<PAGE>
MUTUAL FUNDS
FOR PEOPLE
[LOGO] WHO PAY
TAXES-Registered Trademark- [EDUCATION]
Semiannual Report March 31, 2000
EATON VANCE California
[CARS ON STREET] MUNICIPALS
TRUST Florida
Massachusetts
Mississippi
New York
Ohio
Rhode Island
[BRIDGE]
West Virginia
<PAGE>
EATON VANCE MUNICIPALS FUNDS as of March 31, 2000
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L E T T E R T O S H A R E H O L D E R S
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The past year proved very challenging for bond investors,
[PHOTO] as a strong economy led to higher interest rates and a
difficult environment for fixed-income vehicles. Amid a
Thomas J. Fetter continuing robust economy, the Federal Reserve maintained
President a watchful eye for any sign of inflation. On five
occasions during the past 12 months, the Fed has raised its
Federal Funds rate -- a key barometer of short-term interest rates -- in an
attempt to reduce the potential for inflation.
The bond markets -- including the municipal market -- were on the defensive for
much of the year, and in 1999 posted their worst showing since 1994. By early
February, however, yields had peaked as the market began to rally in reaction
to the Fed's continued anti-inflation stance and increasing volatility on the
equity markets. By the end of March, yields had declined to their lowest levels
in six months, with municipal bond yields exceeding Treasury yields.
A GROWING BUDGET SURPLUS SUGGESTS
A FAVORABLE LONG-TERM OUTLOOK FOR
MUNICIPAL BONDS...
A strong economy, combined with low inflation has resulted in the first budget
surplus in a generation. Not surprisingly, the Treasury Department has
announced that it will start to selectively buy back outstanding debt issues.
That could well create a favorable long-term scenario for bonds. In addition,
the forward calendar of new MUNICIPAL issuance is significantly lighter than in
recent years. That should be a positive factor for municipal bonds because the
market should be less impacted by supply pressures.
[GRAPHIC]
MUNICIPAL BONDS FINANCE VITAL
PUBLIC PROJECTS WHILE PROVIDING
RELIEF TO TAX-WEARY INVESTORS...
Through their purchases of municipal bonds, investors provide financing for an
array of vital public works, including those for transportation facilities,
highway construction and industrial development. These projects not only
improve our quality of life, but also promote private enterprise and create new
jobs.
Adding to their unique role, municipal bonds are among the few tax-advantaged
vehicles remaining for investors. Eaton Vance Municipals Funds will continue
their traditional investment pursuit: maintaining a portfolio of primarily
high-quality, intermediate-term bonds with competitive levels of tax-exempt
income. Our goal remains to provide excellent income opportunities for today's
tax-burdened investors.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
May 10, 2000
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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.
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2
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EATON VANCE MUNICIPALS FUNDS as of March 31, 2000
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I N V E S T M E N T U P D A T E
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THE ECONOMY
[PHOTO] ------------------------------------------------------------
- California's economic expansion continued in early 2000,
Cynthia J. Clemson registering 3.1% employment growth over the past year. Job
Portfolio Manager creation was especially strong in construction and
communications. Reflecting the surging economy, the
state's March 2000 jobless rate was 4.9%, down from 5.5%
a year earlier.
- - The increase in construction employment reflected the strong California
housing market. Despite rising interest rates, housing sales rose 7.5% in the
past year, according to the California Association of Realtors. The median
home price rose 17%.
- - An improving Asian economic outlook has resulted in stronger demand for
California's manufactured goods. The state's exports rose 2.4% in 1999, with
technology equipment enjoying especially strong demand.
THE FUND
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- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 0.24% and 0.21%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$10.06 on March 31, 2000 from $10.32 on September 30, 1999, and the
reinvestment of $0.278 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.29 from $9.52, and the
reinvestment of $0.244 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.52% for Class A and 5.27% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
10.08% and 9.62%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 5.14% and
5.09%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.38% and 9.29%.
MANAGEMENT UPDATE
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- - In the past six months, special assessment bonds have been strong performers
for the Portfolio. These bonds, highlighted in last year's report, came to
market in a lower-interest rate environment, but as rates have inched up,
supply has dwindled, making the bonds owned by the Portfolio more attractive
in the market.
- - As the municipals market declined in 1999, management was able to selectively
establish tax losses to offset possible future gains. The proceeds of those
sales were used to buy bonds with more attractive yields and trading
characteristics.
PORTFOLIO STATISTICS+
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- - Number of Issues: 78
- - Average Maturity: 20.8 years
- - Average Rating: A+
- - Average Call: 11.7 years
- - Average Dollar Price: $90.30
RATING DISTRIBUTION+
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[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
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PERFORMANCE(6) CLASS A CLASS B
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Average Annual Total Returns (at net asset value)
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One Year -4.52% -4.58%
Five Years 5.55 4.72
Ten Years N.A. 5.34
Life of Fund+ 5.86 5.76
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
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One Year -9.02% -9.12%
Five Years 4.53 4.39
Ten Years N.A. 5.34
Life of Fund+ 4.98 5.76
+Inception date: Class A: 5/27/94; Class B: 12/19/85
5 LARGEST CATEGORIES(7)
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By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
45.22% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 67.9% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
3
<PAGE>
EATON VANCE FLORIDA MUNICIPALS FUND as of March 31, 2000
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I N V E S T M E N T U P D A T E
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THE ECONOMY
[PHOTO] -----------------------------------------------------------
- Florida's job growth outpaced the southeast region's and
Cynthia J. Clemson the nation's as a whole over the past year. The fastest
Portfolio Manager job creation occurred in the Orlando and Tampa areas,
driven by continued theme park building. Consumer
confidence fell eight points in March, partially in
response to increased gasoline prices and interest rate
hikes.
- - Florida's cruise industry continued to enjoy high occupancy rates in 1999,
despite the addition of more ships to the fleet. Strong future bookings for
2000 have encouraged cruise lines to add even more ships in the coming year.
THE FUND
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- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 1.42% and 1.08%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.93 on March 31, 2000 from $10.19 on September 30, 1999, and the
reinvestment of $0.269 per share in tax-free dividend income and $0.125 per
share in capital gains.(2) For Class B, this return resulted from a change in
NAV to $10.18 from $10.43, and the reinvestment of $0.230 per share in
tax-free dividend income and $0.125 per share in capital gains.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.44% for Class A and 4.57% for Class B.(3) The
distribution rates of Class A and Class B are equivalent to taxable rates of
9.01% and 7.57%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 5.54% and
5.02%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable yields of 9.17% and 8.31%.(4)
MANAGEMENT UPDATE
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- - Management has had the opportunity in the past six months to selectively
invest in good-quality, non-rated, special assessment bonds. These types of
bonds are raw-land deals backed by strong developers, which cater to both
families and retirees.
- - Management reduced the Portfolio's holdings in single-family housing credits,
as that market became less attractive. The proceeds from the bonds were used
to purchase some non-rated deals to improve overall yield.
- - With muni yields higher, we focused on identifying bonds that could be sold at
a loss, and using the proceeds to purchase more desirable bonds. This allowed
management to realize a capital loss the Fund used to offset capital gains,
thereby lowering tax liability.
PORTFOLIO STATISTICS+
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- - Number of Issues: 99
- - Average Maturity: 23.2 years
- - Average Rating: AA
- - Average Call: 7.5 years
- - Average Dollar Price: $93.69
RATING DISTRIBUTION+
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[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
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PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -3.05% -3.77%
Five Years 4.90 4.00
Life of Fund+ 5.66 5.92
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -7.69% -8.32%
Five Years 3.87 3.67
Life of Fund+ 4.81 5.92
+Inception date: Class A: 4/5/94; Class B: 8/28/90
5 LARGEST CATEGORIES(7)
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By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax. (3) The Fund's distribution rate represents
actual distributions paid to shareholders and is calculated daily by dividing
the last distribution per share (annualized)by the net asset value (NAV). (4)
Taxable-equivalent figures assume maximum 39.60% federal income tax rate. A
lower rate would result in lower tax-equivalent figures. (5) The Fund's SEC
yield is calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and annualizing
the result. (6) Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect a sales charge of 4.75% and for Class B
reflect applicable CDSC based on the following schedule: 5% -- 1st and 2nd
years; 4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May
not represent the Portfolio's current or future investments. Five largest
categories represent 49.0% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
4
<PAGE>
EATON VANCE MASSACHUSETTS MUNICIPALS FUND as of March 31, 2000
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I N V E S T M E N T U P D A T E
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THE ECONOMY
[PHOTO] -----------------------------------------------------------
- The Massachusetts economy has continued to advance in
Robert B. MacIntosh 2000. Financial services, retail trade, health services
Portfolio Manager and technology were again among the largest sources of
new jobs. The March 2000 unemployment rate was 3.2%,
slightly above the 3.1% rate of a year ago, but still
well below the national rate.
- - The Massachusetts Biomedical Initiative has been successful in luring biotech
firms to central Massachusetts. The area's educated workforce and location
near top-ranked universities have allowed companies to bring products to
market faster than in less favorable business locales.
THE FUND
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- - During the six months ended March 31, 2000, the Fund's Class A, Class B, and
Class I shares had total returns of 0.84%, 0.53% and 1.01%, respectively.(1)
For Class A, this return resulted from a change in net asset value (NAV) per
share to $8.93 on March 31, 2000 from $9.11 on September 30, 1999, and the
reinvestment of $0.251 per share in tax-free income;(2) for Class B, a change
in NAV to $9.95 from $10.13, and the reinvestment of $0.229 per share in
tax-free income;(2) and for Class I, a change in NAV to $9.22 from $9.39, and
the reinvestment of $0.259 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.61% for Class A, 4.62% for Class B, and 5.64% for
Class I.(3) The distribution rates of Classes A, B, and I are equivalent to
taxable rates of 9.86%, 8.12%, and 9.92%, respectively.(4)
- - The SEC 30-day yields for Class A, B, and I shares at March 31 were 5.05%,
4.56%, and 5.50%, respectively.(5) The SEC 30-day yields of Classes A, B, and
I are equivalent to taxable yields of 8.88%, 8.02%, and 9.67%,
respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - In the past six months, management has been emphasizing sectors that could
undergo a decrease in supply in the future, while avoiding areas that should
see a jump in supply. For that reason, we have limited exposure to the "Big
Dig" project, as many new bonds are expected to be issued to help finance the
massive construction project.
- - Hospital bonds represented the Portfolio's largest sector weighting at
March 31, though we continue to be cautious about this very competitive
market. We focused on those institutions with sound financial structures,
good management and a favorable demographic base.
- - We have also emphasized education bonds in the past year, as many secondary
schools in Massachusetts have issued debt. These bonds tend to have good
credit quality and to be one-time issues.
PORTFOLIO STATISTICS+
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- - Number of Issues: 66
- - Average Maturity: 20.3 years
- - Average Rating: A+
- - Average Call: 7.5 years
- - Average Dollar Price: $87.00
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B CLASS I
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -3.23% -4.13% -3.24%
Five Years 4.95 4.21 5.11
Life of Fund+ 3.70 5.40 4.41
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -7.86% -8.71% -3.24%
Five Years 3.93 3.87 5.11
Life of Fund+ 2.91 5.40 4.41
+Inception date: Class A: 12/7/93; Class B: 4/18/91; Class I:6/17/93
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with
these investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
43.13% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge 4.75% and for Class B reflect applicable
CDSC based on the following schedule: 5% -- 1st and 2nd years; 4% -- 3rd
year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not represent
the Portfolio's current or future investments. Five largest categories
represent 66.2% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
5
<PAGE>
EATON VANCE MISSISSIPPI MUNICIPALS FUND as of March 31, 2000
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I N V E S T M E N T U P D A T E
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THE ECONOMY
[PHOTO] -----------------------------------------------------------
- Mississippi's seasonally adjusted unemployment rate for
Cynthia J. Clemson March 2000 was 5.5%, an increase of 0.3% from the
Portfolio Manager previous March. New growth in the casino industry, a
major engine of the state economy, is beginning to
stabilize, though revenues for existing casinos continue
to be strong.
- - In late 1999, the Mississippi legislature began work on a series of
initiatives designed to improve the state's long-range economic profile and
ability to compete in a global market place. The focal points include
education reform, science and technology development, and workplace training.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 1.02% and 0.71%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.20 on March 31, 2000 from $9.35 on September 30, 1999, and the
reinvestment of $0.240 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.42 from $9.56, and the
reinvestment of $0.205 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.22% for Class A and 4.36% for Class B.(3) The
distribution rates of Classes A and B are equivalent to taxable rates of 9.10%
and 7.60%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 4.84% and
4.47%, respectively.(5) The SEC 30-day yields of Classes A and B are
equivalent to taxable yields of 8.43% and 7.79%, respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Mississippi issuers have been quiet in the past year. With fewer issues to
choose from, management focused on improving structural characteristics
whenever possible. For example, we were able to upgrade the average call date
of the Portfolio from 8.5 years at March 1999, to 9.0 years at March 2000.
- - The Portfolio benefited from the above-average yields provided by selected
industrial development bonds (IDBs), including a 7.15% issue for E.I. DuPont.
IDBs are used to finance local economic development.
- - With muni yields higher, we focused on identifying bonds that could be sold at
a loss, and using the proceeds to purchase more desirable bonds. This allowed
us to realize a capital loss the Fund used to offset capital gains, thereby
lowering tax liability.
PORTFOLIO STATISTICS+
- --------------------------------------------------------------------------------
- - Number of Issues: 32
- - Average Maturity: 18.9 years
- - Average Rating: AA
- - Average Call: 8.5 years
- - Average Dollar Price: $95.90
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -1.98% -2.74%
Five Years 5.14 4.59
Life of Fund+ 3.77 3.79
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -6.60% -7.40%
Five Years 4.12 4.25
Life of Fund+ 2.97 4.80
+Inception date: Class A: 12/7/93; Class B: 6/11/93
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
42.62% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 61.0% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
6
<PAGE>
EATON VANCE NEW YORK MUNICIPALS FUND as of March 31, 2000
- --------------------------------------------------------------------------------
I N V E S T M E N T U P D A T E
- --------------------------------------------------------------------------------
THE ECONOMY
[PHOTO] -----------------------------------------------------------
- Reversing the trend of recent years, New York's 2.6% job
Thomas J. Fetter growth rate far exceeded that of the nation in 1999,
Portfolio Manager with 199,000 new jobs created. The services, trade and
construction sectors witnessed especially strong growth.
The state's unemployment rate declined to 4.6% in March
2000, down 1.2% from a year earlier.
- - Despite sharply higher interest rates, New York City's securities industry
registered record profits in 1999. Benefiting from low inflation and a global
economic integration, the industry is estimated to have paid bonuses of $13.6
billion during the year.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 2.28% and 1.83%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.81 on March 31, 2000 from $9.86 on September 30, 1999, and the
reinvestment of $0.265 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $10.59 from $10.64, and the
reinvestment of $0.238 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.40% for Class A and 4.50% for Class B.(3) The
distribution rates of Classes A and B are equivalent to taxable rates of 9.60%
and 8.00%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 4.13% and
4.58%, respectively.(5) The SEC 30-day yields of Classes A and B are
equivalent to taxable yields of 7.34% and 8.14%, respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Special tax revenue bonds remained a significant portion of the Portfolio.
These issues are used to finance infrastructure projects, including
transportation equipment, water and sewer facilities, and road construction.
- - Education remained the Portfolio's largest sector weighting. Many of the
bonds in this category were issued by the New York Dormitory Authority. The
proceeds are earmarked for the construction, expansion, and maintenance of
student residences throughout the state.
- - Call protection remained an important structural consideration. As more bonds
have reached early redemption dates, management increased call protection to
improve the Portfolio's performance characteristics.
PORTFOLIO STATISTICS+
- --------------------------------------------------------------------------------
- - Number of Issues: 70
- - Average Maturity: 20.9 years
- - Average Rating: A+
- - Average Call: 12.4 years
- - Average Dollar Price: $97.01
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -1.98% -2.77%
Five Years 5.60 4.73
Life of Fund+ 5.77 6.44
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -6.67% -7.42%
Five Years 4.58 4.40
Life of Fund+ 4.91 6.44
+Inception date: Class A: 4/15/94; Class B: 8/30/90
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
43.74% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 57.3% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
7
<PAGE>
EATON VANCE OHIO MUNICIPALS FUND as of March 31, 2000
- --------------------------------------------------------------------------------
I N V E S T M E N T U P D A T E
- --------------------------------------------------------------------------------
THE ECONOMY
[PHOTO] -----------------------------------------------------------
- The Ohio economy retained its strong momentum in the
Thomas J. Fetter first quarter of 2000. The service sector, especially
Portfolio Manager business services, provided the largest increase in new
jobs, which rose by 212,000 during the year. The state's
March 2000 unemployment rate was 3.9%, down from 4.2% a
year earlier.
- - Ohio's steel producers are once again facing the challenge of cheap foreign
imports. According to the American Iron and Steel Institute, U.S. steel buyers
imported 3 million net tons in January 2000, an increase of 8.6% over January
1999.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of -0.15% and -0.55%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$8.84 on March 31, 2000 from $9.12 on September 30, 1999, and the
reinvestment of $0.261 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.98 from $10.29, and the
reinvestment of $0.250 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.92% for Class A and 5.06% for Class B.(3) The
distribution rates of Classes A and B are equivalent to taxable rates of
10.60% and 9.06%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 5.34% and
4.80%, respectively.(5) The SEC 30-day yields of Classes A and B are
equivalent to taxable yields of 9.56% and 8.59%, respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - As the municipals market declined in 1999, management was able to selectively
establish tax losses to offset possible future gains. The proceeds of those
sales were used to buy bonds with more attractive yields and trading
characteristics.
- - Industrial development bonds (IDB), which are used to finance local economic
development, provided excellent sources of income for the Portfolio.
Industries represented in the Portfolio's IDB holdings included consumer
products, transportation and paper.
- - Call protection remained an important structural consideration. As more bonds
have reached early redemption dates, management increased call protection to
improve the Portfolio's performance characteristics.
PORTFOLIO STATISTICS+
- --------------------------------------------------------------------------------
- - Number of Issues: 86
- - Average Maturity: 21.6 years
- - Average Rating: A+
- - Average Call: 7.4 years
- - Average Dollar Price: $96.81
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -3.73% -4.59%
Five Years 4.89 4.15
Life of Fund+ 3.54 5.41
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -8.26% -9.14%
Five Years 3.87 3.82
Life of Fund+ 2.74 5.41
+Inception date: Class A: 12/7/93; Class B: 4/18/91
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
44.13% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 59.1% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
8
<PAGE>
EATON VANCE RHODE ISLAND MUNICIPALS FUND as of March 31, 2000
- --------------------------------------------------------------------------------
I N V E S T M E N T U P D A T E
- --------------------------------------------------------------------------------
THE ECONOMY
[PHOTO] -----------------------------------------------------------
- The March seasonally adjusted unemployment rate in Rhode
Robert B. MacIntosh Island fell to 3.7%,the lowest level recorded in the
Portfolio Manager state since June 1989, and well below the national rate
of 4.1%. The number of jobs in Rhode Island increased by
8,500 between March 1999 and March 2000, with especially
strong growth in services and trade.
- - Employment in retail trade and construction saw significant gains over the
year with the opening of the Providence Place Mall. Rhode Island also boosted
its profile as a financial services employer, with major investment firms and
banks expanding throughout the state.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 1.68% and 1.36%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$8.98 on March 31, 2000 from $9.07 on September 30, 1999, and the
reinvestment of $0.235 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.20 from $9.28, and the
reinvestment of $0.200 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.22% for Class A and 4.37% for Class B.(3) The
distribution rates of Classes A and B are equivalent to taxable rates of
9.63% and 8.07%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 4.99% and
4.50%, respectively.(5) The SEC 30-day yields of Classes A and B are
equivalent to taxable yields of 9.21% and 8.31%, respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - In Rhode Island, relatively few new issues come to market each year. To
supplement the Portfolio, management has investments in bonds issued by
Puerto Rico and Guam, which are tax-exempt in Rhode Island and offered
attractive trading characteristics.
- - New investments in Rhode Island included an additional holding in Johnson
and Wales University, a new nursing home credit issued by Roger Williams
Realty, and a position in the T.F. Green International Airport.
- - Management selectively established tax losses to offset possible future
gains. The proceeds of those sales were used to buy bonds with more
attractive yields and trading characteristics.
PORTFOLIO STATISTICS+
- --------------------------------------------------------------------------------
- - Number of Issues: 44
- - Average Maturity: 22.1 years
- - Average Rating: AA+
- - Average Call: 8.3 years
- - Average Dollar Price: $93.74
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -3.12% -3.75%
Five Years 4.61 4.19
Life of Fund+ 3.33 3.52
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -7.76% -8.36%
Five Years 3.59 3.86
Life of Fund+ 2.53 3.52
+Inception date: Class A: 12/7/93; Class B: 6/11/93
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
45.82% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 57.0% of the Portfolio's net assets.
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.
9
<PAGE>
EATON VANCE WEST VIRGINIA MUNICIPALS FUND as of March 31, 2000
- --------------------------------------------------------------------------------
I N V E S T M E N T U P D A T E
- --------------------------------------------------------------------------------
THE ECONOMY
[PHOTO] -----------------------------------------------------------
- West Virginia's seasonally adjusted unemployment rate
Robert B. MacIntosh dropped to 5.1% in March 2000 from 6.9% the previous
Portfolio Manager March. With the U.S. rate at 4.1%, this marks the
narrowest gap between state and national unemployment
figures in 20 years, and is the lowest unemployment rate
recorded in the state since 1978.
- - From 1997 to 1999, nearly 29,000 new jobs were created in West Virginia, the
largest 3-year job creation figure in the state's history. A significant
portion of the jobs was generated by companies new to West Virginia,
indicative of the state's increasing ability to attract new businesses and
investors.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended March 31, 2000, the Fund's Class A and Class B
shares had total returns of 1.39% and 1.05%, respectively.(1) For Class A,
this return resulted from a change in net asset value (NAV) per share to
$9.17 on March 31, 2000 from $9.29 on September 30, 1999, and the
reinvestment of $0.243 per share in tax-free income.(2) For Class B, this
return resulted from a change in NAV to $9.36 from $9.47, and the
reinvestment of $0.205 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on March 31, 2000, the
distribution rates were 5.29% for Class A and 4.39% for Class B.(3) The
distribution rates of Classes A and B are equivalent to taxable rates of
9.71% and 8.06%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at March 31 were 4.36% and
4.40%, respectively.(5) The SEC 30-day yields of Classes A and B are
equivalent to taxable yields of 8.00% and 8.08%, respectively.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - We are pleased to announce that in January 2000, Robert B. MacIntosh became
the Portfolio Manager of Eaton Vance West Virginia Municipals Fund.
Mr. MacIntosh, a Vice President of Eaton Vance, is the company's Chief
Economist as well.
- - Management has been reducing its exposure to older, industrial development
credits. The credit prospects for such bonds have limited upside; instead,
management intends to focus on using the proceeds from these bonds to invest
in newer issues we believe have better trading potential.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales were
used to buy bonds with more attractive yields and trading characteristics.
PORTFOLIO STATISTICS+
- --------------------------------------------------------------------------------
- - Number of Issues: 36
- - Average Maturity: 19.4 years
- - Average Rating: AA
- - Average Call: 6.4 years
- - Average Dollar Price: $92.24
RATING DISTRIBUTION+
- --------------------------------------------------------------------------------
[PIE CHART]
+As of March 31, 2000. May not represent the Portfolio's current or future
investments.
FUND INFORMATION
AS OF MARCH 31, 2000
- --------------------------------------------------------------------------------
PERFORMANCE(6) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
One Year -2.91% -3.62%
Five Years 5.05 4.37
Life of Fund+ 3.77 3.64
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -7.55% -8.23%
Five Years 4.03 4.03
Life of Fund+ 2.97 3.64
+Inception date: Class A: 12/13/93; Class B: 6/11/93
5 LARGEST CATEGORIES(7)
- --------------------------------------------------------------------------------
By total net assets
[BAR CHART]
*Private insurance does not remove the interest rate risks associated with these
investments.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC)for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and is
calculated daily by dividing the last distribution per share (annualized)by
the net asset value (NAV). (4) Taxable-equivalent figures assume maximum
45.53% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual returns
for Class A reflect a sales charge of 4.75% and for Class B reflect
applicable CDSC based on the following schedule: 5% -- 1st and 2nd years;
4% -- 3rd year; 3% -- 4th year; 2% -- 5th year; 1% -- 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
categories represent 62.8% of the Portfolio's investments.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth more
or less than their original cost.
10
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $235,320,118 $305,445,096 $189,612,125 $15,677,303
Unrealized appreciation
(depreciation) 8,392,953 (2,978,339) (2,542,865) 139,573
- -------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $243,713,071 $302,466,757 $187,069,260 $15,816,876
- -------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 370,314 $ 28,954 $ 11,915 $ 1,598
Miscellaneous receivable 10,763 -- -- --
- -------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $244,094,148 $302,495,711 $187,081,175 $15,818,474
- -------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 756,221 $ 380,239 $ 354,773 $ 4,940
Dividends payable 568,699 617,541 383,280 31,570
Accrued expenses 231,533 199,600 120,755 15,320
- -------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,556,453 $ 1,197,380 $ 858,808 $ 51,830
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $242,537,695 $301,298,331 $186,222,367 $15,766,644
- -------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------
Paid-in capital $252,861,253 $306,194,849 $195,759,530 $16,969,977
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (18,734,069) (2,020,461) (6,701,559) (1,370,219)
Accumulated undistributed (distributions
in excess of) net investment income 17,558 102,282 (292,739) 27,313
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of identified
cost) 8,392,953 (2,978,339) (2,542,865) 139,573
- -------------------------------------------------------------------------------------------------------------
TOTAL $242,537,695 $301,298,331 $186,222,367 $15,766,644
- -------------------------------------------------------------------------------------------------------------
Class A Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ 16,243,762 $ 13,887,694 $ 12,772,824 $ 995,574
SHARES OUTSTANDING 1,614,642 1,398,869 1,429,819 108,207
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.06 $ 9.93 $ 8.93 $ 9.20
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.56 $ 10.43 $ 9.38 $ 9.66
- -------------------------------------------------------------------------------------------------------------
Class B Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $226,293,933 $287,410,637 $165,145,181 $14,771,070
SHARES OUTSTANDING 24,363,719 28,244,066 16,598,198 1,568,176
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.29 $ 10.18 $ 9.95 $ 9.42
- -------------------------------------------------------------------------------------------------------------
Class I Shares
- -------------------------------------------------------------------------------------------------------------
NET ASSETS $ -- $ -- $ 8,304,362 $ --
SHARES OUTSTANDING -- -- 900,892 --
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ -- $ -- $ 9.22 $ --
- -------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $349,266,185 $196,537,248 $38,169,939 $25,407,224
Unrealized appreciation
(depreciation) 5,443,810 (4,657,681) (598,132) (450,286)
- ------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $354,709,995 $191,879,567 $37,571,807 $24,956,938
- ------------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 46,158 $ 5,000 $ 239,150 $ --
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $354,756,153 $191,884,567 $37,810,957 $24,956,938
- ------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 1,042,633 $ 227,073 $ 121,331 $ --
Dividends payable 705,745 434,860 69,824 47,225
Payable to affiliate for Trustees' fees -- -- -- 950
Accrued expenses 234,305 129,128 28,231 18,884
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,982,683 $ 791,061 $ 219,386 $ 67,059
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $352,773,470 $191,093,506 $37,591,571 $24,889,879
- ------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------
Paid-in capital $348,608,097 $196,019,894 $40,704,369 $26,529,094
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (611,071) (496,758) (2,483,678) (1,144,569)
Accumulated undistributed (distributions
in excess of) net investment income (667,366) 228,051 (30,988) (44,360)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of identified
cost) 5,443,810 (4,657,681) (598,132) (450,286)
- ------------------------------------------------------------------------------------------------------------
TOTAL $352,773,470 $191,093,506 $37,591,571 $24,889,879
- ------------------------------------------------------------------------------------------------------------
Class A Shares
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $ 11,817,947 $ 8,045,601 $ 3,608,779 $ 2,091,140
SHARES OUTSTANDING 1,204,943 910,273 401,900 228,140
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.81 $ 8.84 $ 8.98 $ 9.17
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 10.30 $ 9.28 $ 9.43 $ 9.63
- ------------------------------------------------------------------------------------------------------------
Class B Shares
- ------------------------------------------------------------------------------------------------------------
NET ASSETS $340,955,523 $183,047,905 $33,982,792 $22,798,739
SHARES OUTSTANDING 32,207,428 18,347,518 3,695,642 2,437,061
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE
PER SHARE
(Net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.59 $ 9.98 $ 9.20 $ 9.36
- ------------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 7,952,788 $10,092,894 $ 6,221,088 $ 503,443
Expenses allocated from Portfolio (718,694) (820,258) (530,896) (40,172)
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 7,234,094 $ 9,272,636 $ 5,690,192 $ 463,271
- -------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,244 $ 987 $ 2,244 $ 113
Distribution and service fees
Class A 11,457 14,252 11,847 1,193
Class B 506,212 1,355,256 805,678 71,487
Legal and accounting services 16,527 12,120 16,251 15,619
Printing and postage 8,912 14,952 10,782 975
Custodian fee 12,041 757 10,559 2,544
Transfer and dividend disbursing agent
fees 114,817 118,489 74,888 8,211
Registration fees 282 4,750 3,029 183
Miscellaneous 13,469 24,352 19,929 6,206
- -------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 685,961 $ 1,545,915 $ 955,207 $ 106,531
- -------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 6,548,133 $ 7,726,721 $ 4,734,985 $ 356,740
- -------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- -------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (795,491) $(1,819,123) $ 1,626,357 $ 25,005
- -------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (795,491) $(1,819,123) $ 1,626,357 $ 25,005
- -------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(5,948,056) $(3,310,773) $(5,762,130) $(298,578)
- -------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(5,948,056) $(3,310,773) $(5,762,130) $(298,578)
- -------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(6,743,547) $(5,129,896) $(4,135,773) $(273,573)
- -------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (195,414) $ 2,596,825 $ 599,212 $ 83,167
- -------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $11,620,843 $ 6,655,478 $1,196,430 $ 759,850
Expenses allocated from Portfolio (1,060,092) (602,263) (81,957) (53,058)
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $10,560,751 $ 6,053,215 $1,114,473 $ 706,792
- -----------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,245 $ 950 $ 112 $ --
Distribution and service fees
Class A 9,177 4,983 3,095 1,858
Class B 1,675,614 873,477 166,210 104,548
Legal and accounting services 16,416 13,124 13,538 10,178
Printing and postage 19,493 11,042 2,268 2,798
Custodian fee 13,771 10,985 2,662 3,344
Transfer and dividend disbursing agent
fees 157,967 81,258 15,834 9,205
Registration fees 2,364 4,575 299 --
Miscellaneous 10,614 17,475 6,258 7,742
- -----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,907,661 $ 1,017,869 $ 210,276 $ 139,673
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 8,653,090 $ 5,035,346 $ 904,197 $ 567,119
- -----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- -----------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (541,438) $ (107,570) $ (378,438) $ (39,027)
Financial futures contracts 95,836 51,376 -- (1,465)
- -----------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (445,602) $ (56,194) $ (378,438) $ (40,492)
- -----------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(2,627,559) $(6,547,365) $ (93,830) $(306,013)
- -----------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(2,627,559) $(6,547,365) $ (93,830) $(306,013)
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,073,161) $(6,603,559) $ (472,268) $(346,505)
- -----------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 5,579,929 $(1,568,213) $ 431,929 $ 220,614
- -----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 6,548,133 $ 7,726,721 $ 4,734,985 $ 356,740
Net realized gain (loss) (795,491) (1,819,123) 1,626,357 25,005
Net change in unrealized
appreciation (depreciation) (5,948,056) (3,310,773) (5,762,130) (298,578)
- ------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (195,414) $ 2,596,825 $ 599,212 $ 83,167
- ------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (421,687) $ (385,716) $ (368,261) $ (31,274)
Class B (6,278,424) (6,976,292) (4,019,491) (339,504)
Class I -- -- (245,103) --
In excess of net investment
income
Class A (7,706) -- (20,946) (2,053)
In excess of net realized
gains
Class A -- (150,602) -- --
Class B -- (3,791,295) -- --
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS $ (6,707,817) $(11,303,905) $ (4,653,801) $ (372,831)
- ------------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest --
Proceeds from sale of shares
Class A $ 3,497,761 $ 8,207,151 $ 3,406,627 $ 7,897
Class B 5,830,495 7,870,607 2,305,823 192,640
Class I -- -- 134,958 --
Net asset value of shares
issued to shareholders in
payment of
distributions declared
Class A 158,364 217,830 196,005 16,239
Class B 2,410,666 4,053,429 1,844,888 136,778
Class I -- -- 20,058 --
Cost of shares redeemed
Class A (3,690,640) (7,000,117) (6,336,571) (453,115)
Class B (28,290,715) (48,418,414) (21,001,403) (1,599,085)
Class I -- -- (1,970,423) --
Contingent deferred sales
charges
Class B 87,162 -- -- --
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $(19,996,907) $(35,069,514) $(21,400,038) $(1,698,646)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(26,900,138) $(43,776,594) $(25,454,627) $(1,988,310)
- ------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------
At beginning of period $269,437,833 $345,074,925 $211,676,994 $17,754,954
- ------------------------------------------------------------------------------------------------------
AT END OF PERIOD $242,537,695 $301,298,331 $186,222,367 $15,766,644
- ------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 17,558 $ 102,282 $ (292,739) $ 27,313
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 8,653,090 $ 5,035,346 $ 904,197 $ 567,119
Net realized loss (445,602) (56,194) (378,438) (40,492)
Net change in unrealized
appreciation (depreciation) (2,627,559) (6,547,365) (93,830) (306,013)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 5,579,929 $ (1,568,213) $ 431,929 $ 220,614
- -----------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (319,146) $ (245,075) $ (92,271) $ (51,525)
Class B (8,255,096) (4,771,477) (786,715) (515,594)
In excess of net investment
income
Class A (2,136) -- (224) (2,445)
Class B -- -- -- (5,308)
In excess of net realized gain
Class A -- (4,540) -- --
Class B -- (89,499) -- --
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS $ (8,576,378) $ (5,110,591) $ (879,210) $ (574,872)
- -----------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest --
Proceeds from sale of shares
Class A $ 1,929,422 $ 1,207,897 $ 893,607 $ 361,224
Class B 5,420,402 4,370,866 1,619,487 301,832
Net asset value of shares
issued to shareholders in
payment of
distributions declared
Class A 150,549 114,188 67,080 38,570
Class B 4,271,333 2,268,381 429,705 241,560
Cost of shares redeemed
Class A (2,862,868) (2,181,633) (616,291) (151,591)
Class B (53,773,331) (23,612,271) (5,419,670) (2,267,268)
- -----------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $(44,864,493) $(17,832,572) $(3,026,082) $(1,475,673)
- -----------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(47,860,942) $(24,511,376) $(3,473,363) $(1,829,931)
- -----------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------
At beginning of period $400,634,412 $215,604,882 $41,064,934 $26,719,810
- -----------------------------------------------------------------------------------------------------
AT END OF PERIOD $352,773,470 $191,093,506 $37,591,571 $24,889,879
- -----------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -----------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (667,366) $ 228,051 $ (30,988) $ (44,360)
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA FUND FLORIDA FUND MASSACHUSETTS FUND MISSISSIPPI FUND
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 13,929,303 $ 17,322,276 $ 10,540,479 $ 839,370
Net realized gain 3,046,334 8,737,267 2,848,960 220,833
Net change in unrealized
appreciation (depreciation) (29,972,370) (44,500,638) (23,254,391) (1,662,971)
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(12,996,733) $ (18,441,095) $ (9,864,952) $ (602,768)
- -------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (673,875) $ (647,333) $ (787,162) $ (80,289)
Class B (12,531,445) (16,164,899) (9,070,180) (756,146)
Class I -- -- (583,125) --
In excess of net investment
income
Class A (18,068) -- (1,110) --
- -------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS $(13,223,388) $ (16,812,232) $(10,441,577) $ (836,435)
- -------------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest --
Proceeds from sale of shares
Class A $ 10,176,447 $ 7,154,899 $ 10,418,813 $ 155,969
Class B 16,221,926 15,328,815 11,998,918 1,703,665
Class I -- -- 149,838 --
Net asset value of shares
issued to shareholders in
payment of
distributions declared
Class A 311,225 260,728 354,184 52,749
Class B 5,124,488 5,557,296 4,415,774 335,333
Class I -- -- 87,260 --
Cost of shares redeemed
Class A (2,140,679) (5,168,562) (6,857,743) (574,250)
Class B (44,902,318) (97,432,555) (38,273,941) (3,026,851)
Class I -- -- (401,900) --
Contingent deferred sales
charges
Class B 212,719 -- -- --
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
FUND SHARE TRANSACTIONS $(14,996,192) $ (74,299,379) $(18,108,797) $(1,353,385)
- -------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,216,313) $(109,552,706) $(38,415,326) $(2,792,588)
- -------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------
At beginning of year $310,654,146 $ 454,627,631 $250,092,320 $20,547,542
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $269,437,833 $ 345,074,925 $211,676,994 $17,754,954
- -------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 177,242 $ (262,431) $ (373,923) $ 43,404
- -------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK FUND OHIO FUND RHODE ISLAND FUND WEST VIRGINIA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 19,380,976 $ 10,789,819 $ 1,802,289 $ 1,225,530
Net realized gain (loss) (66,830) (146,960) (41,515) 267,495
Net change in unrealized
appreciation (depreciation) (38,370,630) (17,608,483) (3,915,177) (2,750,676)
- -----------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(19,056,484) $ (6,965,624) $(2,154,403) $(1,257,651)
- -----------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (655,858) $ (417,394) $ (127,239) $ (91,400)
Class B (18,642,328) (10,498,716) (1,656,262) (1,134,130)
In excess of net investment
income
Class A (858) -- -- (1,694)
Class B -- -- -- (23,972)
From net realized gain
Class A (162,192) (57,623) -- --
Class B (6,002,259) (1,824,977) -- --
- -----------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO
SHAREHOLDERS $(25,463,495) $(12,798,710) $(1,783,501) $(1,251,196)
- -----------------------------------------------------------------------------------------------------
Transactions in shares of
beneficial interest --
Proceeds from sale of shares
Class A $ 12,294,400 $ 4,653,870 $ 1,481,209 $ 489,184
Class B 17,698,837 9,597,881 5,679,068 1,242,913
Net asset value of shares
issued to shareholders in
payment of
distributions declared
Class A 459,289 192,883 72,084 64,901
Class B 14,114,731 6,474,876 976,983 598,864
Cost of shares redeemed
Class A (10,456,245) (1,560,998) (210,877) (362,350)
Class B (74,072,217) (37,977,963) (4,953,374) (4,467,339)
- -----------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM FUND SHARE
TRANSACTIONS $(39,961,205) $(18,619,451) $ 3,045,093 $(2,433,827)
- -----------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(84,481,184) $(38,383,785) $ (892,811) $(4,942,674)
- -----------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------
At beginning of year $485,115,596 $253,988,667 $41,957,745 $31,662,484
- -----------------------------------------------------------------------------------------------------
AT END OF YEAR $400,634,412 $215,604,882 $41,064,934 $26,719,810
- -----------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -----------------------------------------------------------------------------------------------------
AT END OF YEAR $ (744,078) $ 209,257 $ (55,975) $ (36,607)
- -----------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED) 1999 1998(1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.320 $11.340 $10.900
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.273 $ 0.544 $ 0.556
Net realized and unrealized
gain (loss) (0.255) (1.007) 0.468
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.018 $(0.463) $ 1.024
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.273) $(0.542) $(0.564)
In excess of net investment
income (0.005) (0.015) (0.020)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.278) $(0.557) $(0.584)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.060 $10.320 $11.340
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 0.24% (4.25)% 9.65%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $16,244 $16,675 $ 9,740
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.87%(4) 0.78% 0.79%
Expenses after custodian
fee reduction(3) 0.86%(4) 0.76% 0.77%
Net investment income 5.49%(4) 4.93% 5.02%
Portfolio Turnover of the
Portfolio 9% 28% 16%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CALIFORNIA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.520 $ 10.420 $ 10.010 $ 9.540 $ 9.410 $ 9.290
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.240 $ 0.474 $ 0.431 $ 0.451 $ 0.464 $ 0.475
Net realized and unrealized
gain (loss) (0.228) (0.934) 0.428 0.477 0.135 0.253
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.012 $ (0.460) $ 0.859 $ 0.928 $ 0.599 $ 0.728
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.245) $ (0.448) $ (0.431) $ (0.451) $ (0.465) $ (0.475)
In excess of net investment
income -- -- (0.018) (0.007) (0.004) (0.016)
In excess of net realized gain -- -- -- -- -- (0.117)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.245) $ (0.448) $ (0.449) $ (0.458) $ (0.469) $ (0.608)
- -------------------------------------------------------------------------------------------------------------------
CONTINGENT DEFERRED SALES
CHARGES $ 0.003 $ 0.008 -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.290 $ 9.520 $ 10.420 $ 10.010 $ 9.540 $ 9.410
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.21% (4.50)% 8.80% 9.98% 6.49% 8.30%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $226,294 $252,763 $300,914 $321,157 $361,255 $401,742
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.15%(4) 1.18% 1.66% 1.69% 1.66% 1.65%
Expenses after custodian
fee reduction(3) 1.14%(4) 1.16% 1.64% 1.68% 1.65% 1.64%
Net investment income 5.22%(4) 4.70% 4.25% 4.66% 4.87% 5.19%
Portfolio Turnover of the
Portfolio 9% 28% 16% 12% 14% 58%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999 1998(1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.190 $11.150 $10.640
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.272 $ 0.549 $ 0.528
Net realized and unrealized
gain (loss) (0.138) (0.979) 0.532
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.134 $(0.430) $ 1.060
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.269) $(0.530) $(0.528)
In excess of net investment
income -- -- (0.022)
In excess of net realized gain (0.125) -- --
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.394) $(0.530) $(0.550)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.930 $10.190 $11.150
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 1.42% (4.02)% 10.20%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $13,888 $12,818 $11,764
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.88%(4) 0.75% 0.73%
Expenses after custodian
fee reduction(3) 0.83%(4) 0.70% 0.69%
Net investment income 5.53%(4) 5.07% 4.82%
Portfolio Turnover of the
Portfolio 9% 39% 25%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
oustanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
FLORIDA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 10.430 $ 11.420 $ 10.900 $ 10.780 $ 10.720 $ 10.270
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.231 $ 0.466 $ 0.447 $ 0.488 $ 0.505 $ 0.514
Net realized and unrealized
gain (loss) (0.125) (1.001) 0.546 0.136 0.067 0.469
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.106 $ (0.535) $ 0.993 $ 0.624 $ 0.572 $ 0.983
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.231) $ (0.455) $ (0.447) $ (0.488) $ (0.506) $ (0.514)
In excess of net investment
income -- -- (0.026) (0.016) (0.006) (0.019)
In excess of net realized gain (0.125) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.356) $ (0.455) $ (0.473) $ (0.504) $ (0.512) $ (0.533)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 10.180 $ 10.430 $ 11.420 $ 10.900 $ 10.780 $ 10.720
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.08% (4.84)% 9.30% 5.89% 5.43% 9.90%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $287,411 $332,227 $442,863 $504,057 $612,438 $701,565
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.57%(4) 1.58% 1.55% 1.57% 1.55% 1.54%
Expenses after custodian
fee reduction(3) 1.52%(4) 1.53% 1.51% 1.53% 1.52% 1.51%
Net investment income 4.84%(4) 4.23% 4.01% 4.50% 4.67% 4.97%
Portfolio Turnover of the
Portfolio 9% 39% 25% 54% 51% 61%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
oustanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.110 $ 9.940 $ 9.620
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.237 $ 0.504 $ 0.493
Net realized and unrealized
gain (loss) (0.166) (0.828) 0.357
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.071 $(0.324) $ 0.850
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.237) $(0.505) $(0.493)
In excess of net investment
income (0.014) (0.001) (0.037)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.251) $(0.506) $(0.530)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.930 $ 9.110 $ 9.940
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 0.84% (3.42)% 9.07%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $12,773 $15,825 $13,282
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.88%(4) 0.70% 0.74%
Expenses after custodian
fee reduction(3) 0.87%(4) 0.68% 0.72%
Net investment income 5.55%(4) 5.23% 5.04%
Portfolio Turnover of the
Portfolio 5% 24% 28%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 10.130 $ 11.070 $ 10.690 $ 10.330 $ 10.270 $ 9.990
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.230 $ 0.470 $ 0.468 $ 0.487 $ 0.491 $ 0.499
Net realized and unrealized
gain (loss) (0.180) (0.945) 0.396 0.360 0.066 0.307
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.050 $ (0.475) $ 0.864 $ 0.847 $ 0.557 $ 0.806
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.230) $ (0.465) $ (0.468) $ (0.487) $ (0.492) $ (0.499)
In excess of net investment
income -- -- (0.016) -- (0.005) (0.027)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.230) $ (0.465) $ (0.484) $ (0.487) $ (0.497) $ (0.526)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.950 $ 10.130 $ 11.070 $ 10.690 $ 10.330 $ 10.270
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.53% (4.44)% 8.28% 8.41% 5.53% 8.38%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $165,145 $185,540 $225,371 $239,838 $267,398 $291,114
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.64%(4) 1.57% 1.60% 1.61% 1.59% 1.58%
Expenses after custodian
fee reduction(3) 1.63%(4) 1.55% 1.58% 1.59% 1.58% 1.56%
Net investment income 4.80%(4) 4.37% 4.32% 4.70% 4.75% 5.00%
Portfolio Turnover of the
Portfolio 5% 24% 28% 35% 51% 87%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MASSACHUSETTS FUND -- CLASS I
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.390 $10.260 $ 9.890
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.261 $ 0.528 $ 0.527
Net realized and unrealized
gain (loss) (0.171) (0.869) 0.373
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.090 $(0.341) $ 0.900
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.260) $(0.529) $(0.527)
In excess of net investment
income -- -- (0.003)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.260) $(0.529) $(0.530)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.220 $ 9.390 $10.260
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 1.01% (3.53)% 9.34%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 8,304 $10,311 $11,439
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.70%(4) 0.64% 0.66%
Expenses after custodian
fee reduction(3) 0.69%(4) 0.62% 0.64%
Net investment income 5.73%(4) 5.30% 5.24%
Portfolio Turnover of the
Portfolio 5% 24% 28%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.350 $10.060 $ 9.740
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.225 $ 0.487 $ 0.474
Net realized and unrealized
gain (loss) (0.135) (0.715) 0.331
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.090 $(0.228) $ 0.805
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.225) $(0.482) $(0.478)
In excess of net investment
income (0.015) -- (0.007)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.240) $(0.482) $(0.485)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.200 $ 9.350 $10.060
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 1.02% (2.37)% 8.47%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 996 $ 1,455 $ 1,932
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.08%(4) 0.70% 0.72%
Expenses after custodian
fee reduction(3) 1.08%(4) 0.68% 0.70%
Net investment income 4.97%(4) 4.97% 4.77%
Portfolio Turnover of the
Portfolio 4% 16% 17%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSISSIPPI FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.560 $10.300 $ 9.970 $ 9.610 $ 9.480 $ 9.110
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.206 $ 0.417 $ 0.419 $ 0.433 $ 0.451 $ 0.449
Net realized and unrealized
gain (loss) (0.140) (0.741) 0.337 0.362 0.122 0.379
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.066 $(0.324) $ 0.756 $ 0.795 $ 0.573 $ 0.828
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.206) $(0.416) $(0.426) $(0.435) $(0.443) $(0.449)
In excess of net investment
income -- -- -- -- -- (0.009)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.206) $(0.416) $(0.426) $(0.435) $(0.443) $(0.458)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.420 $ 9.560 $10.300 $ 9.970 $ 9.610 $ 9.480
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.71% (3.25)% 7.75% 8.45% 6.17% 9.40%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $14,771 $16,300 $18,615 $20,924 $23,862 $26,756
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.82%(4) 1.51% 1.50% 1.60% 1.44% 1.36%
Expenses after custodian
fee reduction(3) 1.82%(4) 1.49% 1.48% 1.59% 1.41% 1.33%
Net investment income 4.23%(4) 4.16% 4.12% 4.39% 4.64% 4.89%
Portfolio Turnover of the
Portfolio 4% 16% 17% 6% 12% 52%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or Administrator, or both. Had such actions not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.55% 1.49%
Expenses after custodian
fee reduction(3) 1.52% 1.46%
Net investment income 4.53% 4.76%
Net investment income per
share $ 0.440 $ 0.437
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.860 $10.920 $10.510
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.263 $ 0.532 $ 0.538
Net realized and unrealized
gain (loss) (0.048) (0.907) 0.446
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.215 $(0.375) $ 0.984
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.263) $(0.533) $(0.538)
In excess of net investment
income (0.002) (0.001) (0.013)
From net realized gain -- (0.151) (0.023)
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.265) $(0.685) $(0.574)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.810 $ 9.860 $10.920
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 2.28% (3.63)% 9.62%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $11,818 $12,683 $11,720
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.85%(4) 0.77% 0.77%
Expenses after custodian
fee reduction(3) 0.85%(4) 0.76% 0.75%
Net investment income 5.43%(4) 5.09% 5.03%
Portfolio Turnover of the
Portfolio 17% 41% 55%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW YORK FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 10.640 $ 11.760 $ 11.300 $ 10.930 $ 10.830 $ 10.450
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.242 $ 0.483 $ 0.488 $ 0.506 $ 0.506 $ 0.523
Net realized and unrealized
gain (loss) (0.053) (0.972) 0.478 0.375 0.116 0.406
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.189 $ (0.489) $ 0.966 $ 0.881 $ 0.622 $ 0.929
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.239) $ (0.480) $ (0.483) $ (0.506) $ (0.508) $ (0.523)
In excess of net investment
income -- -- -- (0.005) (0.014) (0.026)
From net realized gain -- (0.151) (0.023) -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.239) $ (0.631) $ (0.506) $ (0.511) $ (0.522) $ (0.549)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 10.590 $ 10.640 $ 11.760 $ 11.300 $ 10.930 $ 10.830
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.83% (4.35)% 8.76% 8.23% 5.87% 9.23%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $340,956 $387,951 $473,396 $517,393 $590,397 $640,605
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.63%(4) 1.57% 1.58% 1.63% 1.54% 1.55%
Expenses after custodian
fee reduction(3) 1.63%(4) 1.56% 1.56% 1.63% 1.51% 1.51%
Net investment income 4.66%(4) 4.27% 4.26% 4.56% 4.64% 4.99%
Portfolio Turnover of the
Portfolio 17% 41% 55% 44% 47% 55%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED) 1999 1998
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.120 $ 9.930 $ 9.680
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.261 $ 0.511 $ 0.514
Net realized and unrealized
gain (loss) (0.276) (0.725) 0.249
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.015) $(0.214) $ 0.763
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.261) $(0.513) $(0.513)
From net realized gain -- (0.083) --
In excess of net realized gain (0.004) -- --
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.265) $(0.596) $(0.513)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.840 $ 9.120 $ 9.930
- ------------------------------------------------------------------------------
TOTAL RETURN(1) (0.15)% (2.31)% 8.07%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 8,046 $ 9,203 $ 6,622
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.86%(3) 0.77% 0.80%
Expenses after custodian
fee reduction(2) 0.86%(3) 0.76% 0.78%
Net investment income 5.80%(3) 5.32% 5.25%
Portfolio Turnover of the
Portfolio 13% 59% 17%
- ------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset on the reinvestment date. Total return is
not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OHIO FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 10.290 $ 11.210 $ 10.930 $ 10.590 $ 10.510 $ 10.070
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.254 $ 0.490 $ 0.495 $ 0.499 $ 0.494 $ 0.487
Net realized and unrealized
gain (loss) (0.308) (0.832) 0.280 0.328 0.071 0.461
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.054) $ (0.342) $ 0.775 $ 0.827 $ 0.565 $ 0.948
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.252) $ (0.495) $ (0.495) $ (0.487) $ (0.485) $ (0.487)
In excess of net investment
income -- -- -- -- -- (0.021)
From net realized gain -- (0.083) -- -- -- --
In excess of net realized gain (0.004) -- -- -- -- --
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.256) $ (0.578) $ (0.495) $ (0.487) $ (0.485) $ (0.508)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.980 $ 10.290 $ 11.210 $ 10.930 $ 10.590 $ 10.510
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) (0.55)% (3.21)% 7.24% 7.98% 5.48% 9.74%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $183,048 $206,401 $247,367 $267,001 $289,829 $315,891
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.65%(3) 1.61% 1.62% 1.63% 1.63% 1.59%
Expenses after custodian
fee reduction(2) 1.65%(3) 1.60% 1.60% 1.62% 1.61% 1.57%
Net investment income 5.00%(3) 4.50% 4.46% 4.65% 4.66% 4.80%
Portfolio Turnover of the
Portfolio 13% 59% 17% 30% 35% 51%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset on the reinvestment date. Total return is
not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED) 1999(1) 1998
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.070 $ 9.940 $ 9.610
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.233 $ 0.474 $ 0.471
Net realized and unrealized
gain (loss) (0.088) (0.872) 0.328
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.145 $(0.398) $ 0.799
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.234) $(0.472) $(0.469)
In excess of net investment
income (0.001) -- --
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.235) $(0.472) $(0.469)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.980 $ 9.070 $ 9.940
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 1.68% (4.16)% 8.52%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,609 $ 3,290 $ 2,200
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.83%(4) 0.69% 0.69%
Expenses after custodian
fee reduction(3) 0.81%(4) 0.65% 0.66%
Net investment income 5.30%(4) 4.94% 4.83%
Portfolio Turnover of the
Portfolio 10% 18% 24%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
RHODE ISLAND FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.280 $10.170 $ 9.840 $ 9.510 $ 9.400 $ 9.090
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.207 $ 0.409 $ 0.422 $ 0.427 $ 0.440 $ 0.452
Net realized and unrealized
gain (loss) (0.086) (0.894) 0.334 0.334 0.125 0.332
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.121 $(0.485) $ 0.756 $ 0.761 $ 0.565 $ 0.784
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.201) $(0.405) $(0.422) $(0.427) $(0.444) $(0.452)
In excess of net investment
income -- -- (0.004) (0.004) (0.011) (0.022)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.201) $(0.405) $(0.426) $(0.431) $(0.455) $(0.474)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.200 $ 9.280 $10.170 $ 9.840 $ 9.510 $ 9.400
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.36% (4.92)% 7.87% 8.19% 6.14% 8.94%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $33,983 $37,775 $39,758 $38,234 $39,488 $39,864
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60%(4) 1.49% 1.46% 1.40% 1.35% 1.33%
Expenses after custodian
fee reduction(3) 1.58%(4) 1.45% 1.43% 1.35% 1.32% 1.29%
Net investment income 4.60%(4) 4.15% 4.23% 4.43% 4.63% 4.92%
Portfolio Turnover of the
Portfolio 10% 18% 24% 39% 25% 42%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or Administrator, or both. Had such action not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.52% 1.47% 1.46%
Expenses after custodian
fee reduction(3) 1.47% 1.44% 1.42%
Net investment income 4.31% 4.51% 4.79%
Net investment income per
share $ 0.415 $ 0.429 $ 0.440
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 ------------------------
(UNAUDITED)(1) 1999(1) 1998
<S> <C> <C> <C>
- ------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.290 $10.120 $ 9.790
- ------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------
Net investment income $ 0.232 $ 0.476 $ 0.504
Net realized and unrealized
gain (loss) (0.109) (0.821) 0.325
- ------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.123 $(0.345) $ 0.829
- ------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------
From net investment income $(0.232) $(0.476) $(0.499)
In excess of net investment
income (0.011) (0.009) --
- ------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.243) $(0.485) $(0.499)
- ------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.170 $ 9.290 $10.120
- ------------------------------------------------------------------------------
TOTAL RETURN(2) 1.39% (3.55)% 8.68%
- ------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 2,091 $ 1,866 $ 1,839
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.87%(4) 0.70% 0.66%
Expenses after custodian
fee reduction(3) 0.87%(4) 0.68% 0.63%
Net investment income 5.11%(4) 4.84% 5.06%
Portfolio Turnover of the
Portfolio 0% 32% 16%
- ------------------------------------------------------------------------------
</TABLE>
(1) Net investment income was computed using average shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
WEST VIRGINIA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.470 $10.320 $ 9.970 $ 9.620 $ 9.500 $ 9.130
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.204 $ 0.403 $ 0.430 $ 0.419 $ 0.420 $ 0.436
Net realized and unrealized
gain (loss) (0.108) (0.842) 0.336 0.351 0.147 0.393
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ 0.096 $(0.439) $ 0.766 $ 0.770 $ 0.567 $ 0.829
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.204) $(0.402) $(0.416) $(0.419) $(0.427) $(0.436)
In excess of net investment
income (0.002) (0.009) -- (0.001) (0.020) (0.023)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.206) $(0.411) $(0.416) $(0.420) $(0.447) $(0.459)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.360 $ 9.470 $10.320 $ 9.970 $ 9.620 $ 9.500
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.05% (4.40)% 7.84% 8.18% 6.02% 9.39%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $22,799 $24,854 $29,824 $31,524 $37,708 $39,569
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.58%(4) 1.53% 1.48% 1.53% 1.55% 1.40%
Expenses after custodian
fee reduction(3) 1.58%(4) 1.51% 1.45% 1.51% 1.51% 1.38%
Net investment income 4.42%(4) 4.02% 4.25% 4.31% 4.30% 4.74%
Portfolio Turnover of the
Portfolio 0% 32% 16% 24% 43% 19%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser or Administrator, or both. Had such action not been taken, the
ratios and net investment income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.48%
Expenses after custodian
fee reduction(3) 1.46%
Net investment income 4.66%
Net investment income per
share $ 0.429
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income was computed using average shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each diversified, are included in these financial statements. They
include Eaton Vance California Municipals Fund (California Fund), Eaton Vance
Florida Municipals Fund (Florida Fund), Eaton Vance Massachusetts Municipals
Fund (Massachusetts Fund), Eaton Vance Mississippi Municipals Fund
(Mississippi Fund), Eaton Vance New York Municipals Fund (New York Fund),
Eaton Vance Ohio Municipals Fund (Ohio Fund), Eaton Vance Rhode Island
Municipals Fund (Rhode Island Fund) and Eaton Vance West Virginia Municipals
Fund (West Virginia Fund). The California Fund, the Florida Fund, the
Mississippi Fund, the New York Fund, the Ohio Fund, the Rhode Island Fund and
the West Virginia Fund offer two classes of shares. The Massachusetts Fund
offers three classes of shares. Class A shares are generally sold subject to
a sales charge imposed at time of purchase. Class B shares are sold at net
asset value and are subject to a declining contingent deferred sales charge
(see Note 6). Class I shares of the Massachusetts Fund are sold at net asset
value. Each class represents a pro rata interest in the Fund, but votes
separately on class-specific matters and (as noted below) is subject to
different expenses. Realized and unrealized gains and losses are allocated
daily to each class of shares based on the relative net assets of each class
to the total net assets of the Fund. Net investment income, other than class
specific expenses, is allocated daily to each class of shares based upon the
ratio of the value of each class' paid shares to the total value of all paid
shares. Each class of shares differs in its distribution plan and certain
other class specific expenses. Each Fund invests all of its investable assets
in interests in a separate corresponding open-end management investment
company (a Portfolio), a New York Trust, having the same investment objective
as its corresponding Fund. The California Fund invests its assets in the
California Municipals Portfolio, the Florida Fund invests its assets in the
Florida Municipals Portfolio, the Massachusetts Fund invests its assets in
the Massachusetts Municipals Portfolio, the Mississippi Fund invests its
assets in the Mississippi Municipals Portfolio, the New York Fund invests its
assets in the New York Municipals Portfolio, the Ohio Fund invests its assets
in the Ohio Municipals Portfolio, the Rhode Island Fund invests its assets in
the Rhode Island Municipals Portfolio and the West Virginia Fund invests its
assets in the West Virginia Municipals Portfolio. The value of each Fund's
investment in its corresponding Portfolio reflects the Fund's proportionate
interest in the net assets of that Portfolio (approximately 99.9% at
March 31, 2000 for each Fund except Mississippi, Rhode Island and West
Virginia which were 99.1%, 99.6% and 99.5%, respectively). The performance of
each Fund is directly affected by the performance of its corresponding
Portfolio. The financial statements of each Portfolio, including the
portfolio of investments, are included elsewhere in this report and should be
read in conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of the Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable, if any, and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
September 30, 1999, the Funds, for federal income tax purposes, had capital
loss carryovers which will reduce taxable income arising from future net
realized gain on investments, if any, to the extent permitted by the Internal
Revenue Code, and thus will reduce the amount of the distributions to
shareholders which would otherwise be necessary to relieve the Funds of any
liability for federal income or excise tax. A portion of such capital loss
carryovers were acquired through the Fund Reorganization and may be subject
to certain limitations. The amounts and expiration dates of the capital loss
carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
-------------------------------------------------------------------------
California Fund $17,095,660 September 30, 2004
Massachusetts Fund 2,135 September 30, 2005
8,214,564 September 30, 2004
Mississippi Fund 1,397,104 September 30, 2004
</TABLE>
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
-------------------------------------------------------------------------
Rhode Island Fund $ 34,703 September 30, 2005
1,523,162 September 30, 2004
426,784 September 30, 2003
21,699 September 30, 2002
West Virginia Fund 170,463 September 30, 2005
835,610 September 30, 2004
</TABLE>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay exempt-interest dividends. The portion of such interest, if any, earned
on private activity bonds issued after August 7, 1986 may be considered a tax
preference item to shareholders.
Pursuant to Section 852 of the Internal Revenue Code, the Ohio Fund
designates $94,039 of distributions from tax-exempt income as a long-term
capital gain distribution for its taxable year ended September 30, 2000.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Funds or the Portfolios maintain with
IBT. All significant credit balances used to reduce each Fund's custodian
fees are reported as a reduction of total expenses in the Statements of
Operations.
E Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on a trade-date basis.
G Interim Financial Statements -- The interim financial statements relating to
March 31, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. Distributions of allocated realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of the Fund at the net asset value as of the ex-dividend
date.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 352,358 924,993
Issued to shareholders electing to
receive payments of distributions in
Fund shares 15,924 28,544
Redemptions (369,773) (196,430)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) (1,491) 757,107
------------------------------------------------------------------------------
</TABLE>
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
CALIFORNIA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 634,428 1,604,914
Issued to shareholders electing to
receive payments of distributions in
Fund shares 262,417 508,868
Redemptions (3,080,772) (4,454,400)
------------------------------------------------------------------------------
NET DECREASE (2,183,927) (2,340,618)
------------------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 836,405 652,645
Issued to shareholders electing to
receive payments of distributions in
Fund shares 22,120 24,149
Redemptions (717,863) (473,493)
------------------------------------------------------------------------------
NET INCREASE 140,662 203,301
------------------------------------------------------------------------------
<CAPTION>
FLORIDA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 779,689 1,375,863
Issued to shareholders electing to
receive payments of distributions in
Fund shares 401,313 501,473
Redemptions (4,796,699) (8,793,156)
------------------------------------------------------------------------------
NET DECREASE (3,615,697) (6,915,820)
------------------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 385,661 1,080,772
Issued to shareholders electing to
receive payments of distributions in
Fund shares 22,123 36,852
Redemptions (714,206) (717,242)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) (306,422) 400,382
------------------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 235,673 1,108,959
Issued to shareholders electing to
receive payments of distributions in
Fund shares 187,562 411,088
Redemptions (2,137,379) (3,569,046)
------------------------------------------------------------------------------
NET DECREASE (1,714,144) (2,048,999)
------------------------------------------------------------------------------
<CAPTION>
MASSACHUSETTS FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS I (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 14,992 15,073
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,196 8,761
Redemptions (214,305) (40,852)
------------------------------------------------------------------------------
NET DECREASE (197,117) (17,018)
------------------------------------------------------------------------------
<CAPTION>
MISSISSIPPI FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 864 15,723
Issued to shareholders electing to
receive payments of distributions in
Fund shares 1,783 5,365
Redemptions (50,104) (57,512)
------------------------------------------------------------------------------
NET DECREASE (47,457) (36,424)
------------------------------------------------------------------------------
<CAPTION>
MISSISSIPPI FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 20,737 168,593
Issued to shareholders electing to
receive payments of distributions in
Fund shares 14,631 33,450
Redemptions (171,378) (305,972)
------------------------------------------------------------------------------
NET DECREASE (136,010) (103,929)
------------------------------------------------------------------------------
</TABLE>
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
NEW YORK FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 201,238 1,167,623
Issued to shareholders electing to
receive payments of distributions in
Fund shares 15,694 43,894
Redemptions (298,381) (998,505)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) (81,449) 213,012
------------------------------------------------------------------------------
<CAPTION>
NEW YORK FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 524,610 1,559,455
Issued to shareholders electing to
receive payments of distributions in
Fund shares 412,073 1,244,490
Redemptions (5,199,741) (6,578,544)
------------------------------------------------------------------------------
NET DECREASE (4,263,058) (3,774,599)
------------------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 137,105 486,478
Issued to shareholders electing to
receive payments of distributions in
Fund shares 11,225 20,066
Redemptions (247,395) (163,880)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) (99,065) 342,664
------------------------------------------------------------------------------
<CAPTION>
OHIO FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 438,999 879,762
Issued to shareholders electing to
receive payments of distributions in
Fund shares 227,865 593,879
Redemptions (2,372,309) (3,491,296)
------------------------------------------------------------------------------
NET DECREASE (1,705,445) (2,017,655)
------------------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 101,173 155,911
Issued to shareholders electing to
receive payments of distributions in
Fund shares 6,718 7,535
Redemptions (68,797) (21,897)
------------------------------------------------------------------------------
NET INCREASE 39,094 141,549
------------------------------------------------------------------------------
<CAPTION>
RHODE ISLAND FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 149,679 570,367
Issued to shareholders electing to
receive payments of distributions in
Fund shares 47,583 99,187
Redemptions (572,236) (508,534)
------------------------------------------------------------------------------
NET INCREASE (DECREASE) (374,974) 161,020
------------------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS A (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 39,828 49,303
Issued to shareholders electing to
receive payments of distributions in
Fund shares 4,270 6,635
Redemptions (16,785) (36,776)
------------------------------------------------------------------------------
NET INCREASE 27,313 19,162
------------------------------------------------------------------------------
<CAPTION>
WEST VIRGINIA FUND
------------------------------------
SIX MONTHS ENDED
MARCH 31, 2000 YEAR ENDED
CLASS B (UNAUDITED) SEPTEMBER 30, 1999
<S> <C> <C>
------------------------------------------------------------------------------
Sales 32,724 123,118
Issued to shareholders electing to
receive payments of distributions in
Fund shares 26,153 59,766
Redemptions (245,776) (448,800)
------------------------------------------------------------------------------
NET DECREASE (186,899) (265,916)
------------------------------------------------------------------------------
</TABLE>
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) 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 $1,329, $2,557, $1,201, $4, $3,386, $1,646, $1,151 and $905 from the
California Fund, Florida Fund, Massachusetts Fund, Mississippi Fund, New York
Fund, Ohio Fund, Rhode Island Fund and West Virginia Fund, respectively as
its portion of the sales charge on sales of Class A shares for the six months
ended March 31, 2000.
5 Distribution and Service Plans
- -------------------------------------------
Each Fund has in effect a distribution plan for Class B shares (Class B
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan for Class A shares (Class A Plans) (collectively, the Plans).
The Class B Plans require each Fund to pay EVD amounts equal to 1/365 of
0.75% of each Fund's average daily net assets attributable to Class B shares
for providing ongoing distribution services and facilities to the Fund. The
Fund will automatically discontinue payments to EVD during any period in
which there are no outstanding Uncovered Distribution Charges, which are
equivalent to the sum of (i) 5% of the aggregate amount received by the Fund
for Class B shares sold, plus (ii) interest calculated by applying the rate
of 1% over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD reduced by the aggregate amount of contingent
deferred sales charges (Note 6) and amounts theretofore paid to EVD. The
amount payable to EVD with respect to each day is accrued on such day as a
liability of each Class B share and, accordingly, reduces the Class B's net
assets. For the six months ended March 31, 2000, Florida Fund, Massachusetts
Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund, paid $1,138,175, $644,660, $57,763, $1,341,695, $719,246,
$132,326 and $87,540 respectively, to EVD, representing 0.75% of each Fund's
Class B average daily net assets. The California Fund paid $223,572
representing 0.19% of the Fund's Class B average daily net assets. At
March 31, 2000, the amount of Uncovered Distribution Charges of EVD
calculated under the Class B Plans for Florida Fund, Massachusetts Fund,
Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund were approximately $6,423,000, $3,811,000, $616,000,
$4,616,000, $3,781,000, $1,308,000 and $793,000, respectively. The California
Fund had no Uncovered Distribution Charges at March 31, 2000.
The Plans authorize the Funds to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of each
Fund's average daily net assets attributable to Class A and Class B shares
for any fiscal year. The Trustees initially implemented the Plans by
authorizing each class to make quarterly service fee payments to EVD and
investment dealers equal to 0.20% (0.25% for the California Fund) per annum
of each Fund's average daily net assets attributable to both Class A and
Class B shares based on the value of Fund shares sold by such persons and
remaining outstanding for at least one year. On October 4, 1999 the Trustees
approved service fee payments equal to 0.20% (0.25% for the California Fund)
per annum of the Fund's average daily net assets attributable to Class A and
Class B shares for any fiscal year on shares of the Funds sold on or after
October 12, 1999. Service fee payments are made for personal services and/or
maintenance of shareholder accounts. Service fees are separate and distinct
from the sales commissions and distribution fees payable by each Fund to EVD,
and as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD. For the six months ended
March 31, 2000, California Fund, Florida Fund, Massachusetts Fund,
Mississippi Fund, New York Fund, Ohio Fund, Rhode Island Fund and West
Virginia Fund paid or accrued service fees to or payable to EVD in the amount
of $11,457, $14,252, $11,847, $1,193, $9,177, $4,983 $3,095 and $1,858,
respectively, for Class A Shares and $282,640, $217,081, $161,018, $13,724,
$333,919, $154,231, $33,884 and $17,008, 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 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
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
year. No CDSC is levied on Class B shares which have been sold to EVD or its
affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Distribution Plan (see Note 5). CDSC charges received when no
Uncovered Distribution Charges exist will be credited to the Fund. EVD
received approximately $161,000, $83,000, $7,000, $247,000, $86,000, $41,000
and $11,000 of CDSC paid by Class B shareholders of Florida Fund,
Massachusetts Fund, Mississippi Fund, New York Fund, Ohio Fund, Rhode Island
Fund and West Virginia, respectively, for the six months ended March 31,
2000. EVD also received $106,510 of CDSC paid by Class B shareholders of
California Fund of which $87,162 was paid directly to the Funds for days when
no Uncovered Distribution Charges existed.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 9,355,785
Decreases 36,333,439
<CAPTION>
FLORIDA FUND
<S> <C>
-----------------------------------------------------
Increases $16,225,304
Decreases 64,773,539
<CAPTION>
MASSACHUSETTS FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,987,889
Decreases 32,750,132
<CAPTION>
MISSISSIPPI FUND
<S> <C>
-----------------------------------------------------
Increases $ 200,995
Decreases 2,373,840
<CAPTION>
NEW YORK FUND
<S> <C>
-----------------------------------------------------
Increases $ 7,322,702
Decreases 62,218,385
<CAPTION>
OHIO FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,581,835
Decreases 29,615,929
<CAPTION>
RHODE ISLAND FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,009,372
Decreases 6,677,897
<CAPTION>
WEST VIRGINIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 663,167
Decreases 2,892,631
</TABLE>
41
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.6%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Cogeneration -- 2.3%
- -------------------------------------------------------------------------
$ 6,000 Sacramento Power Authority, (Campbell's
Soup), 6.00%, 7/1/22 $ 5,747,460
- -------------------------------------------------------------------------
$ 5,747,460
- -------------------------------------------------------------------------
Education -- 1.9%
- -------------------------------------------------------------------------
$ 2,500 California Educational Facilities
Authority, (Santa Clara University),
5.00%, 9/1/23 $ 2,270,700
2,500 California Educational Facilities
Authority, (Santa Clara University),
5.25%, 9/1/26 2,355,350
- -------------------------------------------------------------------------
$ 4,626,050
- -------------------------------------------------------------------------
Electric Utilities -- 1.8%
- -------------------------------------------------------------------------
$ 4,100 California Pollution Control Financing
Authority, (San Diego Gas & Electric),
5.90%, 6/1/14 $ 4,336,283
- -------------------------------------------------------------------------
$ 4,336,283
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 29.4%
- -------------------------------------------------------------------------
$ 3,150 Contra Costa Public Financing Authority,
Prerefunded to 8/1/02, 7.10%, 8/1/22 $ 3,385,494
3,910 Fontana Public Financing Authority,
Prerefunded to 10/1/02, 7.00%, 9/1/21 3,989,686
15,000 Foothill/Eastern Corridor Agency, Toll
Road Bonds, Escrowed to Maturity, (FSA),
Variable Rate, 1/1/28 2,971,650
3,455 Northern California Power Agency,
(MBIA), Prerefunded to 9/3/02,
Variable Rate, 8/1/25(1) 3,869,600
10,900 Sacramento Cogeneration Authority,
(Procter & Gamble), Prerefunded to
7/1/05, 6.50%, 7/1/21 12,002,753
2,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.125%, 7/1/16 2,513,700
6,000 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.25%, 1/1/21 7,752,840
14,285 Sacramento County, Single Family,
(GNMA), (AMT), Escrowed to Maturity,
8.50%, 11/1/16 18,758,205
12,000 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/14 5,725,320
5,765 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/26 1,285,018
35,975 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/27 7,564,823
2,000 Southern California Public Power
Authority, (FGIC), Escrowed to Maturity,
Variable Rate, 7/1/12(1) 1,920,000
- -------------------------------------------------------------------------
$ 71,739,089
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
General Obligations -- 1.1%
- -------------------------------------------------------------------------
$ 3,000 Capistrano Unified School District,
5.75%, 9/1/29 $ 2,613,270
- -------------------------------------------------------------------------
$ 2,613,270
- -------------------------------------------------------------------------
Hospital -- 4.9%
- -------------------------------------------------------------------------
$ 5,000 California Statewide Communities
Development Authority, (Children's
Hospital of Los Angeles), 5.25%, 8/15/29 $ 4,431,500
1,500 California Statewide Communities
Development Authority, (Sonoma County
Indian Health), 6.40%, 9/1/29 1,336,560
890 Eastern Plumas Health Care District,
7.50%, 8/1/07 893,088
4,000 San Benito Health Care District,
5.40%, 10/1/20 3,157,360
1,000 San Gorgonio Memorial Health Care
District, 5.75%, 5/1/20 827,410
1,500 Washington Township Health Care
District, 5.25%, 7/1/29 1,291,470
- -------------------------------------------------------------------------
$ 11,937,388
- -------------------------------------------------------------------------
Housing -- 5.0%
- -------------------------------------------------------------------------
$ 2,650 California Statewide Communities
Development Authority, (Chesapeake Bay
Apartments), 6.00%, 6/1/32 $ 2,347,052
1,500 California Statewide Communities
Development Authority, (Corporate Fund
for Housing), 6.50%, 12/1/29 1,428,105
500 California Statewide Communities
Development Authority, (Corporate Fund
for Housing), 7.25%, 12/1/34 494,920
2,750 California Statewide Communities
Development Authority, (Nantucket Bay
Apartments), 6.00%, 6/1/32 2,435,620
2,600 California Statewide Communities
Development Authority, (Oaks at Sunset
Apartments), 6.00%, 6/1/36 2,293,772
1,500 Commerce, (Hermitage III Senior
Apartments), 6.50%, 12/1/29 1,426,290
450 Commerce, (Hermitage III Senior
Apartments), 6.85%, 12/1/29 442,102
1,245 Oakland, Housing Finance Agency,
7.10%, 1/1/10 1,273,473
- -------------------------------------------------------------------------
$ 12,141,334
- -------------------------------------------------------------------------
Industrial Development Revenue -- 3.0%
- -------------------------------------------------------------------------
$ 5,500 California Pollution Control Financing
Authority, (Browning Ferris Industries),
(AMT), 5.80%, 12/1/16 $ 4,697,165
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Industrial Development Revenue (continued)
- -------------------------------------------------------------------------
$ 3,000 California Pollution Control Financing
Authority, (Laidlaw Environmental),
(AMT), 6.70%, 7/1/07 $ 901,290
2,000 California Statewide Communities
Development Authority, (United
Airlines), (AMT), 5.70%, 10/1/33 1,763,100
- -------------------------------------------------------------------------
$ 7,361,555
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 5.8%
- -------------------------------------------------------------------------
$ 4,195 Northern California Power Agency,
(MBIA), Variable Rate, 8/1/25(1) $ 4,630,231
7,070 Southern California Public Power
Authority, (MBIA), 0.00%, 7/1/15 3,047,523
6,915 Southern California Public Power
Authority, (MBIA), 5.00%, 1/1/20 6,356,545
- -------------------------------------------------------------------------
$ 14,034,299
- -------------------------------------------------------------------------
Insured-General Obligations -- 0.3%
- -------------------------------------------------------------------------
$ 2,285 Merced Unified School District, (FGIC),
0.00%, 8/1/19 $ 751,559
- -------------------------------------------------------------------------
$ 751,559
- -------------------------------------------------------------------------
Insured-Hospital -- 2.1%
- -------------------------------------------------------------------------
$ 4,000 California Health Facilities Financing
Authority, (Stanford Health Care),
(AMBAC), 5.00%, 11/15/28 $ 3,528,120
1,640 California Statewide Communities
Development Authority, (Sutter Health),
(FSA), Variable Rate, 8/15/27(2)(3) 1,640,394
- -------------------------------------------------------------------------
$ 5,168,514
- -------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 6.4%
- -------------------------------------------------------------------------
$11,280 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/30 $ 1,848,792
6,500 Anaheim Public Financing Authority,
(Public Improvements), (FSA),
0.00%, 9/1/22 1,736,735
3,500 San Mateo County Joint Powers Financing
Authority, (FSA),
Variable Rate, 7/15/29(1)(2) 2,755,340
4,350 Stockton, Wastewater Treatment Plant,
(FGIC), 6.80%, 9/1/24 4,822,584
13,985 Visalia Unified School District, (MBIA),
0.00%, 12/1/17 4,430,728
- -------------------------------------------------------------------------
$ 15,594,179
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Solid Waste -- 0.7%
- -------------------------------------------------------------------------
$ 1,500 Inland Empire Solid Waste Finance
Authority, (FSA), (AMT), 6.25%, 8/1/11 $ 1,640,070
- -------------------------------------------------------------------------
$ 1,640,070
- -------------------------------------------------------------------------
Insured-Transportation -- 1.7%
- -------------------------------------------------------------------------
$ 2,195 San Francisco City and County Airports,
(International Airport), (FSA),
4.75%, 5/1/29 $ 1,874,223
1,665 San Francisco City and County Airports,
(International Airport), (MBIA),
6.75%, 5/1/13 1,778,520
1,800 San Joaquin Hills, Transportation
Corridor Agency, Toll Road Bonds,
(MBIA), 0.00%, 1/15/24 446,706
- -------------------------------------------------------------------------
$ 4,099,449
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 3.5%
- -------------------------------------------------------------------------
$ 225 California Water Resources, (Central
Valley), (FGIC), Variable Rate, 12/1/22 $ 225,000
5,000 East Bay, Municipal Utilities District,
Water System, (MBIA),
Variable Rate, 6/1/08(1) 5,012,500
3,000 San Diego County Water Authority,
(FGIC), Variable Rate, 4/22/09(1) 3,266,250
- -------------------------------------------------------------------------
$ 8,503,750
- -------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 19.1%
- -------------------------------------------------------------------------
$ 6,500 California Public Works, (University of
California), 5.00%, 6/1/23 $ 5,852,795
5,000 California Public Works, (University of
California), 5.25%, 6/1/20 4,827,750
6,500 California Public Works, (University of
California), 5.50%, 6/1/14 6,729,580
5,115 Los Angeles County, (Disney Parking),
0.00%, 3/1/16 1,976,231
1,925 Los Angeles County, (Disney Parking),
0.00%, 3/1/17 692,596
5,000 Los Angeles County, (Disney Parking),
0.00%, 9/1/17 1,745,400
5,370 Los Angeles County, (Disney Parking),
0.00%, 3/1/18 1,799,917
3,100 Los Angeles County, (Disney Parking),
0.00%, 3/1/20 905,603
6,925 Los Angeles County, (Disney Parking),
0.00%, 9/1/20 1,961,437
7,000 Los Angeles County, (Marina Del Ray),
6.50%, 7/1/08 7,372,680
8,000 Pasadena Parking Facility,
6.25%, 1/1/18 8,684,080
4,000 Sacramento City Financing Authority,
5.40%, 11/1/20 3,924,320
- -------------------------------------------------------------------------
$ 46,472,389
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
CALIFORNIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Special Tax Revenue -- 7.2%
- -------------------------------------------------------------------------
$ 2,500 Bonita Canyon Public Financing
Authority, 5.375%, 9/1/28 $ 2,084,175
995 Brentwood Infrastructure Financing
Authority, 5.625%, 9/2/29 860,536
1,675 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/22 1,585,237
500 Brentwood Infrastructure Financing
Authority, 6.00%, 9/1/29 465,820
1,850 Contra Costa Public Financing Authority,
7.10%, 8/1/22 1,901,559
1,650 Corona Public Financing Authority,
5.80%, 9/1/20 1,496,682
1,935 Fairfield, (North Cordelia District),
7.375%, 9/2/18 1,999,300
3,325 Irvine, Improvement Bond Act 1915,
(Assessment District North 97-16, Group
Two), 5.50%, 9/2/22 2,958,452
2,485 Lincoln Public Financing Authority,
Improvement Bond Act 1915, (Twelve
Bridges), 6.20%, 9/2/25 2,371,063
1,000 Roseville Special Tax, 6.30%, 9/1/25 955,510
1,000 Torrance Redevelopment Agency,
5.625%, 9/1/28 879,010
- -------------------------------------------------------------------------
$ 17,557,344
- -------------------------------------------------------------------------
Water and Sewer -- 2.4%
- -------------------------------------------------------------------------
$ 1,670 California Water Resources, (Central
Valley), Variable Rate, 12/1/28(1)(2) $ 1,353,719
3,000 Metropolitan Southern California
Waterworks Revenue,
Variable Rate, 7/1/27(2)(3) 2,079,210
2,500 Santa Margarita Water District,
6.20%, 9/1/20 2,448,575
- -------------------------------------------------------------------------
$ 5,881,504
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.6%
(identified cost $231,812,533) $240,205,486
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.4% $ 3,507,605
- -------------------------------------------------------------------------
Net Assets -- 100.0% $243,713,091
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by California
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 24.4% 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 1.5% to 12.3% 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
44
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Cogeneration -- 2.8%
- -------------------------------------------------------------------------
$ 4,600 Palm Beach County, (Okeelanta Power),
(AMT), 6.85%, 2/15/21(1) $ 2,495,500
11,000 Palm Beach County, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 5,857,500
- -------------------------------------------------------------------------
$ 8,353,000
- -------------------------------------------------------------------------
Electric Utilities -- 0.9%
- -------------------------------------------------------------------------
$ 2,515 St. Lucie County Solid Waste Disposal,
(Florida Power & Light), (AMT),
6.70%, 5/1/27 $ 2,602,270
- -------------------------------------------------------------------------
$ 2,602,270
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 8.4%
- -------------------------------------------------------------------------
$ 9,225 Dade County, (Baptist Hospital of
Miami), Escrowed to Maturity,
5.75%, 5/1/21 $ 9,415,127
3,835 Dade County, Professional Sports
Franchise, (MBIA), Escrowed to Maturity,
0.00%, 10/1/23 979,075
2,830 Escambia County HFA, (Baptist Hospital,
Inc. and Baptist Manor, Inc.),
Prerefunded to 10/1/03, 6.75%, 10/1/14 3,040,977
1,675 Florida Mid-Bay Bridge Authority,
Escrowed to Maturity, 6.875%, 10/1/22 1,922,096
2,000 Lee County, (Memorial Hospital), (MBIA),
Prerefunded to 4/1/01,
Variable Rate, 4/1/20(2) 2,160,000
5,600 St. Lucie Utility System, Escrowed to
Maturity, 6.00%, 10/1/20 5,805,072
2,000 Volusia County Educational Facilities,
(Embry-Riddle Aeronautical University)
(CLEE), Prerefunded to 10/15/02,
6.625%, 10/15/22 2,127,580
- -------------------------------------------------------------------------
$ 25,449,927
- -------------------------------------------------------------------------
General Obligations -- 3.4%
- -------------------------------------------------------------------------
$ 1,000 Florida, Variable Rate, 7/1/27(2)(3) $ 777,800
10,000 Florida Board of Education,
4.75%, 6/1/22 8,670,600
2,300 Puerto Rico, 0.00%, 7/1/18 811,601
- -------------------------------------------------------------------------
$ 10,260,001
- -------------------------------------------------------------------------
Hospital -- 3.9%
- -------------------------------------------------------------------------
$ 3,000 Cape Canaveral Hospital District,
5.25%, 1/1/28 $ 2,255,310
500 Halifax Medical Center, 7.25%, 10/1/29 468,705
1,000 Halifax Medical Center, 7.25%, 10/1/24 956,550
4,750 Jacksonville HFA, (St. Luke's Hospital
Association), 6.75%, 11/15/13 4,975,340
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Hospital (continued)
- -------------------------------------------------------------------------
$ 3,500 Orange County Health Facilities
Authority, (Westminister Community
Care), 6.60%, 4/1/24 $ 3,171,490
- -------------------------------------------------------------------------
$ 11,827,395
- -------------------------------------------------------------------------
Housing -- 12.1%
- -------------------------------------------------------------------------
$ 1,300 Clay County Housing Finance Authority,
Multifamily, (GNMA), 7.40%, 12/1/25 $ 1,340,456
715 Dade County Housing Finance Authority,
Single Family, (AMT), 7.75%, 9/1/22 732,038
5,850 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.70%, 10/1/28 6,101,609
915 Dade County Housing Finance Authority,
Single Family, (GNMA), (AMT),
7.25%, 9/1/19 937,518
1,480 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.90%, 10/1/21 1,557,818
1,725 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
6.95%, 10/1/27 1,820,582
2,360 Escambia County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.40%, 10/1/23 2,419,637
1,065 Florida Housing Finance Authority,
6.35%, 6/1/14 1,090,251
2,115 Florida Housing Finance Authority,
(AMT), 6.35%, 7/1/28 2,168,911
500 Hillsborough County Housing Finance
Authority, Single Family, (GNMA), (AMT),
7.875%, 5/1/23 515,305
4,000 Muni Mae Tax Revenue Exempt Bond, (AMT),
Variable Rate, 6/30/09 3,940,680
6,205 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.60%, 4/1/28 6,426,022
7,230 Orange County Housing Finance Authority,
Single Family, (GNMA), (AMT),
6.85%, 10/1/27 7,588,463
- -------------------------------------------------------------------------
$ 36,639,290
- -------------------------------------------------------------------------
Industrial Development Revenue -- 0.9%
- -------------------------------------------------------------------------
$ 3,045 Broward County IDR, (Lynxs Cargoport),
(AMT), 6.75%, 6/1/19 $ 2,837,970
- -------------------------------------------------------------------------
$ 2,837,970
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 6.6%
- -------------------------------------------------------------------------
$ 5,000 Florida Municipal Power Agency Stanton
II, (AMBAC),
Variable Rate, 10/1/20(2)(3) $ 5,558,850
1,540 Manatee County Public Utility, (FGIC),
0.00%, 10/1/12 783,968
2,200 Puerto Rico Electric Power Authority,
(FSA), Variable Rate, 7/1/02(2) 2,285,250
2,200 Puerto Rico Electric Power Authority,
(FSA), Variable Rate, 7/1/03(2) 2,321,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- -------------------------------------------------------------------------
$ 7,750 Sunrise Utilities Systems, (AMBAC),
5.00%, 10/1/28 $ 6,958,028
2,250 Sunrise Utilities Systems, (AMBAC),
5.20%, 10/1/22 2,113,515
- -------------------------------------------------------------------------
$ 20,020,611
- -------------------------------------------------------------------------
Insured-Hospital -- 6.1%
- -------------------------------------------------------------------------
$ 8,000 Charlotte County Health Care,
(Bon-Secours Health System), (FSA),
Variable Rate, 8/26/27(2) $ 8,040,000
3,000 Orange County HFA, (Orlando Regional
Medical Center), (MBIA),
Variable Rate, 10/29/21(2) 3,292,500
7,500 Sarasota County Public Hospital Board,
(Sarasota Memorial Hospital), (MBIA),
5.25%, 7/1/24 7,072,800
- -------------------------------------------------------------------------
$ 18,405,300
- -------------------------------------------------------------------------
Insured-Housing -- 4.3%
- -------------------------------------------------------------------------
$ 3,000 Florida HFA, (Brittany of Rosemont),
(AMBAC), (AMT), 6.875%, 8/1/26 $ 3,169,110
6,530 Florida HFA, (Maitland Club Apartments),
(AMBAC), (AMT), 6.875%, 8/1/26 6,898,096
2,675 Lee County Housing Finance, SCA
Multifamily, (FSA), (AMT),
7.05%, 1/1/30 2,815,625
- -------------------------------------------------------------------------
$ 12,882,831
- -------------------------------------------------------------------------
Insured-Miscellaneous -- 0.4%
- -------------------------------------------------------------------------
$ 1,110 Escambia County, (MBIA), 7.20%, 1/1/15 $ 1,128,948
- -------------------------------------------------------------------------
$ 1,128,948
- -------------------------------------------------------------------------
Insured-Pooled Loans -- 0.3%
- -------------------------------------------------------------------------
$ 799 Osceola County IDA, Community Provider
Pooled Loan Program, (FSA),
7.75%, 7/1/10 $ 821,260
- -------------------------------------------------------------------------
$ 821,260
- -------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.2%
- -------------------------------------------------------------------------
$ 500 Alachua County Health Facility, (Mental
Health Services), (FSA), 7.75%, 7/1/10 $ 513,990
- -------------------------------------------------------------------------
$ 513,990
- -------------------------------------------------------------------------
Insured-Solid Waste -- 0.5%
- -------------------------------------------------------------------------
$ 1,500 St. John's County Solid Waste Disposal,
(FGIC), 7.25%, 11/1/10 $ 1,552,335
- -------------------------------------------------------------------------
$ 1,552,335
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 6.5%
- -------------------------------------------------------------------------
$ 3,175 Dade County, Special Obligation,
(AMBAC), Variable Rate, 10/1/35(2) $ 2,405,634
1,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/11 531,940
2,000 Jacksonville Excise Tax, (FGIC), (AMT),
0.00%, 10/1/12 999,720
1,185 Opa-Locka Sales Tax, (FGIC),
7.00%, 1/1/14 1,278,141
1,250 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(2)(3) 1,002,375
2,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/10 1,147,100
1,760 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/12 895,963
2,840 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/14 1,274,138
4,000 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/15 1,677,680
4,140 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/16 1,628,635
2,525 Sunrise Public Facilities, (MBIA),
0.00%, 10/1/17 930,740
2,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/18 690,120
6,800 Tampa Utility Tax, (AMBAC),
0.00%, 4/1/19 2,258,960
5,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/19 1,613,550
4,000 Tampa Utility Tax, (AMBAC),
0.00%, 10/1/20 1,210,840
- -------------------------------------------------------------------------
$ 19,545,536
- -------------------------------------------------------------------------
Insured-Transportation -- 15.4%
- -------------------------------------------------------------------------
$ 3,475 Dade County Aviation Facilities, (MBIA),
(AMT), 6.00%, 10/1/24 $ 3,549,574
4,000 Dade County Aviation Facilities, (MBIA),
(AMT), 6.55%, 10/1/13 4,204,600
4,150 Dade County Aviation Facilities, (MBIA),
(AMT), 6.60%, 10/1/22 4,341,025
13,750 Florida Turnpike Authority, (FGIC),
4.50%, 7/1/27 11,272,113
6,500 Florida Turnpike Authority, (FSA),
4.50%, 7/1/28 5,292,170
8,650 Greater Orlando Aviation Authority,
(FGIC), (AMT), 6.375%, 10/1/21 8,897,909
2,900 Greater Orlando Aviation Authority,
(FGIC), (AMT), Variable Rate, 10/1/18 2,356,772
2,000 Orlando and Orange County Expressway
Authority, (FGIC), 8.25%, 7/1/14 2,587,500
5,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 4,206,000
- -------------------------------------------------------------------------
$ 46,707,663
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 3.0%
- -------------------------------------------------------------------------
$ 1,500 Cocoa Water and Sewer, (FGIC),
4.50%, 10/1/26 $ 1,229,820
5,000 Fort Myers Utility, (FGIC),
Variable Rate, 10/1/29(2) 4,660,600
1,000 Tampa Bay Water Utility System, (FGIC),
4.75%, 10/1/27 853,020
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
FLORIDA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Water and Sewer (continued)
- -------------------------------------------------------------------------
$ 3,375 Tampa Bay Water Utility System, (FGIC),
Variable Rate, 10/1/27(2)(3) $ 2,374,718
- -------------------------------------------------------------------------
$ 9,118,158
- -------------------------------------------------------------------------
Nursing Home -- 6.5%
- -------------------------------------------------------------------------
$ 390 Charlotte County IDA, (Beverly
Enterprises), 10.00%, 6/1/11 $ 413,228
4,285 Dade County IDA, (Club Care Center),
(GNMA), 6.60%, 1/20/18 4,294,084
5,075 Dade County IDA, (Gramercy Park Nursing
Care), (FHA), 6.60%, 8/1/23 5,143,868
1,725 Highlands County IDA, (Beverly
Enterprises), 9.25%, 7/1/07 1,847,372
3,750 Jacksonville Health Facilities
Authority, (Cypress Village),
7.00%, 12/1/22 3,775,500
500 Lee County IDA, (Shell Point Village),
5.50%, 11/15/21 391,625
2,775 Lee County IDA, (Shell Point Village),
5.50%, 11/15/29 2,086,939
600 Orange County IDA, (Beverly
Enterprises), 9.25%, 8/1/10 632,790
1,000 Winter Garden, (Beverly Enterprises),
8.75%, 7/1/12 1,060,180
- -------------------------------------------------------------------------
$ 19,645,586
- -------------------------------------------------------------------------
Pooled Loans -- 1.7%
- -------------------------------------------------------------------------
$ 5,000 Osceola County IDA, Community Pooled
Loan-93, 7.75%, 7/1/17 $ 5,125,300
- -------------------------------------------------------------------------
$ 5,125,300
- -------------------------------------------------------------------------
Senior Living / Life Care -- 5.0%
- -------------------------------------------------------------------------
$ 6,895 Atlantic Beach, (Fleet Landing),
8.00%, 10/1/24 $ 7,931,939
3,990 North Miami Health Facitities Authority,
(Imperial Club), 6.75%, 1/1/33 3,454,462
2,855 Okaloosa County, Retirement Rental
Housing, (Encore Retirement Partners),
6.125%, 2/1/14 2,420,012
1,750 Plantation Health Facilities Authority,
(Covenant Village of Florida),
5.125%, 12/1/22 1,412,600
- -------------------------------------------------------------------------
$ 15,219,013
- -------------------------------------------------------------------------
Solid Waste -- 1.0%
- -------------------------------------------------------------------------
$ 3,095 Broward County, (Waste Energy Co., L.P.
North), 7.95%, 12/1/08 $ 3,194,783
- -------------------------------------------------------------------------
$ 3,194,783
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Special Tax Revenue -- 2.6%
- -------------------------------------------------------------------------
$ 1,185 Lexington Oaks Community Development
District, 7.20%, 5/1/30 $ 1,194,705
1,750 Longleaf Community Development District,
6.20%, 5/1/09 1,653,330
1,760 Longleaf Community Development District,
6.65%, 5/1/20 1,624,128
3,500 University Square Community Development
District, 6.75%, 5/1/20 3,434,550
- -------------------------------------------------------------------------
$ 7,906,713
- -------------------------------------------------------------------------
Transportation -- 4.7%
- -------------------------------------------------------------------------
$ 5,140 Florida, (Mid-Bay Bridge Authority),
6.125%, 10/1/22 $ 4,902,789
9,950 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 9,453,097
- -------------------------------------------------------------------------
$ 14,355,886
- -------------------------------------------------------------------------
Water and Sewer -- 1.2%
- -------------------------------------------------------------------------
$ 2,500 Hillsborough County Utility,
6.625%, 8/1/11 $ 2,575,550
1,015 Northern Palm Beach County, (Water
Control and Improvements),
6.00%, 8/1/25 934,013
- -------------------------------------------------------------------------
$ 3,509,563
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $300,601,668) $297,623,329
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 4,843,448
- -------------------------------------------------------------------------
Net Assets -- 100.0% $302,466,777
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Florida
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 45.7% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 0.7% to 13.2% of
total investments.
(1) Non-income producing security.
(2) Security has been issued as an inverse floater bond.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Assisted Living -- 0.8%
- -------------------------------------------------------------------------
$ 1,500 Massachusetts IFA, (Briscoe House),
(FHA), 7.125%, 2/1/36 $ 1,602,450
- -------------------------------------------------------------------------
$ 1,602,450
- -------------------------------------------------------------------------
Cogeneration -- 1.3%
- -------------------------------------------------------------------------
$ 1,000 Massachusetts Development Finance
Agency, Resource Recovery, (Ogden
Haverhill), 5.50%, 12/1/19 $ 850,440
1,750 Massachusetts IFA, Resource Recovery,
(Ogden Haverhill), (AMT),
5.60%, 12/1/19 1,539,387
- -------------------------------------------------------------------------
$ 2,389,827
- -------------------------------------------------------------------------
Education -- 7.2%
- -------------------------------------------------------------------------
$ 2,750 Massachusetts Development Finance
Agency, (Boston University),
5.45%, 5/15/59 $ 2,411,585
1,000 Massachusetts Development Finance
Agency, (Wheeler School),
6.50%, 12/1/29 985,020
3,100 Massachusetts HEFA, (Merrimack College),
7.125%, 7/1/12 3,316,690
2,000 Massachusetts IFA, (Belmont Hill
School), 5.25%, 9/1/28 1,758,820
1,250 Massachusetts IFA, (Dana Hall),
5.90%, 7/1/27 1,130,987
2,000 Massachusetts IFA, (St. Johns High
School, Inc.), 5.35%, 6/1/28 1,702,080
2,000 New England Educational Loan Marketing
Corp., (AMT), 6.90%, 11/1/09 2,160,940
- -------------------------------------------------------------------------
$ 13,466,122
- -------------------------------------------------------------------------
Electric Utilities -- 8.0%
- -------------------------------------------------------------------------
$ 5,060 Massachusetts Municipal Wholesale
Electric Co., 6.625%, 7/1/18 $ 5,128,310
3,500 Massachusetts Municipal Wholesale
Electric Co., 6.75%, 7/1/11 3,664,360
3,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 1,137,810
13,230 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 5,017,742
- -------------------------------------------------------------------------
$ 14,948,222
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 14.8%
- -------------------------------------------------------------------------
$ 2,000 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
Prerefunded to 7/15/02, 7.75%, 7/15/17 $ 2,166,400
100 Massachusetts Turnpike Authority,
(MBIA), Escrowed to Maturity,
5.00%, 1/1/20 92,483
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- -------------------------------------------------------------------------
$29,870 Massachusetts Turnpike Authority,
Escrowed to Maturity, 0.00%, 1/1/28 $ 5,925,312
21,065 Massachusetts Turnpike Authority,
Escrowed to Maturity, 5.00%, 1/1/20 19,481,544
- -------------------------------------------------------------------------
$ 27,665,739
- -------------------------------------------------------------------------
General Obligations -- 1.0%
- -------------------------------------------------------------------------
$ 1,700 Nantucket, 6.80%, 12/1/11 $ 1,791,222
- -------------------------------------------------------------------------
$ 1,791,222
- -------------------------------------------------------------------------
Hospital -- 24.6%
- -------------------------------------------------------------------------
$ 1,600 Massachusetts HEFA, (Cape Cod
Healthcare), 5.45%, 11/15/23 $ 1,275,728
1,550 Massachusetts HEFA, (Caritas Christi
Obligated Group), 5.625%, 7/1/20 1,215,277
2,000 Massachusetts HEFA, (Daughters of
Charity Health System), 6.10%, 7/1/14 2,113,440
3,610 Massachusetts HEFA, (Jordan Hospital),
5.25%, 10/1/23 2,799,266
1,465 Massachusetts HEFA, (Jordan Hospital),
5.375%, 10/1/28 1,128,035
1,020 Massachusetts HEFA, (Jordan Hospital),
6.875%, 10/1/15 1,012,044
800 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.25%, 7/15/18 624,000
1,720 Massachusetts HEFA,
(Milford-Whitinsville Hospital),
5.375%, 7/15/28 1,284,393
3,300 Massachusetts HEFA, (New England Health
Systems), 6.125%, 8/1/13 2,980,428
2,600 Massachusetts HEFA, (North Adams
Hospital), 6.625%, 7/1/18 2,403,258
8,000 Massachusetts HEFA, (Partners Healthcare
System), 5.25%, 7/1/29 6,734,080
5,255 Massachusetts HEFA, (Sisters of
Providence Health System),
6.50%, 11/15/08 5,610,974
8,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/08 5,114,960
9,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/09 5,423,940
11,000 Massachusetts IFA, (Biomedical Research
Corp.), 0.00%, 8/1/10 6,253,940
- -------------------------------------------------------------------------
$ 45,973,763
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Industrial Development Revenue -- 2.8%
- -------------------------------------------------------------------------
$ 2,075 Massachusetts IFA, (American Hingham
Water Co.), (AMT), 6.60%, 12/1/15 $ 2,098,593
3,000 Massachusetts IFA, (American Hingham
Water Co.), (AMT), 6.90%, 12/1/29 3,077,550
- -------------------------------------------------------------------------
$ 5,176,143
- -------------------------------------------------------------------------
Insured-Education -- 4.7%
- -------------------------------------------------------------------------
$ 225 Massachusetts Educational Finance
Authority, (MBIA), (AMT), 7.25%, 1/1/09 $ 232,236
1,150 Massachusetts HEFA, (Berklee College of
Music), (MBIA),
Variable Rate, 10/1/27(1)(2) 908,615
400 Massachusetts HEFA, (Boston University),
RIBS, (MBIA),
Variable Rate, 10/1/31(1) 429,500
2,500 Massachusetts HEFA, (Brandeis
University), (MBIA), 4.75%, 10/1/28 2,101,400
1,000 Massachusetts IFA, (College of the Holy
Cross), (MBIA), 5.00%, 9/1/23 889,400
5,000 Massachusetts IFA, (Tufts University),
(MBIA), 4.75%, 2/15/28 4,211,250
- -------------------------------------------------------------------------
$ 8,772,401
- -------------------------------------------------------------------------
Insured-General Obligations -- 1.3%
- -------------------------------------------------------------------------
$ 2,600 Ipswich, (FGIC), 5.00%, 11/15/19 $ 2,370,784
- -------------------------------------------------------------------------
$ 2,370,784
- -------------------------------------------------------------------------
Insured-Health Care Miscellaneous -- 0.4%
- -------------------------------------------------------------------------
$ 750 Massachusetts HEFA, (Harvard Pilgrim
Health), (FSA), 5.00%, 7/1/05 $ 740,925
- -------------------------------------------------------------------------
$ 740,925
- -------------------------------------------------------------------------
Insured-Hospital -- 9.1%
- -------------------------------------------------------------------------
$ 3,750 Massachusetts HEFA, (Beth Israel
Hospital), (AMBAC), (AMT),
Variable Rate, 7/1/25(1) $ 3,651,563
1,040 Massachusetts HEFA, (Beverly Hospital),
(MBIA), 7.30%, 7/1/13 1,063,078
885 Massachusetts HEFA, (Capital Assist
Program), (MBIA), 7.20%, 7/1/09 904,691
1,000 Massachusetts HEFA, (Caregroup), (MBIA),
4.75%, 7/1/20 848,790
2,000 Massachusetts HEFA, (St. Elizabeth
Hospital Issue), (FSA),
Variable Rate, 8/12/21(1) 2,140,000
2,600 Massachusetts HEFA, (St. Luke's
Hospital), (MBIA),
Variable Rate, 8/15/13(1) 2,632,500
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Hospital (continued)
- -------------------------------------------------------------------------
$ 2,600 Massachusetts HEFA, (St. Luke's
Hospital), (MBIA),
Variable Rate, 8/15/23(1) $ 2,463,500
3,000 Massachusetts HEFA, (The Medical Center
of Central Massachusetts) (AMBAC),
Variable Rate, 6/23/22(1) 3,300,000
- -------------------------------------------------------------------------
$ 17,004,122
- -------------------------------------------------------------------------
Insured-Transportation -- 4.4%
- -------------------------------------------------------------------------
$ 4,480 Massachusetts Port Authority, (FGIC),
7.50%, 7/1/20 $ 4,598,989
2,000 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/19 685,880
8,500 Massachusetts Turnpike Authority,
Metropolitan Highway System, (MBIA),
0.00%, 1/1/24 2,136,305
1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 841,200
- -------------------------------------------------------------------------
$ 8,262,374
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 1.8%
- -------------------------------------------------------------------------
$ 3,500 Massachusetts Water Resource Authority,
(FGIC), 5.75%, 8/1/39 $ 3,459,330
- -------------------------------------------------------------------------
$ 3,459,330
- -------------------------------------------------------------------------
Nursing Home -- 3.0%
- -------------------------------------------------------------------------
$ 2,400 Massachusetts HEFA, (Christopher House),
6.875%, 1/1/29 $ 2,210,520
3,225 Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 3,368,029
- -------------------------------------------------------------------------
$ 5,578,549
- -------------------------------------------------------------------------
Senior Living / Life Care -- 0.8%
- -------------------------------------------------------------------------
$ 1,900 Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 $ 1,599,667
- -------------------------------------------------------------------------
$ 1,599,667
- -------------------------------------------------------------------------
Solid Waste -- 0.4%
- -------------------------------------------------------------------------
$ 795 Pittsfield, Solid Waste Disposal, (Vicon
Recovery Associates), 7.95%, 11/1/04 $ 803,530
- -------------------------------------------------------------------------
$ 803,530
- -------------------------------------------------------------------------
Transportation -- 2.3%
- -------------------------------------------------------------------------
$ 3,500 Massachusetts Bay Transportation
Authority, Variable Rate, 3/1/27(1)(2) $ 2,641,450
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
MASSACHUSETTS MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Transportation (continued)
- -------------------------------------------------------------------------
$ 2,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 1,728,620
- -------------------------------------------------------------------------
$ 4,370,070
- -------------------------------------------------------------------------
Water and Sewer -- 9.7%
- -------------------------------------------------------------------------
$12,185 Boston IDA, (Harbor Electric Energy
Co.), (AMT), 7.375%, 5/15/15 $ 12,569,559
1,500 Massachusetts Water Resources Authority,
5.25%, 3/1/13 1,478,505
4,165 Massachusetts Water Resources Authority,
5.25%, 12/1/15 4,084,116
- -------------------------------------------------------------------------
$ 18,132,180
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $186,647,438) $184,107,420
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 2,961,862
- -------------------------------------------------------------------------
Net Assets -- 100.0% $187,069,282
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Massachusetts
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 22.1% 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 2.0% to 10.6% 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.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Education -- 7.8%
- ------------------------------------------------------------------------
$ 470 Mississippi State University Educational
Building Corp., (Athletic Facilities),
6.20%, 6/1/16 $ 487,583
750 Mississippi State University Educational
Building Corp., (Facilities Renovation),
6.15%, 6/15/15 762,412
- ------------------------------------------------------------------------
$ 1,249,995
- ------------------------------------------------------------------------
Electric Utilities -- 2.9%
- ------------------------------------------------------------------------
$ 450 Warren County, (Mississippi Power &
Light), 7.00%, 4/1/22 $ 464,292
- ------------------------------------------------------------------------
$ 464,292
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 10.1%
- ------------------------------------------------------------------------
$ 500 Mississippi Educational Facilities
Authority, (Milsaps College), (MBIA),
Prerefunded to 11/1/04, 6.50%, 11/1/19 $ 541,650
2,500 Mississippi Housing Finance Corp., SFMR,
Escrowed to Maturity, (AMT),
0.00%, 6/1/15 1,061,250
- ------------------------------------------------------------------------
$ 1,602,900
- ------------------------------------------------------------------------
Hospital -- 6.5%
- ------------------------------------------------------------------------
$ 300 Corinth and Alcorn County, (Magnolia
Health Center), 5.50%, 10/1/21 $ 237,636
500 Jones County, (South Central Regional
Medical Center), 5.50%, 12/1/17 423,460
450 Mississippi Hospital Equipment and
Facilities Authority, (Rush Medical
Foundation), 6.00%, 1/1/22 382,117
- ------------------------------------------------------------------------
$ 1,043,213
- ------------------------------------------------------------------------
Housing -- 15.2%
- ------------------------------------------------------------------------
$ 500 Hinds County, (Woodridge Apartments),
(FHA), 6.25%, 11/1/27 $ 505,485
500 Mississippi Home Corp., SFM, (GNMA),
(AMT), 6.625%, 4/1/27 511,070
495 Mississippi Home Corp., SFM, (GNMA),
(AMT), 7.55%, 12/1/27 538,763
270 Mississippi Home Corp., SFM, (GNMA),
(AMT), 8.10%, 12/1/24 291,279
540 Mississippi Home Corp., SFM, (GNMA),
(AMT), 8.125%, 12/1/24 581,953
- ------------------------------------------------------------------------
$ 2,428,550
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue -- 15.1%
- ------------------------------------------------------------------------
$ 500 Grenada County, (Georgia-Pacific),
5.45%, 9/1/14 $ 440,105
750 Lowndes County, (Weyerhaeuser),
6.80%, 4/1/22 820,140
500 Mississippi Business Finance Corp.,
(E.I. DuPont deNemours), (AMT),
7.15%, 5/1/16 521,645
250 Mississippi Business Finance Corp.,
(System Energy Resources),
5.90%, 5/1/22 223,145
400 Warren County, (International Paper),
(AMT), 6.70%, 8/1/18 405,828
- ------------------------------------------------------------------------
$ 2,410,863
- ------------------------------------------------------------------------
Insured-Education -- 3.0%
- ------------------------------------------------------------------------
$ 500 Mississippi State University Educational
Building Corp., (MBIA), 5.25%, 8/1/17 $ 484,210
- ------------------------------------------------------------------------
$ 484,210
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 5.0%
- ------------------------------------------------------------------------
$ 300 Puerto Rico Electric Power Authority,
(FSA), Variable Rate, 7/1/03(1) $ 316,500
550 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 478,791
- ------------------------------------------------------------------------
$ 795,291
- ------------------------------------------------------------------------
Insured-General Obligations -- 6.3%
- ------------------------------------------------------------------------
$ 500 Hinds County, (MBIA), 6.25%, 3/1/11 $ 546,560
500 Mississippi Development Bank, (Capital
Projects & Equipment Acquisition),
(AMBAC), 5.00%, 7/1/24 449,725
- ------------------------------------------------------------------------
$ 996,285
- ------------------------------------------------------------------------
Insured-Hospital -- 12.8%
- ------------------------------------------------------------------------
$ 750 Gulfport, (Gulfport Memorial Hospital),
(MBIA), 6.20%, 7/1/18 $ 764,475
750 Hinds County, (Mississippi Methodist
Hospital), (AMBAC), 5.60%, 5/1/12 767,295
500 Mississippi Hospital Equipment and
Facilities Authority, (Mississippi
Baptist Medical Center), (MBIA),
6.00%, 5/1/13 515,805
- ------------------------------------------------------------------------
$ 2,047,575
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 5.6%
- ------------------------------------------------------------------------
$ 400 Harrison County, Wastewater Management
and Solid Waste, (FGIC), 4.75%, 2/1/27 $ 337,200
435 Mississippi Development Bank, (Combined
Water and Sewer System), (AMBAC),
5.00%, 7/1/23 384,523
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
MISSISSIPPI MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Water and Sewer (continued)
- ------------------------------------------------------------------------
$ 200 Mississippi Development Bank,
(Diberville Combined Water and Sewer
System), (AMBAC), 5.00%, 7/1/23 $ 177,714
- ------------------------------------------------------------------------
$ 899,437
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.7%
- ------------------------------------------------------------------------
$ 750 Mississippi Development Bank, (Golden
Triangle Solid Waste), 6.00%, 7/1/15 $ 754,770
- ------------------------------------------------------------------------
$ 754,770
- ------------------------------------------------------------------------
Nursing Home -- 1.9%
- ------------------------------------------------------------------------
$ 295 Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 $ 296,136
- ------------------------------------------------------------------------
$ 296,136
- ------------------------------------------------------------------------
Senior Living / Life Care -- 1.3%
- ------------------------------------------------------------------------
$ 195 Ridgeland, Urban Renewal, (The Orchard),
7.75%, 12/1/15 $ 199,641
- ------------------------------------------------------------------------
$ 199,641
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.2%
(identified cost $15,534,293) $15,673,158
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.8% $ 282,390
- ------------------------------------------------------------------------
Net Assets -- 100.0% $15,955,548
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Mississippi
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 36.8% 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 2.0% to 21.3% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Assisted Living -- 1.9%
- -------------------------------------------------------------------------
$ 4,000 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 4,262,480
2,935 North Syracuse Village Housing
Authority, (AJM Senior Housing, Inc.,
Janus Park), 8.00%, 6/1/24 2,343,715
- -------------------------------------------------------------------------
$ 6,606,195
- -------------------------------------------------------------------------
Cogeneration -- 3.0%
- -------------------------------------------------------------------------
$ 6,000 New York City IDA, (Brooklyn Navy Yard
Cogeneration), 5.65%, 10/1/28 $ 5,291,520
2,100 New York City IDA, (Brooklyn Navy Yard
Cogeneration), (AMT), 5.75%, 10/1/36 1,861,356
4,250 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 3,656,105
- -------------------------------------------------------------------------
$ 10,808,981
- -------------------------------------------------------------------------
Education -- 25.3%
- -------------------------------------------------------------------------
$ 5,580 Monroe County IDA, (Wilmur Assoc.),
7.25%, 12/1/16 $ 5,763,359
8,000 New York Dormitory Authority, (City
University), 5.625%, 7/1/16 8,080,000
8,500 New York Dormitory Authority, (City
University), 6.00%, 7/1/20 8,674,590
5,100 New York Dormitory Authority, (City
University), 7.00%, 7/1/09 5,551,809
4,325 New York Dormitory Authority, (City
University), 7.50%, 7/1/10 4,899,836
9,985 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/15 9,775,415
28,775 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/19 27,389,484
14,680 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/21 13,864,966
2,000 New York Dormitory Authority, (State
University Educational Facilities),
5.50%, 5/15/19 1,975,420
2,670 Rensselaer County IDA, (Polytechnic
Institute Dormitory), 5.125%, 8/1/29 2,344,153
1,500 Tompkins County IDA, (Cornell
University), 5.75%, 7/1/30 1,498,785
- -------------------------------------------------------------------------
$ 89,817,817
- -------------------------------------------------------------------------
Electric Utilities -- 6.9%
- -------------------------------------------------------------------------
$11,550 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/23 $ 10,872,592
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Electric Utilities (continued)
- -------------------------------------------------------------------------
$ 5,260 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/29 $ 4,866,342
2,450 New York Energy Research and Development
Authority, (AMT),
Variable Rate, 8/1/22(1) 2,715,139
2,500 New York Energy Research and Development
Authority, (Brooklyn Union Gas), (AMT),
Variable Rate, 7/1/26(1) 2,743,750
3,000 New York Energy Research and Development
Authority, (LILCO), (AMT),
6.90%, 8/1/22(1) 3,394,230
- -------------------------------------------------------------------------
$ 24,592,053
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 0.1%
- -------------------------------------------------------------------------
$ 255 New York MCFFA, Hospital and Nursing
Insured Mortgage, Prerefunded to
8/15/01, 7.45%, 8/15/31 $ 269,683
- -------------------------------------------------------------------------
$ 269,683
- -------------------------------------------------------------------------
General Obligations -- 4.0%
- -------------------------------------------------------------------------
$ 5,000 New York City, 5.00%, 3/15/21 $ 4,421,550
7,500 New York City, 5.875%, 2/15/19 7,541,625
1,125 Puerto Rico, 0.00%, 7/1/17 423,832
5,075 Puerto Rico, 0.00%, 7/1/18 1,790,815
- -------------------------------------------------------------------------
$ 14,177,822
- -------------------------------------------------------------------------
Hospital -- 7.9%
- -------------------------------------------------------------------------
$ 1,250 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 1,163,675
3,250 Chautauqua County IDA, (Womans Christian
Association), 6.40%, 11/15/29 2,820,285
2,750 Fulton County IDA, (Nathan Littauer
Hospital), 6.00%, 11/1/18 2,368,052
1,250 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 1,144,462
5,000 New York Dormitory Authority, (Jamaica
Hospital), 5.20%, 2/15/15 4,634,300
7,300 New York Dormitory Authority, Mental
Health Facilities, 5.375%, 2/15/26 6,628,327
2,190 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.00%, 8/15/32 2,325,364
6,600 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.25%, 2/15/31 7,023,060
- -------------------------------------------------------------------------
$ 28,107,525
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Hotel -- 0.3%
- -------------------------------------------------------------------------
$ 3,000 Niagara County IDA, (Wintergarden Inn
Associates), 9.75%, 6/1/11(2) $ 1,173,750
- -------------------------------------------------------------------------
$ 1,173,750
- -------------------------------------------------------------------------
Housing -- 1.8%
- -------------------------------------------------------------------------
$ 4,324 New York City HDC, Allerville,
6.50%, 11/15/18 $ 4,326,585
1,896 New York City HDC, Dayton,
6.50%, 11/15/18 1,928,711
- -------------------------------------------------------------------------
$ 6,255,296
- -------------------------------------------------------------------------
Insured-Education -- 6.3%
- -------------------------------------------------------------------------
$12,500 New York Dormitory Authority, (New York
University), (MBIA), 5.75%, 7/1/27 $ 12,654,125
11,325 New York Dormitory Authority, (State
University Educational Facilities),
(FSA), 4.75%, 5/15/28 9,507,791
- -------------------------------------------------------------------------
$ 22,161,916
- -------------------------------------------------------------------------
Insured-General Obligations -- 3.8%
- -------------------------------------------------------------------------
$ 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/08 $ 797,972
700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/09 805,105
770 Chautauqua County Unlimited Tax, (FGIC),
6.40%, 9/15/09 846,453
700 Jamestown, (AMBAC), 7.10%, 3/15/11 814,653
675 Jamestown, (AMBAC), 7.10%, 3/15/12 790,277
675 Jamestown, (AMBAC), 7.10%, 3/15/13 794,293
515 Jamestown, (AMBAC), 7.10%, 3/15/14 608,014
3,615 Nassau County, (AMBAC), 5.25%, 6/1/15 3,517,106
4,500 Puerto Rico, (FSA),
Variable Rate, 7/1/22(1)(3) 4,556,250
- -------------------------------------------------------------------------
$ 13,530,123
- -------------------------------------------------------------------------
Insured-Hospital -- 0.2%
- -------------------------------------------------------------------------
$ 750 New York Dormitory Authority, (New York
Presbyterian Hospital), (AMBAC),
4.75%, 8/1/27 $ 629,940
- -------------------------------------------------------------------------
$ 629,940
- -------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.4%
- -------------------------------------------------------------------------
$ 1,400 New York MCFFA, Long Term Health Care
(FSA), 6.80%, 11/1/14 $ 1,472,884
- -------------------------------------------------------------------------
$ 1,472,884
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Solid Waste -- 1.5%
- -------------------------------------------------------------------------
$ 4,795 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 5,199,362
- -------------------------------------------------------------------------
$ 5,199,362
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.6%
- -------------------------------------------------------------------------
$ 4,775 New York City Trust Cultural Resources,
(AMBAC), Variable Rate, 7/1/29(1)(3) $ 4,727,155
1,225 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(4) 845,740
- -------------------------------------------------------------------------
$ 5,572,895
- -------------------------------------------------------------------------
Insured-Transportation -- 6.4%
- -------------------------------------------------------------------------
$10,700 Metropolitan Transportation Authority of
New York, (FGIC), 4.75%, 4/1/28 $ 9,040,537
4,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 3,364,800
3,000 Triborough Bridge and Tunnel Authority,
(AMBAC), Variable Rate, 1/1/12(1)(3) 3,236,940
7,000 VRDC-IVRC Trust, (New York MTA), (MBIA),
Variable Rate, 6/26/02(1)(3) 7,183,750
- -------------------------------------------------------------------------
$ 22,826,027
- -------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 9.4%
- -------------------------------------------------------------------------
$ 5,000 New York Housing Finance Agency, New
York City Health Facilities,
Variable Rate, 5/1/06(1)(3) $ 5,320,100
27,940 New York UDC, 5.70%, 4/1/20 27,864,003
- -------------------------------------------------------------------------
$ 33,184,103
- -------------------------------------------------------------------------
Senior Living / Life Care -- 0.1%
- -------------------------------------------------------------------------
$ 380 New York City IDA, (A Very Special
Place), 5.75%, 1/1/29 $ 305,710
- -------------------------------------------------------------------------
$ 305,710
- -------------------------------------------------------------------------
Special Tax Revenue -- 7.8%
- -------------------------------------------------------------------------
$ 7,595 New York City Transitional Finance
Authority, 5.50%, 5/1/25 $ 7,280,871
19,830 New York LGAC, 5.00%, 4/1/21 18,131,561
2,950 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) 2,341,120
- -------------------------------------------------------------------------
$ 27,753,552
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Transportation -- 6.0%
- -------------------------------------------------------------------------
$ 3,165 Monroe County Airport Authority, (AMT),
Variable Rate, 1/1/19(1)(3) $ 3,335,119
1,750 Niagara Frontier Airport Authority,
(AMT), Variable Rate, 4/1/29(1)(3) 1,614,725
1,200 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 1,143,036
12,080 Triborough Bridge and Tunnel Authority,
5.50%, 1/1/17 12,135,447
3,000 Triborough Bridge and Tunnel Authority,
6.125%, 1/1/21 3,193,440
- -------------------------------------------------------------------------
$ 21,421,767
- -------------------------------------------------------------------------
Water and Sewer -- 3.6%
- -------------------------------------------------------------------------
$ 6,600 New York City Municipal Water Finance
Authority, 5.75%, 6/15/30 $ 6,463,248
6,500 New York City Municipal Water Finance
Authority, 5.75%, 6/15/29 6,368,765
- -------------------------------------------------------------------------
$ 12,832,013
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $343,099,165) $348,699,414
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 6,010,604
- -------------------------------------------------------------------------
Net Assets -- 100.0% $354,710,018
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by New York
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 20.5% 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 2.8% to 7.2% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Non-income producing security.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 99.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Education -- 2.6%
- -------------------------------------------------------------------------
$ 550 Ohio Higher Educational Facilities,
(Case Western University),
6.50%, 10/1/20 $ 609,614
5,875 Ohio Higher Educational Facilities,
(Oberlin College),
Variable Rate, 10/1/29(1)(2) 4,442,087
- -------------------------------------------------------------------------
$ 5,051,701
- -------------------------------------------------------------------------
Electric Utilities -- 5.9%
- -------------------------------------------------------------------------
$ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 1,903,640
2,330 Ohio Air Quality Development Authority,
Variable Rate, 5/1/26(1)(2) 1,691,254
4,750 Ohio Water Development Authority,
Pollution Control Facilities, (Cleveland
Electric), (AMT), 6.10%, 8/1/20 4,282,362
4,000 Puerto Rico Electric Power Authority,
4.75%, 7/1/24 3,403,480
- -------------------------------------------------------------------------
$ 11,280,736
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.9%
- -------------------------------------------------------------------------
$ 1,000 Clermont County, (Mercy Health System),
(AMBAC), Prerefunded to 9/25/01,
Variable Rate, 10/5/21(1) $ 1,103,750
1,750 Lorain County, (Lakeland County
Hospital), Escrowed to Maturity,
6.50%, 11/15/12 1,873,427
600 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 630,960
- -------------------------------------------------------------------------
$ 3,608,137
- -------------------------------------------------------------------------
General Obligations -- 8.7%
- -------------------------------------------------------------------------
$ 3,035 Belmont County, 7.30%, 12/1/12 $ 3,260,076
5,000 Hamilton City School District,
5.50%, 12/1/24 4,858,300
1,000 Tuscarawas County Public Library
Improvement, 6.90%, 12/1/11 1,038,700
6,855 Youngstown, 7.35%, 7/1/05 7,476,132
- -------------------------------------------------------------------------
$ 16,633,208
- -------------------------------------------------------------------------
Hospital -- 15.8%
- -------------------------------------------------------------------------
$ 1,000 Allen County LIMA, (Convalescent Home
Foundation), (GNMA), 6.40%, 1/1/21 $ 1,004,290
1,000 Butler County, (Hamilton-Hughe
Hospital), 7.50%, 1/1/10 1,032,100
2,100 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/28 1,594,740
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Hospital (continued)
- -------------------------------------------------------------------------
$ 2,100 Cuyahoga County, (Fairview General
Hospital), 6.25%, 8/15/10 $ 2,188,179
1,000 East Liverpool, (City Hospital),
8.00%, 10/1/21 1,038,570
4,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08 4,173,760
3,000 Franklin County, (Children's Hospital),
6.60%, 5/1/13 3,163,500
5,115 Hamilton County, (Bethesda Hospital,
Inc.), 6.25%, 1/1/12 5,258,936
1,000 Hamilton County, (Wesley Hall),
6.50%, 3/1/15 1,052,430
2,200 Highland County, (Township Hospital),
6.75%, 12/1/29 1,997,248
3,800 Miami, (Upper Valley Medical Center),
6.375%, 5/15/26 3,369,992
1,000 Parma, (Parma Community General Hospital
Association), 5.35%, 11/1/18 867,110
4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 3,498,472
- -------------------------------------------------------------------------
$ 30,239,327
- -------------------------------------------------------------------------
Housing -- 8.3%
- -------------------------------------------------------------------------
$ 2,955 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 $ 2,818,893
2,500 Franklin County, (Tuttle Park), (FHA),
(AMT), 6.50%, 3/1/26 2,575,100
5,985 Franklin County, (Tuttle Park), (FHA),
(AMT), 6.60%, 3/1/36 6,163,832
2,920 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 2,723,718
535 Ohio HFA SFMR, (GNMA), (AMT),
Variable Rate, 3/31/31(1) 563,756
1,000 Ohio HFA, (Aristocrat), (FHA), (AMT),
7.30%, 8/1/31 1,023,620
- -------------------------------------------------------------------------
$ 15,868,919
- -------------------------------------------------------------------------
Industrial Development Revenue -- 17.2%
- -------------------------------------------------------------------------
$ 4,500 Cleveland Airport, (Continental
Airlines), (AMT), 5.70%, 12/1/19 $ 3,884,085
2,000 Cuyahoga IDR, (Chippewa Place), (FHA),
6.60%, 8/1/15 2,090,740
2,950 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 2,676,623
500 Ohio Economic Development Commission,
(Burrows Paper), (AMT), 7.625%, 6/1/11 522,355
180 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.50%, 12/1/04 182,965
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Industrial Development Revenue (continued)
- -------------------------------------------------------------------------
$ 530 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.90%, 12/1/09 $ 545,614
1,420 Ohio Economic Development Commission,
(Consolidated Biscuit), (AMT),
7.00%, 12/1/09 1,518,818
3,005 Ohio Economic Development Commission, (J
J & W LP), (AMT), 6.70%, 12/1/14 3,091,574
1,020 Ohio Economic Development Commission,
(Kmart), 6.75%, 5/15/07 1,028,170
560 Ohio Economic Development Commission,
(Luigino's, Inc.), (AMT), 6.85%, 6/1/01 561,092
1,525 Ohio Economic Development Commission,
(Progress Plastic Products), (AMT),
7.80%, 12/1/09 1,680,535
345 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 346,594
1,000 Ohio Economic Development Commission,
(Royal Appliance Manufacturing), (AMT),
7.625%, 12/1/11 1,044,630
680 Ohio Economic Development Commission,
(Royal Appliance Manufacturing), (AMT),
7.625%, 12/1/11 710,348
880 Ohio Economic Development Commission,
(VSM Corp.), (AMT), 7.375%, 12/1/11 915,834
3,750 Ohio Environmental Facilities, (Ford
Motor), (AMT), 5.95%, 9/1/29 3,732,750
2,200 Ohio Environmental Improvement, (USX),
5.625%, 5/1/29 1,931,710
1,000 Ohio Pollution Control, (Standard Oil),
6.75%, 12/1/15 1,135,130
4,000 Ohio Solid Waste Disposal, (USG), (AMT),
5.65%, 3/1/33 3,468,080
1,000 Ohio Solid Waste Disposal, (USG), (AMT),
6.05%, 8/1/34 916,710
3,000 Ohio Solid Waste Revenue, (Republic
Engineered Steels), (AMT),
9.00%, 6/1/21 991,110
- -------------------------------------------------------------------------
$ 32,975,467
- -------------------------------------------------------------------------
Insured-Certificates of Participation -- 0.7%
- -------------------------------------------------------------------------
$ 1,350 Cleveland, Certificates of
Participation, (Cleveland Stadium),
(AMBAC), 5.25%, 11/15/22 $ 1,264,261
- -------------------------------------------------------------------------
$ 1,264,261
- -------------------------------------------------------------------------
Insured-Education -- 1.0%
- -------------------------------------------------------------------------
$ 2,000 University of Akron, (FGIC),
Variable Rate, 1/1/29(1)(2) $ 1,985,640
- -------------------------------------------------------------------------
$ 1,985,640
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 2.6%
- -------------------------------------------------------------------------
$ 2,000 Cuyahoga County Utility Systems,
(Medical Center Co.), (MBIA), (AMT),
6.10%, 8/15/15 $ 2,060,180
3,340 Ohio Air Quality Development Authority,
(Ohio Power), (AMBAC), 5.15%, 5/1/26 3,038,932
- -------------------------------------------------------------------------
$ 5,099,112
- -------------------------------------------------------------------------
Insured-General Obligations -- 3.4%
- -------------------------------------------------------------------------
$ 2,110 Hudson Local School District, (FGIC),
0.00%, 12/15/09 $ 1,271,170
2,600 Norwalk City School District, (AMBAC),
4.75%, 12/1/26 2,211,326
3,000 Puerto Rico, (FSA),
Variable Rate, 7/1/22(1)(2) 3,037,500
- -------------------------------------------------------------------------
$ 6,519,996
- -------------------------------------------------------------------------
Insured-Hospital -- 9.1%
- -------------------------------------------------------------------------
$ 4,995 Cuyahoga County, (Cleveland Clinic),
(MBIA), 5.125%, 1/1/29 $ 4,458,537
3,000 Hamilton County, (Childrens Hospital
Medical Center), (MBIA), 4.75%, 5/15/28 2,503,260
2,750 Mansfield, (Mansfield General Hospital),
(AMBAC), 6.70%, 12/1/09 2,877,353
1,000 Montgomery County, (Miami Valley
Hospital), (AMBAC), 6.25%, 11/15/16 1,027,090
6,565 Portage County, (Robinson Memorial
Hospital), (MBIA), 5.80%, 11/15/15 6,664,985
- -------------------------------------------------------------------------
$ 17,531,225
- -------------------------------------------------------------------------
Insured-Housing -- 0.6%
- -------------------------------------------------------------------------
$ 1,100 Ohio Capital Corp., (Horizon
Apartments), (FHA), (MBIA),
6.50%, 1/1/23 $ 1,118,832
- -------------------------------------------------------------------------
$ 1,118,832
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.6%
- -------------------------------------------------------------------------
$ 2,990 Hamilton County Sales Tax, (Hamilton
County Football), (MBIA), 5.00%, 12/1/27 $ 2,639,722
1,500 Hamilton County Sales Tax, (MBIA),
4.75%, 12/1/27 1,273,230
1,575 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(3) 1,087,380
- -------------------------------------------------------------------------
$ 5,000,332
- -------------------------------------------------------------------------
Insured-Transportation -- 5.9%
- -------------------------------------------------------------------------
$ 1,600 Ohio Turnpike Commission, (FGIC),
4.50%, 2/15/24 $ 1,315,872
650 Ohio Turnpike Commission, (FGIC),
4.75%, 2/15/28 549,023
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Transportation (continued)
- -------------------------------------------------------------------------
$ 7,000 Ohio Turnpike Commission, (FGIC),
5.50%, 2/15/24 $ 6,867,280
3,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 2,523,600
- -------------------------------------------------------------------------
$ 11,255,775
- -------------------------------------------------------------------------
Nursing Home -- 6.5%
- -------------------------------------------------------------------------
$ 2,000 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/17 $ 1,617,540
1,305 Cuyahoga County, (Maple Care Center),
(GNMA), (AMT), 8.00%, 8/20/16 1,505,278
1,205 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
6.10%, 9/20/16 1,255,104
6,455 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
9.55%, 3/20/32 8,156,538
- -------------------------------------------------------------------------
$ 12,534,460
- -------------------------------------------------------------------------
Senior Living / Life Care -- 3.7%
- -------------------------------------------------------------------------
$ 1,990 Franklin County, (Kensington Place),
6.75%, 1/1/34 $ 2,060,605
1,000 Hamilton County Hospital Facilities,
(Episcopal Retirement Home),
6.80%, 1/1/08 1,036,830
2,400 Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners),
6.75%, 3/1/19 2,103,504
2,250 Summit County Healthcare Facilities,
(Village at Saint Edward),
5.75%, 12/1/25 1,820,295
- -------------------------------------------------------------------------
$ 7,021,234
- -------------------------------------------------------------------------
Solid Waste -- 1.0%
- -------------------------------------------------------------------------
$ 2,400 Ohio Water Development Authority, Solid
Waste Disposal Revenue, (Bay Shore
Power), (AMT), 5.875%, 9/1/20 $ 1,980,312
- -------------------------------------------------------------------------
$ 1,980,312
- -------------------------------------------------------------------------
Special Tax Revenue -- 1.3%
- -------------------------------------------------------------------------
$ 1,430 Cuyahoga County, Economic Development
Revenue, (Shaker Square), 6.75%, 12/1/30 $ 1,466,579
1,350 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) 1,071,360
- -------------------------------------------------------------------------
$ 2,537,939
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Transportation -- 0.1%
- -------------------------------------------------------------------------
$ 250 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 $ 237,515
- -------------------------------------------------------------------------
$ 237,515
- -------------------------------------------------------------------------
Water and Sewer -- 0.5%
- -------------------------------------------------------------------------
$ 1,000 Vermilion Water, 7.25%, 8/15/15 $ 1,030,800
- -------------------------------------------------------------------------
$ 1,030,800
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.4%
(identified cost $195,425,984) $190,774,928
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.6% $ 1,104,661
- -------------------------------------------------------------------------
Net Assets -- 100.0% $191,879,589
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Ohio
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 26.7% 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 2.9% to 10.9% 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
58
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 96.9%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Education -- 1.9%
- -------------------------------------------------------------------------
$ 750 Rhode Island Student Loan Authority,
(AMT), 5.60%, 12/1/12 $ 733,125
- -------------------------------------------------------------------------
$ 733,125
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.5%
- -------------------------------------------------------------------------
$ 255 Rhode Island Clean Water Protection
Finance Agency, Water Pollution Control,
(MBIA), Prerefunded to 10/1/04,
5.85%, 10/1/09 $ 268,515
1,000 Rhode Island Depositors Economic
Protection Corp., (MBIA), Escrowed to
Maturity, 5.80%, 8/1/12 1,054,510
- -------------------------------------------------------------------------
$ 1,323,025
- -------------------------------------------------------------------------
General Obligations -- 3.3%
- -------------------------------------------------------------------------
$ 225 Puerto Rico, 0.00%, 7/1/16 $ 90,270
1,000 Puerto Rico Public Buildings Authority,
5.25%, 7/1/21 937,270
230 Rhode Island Depositors Economic
Protection Corp., 5.75%, 8/1/21 230,400
- -------------------------------------------------------------------------
$ 1,257,940
- -------------------------------------------------------------------------
Hospital -- 7.6%
- -------------------------------------------------------------------------
$ 500 Rhode Island HEFA, (Newport Hospital),
5.30%, 7/1/29 $ 403,485
1,250 Rhode Island HEFA, (South County
Hospital), 5.75%, 11/15/26 1,104,012
800 Rhode Island HEFA, (St. Joseph Health
Services), 5.50%, 10/1/29 610,592
830 Rhode Island HEFA, (Westerly Hospital),
6.00%, 7/1/14 752,677
- -------------------------------------------------------------------------
$ 2,870,766
- -------------------------------------------------------------------------
Housing -- 15.2%
- -------------------------------------------------------------------------
$ 500 Guam Housing Corp., Single Family,
5.75%, 9/1/31 $ 493,810
1,740 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.60%, 10/1/25 1,766,239
875 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 6.80%, 10/1/25 898,004
475 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.10%, 10/1/23 493,729
2,000 Rhode Island Housing and Mortgage
Finance Corp., (AMT), 7.55%, 10/1/22 2,062,240
- -------------------------------------------------------------------------
$ 5,714,022
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Education -- 5.7%
- -------------------------------------------------------------------------
$ 1,000 Rhode Island HEFA, (Johnson and Wales
University), (MBIA), 5.00%, 4/1/29 $ 861,510
500 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/24 435,780
400 Rhode Island HEFA, (Roger Williams
College), (AMBAC), 5.00%, 11/15/28 344,900
500 Rhode Island HEFA, (University of Rhode
Island), (MBIA), 5.50%, 9/15/19 491,490
- -------------------------------------------------------------------------
$ 2,133,680
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 4.7%
- -------------------------------------------------------------------------
$ 750 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 651,165
1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 682,938
500 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 435,265
- -------------------------------------------------------------------------
$ 1,769,368
- -------------------------------------------------------------------------
Insured-General Obligations -- 13.8%
- -------------------------------------------------------------------------
$ 1,500 Kent County Water Authority, (MBIA),
6.35%, 7/15/14 $ 1,581,930
900 North Kingstown, (FGIC),
5.875%, 10/1/25 901,494
500 Providence, Public Building Authority,
(School and Public Facilities Projects),
(FSA), 5.00%, 12/15/18 451,750
375 Rhode Island Consolidated Capital
Development, (FGIC), 4.75%, 9/1/17 334,631
500 Rhode Island Depositors Economic
Protection Corp., (MBIA), 5.80%, 8/1/09 527,405
250 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/23 218,145
1,400 Rhode Island Economic Development Corp.,
(FSA), 5.00%, 7/1/28 1,203,356
- -------------------------------------------------------------------------
$ 5,218,711
- -------------------------------------------------------------------------
Insured-Hospital -- 6.5%
- -------------------------------------------------------------------------
$ 2,700 Rhode Island HEFA, (Lifespan), (MBIA),
5.25%, 5/15/26 $ 2,435,994
- -------------------------------------------------------------------------
$ 2,435,994
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
RHODE ISLAND MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Housing -- 1.4%
- -------------------------------------------------------------------------
$ 500 Villa Excelsior Housing Development
Corp., (MBIA), 6.85%, 1/1/24 $ 521,820
- -------------------------------------------------------------------------
$ 521,820
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 13.9%
- -------------------------------------------------------------------------
$ 3,000 Convention Center Authority of Rhode
Island, (MBIA), 5.00%, 5/15/20 $ 2,685,810
2,300 Convention Center Authority of Rhode
Island, (MBIA), 5.25%, 5/15/15 2,251,723
420 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(1) 289,968
- -------------------------------------------------------------------------
$ 5,227,501
- -------------------------------------------------------------------------
Insured-Transportation -- 3.9%
- -------------------------------------------------------------------------
$ 1,750 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 1,472,100
- -------------------------------------------------------------------------
$ 1,472,100
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 3.7%
- -------------------------------------------------------------------------
$ 750 Rhode Island Clean Water, Safe Drinking
Water, (AMBAC), 6.70%, 1/1/15 $ 808,328
350 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.40%, 10/1/15 346,560
245 Rhode Island Clean Water, Water
Pollution Control, (MBIA),
5.85%, 10/1/09 252,193
- -------------------------------------------------------------------------
$ 1,407,081
- -------------------------------------------------------------------------
Nursing Home -- 3.0%
- -------------------------------------------------------------------------
$ 500 Rhode Island HEFA, (Roger Williams
Realty), 6.50%, 8/1/29 $ 510,190
725 Rhode Island HEFA, (Steere House),
5.80%, 7/1/20 617,251
- -------------------------------------------------------------------------
$ 1,127,441
- -------------------------------------------------------------------------
Senior Living / Life Care -- 2.4%
- -------------------------------------------------------------------------
$ 1,000 Rhode Island HEFA, (Tockwotton Home),
6.25%, 8/15/22 $ 896,590
- -------------------------------------------------------------------------
$ 896,590
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Special Tax Revenue -- 5.3%
- -------------------------------------------------------------------------
$ 1,500 Providence, Tax Increment, 7.65%, 6/1/16 $ 1,617,360
500 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(2)(3) 396,800
- -------------------------------------------------------------------------
$ 2,014,160
- -------------------------------------------------------------------------
Transportation -- 1.1%
- -------------------------------------------------------------------------
$ 500 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 $ 430,930
- -------------------------------------------------------------------------
$ 430,930
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 96.9%
(identified cost $37,154,487) $ 36,554,254
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 3.1% $ 1,153,680
- -------------------------------------------------------------------------
Net Assets -- 100.0% $ 37,707,934
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Rhode Island
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 58.8% 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 3.4% to 39.4% of
total investments.
(1) Security has been issued as a leveraged inverse floater bond.
(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
60
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 96.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Electric Utilities -- 3.7%
- -------------------------------------------------------------------------
$ 500 Mason PCR, (Appalacian Power),
6.85%, 6/1/22 $ 509,445
1,130 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 428,575
- -------------------------------------------------------------------------
$ 938,020
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.9%
- -------------------------------------------------------------------------
$ 2,500 Kanawha-Putnam, Single Family, (AMBAC),
Escrowed to Maturity, 0.00%, 12/1/16 $ 967,175
- -------------------------------------------------------------------------
$ 967,175
- -------------------------------------------------------------------------
General Obligations -- 0.8%
- -------------------------------------------------------------------------
$ 500 Puerto Rico, 0.00%, 7/1/16 $ 200,600
- -------------------------------------------------------------------------
$ 200,600
- -------------------------------------------------------------------------
Hospital -- 12.2%
- -------------------------------------------------------------------------
$ 1,250 Berkeley Building Commission, (City
Hospital), 6.50%, 11/1/22 $ 1,169,437
750 Philippi Health System, (Davis Health
System - Broaddus Hospital),
5.50%, 11/1/24 663,862
250 Princeton, (Community Hospital),
6.10%, 5/1/29 210,462
1,000 West Virginia Health Facilities
Authority, (Charleston Area Medical
Center), 6.50%, 9/1/23 1,005,330
- -------------------------------------------------------------------------
$ 3,049,091
- -------------------------------------------------------------------------
Industrial Development Revenue -- 10.7%
- -------------------------------------------------------------------------
$ 1,375 Jefferson, (Royal Venders), (AMT),
5.90%, 8/1/04 $ 1,373,831
300 Kanawha, (Union Carbide Chemicals and
Plastics), (AMT), 8.00%, 8/1/20 307,995
1,000 Upshur Solid Waste, (TJI), (AMT),
7.00%, 7/15/25 1,013,780
- -------------------------------------------------------------------------
$ 2,695,606
- -------------------------------------------------------------------------
Insured-Education -- 6.3%
- -------------------------------------------------------------------------
$ 1,000 West Virginia University, (AMBAC),
5.75%, 4/1/16 $ 1,012,920
550 West Virginia University, (AMBAC),
6.00%, 4/1/12 567,567
- -------------------------------------------------------------------------
$ 1,580,487
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 9.4%
- -------------------------------------------------------------------------
$ 700 Marshall PCR, (Ohio Power), (MBIA),
5.45%, 7/1/14 $ 701,337
1,500 Pleasants County Pollution Control,
(Potomac Edison), (AMBAC), (AMT),
5.50%, 4/1/29 1,398,480
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- -------------------------------------------------------------------------
$ 250 Puerto Rico Electric Power Authority,
(FSA), Variable Rate, 7/1/03(1) $ 263,750
- -------------------------------------------------------------------------
$ 2,363,567
- -------------------------------------------------------------------------
Insured-General Obligations -- 1.5%
- -------------------------------------------------------------------------
$ 150 West Virginia, (FGIC), 5.25%, 11/1/26 $ 138,404
250 West Virginia, (FGIC), 5.75%, 11/1/21 250,070
- -------------------------------------------------------------------------
$ 388,474
- -------------------------------------------------------------------------
Insured-Hospital -- 15.4%
- -------------------------------------------------------------------------
$ 500 Randolph County Commission Health
System, (Davis Health System Inc.),
(FSA), 5.20%, 11/1/21 $ 455,465
1,300 West Virginia Health Facilities
Authority, (Cabell Huntington Hospital),
(AMBAC), 6.25%, 1/1/19 1,329,705
850 West Virginia Health Facilities
Authority, (Charleston Area Medical
Center), (MBIA), 5.75%, 9/1/13 871,854
1,200 West Virginia Health Facilities
Authority, (MBIA), 6.10%, 1/1/18 1,213,668
- -------------------------------------------------------------------------
$ 3,870,692
- -------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of
Participation -- 2.0%
- -------------------------------------------------------------------------
$ 500 West Virginia School Building Authority,
(AMBAC), 5.60%, 7/1/17 $ 501,205
- -------------------------------------------------------------------------
$ 501,205
- -------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 1.8%
- -------------------------------------------------------------------------
$ 500 Harrison County Building Commission,
(Maplewood Retirement), (AMBAC),
5.25%, 4/1/28 $ 450,000
- -------------------------------------------------------------------------
$ 450,000
- -------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.5%
- -------------------------------------------------------------------------
$ 175 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(2) $ 120,820
- -------------------------------------------------------------------------
$ 120,820
- -------------------------------------------------------------------------
Insured-Transportation -- 6.5%
- -------------------------------------------------------------------------
$ 1,000 West Virginia Parkways, Economic
Development and Tourism Authority,
(FGIC), 0.00%, 5/15/04 $ 812,530
1,000 West Virginia State Roads, (FGIC),
4.50%, 6/1/23 819,430
- -------------------------------------------------------------------------
$ 1,631,960
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
WEST VIRGINIA MUNICIPALS PORTFOLIO AS OF MARCH 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 15.1%
- -------------------------------------------------------------------------
$ 250 Berkeley Public Service District Sewer,
(MBIA), 5.75%, 10/1/25 $ 246,318
500 Crab Orchard Public Service District,
(AMBAC), 5.50%, 10/1/25 474,300
1,000 Fairmont Waterworks, (AMBAC),
4.50%, 7/1/24 815,570
1,000 Parkersburg Waterworks and Sewer, (FSA),
5.80%, 9/1/19 1,007,550
500 West Virginia Water Development, (Loan
Program II), (FSA), 5.25%, 11/1/35 453,010
750 West Virginia Water Development, (Loan
Program II), (FSA), 6.00%, 11/1/14 779,873
- -------------------------------------------------------------------------
$ 3,776,621
- -------------------------------------------------------------------------
Nursing Home -- 1.8%
- -------------------------------------------------------------------------
$ 500 Kanawha County, (Beverly Enterprises),
5.50%, 11/1/08 $ 456,825
- -------------------------------------------------------------------------
$ 456,825
- -------------------------------------------------------------------------
Solid Waste -- 3.8%
- -------------------------------------------------------------------------
$ 1,000 Braxton County, (Weyerhaeuser), (AMT),
5.80%, 6/1/27 $ 944,790
- -------------------------------------------------------------------------
$ 944,790
- -------------------------------------------------------------------------
Special Tax Revenue -- 1.3%
- -------------------------------------------------------------------------
$ 400 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) $ 317,440
- -------------------------------------------------------------------------
$ 317,440
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 96.7%
(identified cost $24,708,639) $ 24,253,373
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 3.3% $ 840,451
- -------------------------------------------------------------------------
Net Assets -- 100.0% $ 25,093,824
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by West Virginia
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at March 31, 2000, 64.5% 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 8.3% to 31.5% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $231,812,533 $300,601,668 $186,647,438 $15,534,293
Unrealized appreciation
(depreciation) 8,392,953 (2,978,339) (2,540,018) 138,865
- -----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $240,205,486 $297,623,329 $184,107,420 $15,673,158
- -----------------------------------------------------------------------------------------------------------------------
Cash $ 71,634 $ -- $ 306,615 $ --
Receivable for investments
sold 1,930,380 -- -- 15,413
Interest receivable 3,253,733 6,442,443 2,680,376 296,646
- -----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $245,461,233 $304,065,772 $187,094,411 $15,985,217
- -----------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------
Payable for investments
purchased $ 1,717,170 $ -- $ -- $ --
Demand note payable -- 1,500,000 -- --
Due to bank -- 95,540 -- 18,992
Accrued expenses 30,972 3,455 25,129 10,677
- -----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,748,142 $ 1,598,995 $ 25,129 $ 29,669
- -----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $243,713,091 $302,466,777 $187,069,282 $15,955,548
- -----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $235,320,138 $305,445,116 $189,609,300 $15,816,683
Net unrealized appreciation
(depreciation) (computed on
the basis of identified
cost) 8,392,953 (2,978,339) (2,540,018) 138,865
- -----------------------------------------------------------------------------------------------------------------------
TOTAL $243,713,091 $302,466,777 $187,069,282 $15,955,548
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF MARCH 31, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $343,099,165 $195,425,984 $37,154,487 $24,708,639
Unrealized appreciation
(depreciation) 5,600,249 (4,651,056) (600,233) (455,266)
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $348,699,414 $190,774,928 $36,554,254 $24,253,373
- -------------------------------------------------------------------------------------------------------------------
Cash $ 1,141,132 $ -- $ 127,998 $ 433,098
Receivable for investments
sold 3,087,665 -- 300,000 --
Interest receivable 6,629,887 3,351,618 737,150 409,984
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $359,558,098 $194,126,546 $37,719,402 $25,096,455
- -------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Demand note payable $ 4,800,000 $ 2,200,000 $ -- $ --
Due to bank -- 10,867 -- --
Payable to affiliate for
Trustees' fees -- -- -- 217
Accrued expenses 48,080 36,090 11,468 2,414
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 4,848,080 $ 2,246,957 $ 11,468 $ 2,631
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $354,710,018 $191,879,589 $37,707,934 $25,093,824
- -------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $349,109,769 $196,530,645 $38,308,167 $25,549,090
Net unrealized appreciation
(depreciation) (computed on
the basis of identified
cost) 5,600,249 (4,651,056) (600,233) (455,266)
- -------------------------------------------------------------------------------------------------------------------
TOTAL $354,710,018 $191,879,589 $37,707,934 $25,093,824
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------------
Interest $ 7,952,788 $10,092,894 $ 6,221,088 $ 507,527
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 7,952,788 $10,092,894 $ 6,221,088 $ 507,527
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 613,407 $ 728,692 $ 429,104 $ 13,513
Trustees fees and expenses 10,335 9,317 8,989 272
Legal and accounting services 39,979 37,203 40,448 16,766
Custodian fee 65,189 78,193 58,382 7,625
Miscellaneous 8,340 45,046 8,700 2,324
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 737,250 $ 898,451 $ 545,623 $ 40,500
- ---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 18,556 $ 78,193 $ 14,727 $ --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 18,556 $ 78,193 $ 14,727 $ --
- ---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 718,694 $ 820,258 $ 530,896 $ 40,500
- ---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 7,234,094 $ 9,272,636 $ 5,690,192 $ 467,027
- ---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (795,491) $(1,819,123) $ 1,626,357 $ 25,198
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (795,491) $(1,819,123) $ 1,626,357 $ 25,198
- ---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(5,948,056) $(3,310,773) $(5,762,131) $(300,671)
- ---------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(5,948,056) $(3,310,773) $(5,762,131) $(300,671)
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(6,743,547) $(5,129,896) $(4,135,774) $(275,473)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 490,547 $ 4,142,740 $ 1,554,418 $ 191,554
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Interest $11,620,843 $ 6,655,478 $1,200,489 $ 763,829
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $11,620,843 $ 6,655,478 $1,200,489 $ 763,829
- -----------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 856,723 $ 451,557 $ 47,062 $ 24,899
Trustees fees and expenses 13,027 7,244 5,345 1,288
Legal and accounting services 40,423 36,368 19,736 16,200
Custodian fee 85,832 62,112 10,144 9,040
Interest expense 57,895 38,600 -- --
Miscellaneous 6,192 6,382 4,011 1,912
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,060,092 $ 602,263 $ 86,298 $ 53,339
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 4,063 $ --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 4,063 $ --
- -----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,060,092 $ 602,263 $ 82,235 $ 53,339
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $10,560,751 $ 6,053,215 $1,118,254 $ 710,490
- -----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (541,438) $ (107,570) $ (379,717) $ (39,236)
Financial futures contracts 95,836 51,376 -- (1,472)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (445,602) $ (56,194) $ (379,717) $ (40,708)
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(2,627,559) $(6,547,365) $ (93,775) $(307,370)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(2,627,559) $(6,547,365) $ (93,775) $(307,370)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,073,161) $(6,603,559) $ (473,492) $(348,078)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 7,487,590 $ (550,344) $ 644,762 $ 362,412
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 7,234,094 $ 9,272,636 $ 5,690,192 $ 467,027
Net realized gain (loss) (795,491) (1,819,123) 1,626,357 25,198
Net change in unrealized appreciation
(depreciation) (5,948,056) (3,310,773) (5,762,131) (300,671)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 490,547 $ 4,142,740 $ 1,554,418 $ 191,554
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 9,355,785 $ 16,225,304 $ 5,987,889 $ 200,995
Withdrawals (36,333,439) (64,773,539) (32,750,132) (2,373,840)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(26,977,654) $(48,548,235) $(26,762,243) $(2,172,845)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(26,487,107) $(44,405,495) $(25,207,825) $(1,981,291)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of period $270,200,198 $346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $243,713,091 $302,466,777 $187,069,282 $15,955,548
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED MARCH 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 10,560,751 $ 6,053,215 $ 1,118,254 $ 710,490
Net realized loss (445,602) (56,194) (379,717) (40,708)
Net change in unrealized appreciation
(depreciation) (2,627,559) (6,547,365) (93,775) (307,370)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 7,487,590 $ (550,344) $ 644,762 $ 362,412
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,322,702 $ 5,581,835 $ 2,009,372 $ 663,167
Withdrawals (62,218,385) (29,615,929) (6,677,897) (2,892,631)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(54,895,683) $(24,034,094) $(4,668,525) $(2,229,464)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(47,408,093) $(24,584,438) $(4,023,763) $(1,867,052)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of period $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $354,710,018 $191,879,589 $37,707,934 $25,093,824
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
Net realized gain 3,046,334 8,737,267 2,848,962 222,390
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,394) (1,674,816)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $ (14,289,697) $ (7,622,484) $ (390,501)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 26,307,078 $ 22,428,860 $ 22,537,239 $ 1,934,210
Withdrawals (56,905,888) (117,286,711) (53,364,100) (4,346,534)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(30,598,810) $ (94,857,851) $(30,826,861) $(2,412,324)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,808,485) $(109,147,548) $(38,449,345) $(2,802,825)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
Net realized gain (loss) (66,830) (146,960) (41,650) 268,614
Net change in unrealized appreciation
(depreciation) (38,370,632) (17,608,485) (3,927,649) (2,763,471)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 31,675,644 $ 15,132,326 $ 7,437,315 $ 1,765,713
Withdrawals (101,151,980) (49,186,424) (6,067,386) (5,785,114)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (69,476,336) $(34,054,098) $ 1,369,929 $(4,019,401)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (83,945,905) $(38,566,423) $ (339,675) $(4,958,668)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 486,064,016 $255,030,450 $42,071,372 $31,919,544
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.58%(1) 0.56% 0.55% 0.57% 0.57% 0.59%
Expenses after custodian
fee reduction 0.57%(1) 0.54% 0.53% 0.56% 0.56% 0.58%
Net investment income 5.76%(1) 5.30% 5.33% 5.76% 5.93% 6.22%
Portfolio Turnover 9% 28% 16% 12% 14% 58%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $243,713 $270,200 $312,009 $327,004 $370,590 $410,763
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.56%(1) 0.52% 0.51% 0.52% 0.52% 0.55%
Expenses after custodian
fee reduction 0.51%(1) 0.48% 0.47% 0.48% 0.49% 0.52%
Net investment income 5.82%(1) 5.26% 5.03% 5.53% 5.67% 5.94%
Portfolio Turnover 9% 40% 25% 54% 51% 61%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $302,467 $346,843 $456,020 $514,201 $624,374 $712,203
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.56%(1) 0.52% 0.54% 0.53% 0.55% 0.56%
Expenses after custodian
fee reduction 0.55%(1) 0.50% 0.52% 0.52% 0.54% 0.53%
Net investment income 5.85%(1) 5.40% 5.36% 5.75% 5.77% 6.00%
Portfolio Turnover 5% 24% 28% 35% 51% 87%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $187,069 $212,277 $250,726 $253,675 $281,129 $302,170
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.48%(1) 0.36% 0.37% 0.38% 0.29% 0.27%
Net expenses after
custodian fee reduction 0.48%(1) 0.34% 0.35% 0.37% 0.26% 0.23%
Net investment income 5.54%(1) 5.30% 5.21% 5.59% 5.77% 5.97%
Portfolio Turnover 4% 16% 17% 6% 12% 52%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $15,956 $17,937 $20,740 $22,127 $25,280 $28,993
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such action not been taken, the ratios would have been as
follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.40% 0.39%
Expenses after custodian
fee reduction 0.37% 0.35%
Net investment income 5.66% 5.85%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54%(1) 0.53% 0.53% 0.57% 0.52% 0.54%
Expenses after custodian
fee reduction 0.54%(1) 0.52% 0.51% 0.57% 0.49% 0.51%
Net investment income 5.70%(1) 5.30% 5.28% 5.60% 5.64% 5.97%
Portfolio Turnover 17% 41% 55% 44% 47% 55%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $354,710 $402,118 $486,064 $527,604 $604,530 $652,736
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.60%(1) 0.55% 0.56% 0.56% 0.57% 0.57%
Expenses after custodian
fee reduction 0.60%(1) 0.54% 0.54% 0.55% 0.56% 0.55%
Net investment income 6.02%(1) 5.54% 5.50% 5.70% 5.69% 5.80%
Portfolio Turnover 13% 59% 17% 30% 35% 51%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $191,880 $216,464 $255,030 $271,269 $292,671 $319,017
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.44%(1) 0.39% 0.39% 0.27% 0.27% 0.29%
Net expenses after
custodian fee reduction 0.42%(1) 0.35% 0.36% 0.23% 0.24% 0.25%
Net investment income 5.73%(1) 5.24% 5.28% 5.54% 5.69% 5.96%
Portfolio Turnover 10% 18% 24% 39% 25% 42%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $37,708 $41,732 $42,071 $40,218 $42,167 $42,906
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment Adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such action not been taken, the ratios would have been as
follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.39% 0.40% 0.41%
Expenses after custodian
fee reduction 0.35% 0.37% 0.37%
Net investment income 5.42% 5.56% 5.84%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED SEPTEMBER 30,
MARCH 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.42%(1) 0.40% 0.37% 0.38% 0.42% 0.31%
Net expenses after
custodian fee reduction 0.42%(1) 0.38% 0.34% 0.36% 0.38% 0.29%
Net investment income 5.55%(1) 5.13% 5.34% 5.44% 5.41% 5.81%
Portfolio Turnover 0% 32% 16% 24% 43% 19%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $25,094 $26,961 $31,920 $33,503 $39,501 $40,835
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such action not been taken,the ratios would have been as
follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.39%
Expenses after custodian
fee reduction 0.37%
Net investment income 5.73%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
California Municipals Portfolio (California Portfolio), Florida Municipals
Portfolio (Florida Portfolio), Massachusetts Municipals Portfolio
(Massachusetts Portfolio), Mississippi Municipals Portfolio (Mississippi
Portfolio), New York Municipals Portfolio (New York Portfolio), Ohio
Municipals Portfolio (Ohio Portfolio), Rhode Island Municipals Portfolio
(Rhode Island Portfolio) and West Virginia Municipals Portfolio (West
Virginia Portfolio), collectively, the Portfolios, are registered under the
Investment Company Act of 1940, as amended, as diversified, open-end
management investment companies. The Portfolios were organized as trusts
under the laws of the State of New York on May 1, 1992. The Declarations of
Trust permit the trustees to issue interests in the Portfolios. The following
is a summary of significant accounting policies consistently followed by the
Portfolios in the preparation of their financial statements. The policies
are in conformity with generally accepted accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts and options on
futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on futures contracts are normally
valued at the mean between the latest bid and asked prices. Short-term
obligations, maturing in sixty days or less, are valued at amortized cost,
which approximates value. Investments for which valuations or market
quotations are not readily available are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for Federal income tax purposes.
C Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolios' investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among 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.
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
G Legal Fees -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
H Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
J Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statement of Operations.
K Interim Financial Statements -- The interim financial statements relating to
March 31, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolios' management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended March 31, 2000, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
-------------------------------------------------------------------
California $613,407 0.49%
Florida 728,692 0.46%
Massachusetts 429,104 0.44%
Mississippi 13,513 0.16%
New York 856,723 0.46%
Ohio 451,557 0.45%
Rhode Island 47,062 0.24%
West Virginia 24,899 0.19%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets
(annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Certain officers and Trustees of the Portfolios are officers of the above
organizations. Trustees of the Portfolios that are not affiliated with the
Investment Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended March 31, 2000, no significant
amounts have been deferred.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased option transactions and short-term obligations, for the six months
ended March 31, 2000 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 22,607,151
Sales 40,265,448
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 30,116,503
Sales 82,610,741
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 10,182,943
Sales 33,200,909
</TABLE>
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 714,696
Sales 2,282,134
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 61,697,883
Sales 119,198,729
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 24,949,816
Sales 43,304,883
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 3,776,120
Sales 7,544,287
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ --
Sales 1,977,470
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in the value of the
investments owned by each Portfolio at March 31, 2000, as computed on a
federal income tax basis, were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $231,812,533
------------------------------------------------------
Gross unrealized appreciation $ 17,966,717
Gross unrealized depreciation (9,573,764)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 8,392,953
------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $300,601,668
------------------------------------------------------
Gross unrealized appreciation $ 10,744,744
Gross unrealized depreciation (13,723,083)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,978,339)
------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $186,647,438
------------------------------------------------------
Gross unrealized appreciation $ 5,678,373
Gross unrealized depreciation (8,218,391)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,540,018)
------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 15,534,293
------------------------------------------------------
Gross unrealized appreciation $ 522,691
Gross unrealized depreciation (383,826)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 138,865
------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $343,099,165
------------------------------------------------------
Gross unrealized appreciation $ 11,990,193
Gross unrealized depreciation (6,389,944)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,600,249
------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $195,425,984
------------------------------------------------------
Gross unrealized appreciation $ 4,456,142
Gross unrealized depreciation (9,107,198)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (4,651,056)
------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 37,154,487
------------------------------------------------------
Gross unrealized appreciation $ 746,480
Gross unrealized depreciation (1,346,713)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (600,233)
------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 24,708,639
------------------------------------------------------
Gross unrealized appreciation $ 348,097
Gross unrealized depreciation (803,363)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (455,266)
------------------------------------------------------
</TABLE>
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF MARCH 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
5 Line of Credit
- -------------------------------------------
Each Portfolio participates with other portfolios and funds managed by BMR
and EVM and its affiliates in a $150 million unsecured line of credit
agreement with a group of banks. Borrowings will be made by the Portfolios
primarily 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 March 31, 2000, the Florida Portfolio, New York Portfolio and
Ohio Portfolio had a balance outstanding pursuant to this line of credit of
$1,500,000, $4,800,000 and $2,200,000 respectively. The Portfolios did not
have any significant borrowings or allocated fees during the six months ended
March 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.
At March 31, 2000, there were no such financial instruments outstanding.
82
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF MARCH 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 and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolio
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts,
Rhode Island, and West Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of California, Florida,
and Mississippi Municipals
Portfolios
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
83
<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.
Attention: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
- --------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its sales charges and
expenses. Please read the prospectus carefully before you invest or send money.
- --------------------------------------------------------------------------------
438-5/00 MUNISRC-5/00
- --------------------------------------------------------------------------------
