30%, 5/15/18 1,046,100
1,250 West Plains IDA, (Ozarks Medical
Center), 5.65%, 11/15/22 958,075
------------------------------------------------------------------------
$ 8,659,662
------------------------------------------------------------------------
Housing -- 5.0%
------------------------------------------------------------------------
$1,000 Jefferson County IDA, Multifamily,
(Riverview Bend Apartments), (AMT),
6.75%, 11/1/29 $ 994,820
720 Missouri Housing Development Authority,
SFMR, (GNMA), 6.45%, 9/1/27 740,808
445 Missouri Housing Development Authority,
SFMR, (GNMA), (AMT), 6.75%, 6/1/24 455,555
680 Missouri Housing Development Authority,
SFMR, (GNMA), (AMT), 7.25%, 9/1/26 741,520
------------------------------------------------------------------------
$ 2,932,703
------------------------------------------------------------------------
Industrial Development Revenue -- 13.0%
------------------------------------------------------------------------
$1,035 Jefferson County, (Kmart Corp.),
6.40%, 8/1/08 $ 1,037,298
1,235 Kansas City IDA, (Airline Cargo
Facilities), 8.50%, 1/1/17 1,320,907
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$2,500 Missouri Development Finance Authority,
Solid Waste Disposal, (Proctor and
Gamble Paper Products), (AMT),
5.20%, 3/15/29 $ 2,364,050
1,200 Missouri Environmental Improvement and
Energy Resources Authority, (American
Cyanamid Company), 5.80%, 9/1/09 1,223,580
1,000 Saint Louis IDA, (Anheuser-Busch),
(AMT), 5.875%, 11/1/26 1,006,870
750 Saint Louis IDA, (Saint Louis Science
Center), 6.40%, 11/1/19 737,970
------------------------------------------------------------------------
$ 7,690,675
------------------------------------------------------------------------
Insured-Education -- 2.6%
------------------------------------------------------------------------
$1,750 Missouri HEFA, (St. Louis University
High School), (AMBAC), 4.75%, 10/1/24 $ 1,547,157
------------------------------------------------------------------------
$ 1,547,157
------------------------------------------------------------------------
Insured-Electric Utilities -- 5.8%
------------------------------------------------------------------------
$2,750 Missouri Environmental Improvement and
Energy Resources Authority, (Union
Electric), (AMBAC), (AMT),
5.45%, 10/1/28 $ 2,638,515
700 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 751,625
------------------------------------------------------------------------
$ 3,390,140
------------------------------------------------------------------------
Insured-General Obligations -- 2.4%
------------------------------------------------------------------------
$ 500 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) $ 525,625
2,000 Saint Charles County, (Francis Howell
School District), (FGIC), 0.00%, 3/1/16 867,780
------------------------------------------------------------------------
$ 1,393,405
------------------------------------------------------------------------
Insured-Hospital -- 10.9%
------------------------------------------------------------------------
$ 905 Jackson County, (Saint Joseph's Health
System), (MBIA), 6.50%, 7/1/12 $ 948,865
800 Jackson County, (Saint Joseph's Health
System), (MBIA), 6.50%, 7/1/19 829,384
1,500 Missouri HEFA, (Heartland Health),
(AMBAC), 6.35%, 11/15/17 1,554,135
9,500 Missouri HEFA, (Lester Cox Medical
Center), (MBIA), 0.00%, 9/1/20 3,081,135
------------------------------------------------------------------------
$ 6,413,519
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
MISSOURI MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Housing -- 2.7%
------------------------------------------------------------------------
$1,500 SCA, MFMR Receipts, Springfield, (FSA),
7.10%, 1/1/30 $ 1,598,760
------------------------------------------------------------------------
$ 1,598,760
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.5%
------------------------------------------------------------------------
$ 700 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) $ 576,723
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) 890,590
------------------------------------------------------------------------
$ 1,467,313
------------------------------------------------------------------------
Insured-Transportation -- 4.0%
------------------------------------------------------------------------
$1,500 Bi-State Development Agency, Illinois
Metropolitan District, (Saint Clair
County Metrolink Extension), (MBIA),
5.00%, 7/1/28 $ 1,377,675
910 Saint Louis, Airport Revenue, (Lambert
International Airport), (FGIC),
6.00%, 7/1/14 973,199
------------------------------------------------------------------------
$ 2,350,874
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.7%
------------------------------------------------------------------------
$1,000 Missouri Regional Convention and Sports
Complex Authority, 5.50%, 8/15/21 $ 982,280
1,750 Saint Louis County, Regional Convention
and Sports Complex Authority,
5.50%, 8/15/13 1,775,305
------------------------------------------------------------------------
$ 2,757,585
------------------------------------------------------------------------
Nursing Home -- 6.4%
------------------------------------------------------------------------
$1,000 Kansas City IDA, (Beverly Enterprises),
8.00%, 12/1/02 $ 1,017,930
500 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 6.625%, 8/15/05 508,205
1,000 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 7.50%, 8/15/12 1,054,350
1,500 Saint Louis County IDA, (Nazareth
Living), 5.625%, 8/15/29 1,178,145
------------------------------------------------------------------------
$ 3,758,630
------------------------------------------------------------------------
Pooled Loans -- 4.7%
------------------------------------------------------------------------
$2,750 Missouri Higher Education Loan
Authority, Student Loan, (AMT),
5.45%, 2/15/09 $ 2,777,665
------------------------------------------------------------------------
$ 2,777,665
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Senior Living / Life Care -- 5.2%
------------------------------------------------------------------------
$ 300 Cass County, (Fox Springs Living
Center), 7.375%, 10/1/22 $ 307,428
1,000 Kansas City IDR, (Kingswood Manor),
5.80%, 11/15/17 838,330
2,000 Missouri HEFA, (Lutheran Senior
Services), 6.375%, 2/1/27 1,909,400
------------------------------------------------------------------------
$ 3,055,158
------------------------------------------------------------------------
Transportation -- 2.6%
------------------------------------------------------------------------
$1,000 Puerto Rico Highway and Transportation
Authority, 6.625%, 7/1/12 $ 1,048,300
500 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(2)(3) 504,130
------------------------------------------------------------------------
$ 1,552,430
------------------------------------------------------------------------
Water and Sewer -- 3.1%
------------------------------------------------------------------------
$1,000 Missouri Environmental Improvement and
Energy Resources Authority,
0.00%, 1/1/14 $ 485,710
1,250 Missouri Environmental Improvement and
Energy Resources Authority,
7.20%, 7/1/16 1,364,738
------------------------------------------------------------------------
$ 1,850,448
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.1%
(identified cost $56,833,666) $57,818,283
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.9% $ 1,108,294
------------------------------------------------------------------------
Net Assets -- 100.0% $58,926,577
------------------------------------------------------------------------
</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 Missouri
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 August 31, 2000, 32.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.2% to 12.5% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education -- 4.8%
-------------------------------------------------------------------------
$1,000 North Carolina Educational Facilities
Finance Agency, (Duke University),
6.75%, 10/1/21 $ 1,043,280
8,410 University of North Carolina at Chapel
Hill, 0.00%, 8/1/17 3,375,353
2,500 University of North Carolina at Chapel
Hill, 0.00%, 8/1/19 887,550
-------------------------------------------------------------------------
$ 5,306,183
-------------------------------------------------------------------------
Electric Utilities -- 13.3%
-------------------------------------------------------------------------
$1,015 Chatham County Industrial Facilities and
Pollution, (Carolina Power and Light),
6.30%, 6/15/14 $ 1,062,045
1,250 North Carolina Eastern Municipal Power
Agency, 6.75%, 1/1/26 1,293,062
2,000 North Carolina Eastern Municipal Power
Authority, 5.00%, 1/1/17 1,940,340
5,000 North Carolina Eastern Municipal Power
Authority, 6.125%, 1/1/09 5,219,800
3,500 North Carolina Municipal Power Agency,
6.50%, 1/1/20 3,581,550
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 815,620
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 815,620
-------------------------------------------------------------------------
$ 14,728,037
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.2%
-------------------------------------------------------------------------
$1,000 Virgin Islands Public Finance Authority,
Prerefunded to 10/1/02, 7.25%, 10/1/18 $ 1,080,300
210 Virgin Islands Water and Power
Authority, Prerefunded to 7/1/01,
7.40%, 7/1/11 217,522
-------------------------------------------------------------------------
$ 1,297,822
-------------------------------------------------------------------------
General Obligations -- 5.2%
-------------------------------------------------------------------------
$1,000 Charlotte, 5.60%, 6/1/20 $ 1,032,130
1,000 New Hanover County, 5.75%, 11/1/17 1,054,390
3,550 North Carolina Capital Improvements,
4.75%, 2/1/12 3,511,340
500 Puerto Rico, 0.00%, 7/1/17 203,905
-------------------------------------------------------------------------
$ 5,801,765
-------------------------------------------------------------------------
Hospital -- 12.1%
-------------------------------------------------------------------------
$2,090 Charlotte-Mecklenberg Hospital,
0.00%, 1/1/06 $ 1,622,007
2,000 Charlotte-Mecklenberg Hospital,
5.125%, 1/15/22 1,857,640
1,500 North Carolina Medical Care Commission,
(Annie Penn Memorial Hospital),
5.375%, 1/1/22 1,184,550
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Hospital (continued)
-------------------------------------------------------------------------
$3,400 North Carolina Medical Care Commission,
(Duke University Hospital),
0.00%, 6/1/09 $ 2,166,752
1,000 North Carolina Medical Care Commission,
(Gaston Health Care), 5.00%, 2/15/29 861,260
500 North Carolina Medical Care Commission,
(Halifax Regional Medical Center),
5.00%, 8/15/24 381,770
2,000 North Carolina Medical Care Commission,
(North Carolina Baptist Hospital),
6.00%, 6/1/22 2,020,800
1,750 North Carolina Medical Care Commission,
(Pitt County Memorial Hospital),
4.75%, 12/1/28 1,488,742
1,700 North Carolina Medical Care Commission,
(Presbyterian Health Services),
6.00%, 10/1/24 1,788,570
-------------------------------------------------------------------------
$ 13,372,091
-------------------------------------------------------------------------
Housing -- 13.0%
-------------------------------------------------------------------------
$1,900 Charlotte Housing Authority, Double
Oaks, FHA, (FNMA), 7.35%, 5/15/26 $ 2,032,012
2,500 Guam Housing Corp., Single Family,
(AMT), 5.75%, 9/1/31 2,530,875
1,780 North Carolina HFA, MFMR, (AMT),
6.45%, 9/1/27 1,817,060
1,000 North Carolina HFA, SFMR, (AMT),
6.30%, 3/1/26 1,014,290
1,965 North Carolina HFA, SFMR, (AMT),
6.60%, 9/1/26 2,010,785
3,235 North Carolina HFA, SFMR, (AMT),
6.70%, 9/1/26 3,362,136
590 North Carolina HFA, SFMR, (AMT),
7.05%, 9/1/20 612,231
1,000 Raleigh Housing Authority, Multifamily,
(Cedar Point), 7.00%, 11/1/30 936,480
-------------------------------------------------------------------------
$ 14,315,869
-------------------------------------------------------------------------
Industrial Development Revenue -- 15.2%
-------------------------------------------------------------------------
$5,500 Columbus County, Industrial Facility and
Pollution Control Financing,
(International Paper Co.), (AMT),
6.15%, 4/1/21 $ 5,543,725
2,750 Haywood County IDA, (Champion
International Corp.), (AMT),
5.50%, 10/1/18(1) 2,539,460
1,500 Haywood County IDA, (Champion
International Corp.), (AMT),
5.75%, 12/1/25 1,390,890
3,750 Martin County IDA, (Weyerhaeuser Co.),
(AMT), 6.80%, 5/1/24 3,874,650
2,500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 2,553,525
850 Robeson County, Industrial Facilities
and Pollution Control Financing
Authority, (Campbell Soup Co.),
6.40%, 12/1/06 931,005
-------------------------------------------------------------------------
$ 16,833,255
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Education -- 1.5%
-------------------------------------------------------------------------
$1,900 University of North Carolina, (MBIA),
4.50%, 10/1/18 $ 1,678,992
-------------------------------------------------------------------------
$ 1,678,992
-------------------------------------------------------------------------
Insured-Electric Utilities -- 7.3%
-------------------------------------------------------------------------
$4,000 North Carolina Eastern Municipal Power
Authority, (Catawba Electric), (MBIA),
Variable Rate, 1/1/12(2) $ 4,085,000
1,500 North Carolina Eastern Municipal Power
Authority, (FSA), Variable Rate,
1/1/19(2)(3) 1,509,660
1,000 North Carolina Eastern Municipal Power
Authority, (MBIA), 5.375%, 1/1/24 972,720
1,400 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(2) 1,466,500
-------------------------------------------------------------------------
$ 8,033,880
-------------------------------------------------------------------------
Insured-General Obligations -- 3.3%
-------------------------------------------------------------------------
$3,500 Puerto Rico, (FSA), Variable Rate,
7/1/22(2)(3) $ 3,679,375
-------------------------------------------------------------------------
$ 3,679,375
-------------------------------------------------------------------------
Insured-Hospital -- 6.0%
-------------------------------------------------------------------------
$ 500 Cumberland County Hospital, (MBIA),
0.00%, 10/1/09 $ 321,825
935 North Carolina Medical Care Commission,
(Memorial Mission Hospital), (FSA),
0.00%, 10/1/06 702,307
5,000 North Carolina Medical Care Commission,
(Saint Joseph's Medical Center),
(AMBAC), 5.10%, 10/1/14 4,923,350
1,500 North Carolina Medical Care Commission,
(Wilson Memorial Hospital), (AMBAC),
0.00%, 11/1/15 663,615
-------------------------------------------------------------------------
$ 6,611,097
-------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 4.5%
-------------------------------------------------------------------------
$2,150 Charlotte, Convention Facility, (AMBAC),
5.25%, 12/1/13 $ 2,171,909
1,575 Franklin, County Jail, (FGIC),
6.625%, 6/1/14 1,721,837
1,000 Mooresville School District, (AMBAC),
6.35%, 10/1/14 1,053,080
-------------------------------------------------------------------------
$ 4,946,826
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.3%
-------------------------------------------------------------------------
$2,750 Puerto Rico Infrastructure Financing
Authority, (AMBAC), 5.00%, 7/1/28 $ 2,588,548
-------------------------------------------------------------------------
$ 2,588,548
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.8%
-------------------------------------------------------------------------
$ 500 Buncombe County, 6.625%, 12/1/10 $ 532,885
2,400 Greensboro, Greensboro Coliseum Arena,
6.75%, 12/1/09 2,515,368
-------------------------------------------------------------------------
$ 3,048,253
-------------------------------------------------------------------------
Transportation -- 3.7%
-------------------------------------------------------------------------
$3,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 2,748,630
1,375 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 1,384,006
-------------------------------------------------------------------------
$ 4,132,636
-------------------------------------------------------------------------
Water and Sewer -- 2.0%
-------------------------------------------------------------------------
$ 175 Eden, Water and Sewer Bonds, (AMT),
6.75%, 6/1/08 $ 184,291
2,000 Orange County, Water and Sewer,
5.20%, 7/1/16 1,983,880
-------------------------------------------------------------------------
$ 2,168,171
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.2%
(identified cost $103,430,595) $108,542,800
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.8% $ 1,950,324
-------------------------------------------------------------------------
Net Assets -- 100.0% $110,493,124
-------------------------------------------------------------------------
</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 North Carolina
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 August 31, 2000, 25.4% 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 1.6% to 10.5% of
total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(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
74
<PAGE>
OREGON MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Cogeneration -- 2.5%
------------------------------------------------------------------------
$2,000 Western Generation Agency, (Wauna
Cogeneration), (AMT), 7.40%, 1/1/16 $ 2,074,900
------------------------------------------------------------------------
$ 2,074,900
------------------------------------------------------------------------
Education -- 1.2%
------------------------------------------------------------------------
$1,000 Salem EFA, (Willamette University),
6.10%, 4/1/14 $ 1,036,850
------------------------------------------------------------------------
$ 1,036,850
------------------------------------------------------------------------
Electric Utilities -- 5.2%
------------------------------------------------------------------------
$3,365 Eugene, Trojan Nuclear Power,
5.90%, 9/1/09 $ 3,386,872
1,000 Northern Wasco County, (Bonneville Power
Administration), 5.20%, 12/1/24 959,350
------------------------------------------------------------------------
$ 4,346,222
------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.6%
------------------------------------------------------------------------
$2,000 Medford, Rogue Valley Memorial Hospital,
Escrowed to Maturity, 6.25%, 12/1/07 $ 2,166,080
------------------------------------------------------------------------
$ 2,166,080
------------------------------------------------------------------------
General Obligations -- 16.2%
------------------------------------------------------------------------
$ 500 Clackamas County, School District #86,
5.25%, 6/15/20 $ 488,825
700 Lane County, Eugene School District,
5.375%, 7/1/13 706,160
1,000 Oregon Board of Higher Education,
6.00%, 10/15/18 1,015,310
1,250 Oregon Elderly and Disabled Housing,
6.375%, 8/1/24 1,298,125
4,610 Oregon Elderly and Disabled Housing,
(AMT), 5.65%, 8/1/26 4,616,592
1,395 Oregon Veterans Welfare, 5.90%, 10/1/17 1,453,130
4,850 Puerto Rico, 0.00%, 7/1/17 1,977,878
2,250 Puerto Rico, 4.75%, 7/1/23 2,017,103
------------------------------------------------------------------------
$13,573,123
------------------------------------------------------------------------
Housing -- 23.5%
------------------------------------------------------------------------
$2,105 Hood River County, Health Facilities
Authority, Elderly Housing Revenue,
(Down Manor), 6.50%, 1/1/17 $ 1,941,799
1,000 Oregon Health Authority, (Trillium
Affordable Housing), (AMT),
6.75%, 8/15/29 930,780
750 Oregon Housing and Community Services
Department, MFMR, (AMT), 5.70%, 7/1/29 734,348
1,500 Oregon Housing and Community Services
Department, MFMR, (AMT), 6.20%, 7/1/28 1,513,725
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Housing (continued)
------------------------------------------------------------------------
$1,815 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.20%, 7/1/27 $ 1,860,012
1,530 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.40%, 7/1/26 1,581,898
1,975 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.45%, 7/1/26 2,047,502
3,710 Portland Housing Authority, MFMR, (Berry
Ridge), (AMT), 6.30%, 5/1/29 3,755,410
2,875 Portland Housing Authority, MFMR,
(Cherry Blossom), (AMT),
6.20%, 12/20/36 2,892,825
1,000 Portland Housing Authority, MFMR,
(Village Court), 6.00%, 1/1/27 994,660
1,500 Washington County Housing Authority,
MFMR, (Bethany Meadows), (AMT),
5.85%, 9/1/27 1,462,275
------------------------------------------------------------------------
$19,715,234
------------------------------------------------------------------------
Industrial Development Revenue -- 12.3%
------------------------------------------------------------------------
$3,750 Oregon EDA, (Georgia Pacific), (AMT),
5.70%, 12/1/25 $ 3,467,025
1,500 Oregon Solid Waste Disposal, (USG
Corp.), 6.40%, 12/1/29 1,519,005
3,500 Port of Astoria, Pollution Control
Revenue, (James River Corp.),
6.55%, 2/1/15 3,500,665
750 Port of Portland, (Ash Grove Cement
Co.), 7.25%, 10/1/09 780,578
1,000 Port of Portland, (North Portland Crown
Zellerbach Corp.), 6.125%, 5/15/08 1,001,380
------------------------------------------------------------------------
$10,268,653
------------------------------------------------------------------------
Insured-Education -- 5.0%
------------------------------------------------------------------------
$4,850 Oregon Health Science University,
(MBIA), 0.00%, 7/1/21 $ 1,525,422
1,000 Oregon Health, Housing, Educational and
Cultural Facilities Authority, (Lewis
and Clark College), (MBIA),
6.00%, 10/1/13 1,063,710
1,500 Oregon Health, Housing, Educational and
Cultural Facilities Authority, (Lewis
and Clark College), (MBIA),
6.125%, 10/1/24 1,558,425
------------------------------------------------------------------------
$ 4,147,557
------------------------------------------------------------------------
Insured-Electric Utilities -- 7.5%
------------------------------------------------------------------------
$1,000 Emerald People's Utility District,
Electric System, (AMBAC), 5.75%, 11/1/16 $ 1,021,220
2,800 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 2,531,368
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
OREGON MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Electric Utilities (continued)
------------------------------------------------------------------------
$5,300 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 $ 2,204,376
500 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 536,875
------------------------------------------------------------------------
$ 6,293,839
------------------------------------------------------------------------
Insured-General Obligations -- 3.9%
------------------------------------------------------------------------
$1,000 Columbia School District No. 502,
(FGIC), 0.00%, 6/1/17 $ 403,660
1,000 Salem-Keizer School District No. 24J,
(FGIC), 5.00%, 6/1/17 966,340
2,000 Umatilla County School District No.
008R, (MBIA), Variable Rate,
6/15/14(1)(2) 1,917,500
------------------------------------------------------------------------
$ 3,287,500
------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.6%
------------------------------------------------------------------------
$1,250 Oregon Department of General Services,
Real Property Financing Program,
(AMBAC), 6.25%, 9/1/15 $ 1,299,550
------------------------------------------------------------------------
$ 1,299,550
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.8%
------------------------------------------------------------------------
$1,000 Portland, Arena Natural Gas Tax Revenue,
(AMBAC), 0.00%, 6/1/17 $ 368,650
1,400 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) 1,153,446
------------------------------------------------------------------------
$ 1,522,096
------------------------------------------------------------------------
Insured-Transportation -- 4.5%
------------------------------------------------------------------------
$1,000 Oregon Department of Transportation,
(Westside Light Rail), (MBIA),
6.25%, 6/1/09 $ 1,070,690
750 Port of Portland, (Portland
International Airport), (FGIC), (AMT),
5.00%, 7/1/28 683,910
2,000 Port of Portland, (Portland
International Airport), (FGIC), (AMT),
6.00%, 7/1/23 2,019,200
------------------------------------------------------------------------
$ 3,773,800
------------------------------------------------------------------------
Miscellaneous -- 1.2%
------------------------------------------------------------------------
$1,000 Union, Facility Revenue, (Buffalo Peak
Golf Club), 6.75%, 7/1/24 $ 983,600
------------------------------------------------------------------------
$ 983,600
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Special Tax Revenue -- 2.4%
------------------------------------------------------------------------
$2,000 Tri-County Metropolitan Transportation
District, Limited Tax Pledge,
5.70%, 8/1/13 $ 2,038,160
------------------------------------------------------------------------
$ 2,038,160
------------------------------------------------------------------------
Transportation -- 4.4%
------------------------------------------------------------------------
$1,500 Port of Portland, Special Obligation
Revenue Bonds, (Delta Airlines, Inc.),
(AMT), 6.20%, 9/1/22 $ 1,466,580
500 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 433,115
2,000 Tri-County Metropolitan Transportation
District, Variable Rate, 8/1/19(1)(2) 1,818,500
------------------------------------------------------------------------
$ 3,718,195
------------------------------------------------------------------------
Water and Sewer -- 2.6%
------------------------------------------------------------------------
$2,000 Clackamas County, Water Revenue,
6.375%, 10/1/14 $ 2,139,920
------------------------------------------------------------------------
$ 2,139,920
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $80,731,232) $82,385,279
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 1,327,154
------------------------------------------------------------------------
Net Assets -- 100.0% $83,712,433
------------------------------------------------------------------------
</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 Oregon
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 August 31, 2000, 24.7% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.7% to 11.3% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
SOUTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.9%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Electric Utilities -- 6.2%
------------------------------------------------------------------------
$ 500 Berkeley County, (South Carolina
Electric and Gas Co.), 6.50%, 10/1/14 $ 525,770
1,150 Darlington County, (Carolina Power and
Light Co.), 6.60%, 11/1/10 1,222,898
500 Piedmont Municipal Power Agency,
Electric Revenue, 5.25%, 1/1/21 427,480
------------------------------------------------------------------------
$ 2,176,148
------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.3%
------------------------------------------------------------------------
$ 750 Myrtle Beach Convention Center,
Prerefunded to 7/1/02, 6.875%, 7/1/17 $ 796,275
------------------------------------------------------------------------
$ 796,275
------------------------------------------------------------------------
General Obligations -- 4.4%
------------------------------------------------------------------------
$ 695 Kershaw County, School District,
5.00%, 2/1/18 $ 668,006
500 Puerto Rico, 0.00%, 7/1/18 191,655
270 Puerto Rico, 4.50%, 7/1/23 232,130
500 Puerto Rico, 4.75%, 7/1/23 448,245
------------------------------------------------------------------------
$ 1,540,036
------------------------------------------------------------------------
Hospital -- 7.4%
------------------------------------------------------------------------
$1,305 Horry County, (Conway Hospital),
6.75%, 7/1/12 $ 1,360,423
1,500 Loris, Community Hospital District,
5.625%, 1/1/29 1,228,260
------------------------------------------------------------------------
$ 2,588,683
------------------------------------------------------------------------
Housing -- 9.2%
------------------------------------------------------------------------
$1,280 South Carolina Housing Finance
Authority, MFMR, (Runaway Bay
Apartments), 6.20%, 12/1/20 $ 1,293,235
445 South Carolina Housing Finance
Authority, SFMR, 6.375%, 7/1/16 462,813
1,450 South Carolina Housing Finance
Authority, SFMR, 6.45%, 7/1/17 1,485,148
------------------------------------------------------------------------
$ 3,241,196
------------------------------------------------------------------------
Industrial Development Revenue -- 18.4%
------------------------------------------------------------------------
$ 500 Charleston County IDA, (Zeigler Coal),
6.95%, 8/10/28 $ 245,000
1,500 Darlington County, (Nucor Corp.), (AMT),
5.75%, 8/1/23 1,476,465
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$1,000 Darlington County, (Sonoco Products),
6.00%, 4/1/26 $ 994,120
410 Florence County, (Stone Container Co.),
7.375%, 2/1/07 412,153
1,000 Georgetown County, (International Paper
Co.), 5.70%, 10/1/21 932,660
1,000 Richland County, (Union Camp Corp.),
(AMT), 6.75%, 5/1/22 1,013,440
1,500 York County, (Hoechst Celanese Corp.),
(AMT), 5.70%, 1/1/24 1,366,770
------------------------------------------------------------------------
$ 6,440,608
------------------------------------------------------------------------
Insured-Electric Utilities -- 11.0%
------------------------------------------------------------------------
$1,000 Piedmont Municipal Power Agency,
Electric Revenue, (MBIA), 4.00%, 1/1/23 $ 782,980
195 Piedmont Municipal Power Agency,
Electric Revenue, (MBIA), 6.30%, 1/1/14 204,970
1,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 904,060
2,500 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 1,039,800
250 South Carolina Public Service Authority,
(AMBAC), 6.375%, 7/1/21 259,290
750 South Carolina Public Service Authority,
(MBIA), 5.00%, 1/1/29 677,063
------------------------------------------------------------------------
$ 3,868,163
------------------------------------------------------------------------
Insured-General Obligations -- 2.6%
------------------------------------------------------------------------
$1,000 Lancaster County, School District,
(FSA), 4.75%, 3/1/18 $ 922,210
------------------------------------------------------------------------
$ 922,210
------------------------------------------------------------------------
Insured-Hospital -- 8.5%
------------------------------------------------------------------------
$1,000 South Carolina Jobs Economic Development
Authority, (Baptist Hospital), (AMBAC),
5.45%, 8/1/15 $ 989,890
1,000 South Carolina Jobs Economic Development
Authority, (Baptist Hospital), (AMBAC),
Variable Rate, 8/1/15(1) 978,750
1,000 South Carolina Jobs Economic Development
Authority, (Oconee Memorial Hospital),
(CLEE), 6.15%, 3/1/25 1,026,830
------------------------------------------------------------------------
$ 2,995,470
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
SOUTH CAROLINA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 4.5%
------------------------------------------------------------------------
$ 500 Charleston County, (Charleston Public
Facilities Corp.), (MBIA), 6.10%, 6/1/11 $ 532,345
1,000 Florence County, (Law Enforcement
Center), (AMBAC), 6.00%, 3/1/14 1,048,740
------------------------------------------------------------------------
$ 1,581,085
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.6%
------------------------------------------------------------------------
$ 260 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) $ 214,211
------------------------------------------------------------------------
$ 214,211
------------------------------------------------------------------------
Insured-Transportation -- 1.9%
------------------------------------------------------------------------
$ 750 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 663,503
------------------------------------------------------------------------
$ 663,503
------------------------------------------------------------------------
Insured-Water and Sewer -- 8.8%
------------------------------------------------------------------------
$2,000 Charleston, Waterworks and Sewer
Revenue, (FGIC), 4.50%, 1/1/24 $ 1,695,680
500 Edgefield County, Water and Sewer
Authority, (FGIC), 5.00%, 1/1/28 457,905
500 Spartanburg, Sanitary Sewer District,
(MBIA), 5.00%, 3/1/26 460,485
500 Spartanburg, Sanitary Sewer District,
(MBIA), 5.00%, 3/1/28 458,355
------------------------------------------------------------------------
$ 3,072,425
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.3%
------------------------------------------------------------------------
$ 750 Lexington County School District,
6.90%, 7/1/08 $ 807,218
------------------------------------------------------------------------
$ 807,218
------------------------------------------------------------------------
Pooled Loans -- 3.0%
------------------------------------------------------------------------
$1,000 South Carolina Education Authority,
Student Loan, (AMT), 6.30%, 9/1/08 $ 1,047,230
------------------------------------------------------------------------
$ 1,047,230
------------------------------------------------------------------------
Solid Waste -- 4.6%
------------------------------------------------------------------------
$1,500 Spartanburg County, Solid Waste,
(Bavarian Motor Works Corp.), (AMT),
7.55%, 11/1/24 $ 1,595,580
------------------------------------------------------------------------
$ 1,595,580
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Transportation -- 2.2%
------------------------------------------------------------------------
$1,000 Connector 2000 Association Inc., Bridge
& Toll Road Revenue, (Southern
Connector), 5.25%, 1/1/23 $ 774,340
------------------------------------------------------------------------
$ 774,340
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.9%
(identified cost $34,105,563) $34,324,381
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.1% $ 745,348
------------------------------------------------------------------------
Net Assets -- 100.0% $35,069,729
------------------------------------------------------------------------
</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 South Carolina
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 August 31, 2000, 38.8% 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 3.0% to 12.1% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.1%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 5.3%
------------------------------------------------------------------------
$1,000 Metropolitan Government of Nashville and
Davidson County, (Belmont University),
6.40%, 12/1/19 $ 1,030,490
1,500 Metropolitan Government of Nashville and
Davidson County, (Vanderbilt
University), 5.00%, 10/1/28 1,372,890
------------------------------------------------------------------------
$ 2,403,380
------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.9%
------------------------------------------------------------------------
$1,000 Johnson, School District Sales Tax,
(AMBAC), Prerefunded to 5/1/06,
6.70%, 5/1/21 $ 1,109,150
1,500 Shelby County, (Lebonheur Children's
Hospital), (MBIA), Escrowed to Maturity,
5.50%, 8/15/12 1,557,120
------------------------------------------------------------------------
$ 2,666,270
------------------------------------------------------------------------
General Obligations -- 2.2%
------------------------------------------------------------------------
$1,000 Shelby County, 5.125%, 3/1/16 $ 1,014,120
------------------------------------------------------------------------
$ 1,014,120
------------------------------------------------------------------------
Hospital -- 6.5%
------------------------------------------------------------------------
$ 250 Knox County, HEFA, (Mercy Health
System), 6.50%, 10/1/12 $ 249,775
750 Metropolitan Government of Nashville and
Davidson County, (Charity Obligated
Group), 5.125%, 11/1/27 770,085
1,000 Montgomery County, (Clarksville Regional
Health System), 5.375%, 1/1/28 798,060
1,000 Sumner County, (Sumner Regional Health
Systems), 7.50%, 11/1/14 1,104,190
------------------------------------------------------------------------
$ 2,922,110
------------------------------------------------------------------------
Housing -- 10.4%
------------------------------------------------------------------------
$ 750 Knoxville Community Development Corp.,
(Clinton Towers), 6.65%, 10/15/10 $ 767,227
1,000 Metropolitan Government of Nashville and
Davidson County, (The Park at
Hermitage), 5.90%, 2/1/19 971,540
1,000 Tennessee Housing Development Agency,
5.375%, 7/1/23 955,630
985 Tennessee Housing Development Agency,
5.85%, 7/1/13 1,007,162
1,000 Tennessee Housing Development Agency,
(AMT), 5.75%, 7/1/24 1,001,160
------------------------------------------------------------------------
$ 4,702,719
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue -- 22.9%
------------------------------------------------------------------------
$1,000 Chattanooga, (E.I. du Pont de Nemours
and Co.), 6.35%, 7/1/22 $ 1,046,920
500 Hardeman County, (Correctional
Facilities Corp.), 7.75%, 8/1/17 517,485
1,000 Humphreys County, (E.I. du Pont de
Nemours and Co.), (AMT), 6.70%, 5/1/24 1,072,040
400 Knox County, Industrial Development
Board Revenue (Melrose Place Ltd),
6.875%, 12/1/14 386,748
1,000 Loudon County, (Kimberly-Clark Corp.),
(AMT), 6.20%, 2/1/23 1,020,280
1,250 Maury County, (Saturn Corp.),
6.50%, 9/1/24 1,292,850
1,500 McMinn County, (Calhoun Newsprint -
Bowater, Inc.), (AMT), 7.40%, 12/1/22 1,554,840
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), 6.75%, 9/1/12 1,043,060
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), (AMT),
6.20%, 7/1/14 1,003,780
500 Metropolitan Government of Nashville and
Davidson County, (Osco Treatment
Systems), (AMT), 6.00%, 5/1/03(4) 382,460
1,000 South Fulton County, (Tyson Foods Co.),
(AMT), 6.40%, 10/1/20 1,010,690
------------------------------------------------------------------------
$10,331,153
------------------------------------------------------------------------
Insured-Education -- 5.0%
------------------------------------------------------------------------
$1,230 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 6.00%, 12/1/19 $ 1,318,314
1,000 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 5.00%, 12/1/24 917,740
------------------------------------------------------------------------
$ 2,236,054
------------------------------------------------------------------------
Insured-Electric Utilities -- 7.2%
------------------------------------------------------------------------
$1,000 Lawrenceburg, Electric Revenues, (MBIA),
6.625%, 7/1/18 $ 1,152,180
1,750 Madison County Suburban Utility
District, (MBIA), 5.00%, 2/1/19 1,650,373
400 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 429,500
------------------------------------------------------------------------
$ 3,232,053
------------------------------------------------------------------------
Insured-General Obligations -- 2.9%
------------------------------------------------------------------------
$1,425 Franklin, Special School District,
(FSA), 0.00%, 6/1/19 $ 495,857
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-General Obligations (continued)
------------------------------------------------------------------------
$2,500 Franklin, Special School District,
(FSA), 0.00%, 6/1/20 $ 817,600
------------------------------------------------------------------------
$ 1,313,457
------------------------------------------------------------------------
Insured-Hospital -- 4.9%
------------------------------------------------------------------------
$ 500 Bristol, (Bristol Memorial Hospital),
(FGIC), 6.75%, 9/1/10 $ 573,080
250 Chattanooga, (Memorial Hospital),
(MBIA), 6.625%, 9/1/09 285,483
1,500 Chattanooga-Hamilton County, (Erlanger
Medical Center), (MBIA), 5.00%, 10/1/28 1,351,395
------------------------------------------------------------------------
$ 2,209,958
------------------------------------------------------------------------
Insured-Housing -- 2.4%
------------------------------------------------------------------------
$1,000 Knox County, SCA Realty, MFMR, (FSA),
7.125%, 1/1/30 $ 1,066,810
------------------------------------------------------------------------
$ 1,066,810
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.0%
------------------------------------------------------------------------
$ 500 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) $ 445,295
------------------------------------------------------------------------
$ 445,295
------------------------------------------------------------------------
Insured-Transportation -- 5.9%
------------------------------------------------------------------------
$1,500 Memphis-Shelby County Airport Authority,
(MBIA), (AMT), 6.00%, 3/1/24 $ 1,541,760
1,000 Memphis-Shelby County Airport Authority,
(MBIA), (AMT), 6.50%, 2/15/09 1,105,640
------------------------------------------------------------------------
$ 2,647,400
------------------------------------------------------------------------
Insured-Water and Sewer -- 3.1%
------------------------------------------------------------------------
$ 350 Metropolitan Government of Nashville and
Davidson County, Water System, (AMBAC),
Variable Rate, 1/1/22(1) $ 376,688
1,000 Metropolitan Government of Nashville and
Davidson County, Water System, (FGIC),
5.20%, 1/1/13 1,016,790
------------------------------------------------------------------------
$ 1,393,478
------------------------------------------------------------------------
Nursing Home -- 2.4%
------------------------------------------------------------------------
$1,000 Tennessee State Veterans' Homes Board,
(Humboldt), 6.65%, 2/1/14 $ 1,071,060
------------------------------------------------------------------------
$ 1,071,060
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Pooled Loans -- 4.0%
------------------------------------------------------------------------
$1,200 Tennessee Local Development Authority,
Community Provider, 6.55%, 10/1/23 $ 1,311,960
500 Tennessee Local Development Authority,
State Loan Program, 5.00%, 3/1/15 477,890
------------------------------------------------------------------------
$ 1,789,850
------------------------------------------------------------------------
Transportation -- 6.1%
------------------------------------------------------------------------
$ 820 Memphis-Shelby County Airport Authority,
6.12%, 12/1/16 $ 762,157
1,825 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,672,083
300 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(2)(3) 302,478
------------------------------------------------------------------------
$ 2,736,718
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.1%
(identified cost $42,943,683) $44,181,885
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.9% $ 833,292
------------------------------------------------------------------------
Net Assets -- 100.0% $45,015,177
------------------------------------------------------------------------
</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 Tennessee
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 August 31, 2000, 39.0% 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 3.6% to 19.6% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Non-income producing security.
SEE NOTES TO FINANCIAL STATEMENTS
80
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education -- 2.5%
-------------------------------------------------------------------------
$2,000 Medical College of Hampton Roads,
6.875%, 11/15/11 $ 2,080,840
750 Virginia College Building Authority,
(Hampton University), 5.75%, 4/1/14 765,825
-------------------------------------------------------------------------
$ 2,846,665
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.6%
-------------------------------------------------------------------------
$1,665 Arlington County IDA, (AMBAC),
Prerefunded to 9/1/03, 5.00%, 9/1/21 $ 1,553,245
2,000 Loudoun County IDA, (Falcons Landing),
Prerefunded to 11/1/04, 8.75%, 11/1/24 2,378,200
3,500 Peninsula Ports Authority of Virginia,
(Riverside Health System), Prerefunded
to 7/1/02, 6.625%, 7/1/10 3,702,335
2,400 Prince William County IDA, (Potomac
Hospital), Prerefunded to 10/1/05,
6.85%, 10/1/25 2,693,184
900 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 955,125
1,060 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/02, 7.00%, 7/1/22 1,128,010
1,000 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/05, 6.00%, 7/1/14 1,076,260
-------------------------------------------------------------------------
$ 13,486,359
-------------------------------------------------------------------------
General Obligations -- 5.7%
-------------------------------------------------------------------------
$4,165 Arlington County, 5.25%, 6/1/18 $ 4,143,259
2,500 Fairfax County, 5.25%, 6/1/20 2,462,050
-------------------------------------------------------------------------
$ 6,605,309
-------------------------------------------------------------------------
Hospital -- 2.9%
-------------------------------------------------------------------------
$1,500 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/14 $ 1,469,730
2,000 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/15 1,945,560
-------------------------------------------------------------------------
$ 3,415,290
-------------------------------------------------------------------------
Housing -- 3.6%
-------------------------------------------------------------------------
$1,000 Alexandria Redevelopment and Housing
Authority, MFMR, (Buckingham Village
Apartments), (AMT), 5.45%, 7/1/18 $ 943,320
1,500 Prince William County IDA, (Melrose
Apartments), 5.40%, 1/1/29 1,346,130
1,900 Virginia HDA, SFMR, Variable Rate,
7/1/04(1) 1,923,750
-------------------------------------------------------------------------
$ 4,213,200
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Industrial Development Revenue -- 22.0%
-------------------------------------------------------------------------
$4,500 Bedford County, (Nekoosa Packaging),
(AMT), 5.60%, 12/1/25 $ 4,103,910
2,190 Chesapeake, (Cargill, Inc.),
5.875%, 3/1/13 2,262,620
60 Covington-Alleghany County IDA,
9.375%, 9/1/01 60,000
1,500 Giles, (Hoechst Celanese Corp.), (AMT),
5.95%, 12/1/25 1,399,890
2,000 Giles, (Hoechst Celanese Corp.), (AMT),
6.45%, 5/1/26 2,006,960
500 Giles, (Hoechst Celanese Corp.), (AMT),
6.625%, 12/1/22 503,325
2,000 Henrico County, (Browning Ferris, Inc.),
(AMT), 5.45%, 1/1/14(2) 1,713,700
1,500 Isle of Wright County IDA,
(International Paper Co.), (AMT),
6.60%, 5/1/24 1,539,615
4,000 Isle of Wright County IDA, (Union Camp
Co.), (AMT), 6.55%, 4/1/24 4,057,440
1,000 James City County IDA, (Anheuser Busch),
(AMT), 6.00%, 4/1/32 1,015,320
1,400 Peninsula Ports Authority, (Zeigler
Coal), 6.90%, 5/2/22 686,000
1,500 Pennisula Ports Authority Revenue (CSX
Transportation), 6.00%, 12/15/12 1,496,610
980 West Point, (Chesapeake Corp.),
6.25%, 3/1/19 930,647
3,850 West Point, (Chesapeake Corp.), (AMT),
6.375%, 3/1/19 3,648,260
-------------------------------------------------------------------------
$ 25,424,297
-------------------------------------------------------------------------
Insured-General Obligations -- 1.6%
-------------------------------------------------------------------------
$2,000 Richmond, (FGIC), 5.00%, 1/15/21 $ 1,874,760
-------------------------------------------------------------------------
$ 1,874,760
-------------------------------------------------------------------------
Insured-Hospital -- 7.6%
-------------------------------------------------------------------------
$1,500 Henrico County, (Bon Secour Health
Systems), (MBIA), 6.25%, 8/15/20 $ 1,653,555
5,000 Virginia Beach, (Virginia Beach Memorial
Hospital), (AMBAC), 5.125%, 2/15/18 4,853,950
2,000 Winchester IDA, (Winchester Medical
Center), (AMBAC), Variable Rate,
1/21/14(1) 2,300,000
-------------------------------------------------------------------------
$ 8,807,505
-------------------------------------------------------------------------
Insured-Housing -- 1.1%
-------------------------------------------------------------------------
$1,250 Fairfax County Redevelopment and Housing
Authority MFMR, (FHA), 7.00%, 5/1/26 $ 1,299,537
-------------------------------------------------------------------------
$ 1,299,537
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation -- 5.2%
-------------------------------------------------------------------------
$3,500 Chesapeake Bay Bridge and Tunnel
Commission District Revenue, (General
Resolution), (MBIA), 5.50%, 7/1/25 $ 3,554,495
1,000 Metro Washington D.C., Airport
Authority, (FGIC), (AMT),
5.00%, 10/1/27 906,240
1,650 Norfolk, Parking System Revenue, (MBIA),
5.00%, 2/1/29 1,513,215
-------------------------------------------------------------------------
$ 5,973,950
-------------------------------------------------------------------------
Insured-Utilities -- 1.1%
-------------------------------------------------------------------------
$1,345 Richmond, Public Utility Revenue,
(FGIC), 5.125%, 1/15/28 $ 1,262,242
-------------------------------------------------------------------------
$ 1,262,242
-------------------------------------------------------------------------
Insured-Water and Sewer -- 15.6%
-------------------------------------------------------------------------
$3,950 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/30 $ 3,430,575
1,000 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/21 894,720
2,875 Prince William County Service Authority,
(FGIC), 4.75%, 7/1/29 2,499,525
1,375 Richmond, Public Utility Revenue,
(MBIA), 5.125%, 1/15/28 1,290,396
6,150 Upper Occoquan Sewage Authority, (MBIA),
4.75%, 7/1/29 5,346,810
1,250 Upper Occoquan Sewage Authority, (MBIA),
5.00%, 7/1/25 1,152,312
1,000 Upper Occoquan Sewage Authority, (MBIA),
5.15%, 7/1/20 974,590
2,500 Virginia Resource Authority, (MBIA),
5.50%, 5/1/26 2,484,475
-------------------------------------------------------------------------
$ 18,073,403
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 1.1%
-------------------------------------------------------------------------
$1,250 King George County IDA, Lease,
7.00%, 12/15/12 $ 1,267,912
-------------------------------------------------------------------------
$ 1,267,912
-------------------------------------------------------------------------
Solid Waste -- 2.0%
-------------------------------------------------------------------------
$2,250 Southeastern Public Service Authority,
Solid Waste Systems, (AMT),
6.00%, 7/1/13 $ 2,260,058
-------------------------------------------------------------------------
$ 2,260,058
-------------------------------------------------------------------------
Special Tax Revenue -- 5.1%
-------------------------------------------------------------------------
$1,500 Dulles Community Development Authority,
(Dulles Town Center), 6.25%, 3/1/26 $ 1,441,890
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Special Tax Revenue (continued)
-------------------------------------------------------------------------
$2,000 Heritage Hunt Community Development
Authority, 6.85%, 3/1/19 $ 2,010,400
2,500 Virginia State Transportation Board
Revenue, Route 58, 5.125%, 5/15/19 2,415,200
-------------------------------------------------------------------------
$ 5,867,490
-------------------------------------------------------------------------
Transportation -- 3.4%
-------------------------------------------------------------------------
$1,750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 1,603,368
1,250 Virginia Port Authority, (AMT),
5.90%, 7/1/16 1,288,338
1,000 Virginia State Transportation Board
Revenue, Route 28, Variable Rate,
4/1/18(1) 1,074,920
-------------------------------------------------------------------------
$ 3,966,626
-------------------------------------------------------------------------
Water and Sewer -- 5.3%
-------------------------------------------------------------------------
$3,500 Fairfax County Water Authority,
5.00%, 4/1/21 $ 3,325,070
1,000 Fairfax County Water Authority,
Variable Rate, 4/1/29(1)(3) 1,020,920
1,750 Virginia Resource Authority, Clean Water
Revenue, (Revolving Fund),
5.625%, 10/1/22 1,775,463
-------------------------------------------------------------------------
$ 6,121,453
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.4%
(identified cost $110,960,904) $112,766,056
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.6% $ 3,010,002
-------------------------------------------------------------------------
Net Assets -- 100.0% $115,776,058
-------------------------------------------------------------------------
</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 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 August 31, 2000, 35.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.2% to 20.6% 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) 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
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $64,496,000 $40,633,990 $61,719,666 $79,536,566
Unrealized appreciation 738,502 937,669 278,790 747,447
----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $65,234,502 $41,571,659 $61,998,456 $80,284,013
----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 76,735 $ 270,161 $ 149,451
Receivable for investments sold 1,050,777 -- -- --
Interest receivable 870,136 594,000 804,007 1,383,310
----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $67,155,415 $42,242,394 $63,072,624 $81,816,774
----------------------------------------------------------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------------------------------------------------------
Demand note payable $ 400,000 $ -- $ -- $ 100,000
Due to bank 94,543 -- -- --
Accrued expenses 7,488 9,171 5,693 8,952
----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 502,031 $ 9,171 $ 5,693 $ 108,952
----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $66,653,384 $42,233,223 $63,066,931 $81,707,822
----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $65,914,882 $41,295,554 $62,788,141 $80,960,375
Net unrealized appreciation (computed on
the basis of identified cost) 738,502 937,669 278,790 747,447
----------------------------------------------------------------------------------------------------------------------
TOTAL $66,653,384 $42,233,223 $63,066,931 $81,707,822
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $27,786,850 $83,635,854 $56,833,666 $103,430,595
Unrealized appreciation
(depreciation) 120,348 (3,504,022) 984,617 5,112,205
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $27,907,198 $80,131,832 $57,818,283 $108,542,800
-------------------------------------------------------------------------------------------------------------------------------
Cash $ 51,160 $ 1,268,996 $ 323,437 $ 347,800
Receivable for investments sold 70,079 -- 40,000 --
Interest receivable 411,412 1,228,259 756,270 1,625,874
Prepaid expenses 14,458 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $28,454,307 $82,629,087 $58,937,990 $110,516,474
-------------------------------------------------------------------------------------------------------------------------------
Liabilities
-------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 941,488 $ -- $ --
Payable for daily variation margin on
open financial futures contracts 7,810 -- -- 18,926
Accrued expenses 5,460 11,737 11,413 4,424
-------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 13,270 $ 953,225 $ 11,413 $ 23,350
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $28,441,037 $81,675,862 $58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $28,322,734 $85,179,884 $57,941,960 $105,386,257
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 118,303 (3,504,022) 984,617 5,106,867
-------------------------------------------------------------------------------------------------------------------------------
TOTAL $28,441,037 $81,675,862 $58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Assets
-----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $80,731,232 $34,105,563 $42,943,683 $110,960,904
Unrealized appreciation 1,654,047 218,818 1,238,202 1,805,152
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $82,385,279 $34,324,381 $44,181,885 $112,766,056
-----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 238,985 $ 173,078 $ --
Receivable for investments sold 345,000 -- -- 1,255,712
Interest receivable 1,101,808 512,376 669,878 1,822,029
-----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $83,832,087 $35,075,742 $45,024,841 $115,843,797
-----------------------------------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin on
open financial futures contracts $ -- $ -- $ -- $ 33,836
Demand note payable 100,000 -- -- --
Due to bank 5,758 -- -- 17,959
Accrued expenses 13,896 6,013 9,664 15,944
-----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 119,654 $ 6,013 $ 9,664 $ 67,739
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $83,712,433 $35,069,729 $45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $82,058,386 $34,850,911 $43,776,975 $113,980,449
Net unrealized appreciation (computed on
the basis of identified cost) 1,654,047 218,818 1,238,202 1,795,609
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $83,712,433 $35,069,729 $45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Investment Income
----------------------------------------------------------------------------------------------------------------------
Interest $4,333,899 $2,750,197 $3,913,677 $ 5,395,781
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $4,333,899 $2,750,197 $3,913,677 $ 5,395,781
----------------------------------------------------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 248,461 $ 121,102 $ 210,871 $ 323,201
Trustees fees and expenses 8,847 2,501 8,849 9,306
Legal and accounting services 42,131 39,030 42,118 46,578
Custodian fee 43,740 29,529 40,415 52,787
Miscellaneous 12,444 16,060 12,613 14,743
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 355,623 $ 208,222 $ 314,866 $ 446,615
----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 9,155 $ 4,640 $ 14,707 $ 16,356
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 9,155 $ 4,640 $ 14,707 $ 16,356
----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 346,468 $ 203,582 $ 300,159 $ 430,259
----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $3,987,431 $2,546,615 $3,613,518 $ 4,965,522
----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (299,131) $ (328,997) $ (243,029) $ (116,631)
Financial futures contracts (12,185) 2,054 (29,176) (16,122)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (311,316) $ (326,943) $ (272,205) $ (132,753)
----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (243,544) $ 178,231 $ 185,594 $(2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (243,544) $ 178,231 $ 185,594 $(2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (554,860) $ (148,712) $ (86,611) $(2,435,258)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $3,432,571 $2,397,903 $3,526,907 $ 2,530,264
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
86
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
Investment Income
-------------------------------------------------------------------------------------------------------------------------------
Interest $1,772,277 $ 4,864,328 $ 3,828,721 $7,123,119
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $1,772,277 $ 4,864,328 $ 3,828,721 $7,123,119
-------------------------------------------------------------------------------------------------------------------------------
Expenses
-------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 62,768 $ 308,910 $ 200,152 $ 464,315
Trustees fees and expenses 2,526 8,869 8,912 11,488
Legal and accounting services 21,489 46,894 39,752 49,655
Custodian fee 21,829 53,692 40,711 58,102
Miscellaneous 6,479 14,580 12,653 16,872
-------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 115,091 $ 432,945 $ 302,180 $ 600,432
-------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 11,761 $ 15,867 $ 9,045 $ 38,155
-------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 11,761 $ 15,867 $ 9,045 $ 38,155
-------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 103,330 $ 417,078 $ 293,135 $ 562,277
-------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,668,947 $ 4,447,250 $ 3,535,586 $6,560,842
-------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (387,649) $ 154,894 $ 286,889 $ (50,337)
Financial futures contracts (63,431) (8,578) (25,529) (149,516)
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (451,080) $ 146,316 $ 261,360 $ (199,853)
-------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 289,802 $(1,178,574) $(1,256,378) $ (218,796)
Financial futures contracts (2,045) -- -- (5,338)
-------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 287,757 $(1,178,574) $(1,256,378) $ (224,134)
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (163,323) $(1,032,258) $ (995,018) $ (423,987)
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,505,624 $ 3,414,992 $ 2,540,568 $6,136,855
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
87
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------------------------
Interest $5,242,949 $2,346,527 $2,759,987 $ 7,569,092
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $5,242,949 $2,346,527 $2,759,987 $ 7,569,092
-----------------------------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 316,846 $ 90,314 $ 123,712 $ 499,111
Trustees fees and expenses 8,869 2,501 2,526 11,488
Legal and accounting services 42,753 38,280 37,323 49,853
Custodian fee 51,578 23,936 31,068 74,383
Miscellaneous 17,334 11,360 8,980 24,180
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 437,380 $ 166,391 $ 203,609 $ 659,015
-----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 9,382 $ 6,786 $ 9,215 $ 8,974
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 9,382 $ 6,786 $ 9,215 $ 8,974
-----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 427,998 $ 159,605 $ 194,394 $ 650,041
-----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $4,814,951 $2,186,922 $2,565,593 $ 6,919,051
-----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (181,612) $ 20,515 $ 22,997 $ 970,975
Financial futures contracts -- (25,568) (20,058) (261,449)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (181,612) $ (5,053) $ 2,939 $ 709,526
-----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (192,845) $ (728,586) $ (60,446) $(2,382,962)
Financial futures contracts -- -- -- (9,543)
-----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (192,845) $ (728,586) $ (60,446) $(2,392,505)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (374,457) $ (733,639) $ (57,507) $(1,682,979)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $4,440,494 $1,453,283 $2,508,086 $ 5,236,072
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
88
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,987,431 $ 2,546,615 $ 3,613,518 $ 4,965,522
Net realized loss (311,316) (326,943) (272,205) (132,753)
Net change in unrealized appreciation
(depreciation) (243,544) 178,231 185,594 (2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,432,571 $ 2,397,903 $ 3,526,907 $ 2,530,264
----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,799,382 $ 2,877,148 $ 8,502,969 $ 6,340,470
Withdrawals (24,719,837) (13,532,599) (20,183,370) (24,924,822)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(18,920,455) $(10,655,451) $(11,680,401) $(18,584,352)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(15,487,884) $ (8,257,548) $ (8,153,494) $(16,054,088)
----------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 82,141,268 $ 50,490,771 $ 71,220,425 $ 97,761,910
----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 66,653,384 $ 42,233,223 $ 63,066,931 $ 81,707,822
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
89
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,668,947 $ 4,447,250 $ 3,535,586 $ 6,560,842
Net realized gain (loss) (451,080) 146,316 261,360 (199,853)
Net change in unrealized appreciation
(depreciation) 287,757 (1,178,574) (1,256,378) (224,134)
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,505,624 $ 3,414,992 $ 2,540,568 $ 6,136,855
-------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,902,687 $ 5,154,845 $ 3,114,514 $ 4,312,639
Withdrawals (9,634,774) (22,117,199) (14,992,792) (29,286,500)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(5,732,087) $(16,962,354) $(11,878,278) $(24,973,861)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(4,226,463) $(13,547,362) $ (9,337,710) $(18,837,006)
-------------------------------------------------------------------------------------------------------------------------------
Net Assets
-------------------------------------------------------------------------------------------------------------------------------
At beginning of year $32,667,500 $ 95,223,224 $ 68,264,287 $129,330,130
-------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $28,441,037 $ 81,675,862 $ 58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
90
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,814,951 $ 2,186,922 $ 2,565,593 $ 6,919,051
Net realized gain (loss) (181,612) (5,053) 2,939 709,526
Net change in unrealized appreciation
(depreciation) (192,845) (728,586) (60,446) (2,392,505)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,440,494 $ 1,453,283 $ 2,508,086 $ 5,236,072
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,303,142 $ 2,453,688 $ 3,532,766 $ 7,123,663
Withdrawals (22,348,655) (13,670,265) (10,433,144) (34,207,931)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(15,045,513) $(11,216,577) $ (6,900,378) $(27,084,268)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,605,019) $ (9,763,294) $ (4,392,292) $(21,848,196)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,317,452 $ 44,833,023 $ 49,407,469 $137,624,254
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 83,712,433 $ 35,069,729 $ 45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
91
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,645,606 $ 2,845,321 $ 4,288,064 $ 5,787,422
Net realized gain 1,822,635 765,765 1,152,984 987,147
Net change in unrealized appreciation
(depreciation) (7,171,556) (3,759,621) (7,104,173) (6,310,409)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (703,315) $ (148,535) $ (1,663,125) $ 464,160
----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,798,450 $ 5,682,021 $ 5,916,906 $ 6,215,330
Withdrawals (19,730,570) (11,297,759) (20,284,630) (21,552,860)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(11,932,120) $ (5,615,738) $(14,367,724) $(15,337,530)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(12,635,435) $ (5,764,273) $(16,030,849) $(14,873,370)
----------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,776,703 $ 56,255,044 $ 87,251,274 $112,635,280
----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 82,141,268 $ 50,490,771 $ 71,220,425 $ 97,761,910
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
92
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,842,095 $ 5,197,771 $ 3,882,521 $ 7,585,943
Net realized gain (loss) (132,083) 1,057,196 531,100 1,052,272
Net change in unrealized appreciation
(depreciation) (2,534,222) (9,405,694) (5,290,349) (10,001,534)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (824,210) $ (3,150,727) $ (876,728) $ (1,363,319)
-------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,126,276 $ 11,497,954 $ 7,132,282 $ 7,046,445
Withdrawals (7,144,339) (18,276,256) (12,389,264) (29,283,120)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(3,018,063) $ (6,778,302) $ (5,256,982) $(22,236,675)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,842,273) $ (9,929,029) $ (6,133,710) $(23,599,994)
-------------------------------------------------------------------------------------------------------------------------------
Net Assets
-------------------------------------------------------------------------------------------------------------------------------
At beginning of year $36,509,773 $105,152,253 $ 74,397,997 $152,930,124
-------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $32,667,500 $ 95,223,224 $ 68,264,287 $129,330,130
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
93
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,266,291 $ 2,658,896 $ 2,778,943 $ 7,742,491
Net realized gain (loss) 1,043,805 (175,546) 111,739 1,479,464
Net change in unrealized appreciation
(depreciation) (6,028,925) (3,664,758) (2,876,879) (9,945,787)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 281,171 $ (1,181,408) $ 13,803 $ (723,832)
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 10,547,640 $ 6,573,386 $ 5,309,074 $ 12,279,948
Withdrawals (20,266,456) (10,676,028) (9,624,115) (25,189,332)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (9,718,816) $ (4,102,642) $(4,315,041) $(12,909,384)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,437,645) $ (5,284,050) $(4,301,238) $(13,633,216)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $103,755,097 $ 50,117,073 $53,708,707 $151,257,470
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,317,452 $ 44,833,023 $49,407,469 $137,624,254
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
94
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.49% 0.50% 0.49%
Expenses after custodian
fee reduction 0.48% 0.45% 0.47% 0.49% 0.45%
Net investment income 5.57% 5.18% 5.21% 5.47% 5.50%
Portfolio Turnover 8% 23% 23% 23% 52%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $66,653 $82,141 $94,777 $102,356 $108,544
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
95
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARKANSAS PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.46% 0.45% 0.44% 0.49% 0.48%
Expenses after custodian
fee reduction 0.45% 0.43% 0.43% 0.48% 0.46%
Net investment income 5.65% 5.25% 5.22% 5.40% 5.40%
Portfolio Turnover 14% 24% 13% 17% 11%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $42,233 $50,491 $56,255 $62,686 $74,103
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
96
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
GEORGIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.48% 0.49% 0.50%
Expenses after custodian
fee reduction 0.47% 0.42% 0.47% 0.47% 0.45%
Net investment income 5.69% 5.31% 5.29% 5.55% 5.59%
Portfolio Turnover 13% 38% 19% 13% 21%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $63,067 $71,220 $87,251 $95,162 $108,974
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
97
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
KENTUCKY PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.49% 0.51% 0.53%
Expenses after custodian
fee reduction 0.50% 0.47% 0.48% 0.48% 0.50%
Net investment income 5.75% 5.36% 5.38% 5.56% 5.49%
Portfolio Turnover 11% 11% 15% 28% 28%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $81,708 $97,762 $112,635 $123,110 $133,017
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
98
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
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 0.39% 0.37% 0.39% 0.40% 0.30%
Net expenses after
custodian fee reduction 0.35% 0.34% 0.34% 0.38% 0.23%
Net investment income 5.63% 5.16% 5.25% 5.85% 5.90%
Portfolio Turnover 14% 20% 43% 27% 99%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $28,441 $32,668 $36,510 $34,432 $35,049
-----------------------------------------------------------------------------------------------
+ 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 0.41%
Expenses after custodian
fee reduction 0.35%
Net investment income 5.79%
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
99
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MARYLAND PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.51% 0.49% 0.48% 0.48% 0.51%
Expenses after custodian
fee reduction 0.49% 0.46% 0.44% 0.45% 0.48%
Net investment income 5.18% 5.05% 5.11% 5.38% 5.50%
Portfolio Turnover 9% 31% 30% 30% 33%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $81,676 $95,223 $105,152 $107,401 $110,588
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
100
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSOURI PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.47% 0.47% 0.49%
Expenses after custodian
fee reduction 0.48% 0.44% 0.45% 0.46% 0.47%
Net investment income 5.80% 5.28% 5.31% 5.52% 5.52%
Portfolio Turnover 8% 21% 11% 5% 36%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $58,927 $68,264 $74,398 $79,882 $85,162
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
101
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NORTH CAROLINA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.50% 0.51% 0.52% 0.52%
Expenses after custodian
fee reduction 0.49% 0.49% 0.48% 0.50% 0.48%
Net investment income 5.66% 5.24% 5.31% 5.53% 5.51%
Portfolio Turnover 17% 3% 26% 42% 54%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $110,493 $129,330 $152,930 $167,571 $187,044
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
102
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OREGON PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.51% 0.48% 0.48% 0.56% 0.50%
Expenses after custodian
fee reduction 0.50% 0.47% 0.48% 0.55% 0.47%
Net investment income 5.63% 5.27% 5.28% 5.46% 5.37%
Portfolio Turnover 25% 35% 9% 22% 28%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $83,712 $94,317 $103,755 $113,693 $129,759
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
103
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SOUTH CAROLINA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.44% 0.43% 0.44% 0.51% 0.53%
Expenses after custodian
fee reduction 0.42% 0.40% 0.43% 0.50% 0.51%
Net investment income 5.77% 5.33% 5.37% 5.59% 5.65%
Portfolio Turnover 12% 26% 21% 8% 36%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $35,070 $44,833 $50,117 $53,970 $58,318
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
104
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TENNESSEE PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.44% 0.42% 0.44% 0.43% 0.45%
Expenses after custodian
fee reduction 0.42% 0.41% 0.42% 0.42% 0.43%
Net investment income 5.61% 5.23% 5.20% 5.48% 5.52%
Portfolio Turnover 9% 13% 21% 3% 39%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $45,015 $49,407 $53,709 $54,162 $56,065
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
105
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
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% 0.50% 0.52% 0.52% 0.51%
Expenses after custodian
fee reduction 0.53% 0.48% 0.50% 0.49% 0.48%
Net investment income 5.61% 5.26% 5.27% 5.53% 5.55%
Portfolio Turnover 23% 17% 8% 25% 30%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $115,776 $137,624 $151,257 $161,658 $177,644
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
106
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Alabama Municipals Portfolio (Alabama Portfolio), Arkansas Municipals
Portfolio (Arkansas Portfolio), Georgia Municipals Portfolio (Georgia
Portfolio), Kentucky Municipals Portfolio (Kentucky Portfolio), Louisiana
Municipals Portfolio (Louisiana Portfolio), Maryland Municipals Portfolio
(Maryland Portfolio), Missouri Municipals Portfolio (Missouri Portfolio),
North Carolina Municipals Portfolio (North Carolina Portfolio), Oregon
Municipals Portfolio (Oregon Portfolio), South Carolina Municipals Portfolio
(South Carolina Portfolio), Tennessee Municipals Portfolio (Tennessee
Portfolio) and Virginia Municipals Portfolio (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, which were organized as trusts under the laws of the State of
New York on May 1, 1992, seek to achieve current income exempt from regular
federal income tax and from particular state or local income or other taxes.
The Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Financial futures contracts and
options on financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Over-the-counter options on financial
futures contracts are normally valued at the mean between the latest bid and
asked prices. Short-term obligations, maturing in sixty days or less, are
valued at amortized cost, which approximates value. Investments for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the
Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for Federal income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit. Interest income received by the Portfolios on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from federal income tax
when allocated to each Portfolio's investors. The portion of such interest,
if any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed for both hedging
against anticipated future changes in interest rates and investment purposes.
Should interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing 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.
107
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
G 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.
H 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.
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.
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 August 31, 2000, the Portfolios paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE(1)
<S> <C> <C>
-------------------------------------------------------------------------
Alabama $248,461 0.35%
Arkansas 121,102 0.27%
Georgia 210,871 0.33%
Kentucky 323,201 0.37%
Louisiana 62,768 0.21%
Maryland 308,910 0.36%
Missouri 200,152 0.33%
North Carolina 464,315 0.40%
Oregon 316,846 0.37%
South Carolina 90,314 0.24%
Tennessee 123,712 0.27%
Virginia 499,111 0.40%
</TABLE>
(1) 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.
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 August 31, 2000, no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
3 Investments
-------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended August 31,
2000, were as follows:
<TABLE>
<CAPTION>
ALABAMA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 5,419,741
Sales 20,674,723
<CAPTION>
ARKANSAS MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 6,055,502
Sales 14,703,173
<CAPTION>
GEORGIA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 8,037,151
Sales 17,452,950
<CAPTION>
KENTUCKY MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 8,912,081
Sales 22,227,351
<CAPTION>
LOUISIANA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,996,820
Sales 8,540,788
<CAPTION>
MARYLAND MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 7,552,388
Sales 20,500,543
<CAPTION>
MISSOURI MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,691,760
Sales 14,944,234
</TABLE>
108
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $19,107,340
Sales 37,518,514
<CAPTION>
OREGON MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $21,504,299
Sales 30,944,963
<CAPTION>
SOUTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,619,007
Sales 14,537,733
<CAPTION>
TENNESSEE MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,846,481
Sales 8,361,883
<CAPTION>
VIRGINIA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $27,521,394
Sales 48,927,802
</TABLE>
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at August 31, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ALABAMA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 64,496,000
------------------------------------------------------
Gross unrealized appreciation $ 2,373,345
Gross unrealized depreciation (1,634,843)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 738,502
------------------------------------------------------
<CAPTION>
ARKANSAS MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 40,633,990
------------------------------------------------------
Gross unrealized appreciation $ 1,563,435
Gross unrealized depreciation (625,766)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 937,669
------------------------------------------------------
<CAPTION>
GEORGIA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 61,719,666
------------------------------------------------------
Gross unrealized appreciation $ 2,733,486
Gross unrealized depreciation (2,454,696)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 278,790
------------------------------------------------------
<CAPTION>
KENTUCKY MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 79,627,148
------------------------------------------------------
Gross unrealized appreciation $ 3,611,019
Gross unrealized depreciation (2,999,154)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 611,865
------------------------------------------------------
<CAPTION>
LOUISIANA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 27,786,850
------------------------------------------------------
Gross unrealized appreciation $ 650,770
Gross unrealized depreciation (530,422)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 120,348
------------------------------------------------------
<CAPTION>
MARYLAND MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 83,635,854
------------------------------------------------------
Gross unrealized appreciation $ 2,021,763
Gross unrealized depreciation (5,525,785)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (3,504,022)
------------------------------------------------------
<CAPTION>
MISSOURI MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 56,833,666
------------------------------------------------------
Gross unrealized appreciation $ 2,817,559
Gross unrealized depreciation (1,832,942)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 984,617
------------------------------------------------------
<CAPTION>
NORTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $103,430,595
------------------------------------------------------
Gross unrealized appreciation $ 6,165,496
Gross unrealized depreciation (1,053,291)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,112,205
------------------------------------------------------
</TABLE>
109
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
OREGON MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 80,731,232
------------------------------------------------------
Gross unrealized appreciation $ 2,608,449
Gross unrealized depreciation (954,402)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,654,047
------------------------------------------------------
<CAPTION>
SOUTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 34,105,563
------------------------------------------------------
Gross unrealized appreciation $ 1,351,533
Gross unrealized depreciation (1,132,715)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 218,818
------------------------------------------------------
<CAPTION>
TENNESSEE MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 42,943,683
------------------------------------------------------
Gross unrealized appreciation $ 1,889,209
Gross unrealized depreciation (651,007)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,238,202
------------------------------------------------------
<CAPTION>
VIRGINIA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $110,960,904
------------------------------------------------------
Gross unrealized appreciation $ 4,410,471
Gross unrealized depreciation (2,605,319)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,805,152
------------------------------------------------------
</TABLE>
5 Line of Credit
-------------------------------------------
The Portfolios participate 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 August 31,
2000, the Alabama Municipals Portfolio, Kentucky Municipals Portfolio, and
Oregon Municipals Portfolio had balances outstanding pursuant to this line of
credit of $400,000, $100,000 and $100,000 (respectively). The Portfolios did
not have any significant borrowings or allocated fees during the year ended
August 31, 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 August 31,
2000, is as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS
--------------------------------------------------------------------------------------
EXPIRATION NET UNREALIZED
PORTFOLIO DATE CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Louisiana 12/00 14 U.S. Treasury Bond Short $(2,045)
North
Carolina 12/00 33 U.S. Treasury Bond Short (5,338)
Virginia 12/00 59 U.S. Treasury Bond Short (9,543)
</TABLE>
At August 31, 2000, the Portfolios noted above had sufficient cash and/or
securities to cover margin requirements on open futures contracts.
110
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF ALABAMA MUNICIPALS PORTFOLIO, ARKANSAS
MUNICIPALS PORTFOLIO, GEORGIA MUNICIPALS PORTFOLIO, KENTUCKY MUNICIPALS
PORTFOLIO, LOUISIANA MUNICIPALS PORTFOLIO, MARYLAND MUNICIPALS PORTFOLIO,
MISSOURI MUNICIPALS PORTFOLIO, NORTH CAROLINA MUNICIPALS PORTFOLIO, OREGON
MUNICIPALS PORTFOLIO, SOUTH CAROLINA MUNICIPALS PORTFOLIO, TENNESSEE MUNICIPALS
PORTFOLIO AND VIRGINIA MUNICIPALS PORTFOLIO:
---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Alabama Municipals Portfolio, Arkansas
Municipals Portfolio, Georgia Municipals Portfolio, Kentucky Municipals
Portfolio, Louisiana Municipals Portfolio, Maryland Municipals Portfolio,
Missouri Municipals Portfolio, North Carolina Municipals Portfolio, Oregon
Municipals Portfolio, South Carolina Municipals Portfolio, Tennessee Municipals
Portfolio and Virginia Municipals Portfolio (the Portfolios) as of August 31,
2000, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended August 31, 2000 and 1999
and supplementary data for each of the years in the five year period ended
August 31, 2000. These financial statements and supplementary data are the
responsibility of the Trusts' management. Our responsibility is to express an
opinion on the 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 owned at August 31, 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 August 31, 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
October 13, 2000
111
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 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 of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of South Carolina
Municipals Portfolio
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio Manager
of Alabama, Kentucky, and Maryland
Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio Manager
of Louisiana, North Carolina, and Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio Manager
of Georgia, Missouri, and Tennessee
Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio Manager
of Arkansas and Oregon
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 of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
112
<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 distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
--------------------------------------------------------------------------------
445-10/00 12MUNISRC
