<PAGE>
Mutual Funds
[LOGO] For People [BRICK]
Who Pay
Taxes
Semiannual Report February 29, 2000
Alabama
EATON VANCE Arkansas
MUNICIPALS Georgia
TRUST Kentucky
Louisiana
[LOGO] Maryland
[HIGHWAY] Missouri
North Carolina
Oregon
[BRIDGE]
South Carolina
Tennessee
Virginia
<PAGE>
EATON VANCE MUNICIPALS FUNDS as of February 29, 2000
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LETTER TO SHAREHOLDERS
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[PHOTO]
Thomas J. Fetter
President
The past year proved very challenging for bond investors, as a strong economy
led to higher interest rates and a difficult environment for fixed-income
vehicles. Amid a continuing robust economy, the Federal Reserve maintained a
watchful eye for any sign of inflation. On four occasions during the past twelve
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 posted their worst showing since 1994.
IN THE WAKE OF LAST YEAR'S BOND MARKET DECLINE, MUNICIPAL YIELDS NEARLY EQUAL
TREASURY YIELDS...
Rising interest rates pushed municipal bond yields significantly higher in 1999.
As a result, the ratio of municipal bond yields to Treasury yields was very high
by historical standards, reaching around 99% of Treasury yields at February 29,
2000.
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.
<TABLE>
<CAPTION>
<S> <C>
MUNICIPAL BONDS YIELD NEARLY 99% OF TREASURY YIELDS
6.10% 10.10%
30-Year AAA- rated Taxable equivalent yield
General Obligation (GO) Bonds* in 39.6% tax bracket
6.14%
30-Year Treasury bond
Principal and interest payments of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general
obligations and are not necessarily representative of the Funds' yield.
Statistics as of February 29, 2000.
Past performance is no guarantee of future results.
Source Bloomberg, LP.
</TABLE>
MUNICIPAL BONDS FINANCE VITAL PUBLIC PROJECTS WHILE PROVIDING RELIEF TO
TAX-WEARY INVESTORS...
Through their purchases of municipal bonds, investors provide financing for a
broad 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 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
April 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. YIELDS WILL
CHANGE.
- --------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE ALABAMA MUNICIPALS FUND as of February 29, 2000
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INVESTMENT UPDATE
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[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
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- - The Alabama economy continued to track the national economy in 1999. The
state's construction sector remained especially strong, boosted by a surge in
demand for single-family homes. Alabama's February unemployment rate remained
at 4.6%, unchanged from a year earlier.
- - The Alabama manufacturing sector received a boost when automaker Honda
announced plans for a new facility to be located in Talledega County. When
completed, the plant is expected to add 1,800 jobs and $900 million annually
to the state's economy.
- - Activity in the Huntsville-based aerospace industry remained robust. However,
the steel industry, another large source of Alabama jobs, suffered due to the
competition from cheap imports of Pacific Rim nations.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class B
shares had total returns of -2.10% and -2.45%, respectively.(1) For Class A,
this return resulted from a decrease in net asset value (NAV) per share to
$8.99 on February 29, 2000 from $9.43 on August 31, 1999, and the
reinvestment of $0.242 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.89 from $10.37, and the
reinvestment of $0.227 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.99 per share for Class A and $9.89 for Class B, the distribution rates
were 5.38% for Class A and 4.55% for Class B.(3) The distribution rates of
Class A and Class B are equivalent to taxable rates of 9.38% and 7.93%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 4.93% and
4.41%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 8.59% and 7.69%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Escrowed bonds - at 16.7% - were the Portfolio's largest weighting at
February 29, 2000 and typically provide a measure of support in a difficult
market. For example, an issue for Baptist Hospital is prerefunded to 2001.
Because the bond is backed by U.S. Treasury bonds, it has tended to maintain
a relatively stable price while providing an attractive 7.80% coupon.
- - Industrial development revenue bonds (IDBs) afforded above-average yields for
the Portfolio in non-rated bonds. The Portfolio's IDBs included issues
benefiting American Airlines, International Paper Co. and United
Technologies.
- - Hospital bonds were 10.1% of the Portfolio's holdings at February 29.
Management focused on quality institutions, including Russell Hospital, a
facility offering 31 medical specialities in a seven-county area. Russell is
scheduled to open a new radiation cancer care facility later in 2000.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 48
- - Average Maturity: 21.4 years
- - Average Rating: AA
- - Average Call: 7.2 years
- - Average Dollar Price: $90.03
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 3.7%
BBB 20.0%
A 9.6%
AA 5.5%
AAA 61.2%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -5.12% -5.91%
Five Years 4.23 3.67
Life of Fund+ 3.29 4.70
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -9.65% -10.41%
Five Years 3.21 3.34
Life of Fund+ 2.49 4.70
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 5/1/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Escrowed/Prerefunded 16.7%
Insured - Water & Sewer* 12.6%
Hospital 10.1%
Insured - Transportation* 9.4%
Industrial Development Revenue 9.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 42.62% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 58.1% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
3
<PAGE>
EATON VANCE ARKANSAS MUNICIPALS FUND as of February 29, 2000
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INVESTMENT UPDATE
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[PHOTO]
Thomas M. Metzold
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Arkansas economy continued to expand somewhat in 1999, although a
shortage of workers resulted in more moderate growth in some industries,
including commercial real estate construction. The state's jobless rate was
4.7% in February 2000, down from 4.8% a year earlier.
- - Sharply higher energy prices have raised operating costs for the state's
poultry farmers. Growers, who rely on propane to warm chicken houses, saw
fuel prices rise as much as 48 cents above last year's levels.
- - The closing of Eaker Air Force Base forced major changes in the Mississippi
County economy. Arkansas Aeroplex is now home to 48 businesses, while the
area's new steel mill operations have helped make Arkansas the nation's
seventh largest steel producer.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class B
shares had total returns of -0.74% and -1.15%, respectively.(1) For Class A,
this return resulted from a decrease in net asset value (NAV) per share to
$9.19 on February 29, 2000 from $9.51 on August 31, 1999, and the
reinvestment of $0.249 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.85 from $10.19, and the
reinvestment of $0.223 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$9.19 per share for Class A and $9.85 for Class B, the distribution rates
were 5.43% and 4.52%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.67% and 8.05%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.11% and
4.54%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.10% and 8.08%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - We are pleased to announce that, as of January 17, 2000 Thomas M. Metzold
became the portfolio manager of Eaton Vance Arkansas Municipals Fund. Mr.
Metzold is a Vice President of Eaton Vance.
- - Industrial development revenue bonds (IDBs) remained the Portfolio's largest
weighting at February 29, 2000. The Portfolio's IDBs finance projects for
companies that included American Airlines, steel producer Nucor and paper and
forest products leader International Paper Co.
- - The Portfolio again featured a significant exposure to housing bonds.
Arkansas Development Finance Authority issues, which financed single family
mortgages, provided relatively high coupons and defensive performance
characteristics in a difficult market climate.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 44
- - Average Maturity: 20.0 years
- - Average Rating: A+
- - Average Call: 8.1 years
- - Average Dollar Price: $94.70
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 5.1%
BBB 18.4%
A 36.3%
AA 10.6%
AAA 29.6%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -3.24% -4.04%
Five Years 4.60 3.97
Life of Fund+ 3.66 4.55
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -7.84% -8.63%
Five Years 3.59 3.63
Life of Fund+ 2.83 4.55
</TABLE>
+Inception date: Class A: 2/9/94; Class B: 10/2/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 17.8%
Hospital 12.6%
Housing 12.6%
Education 7.6%
Insured - Electric Utilities* 7.5%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.83% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 58.1% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
4
<PAGE>
EATON VANCE GEORGIA MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Georgia economy generated rapid growth in 1999, with gross state product
rising 5.0% for the year. The service sector created the most new jobs, with
computers services, education, temporary staffing and business services
leading the way. The state's jobless rate fell to 3.4% in February from 4.2%
a year earlier.
- - Brisk population growth fueled a strong construction sector, as migration
from other states accounted for two-thirds of Georgia's new residents. The
sprawling Atlanta metropolitan area again led the nation in the number of
new homes built in 1999.
- - Despite lower large convention bookings, Georgia's hospitality industry has
fared well. Atlanta hosted the high-profile Super Bowl in January and will
welcome Major League Baseball's All Star Game in July.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.89% and -2.21%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.58 on February 29, 2000 from $8.99 on August 31, 1999, and the
reinvestment of $0.240 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.17 from $9.60, and the
reinvestment of $0.218 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.58 per share for Class A and $9.17 for Class B, the distribution rates
were 5.61% and 4.74%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.88% and 8.35%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.17% and
4.69%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.11% and 8.26%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Industrial development revenue bonds (IDBs) remained the Portfolio's largest
weighting at February 29, 2000. The Portfolio's IDBs included projects for
nationally-recognized companies, including Georgia-Pacific Corp., Proctor
and Gamble and American Airlines.
- - In a difficult market environment, management used the market sell-off as an
occasion to sell higher-coupon Georgia housing bonds, which had performed
well on a relative basis. The proceeds were used to find opportunities
elsewhere and to add more liquid bonds to the Portfolio.
- - 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.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 53
- - Average Maturity: 19.3 years
- - Average Rating: AA-
- - Average Call: 9.1 years
- - Average Dollar Price: $93.89
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 7.6%
BBB 11.9%
A 26.0%
AA 11.3%
AAA 43.2%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -6.48% -7.13%
Five Years 3.97 3.44
Life of Fund+ 2.63 3.96
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -10.90% -11.57%
Five Years 2.97 3.10
Life of Fund+ 1.83 3.96
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 12/23/91
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 18.8%
Electric Utilities 10.6%
Insured - Water & Sewer* 9.6%
Insured - Hospital* 8.0%
Insured - Special Tax Revenue* 7.1%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.22% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 54.1% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
5
<PAGE>
EATON VANCE KENTUCKY MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Kentucky economy grew at a rapid pace in 1999, with 35,300 new jobs
created, an increase of 2.0% over 1998. The service sector, especially
business services, health care and retailing, were the primary areas of new
employment. The state's jobless rate fell to 4.1% in February from 4.7% a
year earlier.
- - Kentucky was again distinguished by a surge in manufacturing jobs.
Fast-growing manufacturing sectors included transportation equipment,
fabricated and primary metals, plastics, and wood and furniture products.
- - Kentucky communities are making efforts to lure e-business. Louisville is
creating a $10 million fund to support its eMain USA project. Lexington,
meanwhile, is considering plans to retool some of its vacant warehouses and
storefronts for high-tech tenants.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.59% and -1.88%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.01 on February 29, 2000 from $9.41 on August 31, 1999, and the
reinvestment of $0.250 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.70 from $10.12, and the
reinvestment of $0.230 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$9.01 per share for Class A and $9.70 for Class B, the distribution rates
were 5.57% and 4.74%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.81% and 8.35%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.13% and
4.75%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.03% and 8.37%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Industrial development revenue bonds (IDBs) were the Portfolio's largest
sector weighting at February 29, 2000. The Portfolio's IDBs provided
above-average yields and spanned a broad range of industries, including
retail, paper and forest products, chemicals, energy and apparel
manufacture.
- - Insured* transportation bonds, especially airport authority bonds,
constituted a significant portion of the Portfolio. Cincinnati/Northern
Kentucky International Airport and Louisville International Airport have
expanded and modernized their facilities to meet the demands imposed by
rapidly-growing passenger traffic.
- - Call protection remained an important structural consideration. As interest
rates have declined, more bonds have reached early redemption dates.
Management increased call protection to improve the Portfolio's performance
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 57
- - Average Maturity: 20.6 years
- - Average Rating: AA-
- - Average Call: 7.1 years
- - Average Dollar Price: $93.47
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 12.0%
BB 2.3%
BBB 15.1%
A 16.9%
AA 11.9%
AAA 41.8%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -3.50% -4.17%
Five Years 4.89 4.30
Life of Fund+ 3.49 4.65
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -8.07% -8.75%
Five Years 3.87 3.96
Life of Fund+ 2.68 4.65
+Inception date: Class A: 12/7/93; Class B: 12/23/91
</TABLE>
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 28.7%
Insured - Transportation* 14.4%
Lease/Certificates of Participation 11.6%
Escrowed/Prerefunded 9.8%
Insured - Hospital* 7.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.22% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 71.8% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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 LOUISIANA MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Louisiana economy received a boost from higher energy prices, although
companies remained hesitant to increase drilling significantly until
longer-term price trends are established. The state's February 2000 jobless
rate was 4.8%, down from the 5.7% rate of a year ago.
- - The agriculture sector, which contributes significantly to the Louisiana
economy, has suffered in recent years from drought and infestation. In May
1999, Congress passed emergency appropriations to boost farmers' insurance
and provide technical assistance.
- - Baton Rouge remains the state's fastest growing area, deriving strength from
hiring in government, services, and wholesale trade. However, the New
Orleans economy remained weak, hurt by energy layoffs and mergers.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -2.42% and -2.66%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.78 on February 29, 2000 from $9.24 on August 31, 1999, and the
reinvestment of $0.236 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.29 from $9.76, and the
reinvestment of $0.211 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.78 per share for Class A and $9.29 for Class B, the distribution rates
were 5.40% and 4.54%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.51% and 8.00%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.30% and
4.79%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.33% and 8.44%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Housing bonds - 16.4% of the Portfolio at February 29, 2000 - typically have
defensive characteristics that help in a declining market. Following their
relative outperformance in 1999, management slightly reduced the Portfolio's
exposure to federally-backed housing issues in favor of bonds in other
sectors with more favorable characteristics.
- - Senior living and life care bonds remained a major weighting of the
Portfolio at February 29. These research-intensive bonds financed health
care alternatives for senior citizens and offered above average yields for
investors.
- - Louisiana's deepwater ports represent a major economic asset. The
Portfolio's industrial development revenue bonds included issues that
financed projects for the state's Offshore Terminal Authority as well as for
the port facilities of commodity giant Cargill, Inc.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 39
- - Average Maturity: 23.8 years
- - Average Rating: AA+
- - Average Call: 9.7 years
- - Average Dollar Price: $93.42
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 5.3%
BBB 11.2%
AA 12.9%
AAA 70.6%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -6.52% -7.36%
Five Years 3.89 3.30
Life of Fund+ 3.16 4.10
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -10.93% -11.79%
Five Years 2.88 2.97
Life of Fund+ 2.33 4.10
</TABLE>
+Inception date: Class A: 2/14/94; Class B: 10/2/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Housing 16.4%
Senior Living/Life Care 14.7%
Industrial Development Revenue 12.1%
Insured - General Obligations* 11.1%
Insured - Education* 8.9%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state individual
and corporate income tax. (3) The Fund's distribution rate represents
actual distributions paid to shareholders and is calculated by dividing
the last distribution per share (annualized) by the net asset value
(NAV). (4) Taxable-equivalent rates assume maximum 43.22% combined
federal and state income tax rate. (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) Portfolio Statistics, Rating Distribution, and Largest Sectors are as
of 2/29/00 only and may not be representative of the Portfolio's current
or future investments. Five largest sectors represent 63.2% of the
Portfolio's net assets. (7)Returns are historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect the maximum
4.75% sales charge. SEC average annual returns for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. *Private
insurance does not remove the interest rate risks associated with these
investments.
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 MARYLAND MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Maryland economy surged in 1999, the second consecutive year in which
gross state product growth exceeded 4%. Job growth was especially strong in
technology, biotech, financial services and commercial construction. The
state's February 2000 jobless rate was 3.0%, down from 3.8% a year ago.
- - Maryland's tourism sector grew by 4.2% in 1999, as 20 million visitors spent
$6.5 billion on tourism-related activities. The Baltimore Area Convention
Association has emphasized the need for an increase in hotel construction to
lure additional convention business.
- - Maryland continues to attract business through the use of enterprise zones
and tax credits. Heidtman Steel Products, Inc. has announced plans to open a
$12 million plant in Sparrows Point later this year. The plant is expected
to produce 20,000 tons of steel each month.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.95% and -2.25%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.82 on February 29, 2000 from $9.23 on August 31, 1999, and the
reinvestment of $0.229 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.64 from $10.08, and the
reinvestment of $0.214 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.82 per share for Class A and $9.64 for Class B, the distribution rates
were 5.08% and 4.27%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.13% and 7.67%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.17% and
4.76%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.29% and 8.55%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - We are pleased to announce that, as of January 17, 2000, William H. Ahern
became the portfolio manager of Eaton Vance Maryland Municipals Fund. Mr.
Ahern is a Vice President of Eaton Vance.
- - Insured* hospital bonds were the Portfolio's largest weighting at February
29, 2000, including an issue for newly merged Medlantic/Helix. The merger
brings together the largest health care systems for Washington and
Baltimore, with 4,500 affiliated physicians, 3,500 beds and more than $1
billion annually in revenues.
- - Education bonds constituted a significant weighting within the Portfolio.
Institutions represented in the Portolio included world-renowned Johns
Hopkins University, Saint John's College in Annapolis and Bullis School, a
well-regarded college preparatory school in Potomac.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 60
- - Average Maturity: 23.4 years
- - Average Rating: AA
- - Average Call: 8.1 years
- - Average Dollar Price: $93.99
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 5.6%
BBB 8.2%
A 11.4%
AA 20.8%
AAA 54.0%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -6.16% -6.84%
Five Years 4.12 3.56
Life of Fund+ 3.01 4.40
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -10.59% -11.30%
Five Years 3.11 3.22
Life of Fund+ 2.20 4.40
</TABLE>
+Inception date: Class A: 12/10/93; Class B: 2/3/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Insured - Hospital* 12.3%
Hospital 9.8%
Housing 9.6%
Education 9.0%
Industrial Development Revenue 7.0%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax 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 by dividing the last
distribution per share (annualized) by the net asset value (NAV). (4)
Taxable-equivalent rates assume maximum 44.35% combined federal and state
income tax rate. (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) Portfolio
Statistics, Rating Distribution, and Largest Sectors are as of 2/29/00
only and may not be representative of the Portfolio's current or future
investments. Five largest sectors represent 47.7% of the Portfolio's net
assets. (7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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 MISSOURI MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The Missouri economy continued its steady expansion in 1999, with nearly
22,000 new jobs created. The fastest-growing sectors included construction,
trade, government and financial services. The state's February 2000
unemployment rate was 2.6%, down from 3.5% a year earlier.
- - Missouri's Department of Agriculture has helped create new opportunities
within the farm sector. Over the past two years, 70 new agribusinesses have
expanded or relocated in Missouri, creating 2,100 new jobs and nearly $600
million in new investment.
- - In an effort to encourage small business, Missouri's Department of Economic
Development has established a Microenterprise Loan Program. The program
provides communities with seed money to help stimulate the start-up of
information-based businesses.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -2.42% and -2.73%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.15 on February 29, 2000 from $9.63 on August 31, 1999, and the
reinvestment of $0.248 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $10.13 from $10.65, and the
reinvestment of $0.231 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$9.15 per share for Class A and $10.13 for Class B, the distribution rates
were 5.43% and 4.55%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.56% and 8.01%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.35% and
4.82%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.42% and 8.49%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Hospital bonds were the Portfolio's largest weighting at February 29, 2000
with an emphasis on quality institutions like Barnes-Jewish Hospital of St.
Louis. Barnes-Jewish was recently ranked 7th among the nation's leading
hospitals by U.S. News and World Report.
- - Management continued its efforts to diversify the Portfolio. One such
purchase was an issue for the St. Louis Science Center. The bond carries an
attractive 6.40% coupon and helped finance renovations for one of the city's
most frequently visited museums.
- - 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.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 51
- - Average Maturity: 19.7 years
- - Average Rating: AA-
- - Average Call: 8.4 years
- - Average Dollar Price: $91.07
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 12.4%
BB 3.5%
BBB 11.5%
A 15.0%
AA 16.4%
AAA 41.2%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -5.71% -6.49%
Five Years 4.78 4.15
Life of Fund+ 3.59 5.06
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -10.19% -10.97%
Five Years 3.77 3.82
Life of Fund+ 2.78 5.06
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 5/1/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Hospitals 15.9%
Industrial Development Revenue 12.6%
Insured - Hospital* 11.6%
Escrowed/Prerefunded 7.6%
Insured - Electric Utilities* 6.6%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.22% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 54.3% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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 NORTH CAROLINA MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - The North Carolina economy added 74,000 new jobs in 1999, as state domestic
product grew 3.8%. The financial service sector was the pacesetter, while
non-durable manufacturing continued its decade-long decline. The state's
February 2000 jobless rate was 3.4%, up slightly from the 3.1% rate of a
year earlier.
- - North Carolina's business climate was ranked first in the nation by SITE
SELECTION magazine. Companies poured $5.5 billion in new investment into the
state in 1999, with new businesses and expansions of existing businesses
accounting for more than 42,000 new jobs.
- - Research Triangle Park is viewed as an increasingly important state
resource. The Park has a $2.7 billion payroll. Its research and development
continue to spawn new technology-based businesses.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.48% and -1.88%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.88 on February 29, 2000 from $9.26 on August 31, 1999, and the
reinvestment of $0.243 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.55 from $9.96, and the
reinvestment of $0.223 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.88 per share for Class A and $9.55 for Class B, the distribution rates
were 5.48% and 4.66%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.83% and 8.36%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 4.92% and
4.39%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 8.83% and 7.88%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Paper and forest products companies maintain a high profile in North
Carolina. Not surprisingly, these companies constituted a significant
weighting among the Portfolio's industrial development revenue bonds,
including issues for International Paper Co., Champion International Corp.
and Weyerhaeser Co.
- - The Portfolio had a 10.8% weighting in electric utilities at February 29,
2000, with a significant exposure to joint-action power authorities. With
the restructuring of the state's utilities into separate generating and
distribution units, the debt of the older joint-action entities will likely
be pre-refunded at higher prices.
- - Call protection remained an important component of management's strategy. As
more bonds have reached early redemption dates, management increased call
protection to improve the Portfolio's performance characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 57
- - Average Maturity: 19.6 years
- - Average Rating: AA-
- - Average Call: 6.9 years
- - Average Dollar Price: $92.06
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 1.1%
BBB 18.3%
A 23.2%
AA 27.2%
AAA 30.2%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -4.59% -5.37%
Five Years 4.41 3.77
Life of Fund+ 3.23 4.48
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -9.12% -9.90%
Five Years 3.40 3.44
Life of Fund+ 2.43 4.48
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 10/23/91
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 14.4%
Housing 11.8%
Hospital 11.2%
Electric Utilities 10.8%
Transportation 7.0%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 44.28% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 55.2% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
10
<PAGE>
EATON VANCE OREGON MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Thomas M. Metzold
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - Following two quarters of virtually no growth, the Oregon economy picked up
strength in the fourth quarter of 1999. Construction, manufacturing and
services grew steadily, adding 11,500 jobs during the quarter. The February
2000 jobless rate was 4.9%, down from 6.0% a year ago.
- - The Oregon Tourism Commission has voiced concerns that higher energy prices
could hurt the state's $5.5 billion tourism industry. Gasoline prices in
Oregon are the highest in the nation, according to a survey by the American
Automobile Association.
- - With its increasing ties to the Pacific Rim, the Oregon economy registered a
strong recovery in exports in 1999. A rebound in the Asian economies
contributed to a 15.6% increase in exports over 1998.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.66% and -1.99%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.98 on February 29, 2000 from $9.38 on August 31, 1999, and the
reinvestment of $0.243 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.83 from $10.26, and the
reinvestment of $0.226 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.98 per share for Class A and $9.83 for Class B, the distribution rates
were 5.43% and 4.60%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.88% and 8.37%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.09% and
4.60%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 9.26% and 8.37%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Housing bonds - at 26.6% - remained the Portfolio's largest sector weighting
at February 29, 2000. The Portfolio had diversified investments in a wide
range of housing issues, including state, city, and county issuers for
single-family, multi-family and elderly and disabled housing projects.
- - Paper and forest product companies contribute significantly to the Oregon
economy. The Portfolio had investments in bonds that financed projects for
several industry leaders, including Georgia-Pacific and James River Corp.
- - The Oregon municipal market was characterized by fairly light issuance and
quiet trading. Management maintained a relative value approach, making
adjustments to take advantage of higher yielding opportunities while
continuing to upgrade call protection.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 50
- - Average Maturity: 21.2 years
- - Average Rating: AA-
- - Average Call: 6.0 years
- - Average Dollar Price: $92.11
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 11.3%
BBB 11.6%
A 9.2%
AA 43.2%
AAA 24.7%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -3.94% -4.72%
Five Years 4.41 3.81
Life of Fund+ 3.28 4.72
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -8.50% -9.28%
Five Years 3.41 3.48
Life of Fund+ 2.47 4.72
</TABLE>
+Inception date: Class A: 12/28/93; Class B: 12/24/91
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Housing 26.6%
General Obligations 15.1%
Industrial Development Revenue 11.9%
Insured - Electric Utilities* 8.5%
Electric Utilities 5.5%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 45.04% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 67.6% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
11
<PAGE>
EATON VANCE SOUTH CAROLINA MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Thomas J. Fetter
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - South Carolina enjoyed continued economic growth in 1999, with gross state
product rising 3.9%. The construction sector was especially strong, with
some contractors turning down projects due to labor shortages. The state's
February 2000 jobless rate was 4.1%, down from 4.4% a year earlier.
- - A fierce debate continues over the proposed Global Gateway Project in
Charleston Harbor. Advocates argue that, while altering the landscape, the
1,300-acre shipping terminal will strengthen the region's link with global
markets and add 14,000 new maritime jobs.
- - Retail trade in South Carolina enjoyed a surge in the fourth quarter of
1999. Retail sales rose 6.5%, boosted by a 11.4% rise in auto sales.
Separately, new business starts increased 22.7%, with 1,063 new ventures.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.96% and -2.38%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.89 on February 29, 2000 from $9.32 on August 31, 1999, and the
reinvestment of $0.247 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.44 from $9.90, and the
reinvestment of $0.225 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.89 per share for Class A and $9.44 for Class B, the distribution rates
were 5.60% and 4.79%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.97% and 8.53%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 5.05% and
4.57%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 8.99% and 8.14%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Industrial development revenue bonds (IDBs) were the Portfolio's largest
sector weighting at February 29, 2000. The Portfolio's IDBs helped finance
projects for a broad range of industries, including paper, chemicals, steel
and energy.
- - The Portfolio's largest holding was an escrowed issue of the Myrtle Beach
Convention Center. The bond, which helped finance the new 101,000 square
feet facility, is pre-refunded to July 2002 and carries an attractive 6.875%
coupon. Escrowed bonds performed well on a relative basis during the past
year's market decline.
- - 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.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 42
- - Average Maturity: 20.2 years
- - Average Rating: AA-
- - Average Call: 5.5 years
- - Average Dollar Price: $93.02
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 6.7%
BBB 12.2%
A 28.8%
AA 16.3%
AAA 36.0%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -6.26% -6.93%
Five Years 4.15 3.67
Life of Fund+ 3.05 3.99
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -10.72% -11.38%
Five Years 3.15 3.34
Life of Fund+ 2.23 3.99
</TABLE>
+Inception date: Class A: 2/14/94; Class B: 10/2/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 19.1%
Insured - Electric Utilities* 12.3%
Electric Utilities 9.0%
Housing 8.9%
Insured - Hospital* 7.7%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.83% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 57.0% of the Portfolio's net assets. (7)
Returns are historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual
returns for Class A reflect the maximum 4.75% sales charge. SEC average
annual returns for Class B reflect applicable CDSC based on the following
schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th
year; 1% - 6th year. *Private insurance does not remove the interest rate
risks associated with these investments.
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.
12
<PAGE>
EATON VANCE TENNESSEE MUNICIPALS FUND as of February 29,2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - Reflecting a robust regional economy, Tennessee posted strong job growth in
1999. The service sector led the way, with notable strength in health care
and lodging. A strong auto industry moderated the manufacturing sector's
losses. The February 2000 jobless rate was 3.4%, down from 4.3% a year ago.
- - Nashville and Chattanooga were among the nation's 50 favorite cities for
expansion, according to EXPANSION MANAGEMENT magazine. Chattanooga is
focusing its efforts on its 7,000-acre Volunteer Site, a former Army
ammunitions plant being retooled for business use.
- - Tennessee reaped $6 billion in new business investment in 1999. The state's
Industrial Infrastructure Program grants have helped lure many companies,
including Dell Computer, which added 3,000 jobs in its first year of
operation in the state.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.04% and -1.38%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.12 on February 29, 2000 from $9.46 on August 31, 1999, and the
reinvestment of $0.241 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.92 from $10.28, and the
reinvestment of $0.218 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$9.12 per share for Class A and $9.92 for Class B, the distribution rates
were 5.30% and 4.39%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.33% and 7.73%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 4.92% and
4.50%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 8.67% and 7.93%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - Industrial development revenue bonds (IDBs) remained the Portfolio's largest
sector weighting at February 29, 2000. The Portfolio's IDBs included bonds
that financed projects for Tyson Foods, auto maker Saturn Corp. and chemical
giant E. I. DuPont de Nemours.
- - In a difficult market environment, management used the market sell-off as an
occasion to sell higher-coupon Tennessee housing bonds, which had performed
well on a relative basis. The proceeds were used to find opportunities
elsewhere and to add more liquid bonds to the Portfolio.
- - 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.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 47
- - Average Maturity: 20.2 years
- - Average Rating: AA-
- - Average Call: 7.4 years
- - Average Dollar Price: $96.23
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 5.5%
BBB 12.6%
A 21.1%
AA 21.6%
AAA 39.2%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -3.44% -4.20%
Five Years 4.97 4.31
Life of Fund+ 3.65 4.81
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -8.07% -8.80%
Five Years 3.96 3.97
Life of Fund+ 2.84 4.81
</TABLE>
+Inception date: Class A: 12/9/93; Class B: 8/25/92
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 23.7%
Housing 11.2%
Insured - Electric Utilities* 6.8%
Hospital 6.2%
Escrowed/Prerefunded 5.7%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.22% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 53.6% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
13
<PAGE>
EATON VANCE VIRGINIA MUNICIPALS FUND as of February 29, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- --------------------------------------------------------------------------------
- - Virginia's economy posted strong growth in 1999, with technology and
information-based jobs contributing greatly to employment growth.
Construction remained strong, reflecting the area's brisk housing market.
Virginia's February 2000 unemployment rate was 2.7%, unchanged from a year
ago.
- - Virginia, which is home to Internet service providers America Online,
PSINet, Inc. and UUNET Technologies, has seen a surge of information-based
jobs. It's estimated that one-half of all e-mail messages pass through
Virginia on their way from sender to receiver.
- - In the wake of apparel industry layoffs, Martinsville and the Southern
Virginia Economic Development Partnership are trying to lure new jobs. City
officials are hoping an offer of free rent will attract a technology company
with 45-50 jobs in the $30,000-range.
THE FUND
- --------------------------------------------------------------------------------
- - During the six months ended February 29, 2000, the Fund's Class A and Class
B shares had total returns of -1.89% and -2.33%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.88 on February 29, 2000 from $9.30 on August 31, 1999, and the
reinvestment of $0.244 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.82 from $10.29, and the
reinvestment of $0.231 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on February 29, 2000 of
$8.88 per share for Class A and $9.82 for Class B, the distribution rates
were 5.52% and 4.69%, respectively.(3) The distribution rates of Class A and
Class B are equivalent to taxable rates of 9.70% and 8.24%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at February 29 were 4.87% and
4.38%, respectively.(5) The SEC 30-day yields of Class A and Class B are
equivalent to taxable rates of 8.55% and 7.69%.(4)
MANAGEMENT UPDATE
- --------------------------------------------------------------------------------
- - We are pleased to announce that, as of January 17, 2000, Robert B. MacIntosh
became the portfolio manager of Eaton Vance Virginia Municipals Fund. Mr.
MacIntosh is a Vice President of Eaton Vance.
- - Industrial development revenue bonds (IDBs) have historically constituted a
large portion of Virginia municipal issuance. The Portfolio's IDBs included
issues that financed projects for chemical manufacturer Hoechst Celanese
Corp., linerboard producer Nekoosa Packaging and brewer Anheuser-Busch.
- - The Portfolio`s escrowed bonds performed well on a relative basis during the
market decline. Recently, management has sold some of these pre-refunded
bonds and used the proceeds to purchase selected higher-yielding issues.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS(6)
- --------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 65
- - Average Maturity: 21.1 years
- - Average Rating: AA-
- - Average Call: 7.8 years
- - Average Dollar Price: $94.86
</TABLE>
<TABLE>
<CAPTION>
RATING DISTRIBUTION(6)
- --------------------------------------------------------------------------------
[PIE CHART]
<S> <C>
Non-Rated 6.4%
BBB 14.2%
AA 18.8%
AA 20.0%
AAA 40.6%
</TABLE>
- --------------------------------------------------------------------------------
FUND INFORMATION
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
PERFORMANCE(7) CLASS A CLASS B
- --------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- --------------------------------------------------------------------------------
<S> <C> <C>
One Year -4.66% -5.54%
Five Years 4.54 3.93
Life of Fund+ 3.32 4.89
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------------------------------------
One Year -9.19% -10.05%
Five Years 3.53 3.59
Life of Fund+ 2.51 4.89
</TABLE>
+Inception date: Class A: 12/17/93; Class B: 7/26/91
<TABLE>
<CAPTION>
5 LARGEST SECTORS(6)
- --------------------------------------------------------------------------------
By net assets
<S> <C>
Industrial Development Revenue 20.8%
Escrowed/Prerefunded 15.1%
Insured - Water & Sewer* 12.3%
Insured - Hospital* 7.7%
Hospital 6.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charges (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income tax and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 43.07% combined federal and state income tax rate.
(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) Portfolio Statistics,
Rating Distribution, and Largest Sectors are as of 2/29/00 only and may
not be representative of the Portfolio's current or future investments.
Five largest sectors represent 62.2% of the Portfolio's net assets.
(7)Returns are historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. *Private insurance does not remove the
interest rate risks associated with these investments.
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.
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $72,852,557 $45,317,044 $61,809,434 $85,640,325
Unrealized appreciation
(depreciation) (2,316,891) (645,189) (2,651,199) (475,110)
- --------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $70,535,666 $44,671,855 $59,158,235 $85,165,215
- --------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 155,304 $ -- $ -- $ 10,000
- --------------------------------------------------------------------------------------------------
TOTAL ASSETS $70,690,970 $44,671,855 $59,158,235 $85,175,215
- --------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 412,970 $ 173,738 $ 10,617 $ 674,787
Dividends payable 136,862 84,458 110,427 153,884
Payable to affiliate for Trustees' fees 35 -- 35 --
Accrued expenses 46,935 30,867 52,155 38,012
- --------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 596,802 $ 289,063 $ 173,234 $ 866,683
- --------------------------------------------------------------------------------------------------
NET ASSETS $70,094,168 $44,382,792 $58,985,001 $84,308,532
- --------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------
Paid-in capital $74,274,126 $47,003,155 $67,502,824 $87,246,583
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (1,735,661) (1,878,372) (5,703,494) (2,270,971)
Accumulated distributions in excess
of net investment income (127,406) (96,802) (163,130) (191,970)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (2,316,891) (645,189) (2,651,199) (475,110)
- --------------------------------------------------------------------------------------------------
TOTAL $70,094,168 $44,382,792 $58,985,001 $84,308,532
- --------------------------------------------------------------------------------------------------
Class A Shares
- --------------------------------------------------------------------------------------------------
NET ASSETS $ 5,977,889 $ 4,293,233 $ 2,412,894 $ 5,731,556
SHARES OUTSTANDING 664,876 467,289 281,072 636,015
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.99 $ 9.19 $ 8.58 $ 9.01
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.44 $ 9.65 $ 9.01 $ 9.46
- --------------------------------------------------------------------------------------------------
Class B Shares
- --------------------------------------------------------------------------------------------------
NET ASSETS $64,116,279 $40,089,559 $56,572,107 $78,576,976
SHARES OUTSTANDING 6,485,956 4,071,332 6,170,091 8,099,247
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.89 $ 9.85 $ 9.17 $ 9.70
- --------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $30,402,246 $90,879,242 $60,100,657 $113,451,829
Unrealized appreciation
(depreciation) (1,337,250) (6,549,698) (1,306,664) 416,020
- -----------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $29,064,996 $84,329,544 $58,793,993 $113,867,849
- -----------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ -- $ 41,051 $ 150 $ 10,622
- -----------------------------------------------------------------------------------------------------------
TOTAL ASSETS $29,064,996 $84,370,595 $58,794,143 $113,878,471
- -----------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 250,589 $ 111,920 $ 93,580 $ 94,067
Dividends payable 48,345 136,509 103,952 218,251
Payable to affiliate for Trustees' fees -- -- -- 98
Accrued expenses 13,784 57,335 26,049 71,745
- -----------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 312,718 $ 305,764 $ 223,581 $ 384,161
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $28,752,278 $84,064,831 $58,570,562 $113,494,310
- -----------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------
Paid-in capital $32,623,527 $90,956,275 $60,424,537 $122,120,839
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (2,459,767) (34,718) (712,488) (8,813,366)
Accumulated undistributed
(distributions in excess of) net
investment income (74,232) (307,028) 165,177 (229,183)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of
identified cost) (1,337,250) (6,549,698) (1,306,664) 416,020
- -----------------------------------------------------------------------------------------------------------
TOTAL $28,752,278 $84,064,831 $58,570,562 $113,494,310
- -----------------------------------------------------------------------------------------------------------
Class A Shares
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,213,798 $ 3,066,603 $ 3,772,037 $ 12,794,855
SHARES OUTSTANDING 479,747 347,709 412,029 1,441,174
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.78 $ 8.82 $ 9.15 $ 8.88
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.22 $ 9.26 $ 9.61 $ 9.32
- -----------------------------------------------------------------------------------------------------------
Class B Shares
- -----------------------------------------------------------------------------------------------------------
NET ASSETS $24,538,480 $80,998,228 $54,798,525 $100,699,455
SHARES OUTSTANDING 2,641,721 8,404,382 5,411,946 10,541,208
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.29 $ 9.64 $ 10.13 $ 9.55
- -----------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $86,124,677 $37,933,577 $45,470,322 $122,922,249
Unrealized appreciation
(depreciation) (2,049,043) (844,531) (478,632) (2,157,455)
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT IN PORTFOLIO, AT VALUE $84,075,634 $37,089,046 $44,991,690 $120,764,794
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 15,095 $ 119,529 $ 2,058 $ 30,650
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSETS $84,090,729 $37,208,575 $44,993,748 $120,795,444
- ---------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 192,700 $ 43,550 $ 47,624 $ 760,862
Dividends payable 150,915 69,349 75,214 217,015
Accrued expenses 40,439 24,688 21,231 92,986
- ---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 384,054 $ 137,587 $ 144,069 $ 1,070,863
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $83,706,675 $37,070,988 $44,849,679 $119,724,581
- ---------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $88,859,653 $41,532,320 $46,937,783 $126,606,883
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (3,080,960) (3,650,085) (1,583,591) (4,444,267)
Accumulated undistributed
(distributions in excess of) net
investment income (22,975) 33,284 (25,881) (280,580)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (2,049,043) (844,531) (478,632) (2,157,455)
- ---------------------------------------------------------------------------------------------------------
TOTAL $83,706,675 $37,070,988 $44,849,679 $119,724,581
- ---------------------------------------------------------------------------------------------------------
Class A Shares
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $ 2,579,142 $ 1,413,140 $ 3,382,778 $ 3,393,654
SHARES OUTSTANDING 287,123 159,001 371,056 382,377
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.98 $ 8.89 $ 9.12 $ 8.88
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.43 $ 9.33 $ 9.57 $ 9.32
- ---------------------------------------------------------------------------------------------------------
Class B Shares
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $81,127,533 $35,657,848 $41,466,901 $116,330,927
SHARES OUTSTANDING 8,256,470 3,778,413 4,182,014 11,843,252
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.83 $ 9.44 $ 9.92 $ 9.82
- ---------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 2,274,566 $ 1,428,546 $ 2,020,962 $ 2,817,748
Expenses allocated from Portfolio (189,294) (110,432) (167,087) (229,244)
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 2,085,272 $ 1,318,114 $ 1,853,875 $ 2,588,504
- --------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,152 $ 107 $ 1,152 $ 1,112
Distribution and service fees
Class A 4,514 1,945 2,399 1,982
Class B 322,136 200,804 293,161 406,744
Legal and accounting services 14,761 14,759 14,759 15,875
Printing and postage 6,534 5,602 6,628 7,593
Custodian fee 5,318 3,582 4,596 6,291
Transfer and dividend disbursing agent
fees 27,735 16,436 22,517 33,402
Registration fees 1,918 2,499 1,301 998
Miscellaneous 9,328 8,698 9,456 10,584
- --------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 393,396 $ 254,432 $ 355,969 $ 484,581
- --------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,691,876 $ 1,063,682 $ 1,497,906 $ 2,103,923
- --------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- --------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (334,357) $ (276,649) $ (316,002) $ (343,912)
Financial futures contracts (1,157) 2,054 -- (5,213)
- --------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (335,514) $ (274,595) $ (316,002) $ (349,125)
- --------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,298,938) $(1,404,646) $(2,744,396) $(3,525,062)
- --------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(3,298,938) $(1,404,646) $(2,744,396) $(3,525,062)
- --------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,634,452) $(1,679,241) $(3,060,398) $(3,874,187)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,942,576) $ (615,559) $(1,562,492) $(1,770,264)
- --------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 925,820 $ 2,524,903 $ 1,985,196 $ 3,749,039
Expenses allocated from Portfolio (66,196) (216,691) (154,922) (307,926)
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 859,624 $ 2,308,212 $ 1,830,274 $ 3,441,113
- -----------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 112 $ 1,122 $ 1,132 $ 2,332
Distribution and service fees
Class A 3,492 4,158 2,010 11,495
Class B 124,570 401,667 274,914 505,190
Legal and accounting services 13,586 15,935 15,561 15,859
Printing and postage 2,075 7,784 3,692 8,910
Custodian fee 2,568 5,289 4,793 7,647
Transfer and dividend disbursing agent
fees 14,342 33,648 27,375 40,141
Registration fees 1,240 2,963 648 --
Miscellaneous 6,080 10,743 7,779 11,649
- -----------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 168,065 $ 483,309 $ 337,904 $ 603,223
- -----------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 691,559 $ 1,824,903 $ 1,492,370 $ 2,837,890
- -----------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- -----------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (396,059) $ 158,757 $ 169,101 $ (223,571)
Financial futures contracts -- 1,051 -- --
- -----------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (396,059) $ 159,808 $ 169,101 $ (223,571)
- -----------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(1,167,801) $(4,224,250) $(3,547,660) $(4,914,981)
- -----------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(1,167,801) $(4,224,250) $(3,547,660) $(4,914,981)
- -----------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,563,860) $(4,064,442) $(3,378,559) $(5,138,552)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (872,301) $(2,239,539) $(1,886,189) $(2,300,662)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $2,708,547 $ 1,238,527 $ 1,406,800 $ 3,995,277
Expenses allocated from Portfolio (220,049) (87,370) (104,358) (345,756)
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $2,488,498 $ 1,151,157 $ 1,302,442 $ 3,649,521
- ---------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,122 $ 107 $ 112 $ 2,234
Distribution and service fees
Class A 1,713 1,547 2,801 3,807
Class B 393,658 177,290 202,420 588,154
Legal and accounting services 15,389 14,760 14,989 15,813
Printing and postage 5,788 5,263 3,307 9,682
Custodian fee 6,241 2,610 3,668 7,990
Transfer and dividend disbursing agent
fees 34,990 13,363 18,570 46,525
Registration fees 910 -- 1,800 500
Miscellaneous 11,236 8,297 7,215 13,012
- ---------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 471,047 $ 223,237 $ 254,882 $ 687,717
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $2,017,451 $ 927,920 $ 1,047,560 $ 2,961,804
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 19,641 $ (153,588) $ 8,052 $ 243,632
Financial futures contracts -- 9,880 -- 5,868
- ---------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 19,641 $ (143,708) $ 8,052 $ 249,500
- ---------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,895,935) $(1,791,936) $(1,777,280) $(6,345,569)
- ---------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(3,895,935) $(1,791,936) $(1,777,280) $(6,345,569)
- ---------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,876,294) $(1,935,644) $(1,769,228) $(6,096,069)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,858,843) $(1,007,724) $ (721,668) $(3,134,265)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,691,876 $ 1,063,682 $ 1,497,906 $ 2,103,923
Net realized gain (loss) (335,514) (274,595) (316,002) (349,125)
Net change in unrealized
appreciation (depreciation) (3,298,938) (1,404,646) (2,744,396) (3,525,062)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,942,576) $ (615,559) $ (1,562,492) $ (1,770,264)
- --------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (157,991) $ (104,708) $ (65,790) $ (67,327)
Class B (1,534,340) (957,609) (1,432,116) (2,036,405)
In excess of net investment income
Class A (1,320) (1,474) (2,243) --
Class B (11,464) -- (25,942) (8,968)
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(1,705,115) $(1,063,791) $ (1,526,091) $ (2,112,700)
- --------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 970,500 $ 1,028,599 $ 182,511 $ 4,645,745
Class B 3,034,489 738,202 1,455,986 624,644
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 55,396 22,727 22,647 33,843
Class B 695,373 495,020 600,541 1,026,473
Cost of shares redeemed
Class A (955,489) (790,973) (229,657) (276,412)
Class B (11,731,996) (5,675,300) (10,944,857) (15,254,416)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(7,931,727) $(4,181,725) $ (8,912,829) $ (9,200,123)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(11,579,418) $(5,861,075) $(12,001,412) $(13,083,087)
- --------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------
At beginning of period $81,673,586 $50,243,867 $ 70,986,413 $ 97,391,619
- --------------------------------------------------------------------------------------------------
AT END OF PERIOD $70,094,168 $44,382,792 $ 58,985,001 $ 84,308,532
- --------------------------------------------------------------------------------------------------
Accumulated distributions in excess
of net investment income included in net assets
- --------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (127,406) $ (96,802) $ (163,130) $ (191,970)
- --------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 691,559 $ 1,824,903 $ 1,492,370 $ 2,837,890
Net realized gain (loss) (396,059) 159,808 169,101 (223,571)
Net change in unrealized
appreciation (depreciation) (1,167,801) (4,224,250) (3,547,660) (4,914,981)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (872,301) $ (2,239,539) $(1,886,189) $ (2,300,662)
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (115,895) $ (87,568) $ (116,596) $ (346,914)
Class B (577,073) (1,737,335) (1,315,365) (2,466,023)
In excess of net investment income
Class A (1,281) (6,859) -- --
Class B (9,135) (123,908) -- --
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (703,384) $ (1,955,670) $(1,431,961) $ (2,812,937)
- -----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,677,130 $ 1,373,748 $ 449,607 $ 1,335,605
Class B 944,700 2,406,937 805,046 1,351,537
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 80,463 54,336 66,936 102,432
Class B 197,310 873,709 642,572 1,151,980
Cost of shares redeemed
Class A (1,424,057) (1,747,833) (1,201,461) (795,626)
Class B (3,791,579) (9,595,077) (7,035,733) (13,344,608)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(2,316,033) $ (6,634,180) $(6,273,033) $(10,198,680)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,891,718) $(10,829,389) $(9,591,183) $(15,312,279)
- -----------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------
At beginning of period $32,643,996 $ 94,894,220 $68,161,745 $128,806,589
- -----------------------------------------------------------------------------------------------------------
AT END OF PERIOD $28,752,278 $ 84,064,831 $58,570,562 $113,494,310
- -----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -----------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (74,232) $ (307,028) $ 165,177 $ (229,183)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,017,451 $ 927,920 $ 1,047,560 $ 2,961,804
Net realized gain (loss) 19,641 (143,708) 8,052 249,500
Net change in unrealized
appreciation (depreciation) (3,895,935) (1,791,936) (1,777,280) (6,345,569)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,858,843) $(1,007,724) $ (721,668) $ (3,134,265)
- ----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (68,810) $ (42,782) $ (79,442) $ (99,275)
Class B (1,935,537) (895,649) (942,907) (2,862,529)
In excess of net investment income
Class A -- -- (516) (2,370)
Class B -- -- -- (22,161)
- ----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (2,004,347) $ (938,431) $(1,022,865) $ (2,986,335)
- ----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 416,463 $ 270,123 $ 1,114,033 $ 1,904,069
Class B 3,478,436 1,348,212 1,143,629 2,613,347
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 25,150 15,524 49,832 64,792
Class B 1,036,140 371,623 448,627 1,384,818
Cost of shares redeemed
Class A (413,304) (548,364) (538,682) (1,940,502)
Class B (10,926,120) (6,797,012) (4,882,647) (15,231,978)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (6,383,235) $(5,339,894) $(2,665,208) $(11,205,454)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,246,425) $(7,286,049) $(4,409,741) $(17,326,054)
- ----------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------
At beginning of period $ 93,953,100 $44,357,037 $49,259,420 $137,050,635
- ----------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 83,706,675 $37,070,988 $44,849,679 $119,724,581
- ----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ----------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (22,975) $ 33,284 $ (25,881) $ (280,580)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA FUND ARKANSAS FUND GEORGIA FUND KENTUCKY FUND
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,716,975 $ 2,273,316 $ 3,426,894 $ 4,643,930
Net realized gain (loss) 1,822,633 765,766 1,152,983 987,147
Net change in unrealized
appreciation (depreciation) (7,171,552) (3,759,621) (7,104,170) (6,310,408)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,631,944) $ (720,539) $ (2,524,293) $ (679,331)
- --------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (273,893) $ (134,735) $ (120,402) $ (66,923)
Class B (3,448,983) (2,138,581) (3,306,492) (4,577,007)
In excess of net investment income
Class A -- (1,553) (2,744) (1,279)
Class B (103,265) (24,429) (69,736) (73,211)
- --------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(3,826,141) $(2,299,298) $ (3,499,374) $ (4,718,420)
- --------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,728,724 $ 3,455,084 $ 1,076,371 $ 303,922
Class B 5,603,743 2,226,973 4,887,411 5,902,302
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 138,087 38,595 65,272 52,077
Class B 1,798,421 1,107,738 1,475,296 2,414,303
Cost of shares redeemed
Class A (433,969) (391,394) (425,348) (201,869)
Class B (16,164,402) (9,115,134) (16,942,132) (17,998,919)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(7,329,396) $(2,678,138) $ (9,863,130) $ (9,528,184)
- --------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(12,787,481) $(5,697,975) $(15,886,797) $(14,925,935)
- --------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------
At beginning of year $94,461,067 $55,941,842 $ 86,873,210 $112,317,554
- --------------------------------------------------------------------------------------------------
AT END OF YEAR $81,673,586 $50,243,867 $ 70,986,413 $ 97,391,619
- --------------------------------------------------------------------------------------------------
Accumulated distributions in excess
of net investment income included in net assets
- --------------------------------------------------------------------------------------------------
AT END OF YEAR $ (114,167) $ (96,693) $ (134,945) $ (183,193)
- --------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA FUND MARYLAND FUND MISSOURI FUND NORTH CAROLINA FUND
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,489,224 $ 4,102,202 $ 3,108,763 $ 6,137,956
Net realized gain (loss) (132,083) 1,057,195 531,101 1,052,274
Net change in unrealized
appreciation (depreciation) (2,534,220) (9,405,694) (5,290,347) (10,001,534)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,177,079) $ (4,246,297) $(1,650,483) $ (2,811,304)
- -----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (226,135) $ (109,175) $ (188,860) $ (659,797)
Class B (1,263,089) (3,993,027) (2,883,597) (5,478,159)
In excess of net investment income
Class A (6,814) (6,852) -- (5,970)
Class B (59,171) (236,051) -- (100,614)
- -----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(1,555,209) $ (4,345,105) $(3,072,457) $ (6,244,540)
- -----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,106,212 $ 3,289,092 $ 3,030,569 $ 1,198,422
Class B 3,037,552 8,242,955 4,126,558 5,852,796
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 80,885 60,937 120,445 196,774
Class B 592,446 2,104,432 1,442,178 2,704,594
Cost of shares redeemed
Class A (1,633,134) (1,146,216) (847,082) (798,040)
Class B (4,229,343) (13,997,652) (9,239,481) (23,584,395)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(1,045,382) $ (1,446,452) $(1,366,813) $(14,429,849)
- -----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,777,670) $(10,037,854) $(6,089,753) $(23,485,693)
- -----------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------
At beginning of year $36,421,666 $104,932,074 $74,251,498 $152,292,282
- -----------------------------------------------------------------------------------------------------------
AT END OF YEAR $32,643,996 $ 94,894,220 $68,161,745 $128,806,589
- -----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- -----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (62,407) $ (176,261) $ 104,768 $ (254,136)
- -----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON FUND SOUTH CAROLINA FUND TENNESSEE FUND VIRGINIA FUND
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,193,694 $ 2,132,390 $ 2,231,602 $ 6,177,245
Net realized gain (loss) 1,043,805 (175,546) 111,739 1,479,464
Net change in unrealized
appreciation (depreciation) (6,028,924) (3,664,757) (2,876,878) (9,945,786)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (791,425) $(1,707,913) $ (533,537) $ (2,289,077)
- ----------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (75,205) $ (88,628) $ (188,489) $ (135,278)
Class B (4,117,449) (2,043,137) (2,025,466) (6,041,967)
In excess of net investment income
Class A -- -- -- (521)
Class B (28,994) -- -- (130,541)
- ----------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (4,221,648) $(2,131,765) $(2,213,955) $ (6,308,307)
- ----------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 2,074,921 $ 1,093,370 $ 870,700 $ 2,275,635
Class B 8,483,806 5,463,697 4,407,750 9,796,312
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 47,100 48,765 129,366 76,553
Class B 2,313,890 877,041 1,019,918 3,097,056
Cost of shares redeemed
Class A (273,367) (554,261) (1,325,138) (753,738)
Class B (17,165,026) (8,609,880) (6,597,919) (19,862,551)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (4,518,676) $(1,681,268) $(1,495,323) $ (5,370,733)
- ----------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,531,749) $(5,520,946) $(4,242,815) $(13,968,117)
- ----------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------
At beginning of year $103,484,849 $49,877,983 $53,502,235 $151,018,752
- ----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 93,953,100 $44,357,037 $49,259,420 $137,050,635
- ----------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
- ----------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (36,079) $ 43,795 $ (50,576) $ (256,049)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALABAMA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.430 $10.040 $ 9.860
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.240 $ 0.481 $ 0.493
Net realized and unrealized
gain (loss) (0.438) (0.599) 0.181
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.198) $(0.118) $ 0.674
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.240) $(0.492) $(0.494)
In excess of net investment
income (0.002) -- --
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.242) $(0.492) $(0.494)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.990 $ 9.430 $10.040
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (2.10)% (1.29)% 6.98%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 5,978 $ 6,198 $ 5,140
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.84%(4) 0.77% 0.78%
Expenses after custodian
fee reduction(3) 0.84%(4) 0.76% 0.76%
Net investment income 5.26%(4) 4.87% 4.93%
Portfolio Turnover of the
Portfolio 5% 23% 23%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ALABAMA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.370 $11.040 $10.850 $10.460 $ 10.440 $ 10.210
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.224 $ 0.447 $ 0.455 $ 0.469 $ 0.470 $ 0.479
Net realized and unrealized
gain (loss) (0.478) (0.657) 0.200 0.386 0.030 0.244
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.254) $(0.210) $ 0.655 $ 0.855 $ 0.500 $ 0.723
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.224) $(0.447) $(0.464) $(0.465) $ (0.480) $ (0.479)
In excess of net investment
income (0.002) (0.013) (0.001) -- -- (0.014)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.226) $(0.460) $(0.465) $(0.465) $ (0.480) $ (0.493)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.890 $10.370 $11.040 $10.850 $ 10.460 $ 10.440
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (2.45)% (2.02)% 6.17% 8.33% 4.85% 7.38%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $64,116 $75,475 $89,321 $96,154 $101,692 $108,642
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.63%(5) 1.54% 1.57% 1.60% 1.57% 1.51%
Expenses after custodian
fee reduction(3) 1.63%(5) 1.53% 1.55% 1.59% 1.52% --
Net investment income 4.49%(5) 4.11% 4.15% 4.39% 4.44% 4.74%
Portfolio Turnover of the
Portfolio 5% 23% 23% 23% 52% 51%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARKANSAS FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.510 $10.070 $ 9.810
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.245 $ 0.497 $ 0.492
Net realized and unrealized
gain (loss) (0.317) (0.555) 0.272
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.072) $(0.058) $ 0.764
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.245) $(0.497) $(0.492)
In excess of net investment
income (0.003) (0.005) (0.012)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.248) $(0.502) $(0.504)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.190 $ 9.510 $10.070
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (0.74)% (0.67)% 7.95%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 4,293 $ 4,167 $ 1,286
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.79%(4) 0.71% 0.73%
Expenses after custodian
fee reduction(3) 0.79%(4) 0.69% 0.72%
Net investment income 5.29%(4) 4.94% 4.93%
Portfolio Turnover of the
Portfolio 12% 24% 13%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARKANSAS FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.190 $10.800 $10.510 $10.190 $10.250 $10.140
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.296 $ 0.443 $ 0.442 $ 0.445 $ 0.450 $ 0.460
Net realized and unrealized
gain (loss) (0.338) (0.605) 0.298 0.324 (0.038) 0.132
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.042) $(0.162) $ 0.740 $ 0.769 $ 0.412 $ 0.592
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.298) $(0.443) $(0.442) $(0.445) $(0.471) $(0.460)
In excess of net investment
income -- (0.005) (0.008) (0.004) (0.001) (0.022)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.298) $(0.448) $(0.450) $(0.449) $(0.472) $(0.482)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.850 $10.190 $10.800 $10.510 $10.190 $10.250
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (1.15)% (1.60)% 7.19% 7.70% 4.05% 6.15%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $40,090 $46,077 $54,655 $61,322 $72,868 $80,823
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.64%(5) 1.56% 1.53% 1.60% 1.56% 1.50%
Expenses after custodian
fee reduction(3) 1.64%(5) 1.54% 1.52% 1.59% 1.54% --
Net investment income 4.50%(5) 4.17% 4.14% 4.31% 4.34% 4.67%
Portfolio Turnover of the
Portfolio 12% 24% 13% 17% 11% 23%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GEORGIA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 8.990 $ 9.730 $ 9.500
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.232 $ 0.476 $ 0.476
Net realized and unrealized
gain (loss) (0.402) (0.730) 0.245
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.170) $(0.254) $ 0.721
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.232) $(0.476) $(0.484)
In excess of net investment
income (0.008) (0.010) (0.007)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.240) $(0.486) $(0.491)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.580 $ 8.990 $ 9.730
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.89)% (2.78)% 7.75%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 2,413 $ 2,554 $ 2,043
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.90%(4) 0.80% 0.83%
Expenses after custodian
fee reduction(3) 0.90%(4) 0.76% 0.82%
Net investment income 5.36%(4) 4.97% 4.92%
Portfolio Turnover of the
Portfolio 12% 38% 19%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
GEORGIA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.600 $10.380 $10.140 $ 9.810 $ 9.790 $ 9.800
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.213 $ 0.433 $ 0.434 $ 0.449 $ 0.451 $ 0.450
Net realized and unrealized
gain (loss) (0.426) (0.771) 0.261 0.336 0.024 0.007(2)
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.213) $(0.338) $ 0.695 $ 0.785 $ 0.475 $ 0.457
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.213) $(0.433) $(0.437) $(0.455) $ (0.455) $ (0.450)
In excess of net investment
income (0.004) (0.009) (0.018) -- -- (0.017)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.217) $(0.442) $(0.455) $(0.455) $ (0.455) $ (0.467)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.170 $ 9.600 $10.380 $10.140 $ 9.810 $ 9.790
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.21)% (3.44)% 7.00% 8.16% 4.91% 4.90%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $56,572 $68,432 $84,830 $93,128 $106,992 $120,143
Ratios (As a percentage of
average daily net assets):
Expenses(4)(5) 1.65%(6) 1.55% 1.56% 1.59% 1.58% 1.49%
Expenses after custodian
fee reduction(4) 1.65%(6) 1.51% 1.55% 1.57% 1.52% --
Net investment income 4.62%(6) 4.24% 4.22% 4.48% 4.55% 4.72%
Portfolio Turnover of the
Portfolio 12% 38% 19% 13% 21% 48%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) The per share amounts are not in accord with the net realized and
unrealized gain for the period because of the timing of sales of Fund
shares and the amount of the per share realized and unrealized gains and
losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(5) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.410 $ 9.910 $ 9.680
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.250 $ 0.493 $ 0.497
Net realized and unrealized
gain (loss) (0.400) (0.491) 0.235
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.150) $ 0.002 $ 0.732
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.250) $(0.493) $(0.497)
In excess of net investment
income -- (0.009) (0.005)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.250) $(0.502) $(0.502)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.010 $ 9.410 $ 9.910
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.59)% (0.05)% 7.72%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 5,732 $ 1,387 $ 1,303
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.78%(4) 0.83% 0.83%
Expenses after custodian
fee reduction(3) 0.76%(4) 0.81% 0.82%
Net investment income 5.29%(4) 5.03% 5.05%
Portfolio Turnover of the
Portfolio 6% 11% 15%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
KENTUCKY FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.120 $10.660 $ 10.410 $ 9.970 $ 9.990 $ 9.850
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.228 $ 0.453 $ 0.456 $ 0.456 $ 0.450 $ 0.458
Net realized and unrealized
gain (loss) (0.419) (0.533) 0.254 0.435 (0.009)(2) 0.163
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.191) $(0.080) $ 0.710 $ 0.891 $ 0.441 $ 0.621
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.228) $(0.453) $ (0.456) $ (0.451) $ (0.450) $ (0.458)
In excess of net investment
income (0.001) (0.007) (0.004) -- (0.011) (0.023)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.229) $(0.460) $ (0.460) $ (0.451) $ (0.461) $ (0.481)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.700 $10.120 $ 10.660 $ 10.410 $ 9.970 $ 9.900
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (1.88)% (0.84)% 6.97% 9.12% 4.45% 6.61%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $78,577 $96,005 $111,015 $121,376 $131,357 $143,106
Ratios (As a percentage of
average daily net assets):
Expenses(4)(5) 1.63%(6) 1.56% 1.57% 1.60% 1.57% 1.52%
Expenses after custodian
fee reduction(4) 1.61%(6) 1.54% 1.56% 1.57% 1.54% --
Net investment income 4.67%(6) 4.30% 4.32% 4.50% 4.45% 4.74%
Portfolio Turnover of the
Portfolio 6% 11% 15% 28% 28% 30%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) The per share amounts are not in accord with the net realized and
unrealized gain (loss) for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized
gains and losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(5) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.240 $ 9.990 $ 9.750
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.233 $ 0.486 $ 0.480
Net realized and unrealized
gain (loss) (0.457) (0.735) 0.294
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.224) $(0.249) $ 0.774
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.233) $(0.486) $(0.515)
In excess of net investment
income (0.003) (0.015) (0.019)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.236) $(0.501) $(0.534)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.780 $ 9.240 $ 9.990
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (2.42)% (2.73)% 8.13%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 4,214 $ 4,102 $ 4,886
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.87%(4) 0.63% 0.71%
Expenses after custodian
fee reduction(3) 0.85%(4) 0.60% 0.66%
Net investment income 5.19%(4) 4.93% 4.79%
Portfolio Turnover of the
Portfolio 12% 20% 43%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
LOUISIANA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.760 $10.570 $10.310 $ 9.960 $ 9.980 $10.010
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.207 $ 0.429 $ 0.436 $ 0.482 $ 0.486 $ 0.487
Net realized and unrealized
gain (loss) (0.467) (0.790) 0.306 0.350 (0.016) (0.006)(2)
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.260) $(0.361) $ 0.742 $ 0.832 $ 0.470 $ 0.481
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.207) $(0.429) $(0.446) $(0.482) $(0.490) $(0.487)
In excess of net investment
income (0.003) (0.020) (0.036) -- -- (0.024)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.210) $(0.449) $(0.482) $(0.482) $(0.490) $(0.511)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.290 $ 9.760 $10.570 $10.310 $ 9.960 $ 9.980
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (2.66)% (3.63)% 7.37% 8.52% 4.77% 5.08%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $24,538 $28,542 $31,536 $31,996 $32,994 $31,836
Ratios (As a percentage of
average daily net assets):
Expenses(4)(5) 1.67%(6) 1.47% 1.49% 1.54% 1.41% 1.31%
Expenses after custodian
fee reduction(4) 1.65%(6) 1.44% 1.44% 1.52% 1.34% --
Net investment income 4.43%(6) 4.08% 4.18% 4.74% 4.82% 4.97%
Portfolio Turnover of the
Portfolio 12% 20% 43% 27% 99% 46%
- --------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the 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 1.53% 1.42%
Expenses after custodian
fee reduction 1.45% --
Net investment income 4.70% 4.86%
Net investment income per
share $ 0.474 $ 0.470
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) The per share amounts are not in accord with the net realized and
unrealized gain (loss) for the period because of the timing of sales of
Fund shares and the amount of the per share realized and unrealized
gains and losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(5) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratios for the year ended August 31, 1995 have not been adjusted
to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MARYLAND FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.230 $10.050 $ 9.810
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.212 $ 0.451 $ 0.476
Net realized and unrealized
gain (loss) (0.393) (0.785) 0.262
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.181) $(0.334) $ 0.738
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.212) $(0.457) $(0.476)
In excess of net investment
income (0.017) (0.029) (0.022)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.229) $(0.486) $(0.498)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.820 $ 9.230 $10.050
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.95)% (3.47)% 7.68%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,067 $ 3,574 $ 1,625
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.91%(4) 0.81% 0.82%
Expenses after custodian
fee reduction(3) 0.89%(4) 0.78% 0.78%
Net investment income 4.80%(4) 4.65% 4.76%
Portfolio Turnover of the
Portfolio 7% 31% 30%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MARYLAND FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.080 $10.980 $ 10.710 $ 10.300 $ 10.230 $ 10.070
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.197 $ 0.425 $ 0.441 $ 0.453 $ 0.464 $ 0.476
Net realized and unrealized
gain (loss) (0.426) (0.874) 0.291 0.419 0.086 0.169
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.229) $(0.449) $ 0.732 $ 0.872 $ 0.550 $ 0.645
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.197) $(0.425) $ (0.447) $ (0.462) $ (0.480) $ (0.476)
In excess of net investment
income (0.014) (0.026) (0.015) -- -- (0.009)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.211) $(0.451) $ (0.462) $ (0.462) $ (0.480) $ (0.485)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.640 $10.080 $ 10.980 $ 10.710 $ 10.300 $ 10.230
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (2.25)% (4.25)% 6.98% 8.64% 5.44% 6.71%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $80,998 $91,321 $103,307 $105,671 $109,243 $113,826
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.63%(5) 1.58% 1.56% 1.57% 1.57% 1.50%
Expenses after custodian
fee reduction(3) 1.61%(5) 1.55% 1.52% 1.54% 1.55% --
Net investment income 4.08%(5) 3.98% 4.05% 4.30% 4.46% 4.82%
Portfolio Turnover of the
Portfolio 7% 31% 30% 30% 33% 30%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSOURI FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.630 $10.270 $ 9.930
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.258 $ 0.495 $ 0.503
Net realized and unrealized
gain (loss) (0.490) (0.638) 0.334
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.232) $(0.143) $ 0.837
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.248) $(0.497) $(0.497)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.150 $ 9.630 $10.270
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (2.42)% (1.52)% 8.61%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,772 $ 4,692 $ 2,665
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.78%(4) 0.72% 0.79%
Expenses after custodian
fee reduction(3) 0.78%(4) 0.70% 0.77%
Net investment income 5.57%(4) 5.10% 5.00%
Portfolio Turnover of the
Portfolio 8% 21% 11%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using 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
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MISSOURI FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.650 $11.380 $11.010 $10.510 $10.510 $10.240
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.240 $ 0.471 $ 0.477 $ 0.478 $ 0.476 $ 0.477
Net realized and unrealized
gain (loss) (0.530) (0.736) 0.364 0.493 0.003 0.289
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.290) $(0.265) $ 0.841 $ 0.971 $ 0.479 $ 0.766
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.230) $(0.465) $(0.471) $(0.471) $(0.476) $(0.477)
In excess of net investment
income -- -- -- -- (0.003) (0.019)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.230) $(0.465) $(0.471) $(0.471) $(0.479) $(0.496)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $10.130 $10.650 $11.380 $11.010 $10.510 $10.510
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (2.73)% (2.46)% 7.81% 9.42% 4.60% 7.82%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $54,799 $63,470 $71,586 $77,479 $82,385 $89,811
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.62%(5) 1.56% 1.56% 1.57% 1.56% 1.53%
Expenses after custodian
fee reduction(3) 1.62%(5) 1.54% 1.54% 1.56% 1.54% --
Net investment income 4.68%(5) 4.19% 4.25% 4.44% 4.47% 4.72%
Portfolio Turnover of the
Portfolio 8% 21% 11% 5% 36% 24%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using 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) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NORTH CAROLINA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.260 $ 9.880 $ 9.610
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.243 $ 0.483 $ 0.490
Net realized and unrealized
gain (loss) (0.380) (0.616) 0.282
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.137) $(0.133) $ 0.772
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.243) $(0.483) $(0.490)
In excess of net investment
income -- (0.004) (0.012)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.243) $(0.487) $(0.502)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.880 $ 9.260 $ 9.880
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.48)% (1.46)% 8.22%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $12,795 $12,697 $12,967
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.84%(4) 0.79% 0.83%
Expenses after custodian
fee reduction(3) 0.84%(4) 0.78% 0.80%
Net investment income 5.43%(4) 4.97% 5.03%
Portfolio Turnover of the
Portfolio 7% 3% 26%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NORTH CAROLINA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.960 $ 10.630 $ 10.340 $ 9.970 $ 9.960 $ 9.970
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.222 $ 0.438 $ 0.447 $ 0.452 $ 0.452 $ 0.466
Net realized and unrealized
gain (loss) (0.410) (0.662) 0.303 0.378 0.026 0.011(2)
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.188) $ (0.224) $ 0.750 $ 0.830 $ 0.478 $ 0.477
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.222) $ (0.438) $ (0.447) $ (0.455) $ (0.455) $ (0.466)
In excess of net investment
income -- (0.008) (0.013) (0.005) (0.013) (0.021)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.222) $ (0.446) $ (0.460) $ (0.460) $ (0.468) $ (0.487)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.550 $ 9.960 $ 10.630 $ 10.340 $ 9.970 $ 9.960
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN (1.88)% (2.24)% 7.42% 8.50% 4.83% 5.03%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $100,699 $116,110 $139,325 $151,564 $169,889 $188,450
Ratios (As a percentage of
average daily net assets):
Expenses 1.61%(6) 1.58% 1.58% 1.60% 1.59% 1.51%
Expenses after custodian
fee reduction 1.61%(6) 1.57% 1.55% 1.58% 1.54% --
Net investment income 4.66% 4.19% 4.26% 4.48% 4.47% 4.78%
Portfolio Turnover of the
Portfolio 7% 3% 26% 42% 54% 33%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) The per share amounts are not in accord with the net realized and
unrealized gain for the period because of the timing of sales of Fund
shares and the amount of the per share realized and unrealized gains and
losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(5) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OREGON FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.380 $ 9.870 $ 9.600
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.243 $ 0.489 $ 0.483
Net realized and unrealized
gain (loss) (0.400) (0.491) 0.275
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.157) $(0.002) $ 0.758
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.243) $(0.488) $(0.483)
In excess of net investment
income -- -- (0.005)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.243) $(0.488) $(0.488)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.980 $ 9.380 $ 9.870
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.66)% (0.11)% 8.08%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 2,579 $ 2,658 $ 914
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.82%(4) 0.71% 0.78%
Expenses after custodian
fee reduction(3) 0.81%(4) 0.70% 0.78%
Net investment income 5.37%(4) 5.02% 4.95%
Portfolio Turnover of the
Portfolio 15% 35% 9%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
OREGON FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.260 $10.800 $ 10.510 $ 10.240 $ 10.310 $ 10.090
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.226 $ 0.449 $ 0.450 $ 0.456 $ 0.450 $ 0.455
Net realized and unrealized
gain (loss) (0.431) (0.537) 0.292 0.266 (0.061) 0.241
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.205) $(0.088) $ 0.742 $ 0.722 $ 0.389 $ 0.696
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.225) $(0.449) $ (0.451) $ (0.452) $ (0.457) $ (0.455)
In excess of net investment
income -- (0.003) (0.001) -- (0.002) (0.021)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.225) $(0.452) $ (0.452) $ (0.452) $ (0.459) $ (0.476)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.830 $10.260 $ 10.800 $ 10.510 $ 10.240 $ 10.310
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (1.99)% (0.92)% 7.22% 7.20% 3.80% 7.22%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $81,128 $91,295 $102,571 $112,586 $128,580 $145,056
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.61%(5) 1.57% 1.56% 1.63% 1.56% 1.53%
Expenses after custodian
fee reduction(3) 1.60%(5) 1.56% 1.56% 1.63% 1.53% --
Net investment income 4.59%(5) 4.19% 4.22% 4.41% 4.33% 4.59%
Portfolio Turnover of the
Portfolio 15% 35% 9% 22% 28% 22%
- --------------------------------------------------------------------------------------------------------------------
</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) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SOUTH CAROLINA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED) 1999 1998
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.320 $10.090 $ 9.760
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.245 $ 0.490 $ 0.495
Net realized and unrealized
gain (loss) (0.427) (0.767) 0.328
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.182) $(0.277) $ 0.823
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.248) $(0.493) $(0.493)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.890 $ 9.320 $10.090
- -----------------------------------------------------------------------------
TOTAL RETURN(1) (1.96)% (2.91)% 8.62%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 1,413 $ 1,757 $ 1,316
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.89%(3) 0.78% 0.77%
Expenses after custodian
fee reduction(2) 0.87%(3) 0.75% 0.76%
Net investment income 5.40%(3) 4.98% 5.03%
Portfolio Turnover of the
Portfolio 8% 26% 21%
- -----------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
SOUTH CAROLINA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.900 $10.720 $10.380 $10.020 $10.000 $ 9.940
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.224 $ 0.448 $ 0.455 $ 0.463 $ 0.467 $ 0.460
Net realized and unrealized
gain (loss) (0.459) (0.820) 0.352 0.364 0.021 0.071
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.235) $(0.372) $ 0.807 $ 0.827 $ 0.488 $ 0.531
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.225) $(0.448) $(0.467) $(0.467) $(0.468) $(0.460)
In excess of net investment
income -- -- -- -- -- (0.011)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.225) $(0.448) $(0.467) $(0.467) $(0.468) $(0.471)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.440 $ 9.900 $10.720 $10.380 $10.020 $10.000
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) (2.38)% (3.63)% 7.96% 8.41% 4.92% 5.64%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $35,658 $42,600 $48,562 $52,686 $57,217 $59,955
Ratios (As a percentage of
average daily net assets):
Expenses(2)(3) 1.62%(4) 1.51% 1.52% 1.63% 1.60% 1.49%
Expenses after custodian
fee reduction(2) 1.60%(4) 1.48% 1.51% 1.62% 1.58% --
Net investment income 4.66%(4) 4.26% 4.30% 4.50% 4.60% 4.77%
Portfolio Turnover of the
Portfolio 8% 26% 21% 8% 36% 75%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(3) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TENNESSEE FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.460 $ 9.980 $ 9.740
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.238 $ 0.489 $ 0.491
Net realized and unrealized
gain (loss) (0.338) (0.519) 0.257
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.100) $(0.030) $ 0.748
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.238) $(0.490) $(0.491)
In excess of net investment
income (0.002) -- (0.017)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.240) $(0.490) $(0.508)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.120 $ 9.460 $ 9.980
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.04)% (0.39)% 7.85%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,383 $ 2,870 $ 3,413
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.84%(4) 0.70% 0.67%
Expenses after custodian
fee reduction(3) 0.84%(4) 0.69% 0.65%
Net investment income 5.19%(4) 4.96% 4.94%
Portfolio Turnover of the
Portfolio 8% 13% 21%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TENNESSEE FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.280 $10.840 $10.580 $10.150 $10.110 $10.020
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.223 $ 0.446 $ 0.444 $ 0.453 $ 0.457 $ 0.468
Net realized and unrealized
gain (loss) (0.367) (0.564) 0.266 0.436 0.059 0.115
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.144) $(0.118) $ 0.710 $ 0.889 $ 0.516 $ 0.583
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $(0.216) $(0.442) $(0.444) $(0.453) $(0.475) $(0.468)
In excess of net investment
income -- -- (0.006) (0.006) (0.001) (0.025)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.216) $(0.442) $(0.450) $(0.459) $(0.476) $(0.493)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.920 $10.280 $10.840 $10.580 $10.150 $10.110
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (1.38)% (1.19)% 6.86% 8.95% 5.16% 6.12%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $41,467 $46,389 $50,090 $51,712 $54,533 $57,484
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.60%(5) 1.51% 1.52% 1.54% 1.53% 1.47%
Expenses after custodian
fee reduction(3) 1.60%(5) 1.50% 1.50% 1.53% 1.51% --
Net investment income 4.47%(5) 4.15% 4.14% 4.39% 4.45% 4.77%
Portfolio Turnover of the
Portfolio 8% 13% 21% 3% 39% 20%
- --------------------------------------------------------------------------------------------------------------------
</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) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VIRGINIA FUND -- CLASS A
-------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 ----------------------
(UNAUDITED)(1) 1999 1998(1)
<S> <C> <C> <C>
- -----------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 9.300 $ 9.870 $ 9.620
- -----------------------------------------------------------------------------
Income (loss) from operations
- -----------------------------------------------------------------------------
Net investment income $ 0.238 $ 0.503 $ 0.483
Net realized and unrealized
gain (loss) (0.414) (0.582) 0.277
- -----------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.176) $(0.079) $ 0.760
- -----------------------------------------------------------------------------
Less distributions
- -----------------------------------------------------------------------------
From net investment income $(0.238) $(0.489) $(0.483)
In excess of net investment
income (0.006) (0.002) (0.027)
- -----------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.244) $(0.491) $(0.510)
- -----------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 8.880 $ 9.300 $ 9.870
- -----------------------------------------------------------------------------
TOTAL RETURN(2) (1.89)% (0.90)% 8.08%
- -----------------------------------------------------------------------------
Ratios/Supplemental Data
- -----------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $ 3,394 $ 3,528 $ 2,117
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.89%(4) 0.73% 0.85%
Expenses after custodian
fee reduction(3) 0.89%(4) 0.71% 0.83%
Net investment income 5.33%(4) 5.00% 4.92%
Portfolio Turnover of the
Portfolio 10% 17% 8%
- -----------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average
shares outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's
allocated expenses.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
VIRGINIA FUND -- CLASS B
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $ 10.290 $ 10.930 $ 10.630 $ 10.260 $ 10.260 $ 10.120
- --------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- --------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.229 $ 0.450 $ 0.454 $ 0.467 $ 0.471 $ 0.479
Net realized and unrealized
gain (loss) (0.468) (0.629) 0.312 0.369 0.006 0.161
- --------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.239) $ (0.179) $ 0.766 $ 0.836 $ 0.477 $ 0.640
- --------------------------------------------------------------------------------------------------------------------
Less distributions
- --------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.229) $ (0.451) $ (0.454) $ (0.466) $ (0.471) $ (0.479)
In excess of net investment
income (0.002) (0.010) (0.012) -- (0.006) (0.021)
- --------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.231) $ (0.461) $ (0.466) $ (0.466) $ (0.477) $ (0.500)
- --------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.820 $ 10.290 $ 10.930 $ 10.630 $ 10.260 $ 10.260
- --------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (2.33)% (1.75)% 7.37% 8.31% 4.67% 6.62%
- --------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- --------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $116,331 $133,522 $148,902 $159,603 $175,918 $189,535
Ratios (As a percentage of
average daily net assets):
Expenses(3)(4) 1.64%(5) 1.58% 1.59% 1.60% 1.56% 1.50%
Expenses after custodian
fee reduction(3) 1.64%(5) 1.56% 1.57% 1.57% 1.53% --
Net investment income 4.60%(5) 4.19% 4.21% 4.47% 4.52% 4.81%
Portfolio Turnover of the
Portfolio 10% 17% 8% 25% 30% 38%
- --------------------------------------------------------------------------------------------------------------------
</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 to be
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) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended August 31, 1995 has not been adjusted
to reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 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, twelve
of which, each diversified, are included in these financial statements. They
include Eaton Vance Alabama Municipals Fund (Alabama Fund), Eaton Vance
Arkansas Municipals Fund (Arkansas Fund), Eaton Vance Georgia Municipals Fund
(Georgia Fund), Eaton Vance Kentucky Municipals Fund (Kentucky Fund), Eaton
Vance Louisiana Municipals Fund (Louisiana Fund), Eaton Vance Maryland
Municipals Fund (Maryland Fund), Eaton Vance Missouri Municipals Fund
(Missouri Fund), Eaton Vance North Carolina Municipals Fund (North Carolina
Fund), Eaton Vance Oregon Municipals Fund (Oregon Fund), Eaton Vance South
Carolina Municipals Fund (South Carolina Fund), Eaton Vance Tennessee
Municipals Fund (Tennessee Fund) and Eaton Vance Virginia Municipals Fund
(Virginia Fund). The Funds offer two classes of shares. Class A shares are
generally sold subject to a sales charge imposed at time of purchase.
Class B shares are sold at net asset value and are subject to a declining
contingent deferred sales charge (see Note 6). Each class represents a pro
rata interest in the Fund, but votes separately on class-specific matters and
(as noted below) is subject to different expenses. Realized and unrealized
gains and losses are allocated daily to each class of shares based on the
relative net assets of each class to the total net assets of the Fund. Net
investment income, other than class specific expenses, is allocated daily to
each class of shares based upon the ratio of the value of each class' paid
shares to the total value of all paid shares. Each class of shares differs in
its distribution plan and certain other class specific expenses. Each Fund
invests all of its investable assets in interests in a separate corresponding
open-end management investment company (a Portfolio), a New York Trust,
having the same investment objective as its corresponding Fund. The Alabama
Fund invests its assets in the Alabama Municipals Portfolio, the Arkansas
Fund invests its assets in the Arkansas Municipals Portfolio, the Georgia
Fund invests its assets in the Georgia Municipals Portfolio, the Kentucky
Fund invests its assets in the Kentucky Municipals Portfolio, the Louisiana
Fund invests its assets in the Louisiana Municipals Portfolio, the Maryland
Fund invests its assets in the Maryland Municipals Portfolio, the Missouri
Fund invests its assets in the Missouri Municipals Portfolio, the North
Carolina Fund invests its assets in the North Carolina Municipals Portfolio,
the Oregon Fund invests its assets in the Oregon Municipals Portfolio, the
South Carolina Fund invests its assets in the South Carolina Municipals
Portfolio, the Tennessee Fund invests its assets in the Tennessee Municipals
Portfolio and the Virginia Fund invests its assets in the Virginia Municipals
Portfolio. The value of each Fund's investment in its corresponding Portfolio
reflects the Fund's proportionate interest in the net assets of that
Portfolio (approximately 99.9% at February 29, 2000 for each Fund). The
performance of each Fund is directly affected by the performance of its
corresponding Portfolio. The financial statements of each Portfolio,
including the portfolio of investments, are included elsewhere in this report
and should be read in conjunction with each Fund's financial statements.
The following is a summary of significant accounting policies consistently
followed by the Trust in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At August 31, 1999,
the Funds, for federal income tax purposes, had capital loss carryovers which
will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Funds of any liability for
federal income or excise tax. A portion of such capital loss carryovers were
acquired through the Fund Reorganization (see Note 8) and may be subject to
certain limitations. The amounts and expiration dates of the capital loss
carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
------------------------------------------------------------------------
Alabama Fund $ 94,556 August 31, 2005
988,165 August 31, 2004
317,426 August 31, 2003
</TABLE>
51
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
------------------------------------------------------------------------
Arkansas Fund 251,575 August 31, 2005
1,352,201 August 31, 2004
Georgia Fund 5,373,040 August 31, 2004
Kentucky Fund 233,391 August 31, 2005
1,632,812 August 31, 2004
Louisiana Fund 250,837 August 31, 2005
1,598,606 August 31, 2004
Maryland Fund 35 August 31, 2005
186,705 August 31, 2004
Missouri Fund 113,141 August 31, 2005
768,446 August 31, 2004
North Carolina Fund 73,745 August 31, 2005
8,426,582 August 31, 2004
Oregon Fund 924,680 August 31, 2005
2,175,920 August 31, 2004
South Carolina Fund 25,336 August 31, 2005
183,416 August 31, 2004
2,881,146 August 31, 2003
266,269 August 31, 2002
Tennessee Fund 246,996 August 31, 2005
1,344,648 August 31, 2004
Virginia Fund 4,643,723 August 31, 2004
</TABLE>
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay tax-exempt interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be
considered a tax preference item to shareholders.
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 maintains with
IBT. All significant credit balances used to reduce each Fund's custodian
fees are reported as a reduction of operating expenses on the Statements of
Operations.
E Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on a trade-date basis.
G Interim Financial Statements -- The interim financial statements relating to
February 29, 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 income and capital gain
distributions in additional shares of the Fund at the net asset value as of
the ex-dividend date.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
52
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
3 Shares of Beneficial Interest
- -------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
ALABAMA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 105,639 175,161
Issued to shareholders electing to
receive payments of distributions in
Fund shares 6,082 13,976
Redemptions (104,189) (43,692)
----------------------------------------------------------------------------
NET INCREASE 7,532 145,445
----------------------------------------------------------------------------
<CAPTION>
ALABAMA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 303,970 515,878
Issued to shareholders electing to
receive payments of distributions in
Fund shares 69,141 165,189
Redemptions (1,167,494) (1,489,503)
----------------------------------------------------------------------------
NET DECREASE (794,383) (808,436)
----------------------------------------------------------------------------
<CAPTION>
ARKANSAS FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 111,906 346,734
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,459 3,908
Redemptions (85,029) (40,372)
----------------------------------------------------------------------------
NET INCREASE 29,336 310,270
----------------------------------------------------------------------------
<CAPTION>
ARKANSAS FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 73,845 209,730
Issued to shareholders electing to
receive payments of distributions in
Fund shares 49,749 104,018
Redemptions (572,040) (855,918)
----------------------------------------------------------------------------
NET DECREASE (448,446) (542,170)
----------------------------------------------------------------------------
<CAPTION>
GEORGIA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 20,637 112,219
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,607 6,847
Redemptions (26,347) (44,970)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (3,103) 74,096
----------------------------------------------------------------------------
<CAPTION>
GEORGIA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 155,919 477,417
Issued to shareholders electing to
receive payments of distributions in
Fund shares 64,625 144,503
Redemptions (1,181,645) (1,662,425)
----------------------------------------------------------------------------
NET DECREASE (961,101) (1,040,505)
----------------------------------------------------------------------------
<CAPTION>
KENTUCKY FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 515,677 31,154
Issued to shareholders electing to
receive payments of distributions in
Fund shares 3,731 5,316
Redemptions (30,789) (20,537)
----------------------------------------------------------------------------
NET INCREASE 488,619 15,933
----------------------------------------------------------------------------
</TABLE>
53
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
KENTUCKY FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 63,673 559,194
Issued to shareholders electing to
receive payments of distributions in
Fund shares 104,096 229,481
Redemptions (1,555,712) (1,716,108)
----------------------------------------------------------------------------
NET DECREASE (1,387,943) (927,433)
----------------------------------------------------------------------------
<CAPTION>
LOUISIANA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 183,656 113,438
Issued to shareholders electing to
receive payments of distributions in
Fund shares 9,097 8,254
Redemptions (157,102) (166,545)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) 35,651 (44,853)
----------------------------------------------------------------------------
<CAPTION>
LOUISIANA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 100,553 291,845
Issued to shareholders electing to
receive payments of distributions in
Fund shares 20,878 57,003
Redemptions (402,770) (410,172)
----------------------------------------------------------------------------
NET DECREASE (281,339) (61,324)
----------------------------------------------------------------------------
<CAPTION>
MARYLAND FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 152,687 335,934
Issued to shareholders electing to
receive payments of distributions in
Fund shares 6,137 6,272
Redemptions (198,099) (116,835)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (39,275) 225,371
----------------------------------------------------------------------------
<CAPTION>
MARYLAND FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 246,292 766,092
Issued to shareholders electing to
receive payments of distributions in
Fund shares 89,502 196,870
Redemptions (986,570) (1,317,904)
----------------------------------------------------------------------------
NET DECREASE (650,776) (354,942)
----------------------------------------------------------------------------
<CAPTION>
MISSOURI FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 47,935 299,009
Issued to shareholders electing to
receive payments of distributions in
Fund shares 7,219 11,942
Redemptions (130,297) (83,257)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (75,143) 227,694
----------------------------------------------------------------------------
<CAPTION>
MISSOURI FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 77,564 366,959
Issued to shareholders electing to
receive payments of distributions in
Fund shares 62,398 128,713
Redemptions (685,371) (829,815)
----------------------------------------------------------------------------
NET DECREASE (545,409) (334,143)
----------------------------------------------------------------------------
<CAPTION>
NORTH CAROLINA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 147,064 121,902
Issued to shareholders electing to
receive payments of distributions in
Fund shares 11,445 20,265
Redemptions (89,157) (82,674)
----------------------------------------------------------------------------
NET INCREASE 69,352 59,493
----------------------------------------------------------------------------
</TABLE>
54
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
NORTH CAROLINA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 139,793 557,238
Issued to shareholders electing to
receive payments of distributions in
Fund shares 119,026 258,442
Redemptions (1,379,733) (2,257,535)
----------------------------------------------------------------------------
NET DECREASE (1,120,914) (1,441,855)
----------------------------------------------------------------------------
<CAPTION>
OREGON FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 46,035 214,279
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,777 4,836
Redemptions (45,169) (28,242)
----------------------------------------------------------------------------
NET INCREASE 3,643 190,873
----------------------------------------------------------------------------
<CAPTION>
OREGON FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 350,011 793,504
Issued to shareholders electing to
receive payments of distributions in
Fund shares 104,180 216,216
Redemptions (1,099,495) (1,605,973)
----------------------------------------------------------------------------
NET DECREASE (645,304) (596,253)
----------------------------------------------------------------------------
<CAPTION>
SOUTH CAROLINA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 29,647 109,081
Issued to shareholders electing to
receive payments of distributions in
Fund shares 1,724 4,912
Redemptions (60,800) (56,016)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) (29,429) 57,977
----------------------------------------------------------------------------
<CAPTION>
SOUTH CAROLINA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 140,778 518,929
Issued to shareholders electing to
receive payments of distributions in
Fund shares 38,729 83,516
Redemptions (705,485) (830,090)
----------------------------------------------------------------------------
NET DECREASE (525,978) (227,645)
----------------------------------------------------------------------------
<CAPTION>
TENNESSEE FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 120,430 87,643
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,432 13,115
Redemptions (58,172) (139,499)
----------------------------------------------------------------------------
NET INCREASE (DECREASE) 67,690 (38,741)
----------------------------------------------------------------------------
<CAPTION>
TENNESSEE FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 113,879 410,305
Issued to shareholders electing to
receive payments of distributions in
Fund shares 44,719 95,146
Redemptions (487,907) (615,845)
----------------------------------------------------------------------------
NET DECREASE (329,309) (110,394)
----------------------------------------------------------------------------
<CAPTION>
VIRGINIA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS A (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 211,022 234,327
Issued to shareholders electing to
receive payments of distributions in
Fund shares 7,218 7,909
Redemptions (215,289) (77,321)
----------------------------------------------------------------------------
NET INCREASE 2,951 164,915
----------------------------------------------------------------------------
</TABLE>
55
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
VIRGINIA FUND
----------------------------------
SIX MONTHS ENDED
FEBRUARY 29, 2000 YEAR ENDED
CLASS B (UNAUDITED) AUGUST 31, 1999
<S> <C> <C>
----------------------------------------------------------------------------
Sales 261,978 907,245
Issued to shareholders electing to
receive payments of distributions in
Fund shares 138,883 287,613
Redemptions (1,536,083) (1,845,422)
----------------------------------------------------------------------------
NET DECREASE (1,135,222) (650,564)
----------------------------------------------------------------------------
</TABLE>
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 $935, $22, $452, $1,397, $353, $886, $1,163, $850, $1,072, $381,
$1,161 and $579 from the Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky
Fund, Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina Fund,
Oregon Fund, South Carolina Fund, Tennessee Fund and Virginia Fund,
respectively, as its portion of the sales charge on sales of Class A shares
for the six months ended February 29, 2000.
5 Distribution and Service Plans
- -------------------------------------------
Each Fund has in effect a distribution plan for Class B shares (Class B
Plans) pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a
service plan for Class A shares (Class A Plans) (collectively, the Plans).
The Plans require the Class B shares to pay Eaton Vance Distributors,
Inc. (EVD), amounts equal to 1/365 of 0.75% of each Fund's daily net assets
attributable to Class B for providing ongoing distribution services and
facilities to the respective Fund. Each Fund will automatically discontinue
payments to EVD during any period in which there are no outstanding Uncovered
Distribution Charges, which are equivalent to the sum of (i) 5% of the
aggregate amount received by the Fund for Class B shares sold plus
(ii) interest calculated by applying the rate of 1% over the prevailing prime
rate to the outstanding balance of Uncovered Distribution Charges of EVD
reduced by the aggregate amount of contingent deferred sales charges
(Note 6) and daily amounts theretofore paid to EVD by Class B. The amount
payable to EVD with respect to each day is accrued on such day as a liability
of each Fund's Class B shares and, accordingly, reduces each Fund's Class B
net assets. For the six months ended February 29, 2000, the Class B shares of
the Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund, Louisiana Fund,
Maryland Fund, Missouri Fund, North Carolina Fund, Oregon Fund, South
Carolina Fund, Tennessee Fund and Virginia Fund paid $256,702, $160,012,
$232,771, $327,434, $97,849, $319,610, $219,815, $400,924, $318,443,
$142,638, $162,625 and $466,559, respectively, to EVD, representing 0.75%
(annualized) of each Fund's Class B average daily net assets. At
February 29, 2000, the amount of Uncovered Distribution Charges of EVD
calculated under the Class B Plans for Alabama Fund, Arkansas Fund, Georgia
Fund, Kentucky Fund, Louisiana Fund, Maryland Fund, Missouri Fund, North
Carolina Fund, Oregon Fund, South Carolina Fund, Tennessee Fund and Virginia
Fund were approximately $2,061,000, $1,497,000, $2,094,000, $2,346,000,
$960,000, $2,525,000, $1,493,000, $3,080,000, $2,681,000, $1,412,000,
$1,286,000 and $3,193,000, respectively.
The Plans authorize the Funds to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of each
Fund's average daily net assets for any fiscal year. The Trustees initially
implemented the Plans by authorizing the Funds to make quarterly service fee
payments to EVD and investment dealers equal to 0.20% per annum of each
Fund's average daily net assets attributable to both Class A and Class B
shares based on the value of Fund shares sold by such persons and remaining
outstanding for at least one year. On October 4, 1999, the Trustees approved
service fee payments equal to 0.20% per annum of the Funds' average daily net
assets attributable to Class A and Class B shares for any fiscal year on
shares of the Funds sold on or after October 12, 1999. Service fee payments
are made for personal services and/or maintenance of shareholder accounts.
Service fees paid to EVD and investment dealers are separate and distinct
from the sales commissions and distribution fees payable by each Fund to EVD,
and as such are not subject to automatic discontinuance when there are no
outstanding Uncovered Distribution Charges of EVD. For the six months ended
February 29, 2000, Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund,
Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina Fund, Oregon
Fund, South Carolina Fund,
56
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Tennessee Fund and Virginia Fund paid or accrued service fees to or payable
to EVD in the amount of $4,514, $1,945, $2,399, $1,982, $3,492, $4,158,
$2,010, $11,495, $1,713, $1,547, $2,801 and $3,807, respectively, for
Class A shares, and $65,434, $40,792, $60,390, $79,310, $26,721, $82,057,
$55,099, $104,266, $75,215, $34,652, $39,795 and $121,595, 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 year. No
CDSC is levied on Class B shares which have been sold to EVD or its
affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Plan (see Note 5). CDSC charges received when no Uncovered
Distribution Charges exist will be credited to the Fund. EVD received
approximately $60,000, $17,000, $83,000, $60,000, $35,000, $71,000, $34,000,
$63,000, $53,000, $52,000, $37,000 and $73,000 of CDSC paid by Class B
shareholders of Alabama Fund, Arkansas Fund, Georgia Fund, Kentucky Fund,
Louisiana Fund, Maryland Fund, Missouri Fund, North Carolina Fund, Oregon
Fund, South Carolina Fund, Tennessee Fund and Virginia Fund, respectively,
for the six months ended February 29, 2000.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended February 29, 2000 were as follows:
<TABLE>
<CAPTION>
ALABAMA FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,866,170
Decreases 13,922,570
<CAPTION>
ARKANSAS FUND
<S> <C>
-----------------------------------------------------
Increases $ 1,805,948
Decreases 7,263,717
<CAPTION>
GEORGIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 1,695,893
Decreases 12,551,538
<CAPTION>
KENTUCKY FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,295,248
Decreases 16,606,237
<CAPTION>
LOUISIANA FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,671,830
Decreases 5,570,078
<CAPTION>
MARYLAND FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,786,993
Decreases 12,924,421
<CAPTION>
MISSOURI FUND
<S> <C>
-----------------------------------------------------
Increases $ 1,312,737
Decreases 9,234,725
<CAPTION>
NORTH CAROLINA FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,724,034
Decreases 16,488,855
<CAPTION>
OREGON FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,922,560
Decreases 12,776,559
<CAPTION>
SOUTH CAROLINA FUND
<S> <C>
-----------------------------------------------------
Increases $ 1,513,436
Decreases 8,472,906
<CAPTION>
TENNESSEE FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,268,778
Decreases 6,217,748
<CAPTION>
VIRGINIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 4,507,281
Decreases 18,920,171
</TABLE>
57
<PAGE>
ALABAMA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Education -- 1.9%
- ------------------------------------------------------------------------
$1,500 Birmingham-Southern College,
5.35%, 12/1/19 $ 1,358,445
- ------------------------------------------------------------------------
$ 1,358,445
- ------------------------------------------------------------------------
Electric Utilities -- 0.7%
- ------------------------------------------------------------------------
$ 500 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 $ 421,500
100 Tennessee Valley, Exhibit Commission,
6.70%, 6/1/10 105,187
- ------------------------------------------------------------------------
$ 526,687
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 16.7%
- ------------------------------------------------------------------------
$1,000 Gadsen East Medical Clinic Board,
(Baptist Hospital), Prerefunded to
11/1/01, 7.80%, 11/1/21 $ 1,067,750
2,000 Huntsville, Health Care Facilities,
(MBIA), Prerefunded to 6/1/04,
6.50%, 6/1/13 2,148,740
5,000 Scottsboro, Water, Sewer and Gas,
(AMBAC), Prerefunded to 6/1/04,
6.50%, 12/1/14 5,379,850
2,000 Tallassee IDB, (United Technologies),
Prerefunded to 8/1/06, 6.10%, 8/1/14 2,125,320
1,000 West Morgan-East Lawrence, Water
Authority, (FSA), Prerefunded to
8/15/04, 6.85%, 8/15/25 1,092,120
- ------------------------------------------------------------------------
$11,813,780
- ------------------------------------------------------------------------
General Obligations -- 0.4%
- ------------------------------------------------------------------------
$ 650 Puerto Rico, Public Improvement,
0.00%, 7/1/15 $ 264,836
- ------------------------------------------------------------------------
$ 264,836
- ------------------------------------------------------------------------
Hospital -- 10.1%
- ------------------------------------------------------------------------
$3,000 Alexander City, (Russell Hospital),
6.00%, 12/1/22 $ 2,543,550
1,000 Baldwin County, (Thomas Hospital),
6.75%, 4/1/21 922,070
1,000 Cullman Medical Clinic Board, (Cullman
Regional Medical Center),
6.50%, 2/15/23 904,320
2,000 Marshall County Healthcare Authority,
(Boaz-Albertville Medical Center),
7.00%, 1/1/20 1,987,240
745 Montgomery, Medical Clinic Board,
(Jackson Hospital), 7.00%, 3/1/15 747,600
- ------------------------------------------------------------------------
$ 7,104,780
- ------------------------------------------------------------------------
Industrial Development Revenue -- 9.3%
- ------------------------------------------------------------------------
$1,000 Courtland, Solid Waste Disposal,
(Champion International Corp.),
6.70%, 11/1/29 $ 987,570
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$2,000 Courtland, Solid Waste Disposal,
(Champion International Corp.), (AMT),
6.50%, 9/1/25 $ 1,930,120
2,780 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 2,679,142
1,000 Selma, Solid Waste Disposal,
(International Paper), (AMT),
6.00%, 12/1/17 929,390
- ------------------------------------------------------------------------
$ 6,526,222
- ------------------------------------------------------------------------
Insured-Education -- 7.4%
- ------------------------------------------------------------------------
$2,900 Alabama Agricultural and Mechanical
University, (MBIA), 5.00%, 11/1/25 $ 2,473,642
7,500 University of South Alabama, (AMBAC),
0.00%, 11/15/16 2,752,125
- ------------------------------------------------------------------------
$ 5,225,767
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 2.7%
- ------------------------------------------------------------------------
$1,500 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 1,255,635
500 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 417,970
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 263,437
- ------------------------------------------------------------------------
$ 1,937,042
- ------------------------------------------------------------------------
Insured-General Obligations -- 8.1%
- ------------------------------------------------------------------------
$2,000 Madison, Warrants, (MBIA), 5.00%, 9/1/27 $ 1,696,220
2,750 Madison, Warrants, (MBIA),
6.00%, 2/1/24 2,899,600
4,000 Mobile, (MBIA), 0.00%, 8/15/20 1,122,040
- ------------------------------------------------------------------------
$ 5,717,860
- ------------------------------------------------------------------------
Insured-Hospital -- 2.4%
- ------------------------------------------------------------------------
$2,000 Anniston Regional Medical Center Board,
(AMBAC), 5.125%, 6/1/28 $ 1,684,060
- ------------------------------------------------------------------------
$ 1,684,060
- ------------------------------------------------------------------------
Insured-Solid Waste -- 4.8%
- ------------------------------------------------------------------------
$ 250 Huntsville, Solid Waste Disposal,
(FGIC), (AMT), 7.00%, 10/1/08 $ 258,605
3,000 Huntsville, Solid Waste Disposal,
(FGIC), (AMT), 7.00%, 10/1/14 3,095,400
- ------------------------------------------------------------------------
$ 3,354,005
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
ALABAMA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.8%
- ------------------------------------------------------------------------
$1,825 Birmingham Jefferson, Civic Center
Authority, (MBIA), 0.00%, 9/1/18 $ 567,776
- ------------------------------------------------------------------------
$ 567,776
- ------------------------------------------------------------------------
Insured-Transportation -- 9.4%
- ------------------------------------------------------------------------
$4,500 Alabama State Docks Department, (MBIA),
(AMT), 6.30%, 10/1/21 $ 4,548,105
1,000 Huntsville-Madison County Airport,
(AMT), (MBIA), 5.40%, 7/1/19 913,960
1,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 395,410
1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 803,810
- ------------------------------------------------------------------------
$ 6,661,285
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 12.6%
- ------------------------------------------------------------------------
$1,000 Alabama Water Pollution Control
Authority, (AMBAC), 4.75%, 8/15/18 $ 849,190
3,500 Jefferson County, Sewer, (FGIC),
5.00%, 2/1/33 2,911,055
1,000 Limestone County Water and Sewer
Authority, (AMBAC), 5.00%, 12/1/24 856,350
3,075 Prichard Water and Sewer, (AMBAC),
6.125%, 11/15/14 3,170,048
1,195 Warrior River, Water Authority, (FSA),
5.25%, 8/1/23 1,072,608
- ------------------------------------------------------------------------
$ 8,859,251
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.6%
- ------------------------------------------------------------------------
$ 500 Puerto Rico, (Guaynabo Municipal
Government Center Lease), 5.625%, 7/1/22 $ 439,705
- ------------------------------------------------------------------------
$ 439,705
- ------------------------------------------------------------------------
Nursing Home -- 1.4%
- ------------------------------------------------------------------------
$ 325 Fairhope Midtown Medical Clinic Board,
(Beverly Enterprises), 6.375%, 6/1/09 $ 303,738
670 Mobile, Midtown Medical Clinic Board,
(Beverly Enterprises), 7.00%, 4/1/07 664,245
- ------------------------------------------------------------------------
$ 967,983
- ------------------------------------------------------------------------
Special Tax Revenue -- 0.3%
- ------------------------------------------------------------------------
$ 250 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 181,020
- ------------------------------------------------------------------------
$ 181,020
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Transportation -- 1.6%
- ------------------------------------------------------------------------
$ 800 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/22 $ 690,304
500 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 412,810
- ------------------------------------------------------------------------
$ 1,103,114
- ------------------------------------------------------------------------
Water and Sewer -- 7.5%
- ------------------------------------------------------------------------
$ 750 Birmingham, Water and Sewer,
4.75%, 1/1/21 $ 625,598
4,000 Birmingham, Water and Sewer,
4.75%, 1/1/29 3,218,200
1,500 Moulton City, Water, 6.30%, 1/1/18 1,466,730
- ------------------------------------------------------------------------
$ 5,310,528
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.7%
(identified cost $71,921,037) $69,604,146
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 931,543
- ------------------------------------------------------------------------
Net Assets -- 100.0% $70,535,689
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Alabama
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 56.7% 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 6.4% to 24.1% 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
59
<PAGE>
ARKANSAS MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Education -- 7.6%
- ------------------------------------------------------------------------
$ 700 Arkansas State Student Loan Authority,
(AMT), 6.25%, 6/1/10 $ 710,941
2,250 Conway, Public Facilities Board,
(Hendrix College), 6.00%, 10/1/26 2,245,411
500 University of Arkansas, 5.00%, 9/1/17 441,080
- ------------------------------------------------------------------------
$ 3,397,432
- ------------------------------------------------------------------------
Electric Utilities -- 5.1%
- ------------------------------------------------------------------------
$ 550 Jefferson, Pollution Control, (Arkansas
Power and Light), 6.30%, 6/1/18 $ 531,382
500 Pope County, Pollution Control,
(Arkansas Power and Light),
6.30%, 12/1/16 479,980
1,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 359,390
1,050 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 885,150
- ------------------------------------------------------------------------
$ 2,255,902
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.3%
- ------------------------------------------------------------------------
$ 500 Harrison, Residential Housing Facility
Board, Single Family Mortgage, (FGIC),
Escrowed to Maturity, 7.40%, 9/1/11 $ 583,700
- ------------------------------------------------------------------------
$ 583,700
- ------------------------------------------------------------------------
General Obligations -- 3.4%
- ------------------------------------------------------------------------
$2,750 Arkansas State College Savings,
0.00%, 6/1/14 $ 1,203,785
1,000 Puerto Rico, 0.00%, 7/1/18 333,410
- ------------------------------------------------------------------------
$ 1,537,195
- ------------------------------------------------------------------------
Hospital -- 12.6%
- ------------------------------------------------------------------------
$ 800 Arkansas Development Finance Authority,
(White River Medical Center),
5.60%, 6/1/24 $ 644,792
750 Baxter County, Community Hospital
District, 5.625%, 9/1/28 606,247
1,000 Conway, Health Facilities Board, (Conway
Regional Medical Center), 6.40%, 8/1/29 898,550
1,125 Little Rock, Health Facilities Board,
(Baptist Medical Center),
6.80%, 11/1/05 1,203,964
1,500 Paragould, Hospital, (Methodist Hospital
Corp.), 6.375%, 10/1/17 1,374,750
1,000 Pulaski County, (Children's Hospital),
6.20%, 3/1/22 919,760
- ------------------------------------------------------------------------
$ 5,648,063
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Housing -- 12.6%
- ------------------------------------------------------------------------
$ 660 Arkansas Development Finance Authority,
SFM, (GNMA), (AMT), 7.45%, 1/1/27 $ 692,901
3,260 Arkansas Development Finance Authority,
SFM, (GNMA/ FNMA), (AMT), 6.70%, 7/1/27 3,333,415
2,645 Arkansas Development Finance Authority,
SFM, Subordinated, 0.00%, 12/1/11 1,085,323
540 North Little Rock, Residential Housing
Facilities, (Parkstone Place),
6.50%, 8/1/21 505,688
- ------------------------------------------------------------------------
$ 5,617,327
- ------------------------------------------------------------------------
Industrial Development Revenue -- 17.8%
- ------------------------------------------------------------------------
$2,350 Baxter, (Aeroquip Corp.), 5.80%, 10/1/13 $ 2,297,007
2,500 Blytheville, Solid Waste Recycling and
Sewer Treatment, (Nucor Corp.), (AMT),
6.90%, 12/1/21 2,605,725
500 Camden, (International Paper Co.),
5.70%, 9/1/12 491,025
1,000 Little River County, (Georgia-Pacific
Corp.), (AMT), 5.60%, 10/1/26 860,910
250 Pine Bluff, Environmental Improvements
Revenue, (International Paper Co.),
(AMT), 6.70%, 8/1/20 253,300
1,500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,445,580
- ------------------------------------------------------------------------
$ 7,953,547
- ------------------------------------------------------------------------
Insured-Education -- 2.7%
- ------------------------------------------------------------------------
$ 810 Arkansas State University, (Consolidated
Building System), (AMBAC), 5.10%, 4/1/24 $ 710,427
500 University of Central Arkansas, (AMBAC),
6.125%, 4/1/26 507,280
- ------------------------------------------------------------------------
$ 1,217,707
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 7.5%
- ------------------------------------------------------------------------
$ 250 North Little Rock, Electric System,
(MBIA), 6.50%, 7/1/10 $ 273,103
2,390 North Little Rock, Electric System,
(MBIA), 6.50%, 7/1/15 2,610,525
450 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 474,188
- ------------------------------------------------------------------------
$ 3,357,816
- ------------------------------------------------------------------------
Insured-General Obligations -- 0.4%
- ------------------------------------------------------------------------
$ 500 Arkansas State College Savings, (FGIC),
0.00%, 6/1/17 $ 178,775
- ------------------------------------------------------------------------
$ 178,775
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
ARKANSAS MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Hospital -- 6.5%
- ------------------------------------------------------------------------
$2,000 Jonesboro, Residential Housing and
Health Care Facilities Board Hospital,
(Saint Bernard Regional Medical Center),
(AMBAC), 5.90%, 7/1/16 $ 2,014,860
400 Saline County, Retirement Housing and
Healthcare Facilities Board, (Evan
Lutheran Good Samaritan), (AMBAC),
5.80%, 5/1/11 406,464
500 Saline County, Retirement Housing and
Healthcare Facilities Board, (Evan
Lutheran Good Samaritan), (AMBAC),
6.00%, 6/1/18 500,500
- ------------------------------------------------------------------------
$ 2,921,824
- ------------------------------------------------------------------------
Insured-Transportation -- 0.6%
- ------------------------------------------------------------------------
$ 300 Little Rock, Airport, (FSA),
5.25%, 11/1/19 $ 274,680
- ------------------------------------------------------------------------
$ 274,680
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 1.1%
- ------------------------------------------------------------------------
$ 500 Texarkana, Water and Sewer, (FGIC),
5.40%, 9/1/15 $ 485,640
- ------------------------------------------------------------------------
$ 485,640
- ------------------------------------------------------------------------
Nursing Home -- 2.3%
- ------------------------------------------------------------------------
$1,000 Little Rock, Health Facilities Board,
(Baptist Medical Center-Parkway
Village), 7.00%, 10/1/17 $ 1,044,550
- ------------------------------------------------------------------------
$ 1,044,550
- ------------------------------------------------------------------------
Special Tax Revenue -- 5.2%
- ------------------------------------------------------------------------
$2,000 Little Rock, Hotel and Restaurant Gross
Receipts Tax, 7.375%, 8/1/15 $ 2,299,660
- ------------------------------------------------------------------------
$ 2,299,660
- ------------------------------------------------------------------------
Transportation -- 4.8%
- ------------------------------------------------------------------------
$ 750 Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 $ 761,370
1,750 Puerto Rico Highway and Transportation
Authority, 4.75%, 7/1/38 1,370,583
- ------------------------------------------------------------------------
$ 2,131,953
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Water and Sewer -- 6.9%
- ------------------------------------------------------------------------
$1,000 Arkansas Development Finance Authority,
(Waste Water System Revenue),
5.00%, 6/1/22 $ 866,380
1,250 Little Rock, Sewer, 5.50%, 8/1/14 1,233,425
1,000 South Sebastian County, Water Users
Association, 6.15%, 6/1/23 965,740
- ------------------------------------------------------------------------
$ 3,065,545
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $44,616,524) $43,971,316
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 700,559
- ------------------------------------------------------------------------
Net Assets -- 100.0% $44,671,875
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Arkansas
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 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 1.7% to 9.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
GEORGIA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Electric Utilities -- 10.6%
- ------------------------------------------------------------------------
$1,000 Georgia Municipal Electric Power
Authority, 0.00%, 1/1/12 $ 476,910
2,000 Georgia Municipal Electric Power
Authority, 8.25%, 1/1/11 2,422,420
1,000 Monroe County, Development Authority
Pollution Control, (Gulf Power),
6.30%, 9/1/24 1,002,320
2,000 Monroe County, Development Authority
Pollution Control, (Ogelthorpe Power),
6.55%, 1/1/06 2,104,800
665 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 238,994
- ------------------------------------------------------------------------
$ 6,245,444
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.5%
- ------------------------------------------------------------------------
$2,500 Savannah, (Saint Josephs Hospital),
Prerefunded to 7/1/03, 6.20%, 7/1/23 $ 2,640,125
- ------------------------------------------------------------------------
$ 2,640,125
- ------------------------------------------------------------------------
General Obligations -- 3.3%
- ------------------------------------------------------------------------
$ 300 Alpharetta, 6.50%, 5/1/10 $ 324,636
500 Georgia State, 6.30%, 3/1/08 537,845
1,000 Puerto Rico Aqueduct and Sewer
Authority, 6.25%, 7/1/12 1,071,560
- ------------------------------------------------------------------------
$ 1,934,041
- ------------------------------------------------------------------------
Hospital -- 6.5%
- ------------------------------------------------------------------------
$1,000 Baldwin County, Hospital Authority,
(Oconee Regional Medical Center),
5.375%, 12/1/28 $ 751,580
800 Forsyth County, Hospital Authority,
(Georgia Baptist Health Care System),
6.375%, 10/1/28 679,352
700 Royston, Hospital Authority, (Cobb
Healthcare System, Inc.), 6.50%, 7/1/27 624,960
1,785 Toombs County Hospital Authority, (Dr.
John M. Meadows Memorial),
7.00%, 12/1/17 1,785,589
- ------------------------------------------------------------------------
$ 3,841,481
- ------------------------------------------------------------------------
Housing -- 4.4%
- ------------------------------------------------------------------------
$ 735 Atlanta Urban Residential Finance
Authority, (New Community John Hope),
7.25%, 6/1/07 $ 708,474
1,990 Georgia Housing and Finance Authority,
(AMT), 5.85%, 12/1/28 1,887,157
- ------------------------------------------------------------------------
$ 2,595,631
- ------------------------------------------------------------------------
Industrial Development Revenue -- 18.8%
- ------------------------------------------------------------------------
$2,500 Albany Dougherty, Payroll Development
Authority, Solid Waste Disposal,
(Proctor and Gamble), (AMT),
5.20%, 5/15/28 $ 2,159,950
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$1,000 Brunswick and Glynn County Development
Authority, (Georgia-Pacific Corp.),
5.55%, 3/1/26 $ 839,970
500 Camden County, Joint Development
Authority, (Carbide Corp.),
5.00%, 1/1/12 445,175
1,000 Cartersville Development Authority,
(Anheuser-Busch), (AMT), 6.125%, 5/1/27 975,110
1,000 Cartersville Development Authority,
(Anheuser-Busch), (AMT), 7.375%, 5/1/09 1,120,980
1,500 Effingham County, Solid Waste Disposal,
(Fort James), (AMT), 5.625%, 7/1/18 1,306,770
1,250 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,204,650
500 Savannah EDA, (Hershey Foods),
6.60%, 6/1/12 520,475
1,190 Savannah EDA, (Intercat-Savannah, Inc.),
(AMT), 9.00%, 1/1/15 740,775
750 Savannah EDA, (Union Camp Corp.),
6.80%, 2/1/12 774,337
1,000 Vienna Water and Sewer, (Cargill),
(AMT), 6.00%, 9/1/14 1,005,800
- ------------------------------------------------------------------------
$11,093,992
- ------------------------------------------------------------------------
Insured-Education -- 3.5%
- ------------------------------------------------------------------------
$1,000 Fulton County, Development Authority,
(Georgia Technology Research Corp.),
(MBIA), 5.00%, 9/1/27 $ 850,910
1,500 Georgia Private Colleges and
Universities Authority Revenue, (Agnes
Scott College), (MBIA), 4.75%, 6/1/28 1,212,900
- ------------------------------------------------------------------------
$ 2,063,810
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 6.7%
- ------------------------------------------------------------------------
$3,100 Georgia Municipal Electric Power
Authority, (MBIA), 5.50%, 1/1/20 $ 2,989,206
900 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 948,375
- ------------------------------------------------------------------------
$ 3,937,581
- ------------------------------------------------------------------------
Insured-Hospital -- 8.0%
- ------------------------------------------------------------------------
$1,000 Henry County, Hospital Authority
Revenue, (Henry Medical Center, Inc.),
(AMBAC), 6.00%, 7/1/29 $ 993,760
1,100 Medical Center Hospital Authority,
(Columbus Regional Healthcare System,
(MBIA), Variable Rate, 8/1/10 1,208,625
1,405 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), 6.40%, 8/1/06 1,481,713
595 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), 6.40%, 8/1/06 625,107
400 Medical Center Hospital Authority,
(Columbus Regional Healthcare System),
(MBIA), Variable Rate, 8/1/10 433,500
- ------------------------------------------------------------------------
$ 4,742,705
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
GEORGIA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.7%
- ------------------------------------------------------------------------
$1,000 East Point Building Authority, (FGIC),
6.00%, 2/1/10 $ 1,035,650
- ------------------------------------------------------------------------
$ 1,035,650
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 7.1%
- ------------------------------------------------------------------------
$1,000 George L. Smith, (Georgia World Congress
Center-Domed Stadium), (MBIA), (AMT),
5.50%, 7/1/20(2) $ 926,690
1,000 Metropolitan Atlanta Rapid Transit
Authority, (AMBAC), 6.25%, 7/1/11 1,076,130
1,000 Metropolitan Atlanta Rapid Transit
Authority, (AMBAC), 6.25%, 7/1/20 1,050,170
700 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) 410,284
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(4) 735,900
- ------------------------------------------------------------------------
$ 4,199,174
- ------------------------------------------------------------------------
Insured-Transportation -- 2.4%
- ------------------------------------------------------------------------
$1,500 Atlanta Metropolitan Rapid
Transportation Authority, (MBIA),
Variable Rate, 7/1/20(1)(4) $ 1,156,020
750 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 260,048
- ------------------------------------------------------------------------
$ 1,416,068
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 9.6%
- ------------------------------------------------------------------------
$1,000 Cherokee County, Water and Sewer
Authority, (FGIC), 4.75%, 8/1/28 $ 808,110
1,975 Cherokee County, Water and Sewer
Authority, (MBIA), 6.875%, 8/1/13 2,066,818
3,500 Fulton County, Water and Sewer, (FGIC),
4.75%, 1/1/28 2,834,685
- ------------------------------------------------------------------------
$ 5,709,613
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.3%
- ------------------------------------------------------------------------
$2,300 Fulton County, Building Authority,
Judicial Center, 0.00%, 1/1/10 $ 1,334,483
- ------------------------------------------------------------------------
$ 1,334,483
- ------------------------------------------------------------------------
Miscellaneous -- 1.7%
- ------------------------------------------------------------------------
$1,000 Atlanta, Downtown Development Authority,
Childcare Facilities, (Central Atlanta
Hospitality Childcare Inc.),
8.00%, 1/1/26 $ 1,031,410
- ------------------------------------------------------------------------
$ 1,031,410
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Senior Living / Life Care -- 2.0%
- ------------------------------------------------------------------------
$1,485 De Kalb County, Private Hospital
Authority, (Atlanta, Inc.),
8.50%, 3/1/25(5) $ 742,500
500 Fulton County, Residential Elderly Care
Facility Authority, (Canterbury Court),
6.30%, 10/1/24 448,965
- ------------------------------------------------------------------------
$ 1,191,465
- ------------------------------------------------------------------------
Solid Waste -- 1.7%
- ------------------------------------------------------------------------
$1,000 Savannah Resource Recovery, (Savannah
Energy Systems Co.), 6.30%, 12/1/06 $ 1,030,030
- ------------------------------------------------------------------------
$ 1,030,030
- ------------------------------------------------------------------------
Transportation -- 3.8%
- ------------------------------------------------------------------------
$2,750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 2,277,770
- ------------------------------------------------------------------------
$ 2,277,770
- ------------------------------------------------------------------------
Water and Sewer -- 1.4%
- ------------------------------------------------------------------------
$1,000 De Kalb County, Water & Sewer,
5.00%, 10/1/28 $ 847,940
- ------------------------------------------------------------------------
$ 847,940
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $61,819,614) $59,168,413
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- (0.0)% $ (10,157)
- ------------------------------------------------------------------------
Net Assets -- 100.0% $59,158,256
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Georgia
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 39.0% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.6% to 21.9% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) When-issued security.
(3) Security has been issued as a leveraged inverse floater bond.
(4) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(5) The Portfolio is accruing only partial interest on this security.
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
KENTUCKY MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Assisted Living -- 3.7%
- ------------------------------------------------------------------------
$3,000 Kenton County, (Highland Terrace),
(AMT), FHA, 6.95%, 12/1/26 $ 3,132,330
- ------------------------------------------------------------------------
$ 3,132,330
- ------------------------------------------------------------------------
Electric Utilities -- 2.0%
- ------------------------------------------------------------------------
$3,500 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 $ 1,257,865
500 Puerto Rico Electric Power Authority,
5.50%, 7/1/25 463,625
- ------------------------------------------------------------------------
$ 1,721,490
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.8%
- ------------------------------------------------------------------------
$1,000 Elsmmere, (Courtaulds Pkg, Inc.),
Prerefunded to 4/1/05, 6.75%, 4/1/10 $ 1,081,760
1,200 Florence, Housing Facilities, (Blue
Grass Housing), Prerefunded to 7/1/07,
7.625%, 5/1/27 1,375,992
2,000 Louisville and Jefferson County,
Metropolitan Sewer District, (AMBAC),
Prerefunded to 11/15/04, 6.75%, 5/15/25 2,182,980
1,250 Puerto Rico Electric Power Authority,
Prerefunded to 7/1/04, 6.375%, 7/1/24 1,353,450
1,600 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 1,694,000
545 Russell, Health Systems, Prerefunded to
7/1/06, 8.10%, 7/1/15 631,491
- ------------------------------------------------------------------------
$ 8,319,673
- ------------------------------------------------------------------------
General Obligations -- 2.5%
- ------------------------------------------------------------------------
$1,000 Lexington-Fayette Urban County, (County
Detention Center), 4.75%, 5/1/20 $ 842,930
1,100 Louisville, 4.50%, 12/1/18 899,008
1,125 Puerto Rico, 0.00%, 7/1/17 401,603
- ------------------------------------------------------------------------
$ 2,143,541
- ------------------------------------------------------------------------
Hospital -- 0.6%
- ------------------------------------------------------------------------
$ 430 Russell, Health Systems, 8.10%, 7/1/15 $ 494,479
- ------------------------------------------------------------------------
$ 494,479
- ------------------------------------------------------------------------
Housing -- 4.0%
- ------------------------------------------------------------------------
$1,390 Boone County, Multifamily Housing
Mortgage, (Walnut Creek Apartments),
FHA, 7.00%, 1/1/27 $ 1,428,739
2,000 Kentucky Housing Corp., SFMR, (AMT),
6.25%, 7/1/28 2,006,720
- ------------------------------------------------------------------------
$ 3,435,459
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue -- 28.7%
- ------------------------------------------------------------------------
$2,425 Ashland, Solid Waste Disposal, (Ashland
Oil), (AMT), 7.125%, 2/1/22 $ 2,500,078
2,355 Ashland, Solid Waste Disposal, (Ashland
Oil), (AMT), 7.20%, 10/1/20 2,438,296
3,075 Fulton County, Industrial Building,
(Chic Jeans), (AMT), 7.50%, 2/1/10 2,470,701
1,500 Hancock County, (Southwire Co.), (AMT),
7.75%, 7/1/26 1,532,475
2,370 Hancock County, Solid Waste Disposal,
(Williamette Corp.), (AMT),
6.60%, 5/1/26 2,366,777
3,000 Henderson County, Solid Waste Disposal,
(MacMillan Bloedel), (AMT),
7.00%, 3/1/25 3,048,810
1,000 Jefferson County, Pollution Control,
(E.I. du Pont de Nemours),
6.30%, 7/1/12 1,037,460
3,400 Kenton County Airport, (Delta Airlines),
(AMT), 6.125%, 2/1/22 3,125,722
250 Kenton County Airport, (Delta Airlines),
(AMT), 7.50%, 2/1/12 257,125
500 Kenton County Airport, (Delta Airlines),
(AMT), 7.50%, 2/1/20 511,660
985 Owensboro County, (KMart Corp.),
6.80%, 12/1/07 990,201
1,500 Perry County, Solid Waste Disposal, (TJI
International), (AMT), 6.80%, 5/1/26 1,514,760
915 Powderly, (KMart Corp.), 6.90%, 3/1/07 928,670
1,820 Wickliffe, Solid Waste Disposal,
(Westvaco Corp.), (AMT), 6.375%, 4/1/26 1,735,352
- ------------------------------------------------------------------------
$24,458,087
- ------------------------------------------------------------------------
Insured-Education -- 2.1%
- ------------------------------------------------------------------------
$2,000 Lexington-Fayette Urban County,
(University of Kentucky, Alumuni
Association, Inc.), (MBIA),
5.00%, 11/1/18 $ 1,780,120
- ------------------------------------------------------------------------
$ 1,780,120
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 0.6%
- ------------------------------------------------------------------------
$ 600 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 $ 501,564
- ------------------------------------------------------------------------
$ 501,564
- ------------------------------------------------------------------------
Insured-General Obligations -- 1.4%
- ------------------------------------------------------------------------
$1,500 Puerto Rico Commonwealth, Public
Improvement, (AMBAC), 4.50%, 7/1/23 $ 1,208,805
- ------------------------------------------------------------------------
$ 1,208,805
- ------------------------------------------------------------------------
Insured-Hospital -- 7.3%
- ------------------------------------------------------------------------
$1,500 Daviess County, (ODCH, Inc.), (MBIA),
6.25%, 8/1/22 $ 1,509,960
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
KENTUCKY MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Hospital (continued)
- ------------------------------------------------------------------------
$2,500 Jefferson County, Health Facilities
Authority, (Alliant Health System),
(MBIA), 5.125%, 10/1/27 $ 2,120,975
1,000 Jefferson County, Health Facilities
Authority, (Jewish Hospital), (AMBAC),
6.50%, 5/1/15 1,046,600
750 Jefferson County, Health Facilities
Authority, (Jewish Hospital), (AMBAC),
6.55%, 5/1/22 765,390
850 Jefferson County, Health Facilities
Authority, (University Medical Center),
(MBIA), 5.25%, 7/1/22 751,579
- ------------------------------------------------------------------------
$ 6,194,504
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.0%
- ------------------------------------------------------------------------
$1,000 Puerto Rico Infrastructure Financing
Authority, (AMBAC), 5.00%, 7/1/28 $ 862,040
- ------------------------------------------------------------------------
$ 862,040
- ------------------------------------------------------------------------
Insured-Transportation -- 14.4%
- ------------------------------------------------------------------------
$1,000 Kenton County Airport, (FSA), (AMT),
6.30%, 3/1/15 $ 1,017,960
3,000 Kenton County Airport, (MBIA), (AMT),
6.30%, 3/1/15 3,105,990
1,195 Kenton County Airport, (MBIA), (AMT),
6.45%, 3/1/15 1,255,837
1,000 Kentucky EDA, (State Turnpike
Revitalization), (FGIC), 0.00%, 7/1/10 582,440
1,000 Louisville and Jefferson County,
Regional Airport Authority, (MBIA),
(AMT), 5.00%, 7/1/18 872,010
1,300 Louisville and Jefferson County,
Regional Airport Authority, (MBIA),
(AMT), 5.00%, 7/1/25 1,083,771
5,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 1,733,650
3,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 5.00%, 7/1/28 2,586,120
- ------------------------------------------------------------------------
$12,237,778
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 5.3%
- ------------------------------------------------------------------------
$2,000 Kenton County, Water District
Waterworks, (FGIC), 6.00%, 2/1/17 $ 2,041,560
2,000 Louisville and Jefferson County,
Metropolitan Sewer District and Drainage
System Revenue, (FGIC), 4.75%, 5/15/28 1,615,180
1,000 Louisville and Jefferson County,
Metropolitan Sewer District, (MBIA),
5.20%, 5/15/25 884,330
- ------------------------------------------------------------------------
$ 4,541,070
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 11.6%
- ------------------------------------------------------------------------
$4,990 Jefferson County, (Capital Projects
Corp.), 0.00%, 8/15/15 $ 1,985,571
1,000 Kenton County, (Public Properties
Corp.), 5.00%, 3/1/29 829,510
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation (continued)
- ------------------------------------------------------------------------
$1,030 Kentucky, League of Cities Funding
Trust, Floating Indebtedness
Certificates of Participation,
6.15%, 8/1/13 $ 1,057,686
1,000 Mount Sterling, Lease, 6.15%, 3/1/13 1,008,330
3,000 Mount Sterling, Lease, 6.20%, 3/1/18 3,006,990
2,000 Owensboro County, Airport Lease,
5.875%, 6/1/15 1,960,360
- ------------------------------------------------------------------------
$ 9,848,447
- ------------------------------------------------------------------------
Solid Waste -- 1.4%
- ------------------------------------------------------------------------
$1,200 Morgantown, Solid Waste Revenue, (AMT),
7.45%, 5/1/22 $ 1,196,844
- ------------------------------------------------------------------------
$ 1,196,844
- ------------------------------------------------------------------------
Special Tax Revenue -- 0.2%
- ------------------------------------------------------------------------
$ 250 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 181,020
- ------------------------------------------------------------------------
$ 181,020
- ------------------------------------------------------------------------
Water and Sewer -- 0.8%
- ------------------------------------------------------------------------
$ 650 Harden County, Water District,
6.50%, 9/1/12 $ 683,410
- ------------------------------------------------------------------------
$ 683,410
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.4%
(identified cost $83,415,772) $82,940,661
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.6% $ 2,224,576
- ------------------------------------------------------------------------
Net Assets -- 100.0% $85,165,237
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Kentucky
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 37.6% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.2% to 18.8% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
LOUISIANA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 94.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.4%
- ------------------------------------------------------------------------
$2,475 Jefferson Parish, Home Mortgage
Authority, Single Family, (FGIC),
Escrowed to Maturity, 0.00%, 5/1/17 $ 877,561
100 Louisiana Public Facilities Authority,
(Our Lady of the Lake Medical Center),
(MBIA), Prerefunded to 5/31/02, Variable
Rate, 12/1/14(1) 103,500
- ------------------------------------------------------------------------
$ 981,061
- ------------------------------------------------------------------------
Hospital -- 7.8%
- ------------------------------------------------------------------------
$1,000 Lafourche Parish, Hospital Service
District, 6.00%, 10/1/23 $ 896,350
705 Louisiana Public Facilities Authority,
(General Health Systems),
6.80%, 11/1/16 697,301
500 Louisiana Public Facilities Authority,
(Tuoro Infirmary), 5.625%, 8/15/29 398,130
250 Saint Tammany Parish, Hospital Service
District, 6.50%, 7/1/22 262,982
- ------------------------------------------------------------------------
$ 2,254,763
- ------------------------------------------------------------------------
Housing -- 16.4%
- ------------------------------------------------------------------------
$ 300 Guam Housing Corp., Single Family,
5.75%, 9/1/31 $ 287,073
525 Louisiana HFA, Single Family, (GNMA),
(AMT), 6.30%, 12/1/27 527,278
755 Louisiana HFA, Single Family, (GNMA),
(AMT), 8.00%, 3/1/25 814,237
2,000 Louisiana HFA, Single Family,
(GNMA/FNMA), 0.00%, 6/1/27 376,700
470 Louisiana HFA, Single Family,
(GNMA/FNMA), (AMT), 6.55%, 12/1/26 476,698
400 Louisiana Public Facilities Authority,
(Eden Point), 6.25%, 3/1/34 357,040
1,890 New Orleans Home Mortgage Authority,
Single Family, (GNMA/FNMA), (AMT),
6.30%, 6/1/28 1,930,541
- ------------------------------------------------------------------------
$ 4,769,567
- ------------------------------------------------------------------------
Industrial Development Revenue -- 12.1%
- ------------------------------------------------------------------------
$ 750 Bastrop, (International Paper Co.),
(AMT), 6.60%, 3/1/19 $ 742,395
1,000 East Baton Rouge Parish,
(Georgia-Pacific Corp.), (AMT),
5.35%, 9/1/11 901,820
1,000 Louisiana Offshore Terminal Authority,
Deepwater Port Revenue, (Loop, LLC),
5.20%, 10/1/18 890,800
500 Saint Bernard Parish, (Mobil Oil),
5.90%, 11/1/26 480,315
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$ 500 South Louisiana Port Commission,
(Cargill, Inc.), 5.85%, 4/1/17 $ 487,590
- ------------------------------------------------------------------------
$ 3,502,920
- ------------------------------------------------------------------------
Insured-Education -- 8.9%
- ------------------------------------------------------------------------
$1,500 Louisiana Public Facilities Authority,
(Dillard University), (AMBAC),
5.00%, 2/1/28 $ 1,264,815
250 Louisiana Public Facilities Authority,
(Tulane University), (MBIA),
5.00%, 11/15/27 209,808
1,100 Louisiana State University, (FGIC),
5.75%, 7/1/14 1,103,080
- ------------------------------------------------------------------------
$ 2,577,703
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 2.2%
- ------------------------------------------------------------------------
$1,750 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 $ 648,288
- ------------------------------------------------------------------------
$ 648,288
- ------------------------------------------------------------------------
Insured-General Obligations -- 11.1%
- ------------------------------------------------------------------------
$3,000 New Orleans, (AMBAC), 0.00%, 9/1/15 $ 1,205,010
4,000 New Orleans, (AMBAC), 0.00%, 9/1/16 1,502,800
1,500 New Orleans, (AMBAC), 0.00%, 9/1/17 526,605
- ------------------------------------------------------------------------
$ 3,234,415
- ------------------------------------------------------------------------
Insured-Hospital -- 1.5%
- ------------------------------------------------------------------------
$ 500 Terrebonne Parish, Hospital Service
District No. 1, (Terrebonne General
Medical Center), (AMBAC), 5.375%, 4/1/28 $ 440,545
- ------------------------------------------------------------------------
$ 440,545
- ------------------------------------------------------------------------
Insured-Housing -- 0.1%
- ------------------------------------------------------------------------
$ 130 East Baton Rouge Mortgage Finance
Authority, Single Family, (MBIA),
(GNMA/FNMA), 0.00%, 10/1/15 $ 24,653
- ------------------------------------------------------------------------
$ 24,653
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 8.9%
- ------------------------------------------------------------------------
$ 345 Baton Rouge, Public Improvement, (FGIC),
4.75%, 8/1/17 $ 295,268
500 Lafayette Parish, School District,
(FGIC), 4.60%, 4/1/18 415,655
500 Louisiana Government Environmental
Facilities and Community Development
Authority, (Capital and Equipment
Acquisition), (AMBAC), 4.50%, 12/1/18 412,035
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
LOUISIANA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Special Tax Revenue (continued)
- ------------------------------------------------------------------------
$1,500 Louisiana Stadium and Exposition,
(FGIC), 5.00%, 7/1/26 $ 1,271,970
350 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) 205,142
- ------------------------------------------------------------------------
$ 2,600,070
- ------------------------------------------------------------------------
Insured-Transportation -- 4.7%
- ------------------------------------------------------------------------
$1,700 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 1,366,477
- ------------------------------------------------------------------------
$ 1,366,477
- ------------------------------------------------------------------------
Senior Living / Life Care -- 14.7%
- ------------------------------------------------------------------------
$ 500 Louisiana HFA, (HCC Assisted Living
Group 1), (AMT), 9.00%, 3/1/25 $ 525,380
500 Louisiana HFA, (Saint Dominic Assisted
Care Facility), (GNMA), 6.85%, 9/1/25 506,380
1,995 Louisiana HFA, (Saint Joseph's Manor
Retirement Center), (GNMA),
7.80%, 12/1/35 2,141,393
1,150 Louisiana PFA, (Glen Retirement System),
6.70%, 12/1/25 1,088,015
- ------------------------------------------------------------------------
$ 4,261,168
- ------------------------------------------------------------------------
Special Tax Revenue -- 1.1%
- ------------------------------------------------------------------------
$ 450 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) $ 325,836
- ------------------------------------------------------------------------
$ 325,836
- ------------------------------------------------------------------------
Transportation -- 1.8%
- ------------------------------------------------------------------------
$ 500 Mississippi River Bridge Authority,
Bridge Revenue, 6.75%, 11/1/12 $ 528,480
- ------------------------------------------------------------------------
$ 528,480
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 94.7%
(identified cost $28,853,203) $27,515,946
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 5.3% $ 1,549,068
- ------------------------------------------------------------------------
Net Assets -- 100.0% $29,065,014
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Louisiana
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 43.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.6% to 20.2% 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
67
<PAGE>
MARYLAND MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.9%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Cogeneration -- 1.5%
- ------------------------------------------------------------------------
$1,250 Maryland Energy Cogeneration, (AES
Warrior Run), (AMT), 7.40%, 9/1/19 $ 1,279,537
- ------------------------------------------------------------------------
$ 1,279,537
- ------------------------------------------------------------------------
Education -- 9.0%
- ------------------------------------------------------------------------
$1,500 Annapolis, EDA, (Saint Johns College),
5.50%, 10/1/23 $ 1,300,725
1,000 Maryland EDA, (Collegiate Housing -
Courtyard), 5.75%, 6/1/24 872,230
750 Maryland EDA, (Collegiate Housing -
Salisbury), 6.00%, 6/1/30 668,970
4,000 Maryland HEFA, (Johns Hopkins
University), 6.00%, 7/1/39 3,984,640
500 Montgomery County, EDA, (Bullis School),
5.60%, 11/1/18 453,895
350 Montgomery County, EDA, (Bullis School),
5.60%, 11/1/22 311,958
- ------------------------------------------------------------------------
$ 7,592,418
- ------------------------------------------------------------------------
Electric Utilities -- 5.4%
- ------------------------------------------------------------------------
$1,500 Calvert, Pollution Control Revenue,
(Baltimore Gas and Electric),
5.55%, 7/15/14 $ 1,489,485
750 Guam Power Authority, 6.625%, 10/1/14 818,940
2,225 Prince George's County, Pollution
Control Revenue, (Potomac Electric),
6.375%, 1/15/23 2,260,578
- ------------------------------------------------------------------------
$ 4,569,003
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 6.2%
- ------------------------------------------------------------------------
$1,125 Baltimore, SFMR, (Inner Harbor),
Escrowed to Maturity, 8.00%, 12/1/10 $ 1,365,165
1,250 Maryland HEFA, (Howard County General
Hospital), Escrowed to Maturity,
5.50%, 7/1/25 1,194,837
2,500 Maryland HEFA, (Union Hospital of
Cecil), Prerefunded to 7/1/02,
6.70%, 7/1/22 2,652,175
- ------------------------------------------------------------------------
$ 5,212,177
- ------------------------------------------------------------------------
General Obligations -- 1.8%
- ------------------------------------------------------------------------
$1,000 Baltimore County, 4.75%, 7/1/13 $ 914,200
1,100 Puerto Rico, 0.00%, 7/1/16 419,364
190 Worcester, Sanitary District,
6.55%, 8/15/17 196,935
- ------------------------------------------------------------------------
$ 1,530,499
- ------------------------------------------------------------------------
Hospital -- 9.8%
- ------------------------------------------------------------------------
$ 470 Berlin, (Atlantic General Hospital),
8.375%, 6/1/22 $ 485,797
900 Maryland HEFA, (Calvert Memorial
Hospital), 5.00%, 7/1/28 703,827
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Hospital (continued)
- ------------------------------------------------------------------------
$1,000 Maryland HEFA, (Doctors Community
Hospital), 5.50%, 7/1/24 $ 769,450
1,175 Maryland HEFA, (Good Samaritan
Hospital), 5.75%, 7/1/19 1,175,693
3,000 Maryland HEFA, (Johns Hopkins Hospital),
4.50%, 5/15/35 2,247,840
1,000 Maryland HEFA, (Kennedy Krieger Issue),
5.125%, 7/1/22 755,760
1,355 Prince George's County, (Greater
SouthEast Healthcare System),
6.375%, 1/1/13(1) 558,937
3,800 Prince George's County, (Greater
SouthEast Healthcare System),
6.375%, 1/1/23(1) 1,567,500
- ------------------------------------------------------------------------
$ 8,264,804
- ------------------------------------------------------------------------
Housing -- 9.6%
- ------------------------------------------------------------------------
$1,000 Maryland Community Development
Administration Multifamily, FHA, (AMT),
6.70%, 5/15/36 $ 1,030,350
2,985 Maryland Community Development
Administration Single Family, (AMT),
6.75%, 4/1/26 3,029,268
720 Maryland Community Development
Administration Single Family, (AMT),
6.80%, 4/1/22 737,294
735 Maryland Community Development
Administration Single Family, (AMT),
6.80%, 4/1/24 752,655
1,000 Montgomery County, Housing Opportunities
Commission, SFMR, 0.00%, 7/1/28 175,770
355 Montgomery County, Housing Opportunities
Commission, SFMR, (AMT), 6.05%, 7/1/27 349,831
2,160 Prince George's County, Housing
Authority, (Langely Gardens), (AMT),
5.875%, 2/20/39 2,018,369
- ------------------------------------------------------------------------
$ 8,093,537
- ------------------------------------------------------------------------
Industrial Development Revenue -- 7.0%
- ------------------------------------------------------------------------
$1,350 Allegany, Pollution Control Revenue,
(Westvaco Corp.), 6.20%, 1/1/08 $ 1,400,611
2,000 Baltimore, Port Facilities,
(Consolidated Coal Sales Co. - E.I. du
Pont de Nemours), 6.50%, 10/1/11 2,112,820
1,425 Frederick, EDA, (Cargill, Inc.),
6.30%, 11/1/09 1,501,950
1,000 Maryland EDA, (AFCO Cargo),
6.50%, 7/1/24 933,020
- ------------------------------------------------------------------------
$ 5,948,401
- ------------------------------------------------------------------------
Insured-Education -- 7.0%
- ------------------------------------------------------------------------
$ 460 Maryland HEFA, (College Of Notre Dame),
(MBIA), 5.30%, 10/1/18 $ 435,169
4,600 Maryland HEFA, (Loyola College), (MBIA),
5.375%, 10/1/26 4,188,898
1,200 Morgan State University, Academic and
Facilities, (MBIA), 6.10%, 7/1/20 1,247,664
- ------------------------------------------------------------------------
$ 5,871,731
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
MARYLAND MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 1.3%
- ------------------------------------------------------------------------
$1,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/21 $ 847,930
250 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(2) 263,437
- ------------------------------------------------------------------------
$ 1,111,367
- ------------------------------------------------------------------------
Insured-General Obligations -- 3.7%
- ------------------------------------------------------------------------
$3,450 Baltimore County, (FSA), 5.25%, 10/15/20 $ 3,155,405
- ------------------------------------------------------------------------
$ 3,155,405
- ------------------------------------------------------------------------
Insured-Hospital -- 12.3%
- ------------------------------------------------------------------------
$ 350 Calvert County, EDA, (Asbury - Solomons
Facility), (MBIA), 5.00%, 1/1/27 $ 300,465
3,000 Maryland HEFA, (Helix Health Issue),
(AMBAC), 5.00%, 7/1/27 2,642,850
990 Maryland HEFA, (Johns Hopkins
Medicine-Howard County General Hospital
Acquisition), (MBIA), 5.00%, 7/1/29 840,233
3,850 Maryland HEFA, (Medlantic/Helix Issue),
(AMBAC), 5.25%, 8/15/38 3,389,656
3,150 Puerto Rico ITEM & EC, (Auxilio Mutuo
Obligated Group), (MBIA), 6.25%, 7/1/24 3,178,413
- ------------------------------------------------------------------------
$10,351,617
- ------------------------------------------------------------------------
Insured-Housing -- 0.6%
- ------------------------------------------------------------------------
$ 500 Prince George's County, (Keystone
Apartments), FHA, (MBIA), 6.80%, 7/1/25 $ 514,170
- ------------------------------------------------------------------------
$ 514,170
- ------------------------------------------------------------------------
Insured-Solid Waste -- 6.1%
- ------------------------------------------------------------------------
$5,000 NE Maryland Solid Waste Disposal,
(MBIA), (AMT), 6.30%, 7/1/16 $ 5,112,650
- ------------------------------------------------------------------------
$ 5,112,650
- ------------------------------------------------------------------------
Insured-Transportation -- 4.9%
- ------------------------------------------------------------------------
$2,000 Baltimore, International Airport,
(FGIC), (AMT), 6.25%, 7/1/14 $ 2,061,400
1,000 Puerto Rico Highway and Transportation
Authority, (AMBAC), 5.00%, 7/1/28 862,040
1,250 Washington, D.C., Metro Area
Transportation, (FGIC), 5.25%, 7/1/14 1,200,613
- ------------------------------------------------------------------------
$ 4,124,053
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 5.7%
- ------------------------------------------------------------------------
$1,000 Baltimore, Wastewater, (FGIC),
5.00%, 7/1/22 $ 878,310
2,000 Baltimore, Wastewater, (MBIA),
5.65%, 7/1/20 1,959,600
2,100 Baltimore, Water, (FGIC), 5.50%, 7/1/26 1,960,392
- ------------------------------------------------------------------------
$ 4,798,302
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Solid Waste -- 1.9%
- ------------------------------------------------------------------------
$2,000 Northeast Waste Disposal Authority,
Resources Recovery Revenue, (Baltimore
Resco Retrofit), (AMT), 4.75%, 1/1/12 $ 1,593,340
- ------------------------------------------------------------------------
$ 1,593,340
- ------------------------------------------------------------------------
Special Tax Revenue -- 2.0%
- ------------------------------------------------------------------------
$1,000 Frederick County, Urbana Community
Development Authority, 6.625%, 7/1/25 $ 934,960
1,000 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(2)(3) 724,080
- ------------------------------------------------------------------------
$ 1,659,040
- ------------------------------------------------------------------------
Transportation -- 0.9%
- ------------------------------------------------------------------------
$ 500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 $ 456,180
335 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(3) 273,223
- ------------------------------------------------------------------------
$ 729,403
- ------------------------------------------------------------------------
Water and Sewer -- 1.2%
- ------------------------------------------------------------------------
$1,000 Maryland Water Quality Financing
Administration Revolving Loan Fund,
6.55%, 9/1/14 $ 1,045,750
- ------------------------------------------------------------------------
$ 1,045,750
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.9%
(identified cost $89,106,902) $82,557,204
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.1% $ 1,772,362
- ------------------------------------------------------------------------
Net Assets -- 100.0% $84,329,566
- ------------------------------------------------------------------------
</TABLE>
The Portfolio invests primarily in debt securities issued by Maryland
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 42.5% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 5.2% to 21.5% 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
69
<PAGE>
MISSOURI MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.5%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.6%
- ------------------------------------------------------------------------
$ 875 Kansas City IDA, (Kingswood United
Methodist Manor), Prerefunded to
11/15/03, 9.00%, 11/15/13 $ 1,003,791
1,000 Lake of The Ozarks, (Community Bridge
Corp.), Prerefunded to 12/1/06,
6.40%, 12/1/25 1,088,540
1,005 Missouri HEFA, (Lake of the Ozarks
General Hospital), Prerefunded to
2/15/06, 6.50%, 2/15/21 1,082,516
575 Missouri HEFA, (Saint Louis Children's),
(MBIA), Escrowed to Maturity,
0.00%, 5/15/08 367,109
1,000 Saint Louis County, Mortgage Revenue,
(GNMA), (AMT), Escrowed to Maturity,
5.40%, 1/1/16 954,950
- ------------------------------------------------------------------------
$ 4,496,906
- ------------------------------------------------------------------------
Hospital -- 15.9%
- ------------------------------------------------------------------------
$3,250 Missouri HEFA, (Barnes Jewish
Christian), 5.25%, 5/15/14 $ 3,089,742
1,500 Missouri HEFA, (Childrens Mercy
Hospital), 5.30%, 5/15/28 1,216,890
1,000 Missouri HEFA, (Freeman Health Systems),
5.25%, 2/15/18 800,020
1,900 Missouri HEFA, (Jefferson Memorial
Hospital), 6.80%, 5/15/25 1,818,281
495 Missouri HEFA, (Lake of the Ozarks
General Hospital), 6.50%, 2/15/21 461,820
1,250 Taney County IDA, (The Skaggs Community
Hospital Association), 5.30%, 5/15/18 1,003,400
1,250 West Plains IDA, (Ozarks Medical
Center), 5.65%, 11/15/22 974,662
- ------------------------------------------------------------------------
$ 9,364,815
- ------------------------------------------------------------------------
Housing -- 5.0%
- ------------------------------------------------------------------------
$1,000 Jefferson County IDA, Multifamily,
(Riverview Bend Apartments), (AMT),
6.75%, 11/1/29 $ 972,440
755 Missouri Housing Development Authority,
SFMR, (GNMA), 6.45%, 9/1/27 760,391
460 Missouri Housing Development Authority,
SFMR, (GNMA), (AMT), 6.75%, 6/1/24 469,448
710 Missouri Housing Development Authority,
SFMR, (GNMA), (AMT), 7.25%, 9/1/26 753,523
- ------------------------------------------------------------------------
$ 2,955,802
- ------------------------------------------------------------------------
Industrial Development Revenue -- 12.6%
- ------------------------------------------------------------------------
$1,035 Jefferson County, (Kmart Corp.),
6.40%, 8/1/08 $ 1,018,771
1,235 Kansas City IDA, (Airline Cargo
Facilities), 8.50%, 1/1/17 1,316,115
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$2,500 Missouri Development Finance Authority,
Solid Waste Disposal, (Proctor and
Gamble Paper Products), (AMT),
5.20%, 3/15/29 $ 2,154,675
1,200 Missouri Environmental Improvement and
Energy Resources Authority, (American
Cyanamid Company), 5.80%, 9/1/09 1,196,532
1,000 Saint Louis IDA, (Anheuser-Busch),
(AMT), 5.875%, 11/1/26 962,170
750 Saint Louis IDA, (Saint Louis Science
Center), 6.40%, 11/1/19 735,787
- ------------------------------------------------------------------------
$ 7,384,050
- ------------------------------------------------------------------------
Insured-Education -- 2.4%
- ------------------------------------------------------------------------
$1,750 Missouri HEFA, (St. Louis University
High School), (AMBAC), 4.75%, 10/1/24 $ 1,436,593
- ------------------------------------------------------------------------
$ 1,436,593
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 6.6%
- ------------------------------------------------------------------------
$3,500 Missouri Environmental Improvement and
Energy Resources Authority, (Union
Electric), (AMBAC), (AMT),
5.45%, 10/1/28 $ 3,128,895
700 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 737,625
- ------------------------------------------------------------------------
$ 3,866,520
- ------------------------------------------------------------------------
Insured-General Obligations -- 2.2%
- ------------------------------------------------------------------------
$ 500 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) $ 500,000
2,000 Saint Charles County, (Francis Howell
School District), (FGIC), 0.00%, 3/1/16 782,480
- ------------------------------------------------------------------------
$ 1,282,480
- ------------------------------------------------------------------------
Insured-Hospital -- 11.6%
- ------------------------------------------------------------------------
$ 955 Jackson County, (Saint Joseph's Health
System), (MBIA), 6.50%, 7/1/12 $ 1,000,047
800 Jackson County, (Saint Joseph's Health
System), (MBIA), 6.50%, 7/1/19 817,296
1,500 Missouri HEFA, (Heartland Health),
(AMBAC), 6.35%, 11/15/17 1,530,510
9,500 Missouri HEFA, (Lester Cox Medical
Center), (MBIA), 0.00%, 9/1/20 2,710,825
750 Missouri HEFA, (Lester Cox Medical
Center), (MBIA), 5.35%, 6/1/10 744,968
- ------------------------------------------------------------------------
$ 6,803,646
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
MISSOURI MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Housing -- 2.7%
- ------------------------------------------------------------------------
$1,500 SCA, MFMR Receipts, Springfield, (FSA),
7.10%, 1/1/30 $ 1,592,850
- ------------------------------------------------------------------------
$ 1,592,850
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.9%
- ------------------------------------------------------------------------
$ 700 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) $ 410,284
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) 735,900
- ------------------------------------------------------------------------
$ 1,146,184
- ------------------------------------------------------------------------
Insured-Transportation -- 3.8%
- ------------------------------------------------------------------------
$1,500 Bi State Development Agency, Illinois
Metropolitan District, (Saint Clair
County Metrolink Extension), (MBIA),
5.00%, 7/1/28 $ 1,271,205
910 Saint Louis, Airport Revenue, (Lambert
International Airport), (FGIC),
6.00%, 7/1/14 936,863
- ------------------------------------------------------------------------
$ 2,208,068
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.5%
- ------------------------------------------------------------------------
$1,000 Missouri Regional Convention and Sports
Complex Authority, 5.50%, 8/15/21 $ 923,640
1,750 Saint Louis County, Regional Convention
and Sports Complex Authority,
5.50%, 8/15/13 1,724,625
- ------------------------------------------------------------------------
$ 2,648,265
- ------------------------------------------------------------------------
Nursing Home -- 6.4%
- ------------------------------------------------------------------------
$1,000 Kansas City IDA, (Beverly Enterprises),
8.00%, 12/1/02 $ 1,020,500
500 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 6.625%, 8/15/05 502,955
1,000 Missouri HEFA, (Bethesda Health Group of
Saint Louis, Inc.), 7.50%, 8/15/12 1,052,850
1,500 Saint Louis County IDA, (Nazareth
Living), 5.625%, 8/15/29 1,161,465
- ------------------------------------------------------------------------
$ 3,737,770
- ------------------------------------------------------------------------
Pooled Loans -- 4.6%
- ------------------------------------------------------------------------
$2,750 Missouri Higher Education Loan
Authority, Student Loan, (AMT),
5.45%, 2/15/09 $ 2,691,838
- ------------------------------------------------------------------------
$ 2,691,838
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Senior Living / Life Care -- 5.1%
- ------------------------------------------------------------------------
$ 300 Cass County, (Fox Springs Living
Center), 7.375%, 10/1/22 $ 307,269
1,000 Kansas City IDR, (Kingswood Manor),
5.80%, 11/15/17 832,160
2,000 Missouri HEFA, (Lutheran Senior
Services), 6.375%, 2/1/27 1,882,860
- ------------------------------------------------------------------------
$ 3,022,289
- ------------------------------------------------------------------------
Transportation -- 2.5%
- ------------------------------------------------------------------------
$1,000 Puerto Rico Highway and Transportation
Authority, 6.625%, 7/1/12 $ 1,049,070
500 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(1)(2) 407,795
- ------------------------------------------------------------------------
$ 1,456,865
- ------------------------------------------------------------------------
Water and Sewer -- 3.1%
- ------------------------------------------------------------------------
$1,000 Missouri Environmental Improvement and
Energy Resources Authority,
0.00%, 1/1/14 $ 443,040
1,250 Missouri Environmental Improvement and
Energy Resources Authority,
7.20%, 7/1/16 1,353,438
- ------------------------------------------------------------------------
$ 1,796,478
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.5%
(identified cost $59,198,084) $57,891,419
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.5% $ 902,595
- ------------------------------------------------------------------------
Net Assets -- 100.0% $58,794,014
- ------------------------------------------------------------------------
</TABLE>
The Portfolio invests primarily in debt securities issued by Missouri
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 32.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.0% to 12.5% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 90.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Education -- 4.2%
- -------------------------------------------------------------------------
$1,000 North Carolina Educational Facilities
Finance Agency, (Duke University),
6.75%, 10/1/21 $ 1,047,230
8,410 University of North Carolina at Chapel
Hill, 0.00%, 8/1/17 3,002,538
2,500 University of North Carolina at Chapel
Hill, 0.00%, 8/1/19 779,675
- -------------------------------------------------------------------------
$ 4,829,443
- -------------------------------------------------------------------------
Electric Utilities -- 10.8%
- -------------------------------------------------------------------------
$1,015 Chatham County Industrial Facilities and
Pollution, (Carolina Power and Light),
6.30%, 6/15/14 $ 1,053,996
1,250 North Carolina Eastern Municipal Power
Agency, 6.75%, 1/1/26 1,262,275
3,500 North Carolina Eastern Municipal Power
Agency, 6.50%, 1/1/20 3,476,480
5,000 North Carolina Eastern Municipal Power
Authority, 6.125%, 1/1/09 5,041,900
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 718,780
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 718,780
- -------------------------------------------------------------------------
$ 12,272,211
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 1.3%
- -------------------------------------------------------------------------
$ 150 Puerto Rico General Obligations,
Prerefunded to 7/1/00, 7.30%, 7/1/20 $ 154,635
1,000 Virgin Islands Public Finance Authority,
Prerefunded to 10/1/02, 7.25%, 10/1/18 1,084,520
220 Virgin Islands Water and Power
Authority, Prerefunded to 7/1/01,
7.40%, 7/1/11 230,512
- -------------------------------------------------------------------------
$ 1,469,667
- -------------------------------------------------------------------------
General Obligations -- 3.0%
- -------------------------------------------------------------------------
$3,550 North Carolina Capital Improvements,
4.75%, 2/1/12 $ 3,294,329
500 Puerto Rico, 0.00%, 7/1/17 178,490
- -------------------------------------------------------------------------
$ 3,472,819
- -------------------------------------------------------------------------
Hospital -- 11.2%
- -------------------------------------------------------------------------
$2,090 Charlotte-Mecklenberg Hospital,
0.00%, 1/1/06 $ 1,532,054
2,000 Charlotte-Mecklenberg Hospital,
5.125%, 1/15/22 1,717,560
1,500 North Carolina Medical Care Commission,
(Annie Penn Memorial Hospital),
5.375%, 1/1/22 1,148,130
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Hospital (continued)
- -------------------------------------------------------------------------
$3,400 North Carolina Medical Care Commission,
(Duke University Hospital),
0.00%, 6/1/09 $ 2,039,898
1,000 North Carolina Medical Care Commission,
(Gaston Health Care), 5.00%, 2/15/29 789,700
500 North Carolina Medical Care Commission,
(Halifax Regional Medical Center),
5.00%, 8/15/24 371,080
2,000 North Carolina Medical Care Commission,
(North Carolina Baptist Hospital),
6.00%, 6/1/22 1,967,240
1,750 North Carolina Medical Care Commission,
(Pitt County Memorial Hospital),
4.75%, 12/1/28 1,365,752
1,700 North Carolina Medical Care Commission,
(Presbyterian Health Services),
6.00%, 10/1/24 1,784,201
- -------------------------------------------------------------------------
$ 12,715,615
- -------------------------------------------------------------------------
Housing -- 11.8%
- -------------------------------------------------------------------------
$1,900 Charlotte Housing Authority, Double
Oaks, FHA, (FNMA), 7.35%, 5/15/26 $ 2,004,709
1,000 Guam Housing Corp., Single Family,
5.75%, 9/1/31 956,910
1,835 North Carolina HFA, MFMR, (AMT),
6.45%, 9/1/27 1,853,240
1,500 North Carolina HFA, SFMR, (AMT),
6.30%, 3/1/26 1,504,665
2,055 North Carolina HFA, SFMR, (AMT),
6.60%, 9/1/26 2,085,291
3,385 North Carolina HFA, SFMR, (AMT),
6.70%, 9/1/26 3,448,435
595 North Carolina HFA, SFMR, (AMT),
7.05%, 9/1/20 618,580
1,000 Raleigh Housing Authority, Multifamily,
(Cedar Point), 7.00%, 11/1/30 915,180
- -------------------------------------------------------------------------
$ 13,387,010
- -------------------------------------------------------------------------
Industrial Development Revenue -- 14.4%
- -------------------------------------------------------------------------
$6,000 Columbus County, Industrial Facility and
Pollution Control Financing,
(International Paper Co.), (AMT),
6.15%, 4/1/21 $ 5,588,220
2,750 Haywood County IDA, (Champion
International Corp.), (AMT),
5.50%, 10/1/18 2,382,270
1,500 Haywood County IDA, (Champion
International Corp.), (AMT),
5.75%, 12/1/25 1,319,445
3,750 Martin County IDA, (Weyerhaeuser Co.),
(AMT), 6.80%, 5/1/24 3,822,187
2,500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 2,409,300
850 Robeson County, Industrial Facilities
and Pollution Control Financing
Authority, (Campbell Soup Co.),
6.40%, 12/1/06 904,162
- -------------------------------------------------------------------------
$ 16,425,584
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
NORTH CAROLINA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Electric Utilities -- 6.7%
- -------------------------------------------------------------------------
$4,000 North Carolina Eastern Municipal Power
Authority, (Catawba Electric), (MBIA),
Variable Rate, 1/1/12(1) $ 3,895,000
1,500 North Carolina Eastern Municipal Power
Authority, (FSA), Variable Rate,
1/1/19(1)(2) 1,405,905
1,000 North Carolina Eastern Municipal Power
Authority, (MBIA), 5.375%, 1/1/24 898,460
1,400 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 1,454,250
- -------------------------------------------------------------------------
$ 7,653,615
- -------------------------------------------------------------------------
Insured-General Obligations -- 3.1%
- -------------------------------------------------------------------------
$3,500 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) $ 3,500,000
- -------------------------------------------------------------------------
$ 3,500,000
- -------------------------------------------------------------------------
Insured-Hospital -- 6.7%
- -------------------------------------------------------------------------
$ 500 Cumberland County Hospital, (MBIA),
0.00%, 10/1/09 $ 296,350
935 North Carolina Medical Care Commission,
(Memorial Mission Hospital), (FSA),
0.00%, 10/1/06 657,324
5,000 North Carolina Medical Care Commission,
(Saint Joseph's Medical Center),
(AMBAC), 5.10%, 10/1/14 4,695,350
1,500 North Carolina Medical Care Commission,
(Wake County Hospital), (MBIA),
5.375%, 10/1/26 1,335,225
1,500 North Carolina Medical Care Commission,
(Wilson Memorial Hospital), (AMBAC),
0.00%, 11/1/15 596,625
- -------------------------------------------------------------------------
$ 7,580,874
- -------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 4.2%
- -------------------------------------------------------------------------
$2,150 Charlotte, Convention Facility, (AMBAC),
5.25%, 12/1/13 $ 2,077,287
1,575 Franklin, County Jail, (FGIC),
6.625%, 6/1/14 1,700,858
1,000 Mooresville School District, (AMBAC),
6.35%, 10/1/14 1,049,650
- -------------------------------------------------------------------------
$ 4,827,795
- -------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 4.1%
- -------------------------------------------------------------------------
$2,065 Buncombe County, 6.625%, 12/1/10 $ 2,199,617
2,400 Greensboro, Greensboro Coliseum Arena,
6.75%, 12/1/09 2,529,960
- -------------------------------------------------------------------------
$ 4,729,577
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Transportation -- 7.0%
- -------------------------------------------------------------------------
$3,000 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 2,484,840
1,490 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 1,454,463
4,375 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 3,991,575
- -------------------------------------------------------------------------
$ 7,930,878
- -------------------------------------------------------------------------
Water and Sewer -- 1.8%
- -------------------------------------------------------------------------
$ 175 Eden, Water and Sewer Bonds, (AMT),
6.75%, 6/1/08 $ 184,685
2,000 Orange County, Water and Sewer,
5.20%, 7/1/16 1,872,620
- -------------------------------------------------------------------------
$ 2,057,305
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 90.3%
(identified cost $102,436,375) $102,852,393
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 9.7% $ 11,015,475
- -------------------------------------------------------------------------
Net Assets -- 100.0% $113,867,868
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by North Carolina
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 22.9% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.7% to 8.2% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
OREGON MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Cogeneration -- 2.5%
- ------------------------------------------------------------------------
$2,000 Western Generation Agency, (Wauna
Cogeneration), (AMT), 7.40%, 1/1/16 $ 2,064,540
- ------------------------------------------------------------------------
$ 2,064,540
- ------------------------------------------------------------------------
Education -- 1.2%
- ------------------------------------------------------------------------
$1,000 Salem EFA, (Willamette University),
6.10%, 4/1/14 $ 1,018,990
- ------------------------------------------------------------------------
$ 1,018,990
- ------------------------------------------------------------------------
Electric Utilities -- 5.5%
- ------------------------------------------------------------------------
$3,660 Eugene, Trojan Nuclear Power,
5.90%, 9/1/09 $ 3,707,580
1,000 Northern Wasco County, (Bonneville Power
Administration), 5.20%, 12/1/24 890,360
- ------------------------------------------------------------------------
$ 4,597,940
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.5%
- ------------------------------------------------------------------------
$2,000 Medford, Rogue Valley Memorial Hospital,
Escrowed to Maturity, 6.25%, 12/1/07 $ 2,095,400
- ------------------------------------------------------------------------
$ 2,095,400
- ------------------------------------------------------------------------
General Obligations -- 15.1%
- ------------------------------------------------------------------------
$1,000 Lane County, Eugene School District,
5.375%, 7/1/13 $ 988,680
1,000 Oregon Board of Higher Education,
6.00%, 10/15/18 989,420
1,250 Oregon Elderly and Disabled Housing,
6.375%, 8/1/24 1,275,175
4,610 Oregon Elderly and Disabled Housing,
(AMT), 5.65%, 8/1/26 4,438,554
1,445 Oregon Veterans Welfare, 5.90%, 10/1/17 1,426,258
4,850 Puerto Rico, 0.00%, 7/1/17 1,731,353
2,250 Puerto Rico, 4.75%, 7/1/23 1,844,190
- ------------------------------------------------------------------------
$12,693,630
- ------------------------------------------------------------------------
Housing -- 26.6%
- ------------------------------------------------------------------------
$2,105 Hood River County, Health Facilities
Authority, Elderly Housing Revenue,
(Down Manor), 6.50%, 1/1/17 $ 1,918,392
1,000 Oregon Health, Housing, Educational and
Cultural Facilities Authority, (Trillium
Affordable Housing), 6.75%, 8/15/29 910,400
2,000 Oregon Housing and Community Services
Department, MFMR, (AMT), 5.70%, 7/1/29 1,820,400
1,500 Oregon Housing and Community Services
Department, MFMR, (AMT), 6.20%, 7/1/28 1,474,500
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Housing (continued)
- ------------------------------------------------------------------------
$1,930 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.20%, 7/1/27 $ 1,950,554
1,630 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.40%, 7/1/26 1,653,227
2,185 Oregon Housing and Community Services
Department, SFMR, (AMT), 6.45%, 7/1/26 2,234,403
3,810 Portland Housing Authority, MFMR, (Berry
Ridge), (AMT), 6.30%, 5/1/29 3,817,849
2,875 Portland Housing Authority, MFMR,
(Cherry Blossom), (AMT),
6.20%, 12/20/36 2,825,607
1,000 Portland Housing Authority, MFMR,
(Village Court), 6.00%, 1/1/27 970,100
1,000 Washington County Housing Authority,
MFMR, (Bethany Meadows), (AMT),
5.75%, 9/1/17 959,550
2,000 Washington County Housing Authority,
MFMR, (Bethany Meadows), (AMT),
5.85%, 9/1/27 1,875,640
- ------------------------------------------------------------------------
$22,410,622
- ------------------------------------------------------------------------
Industrial Development Revenue -- 11.9%
- ------------------------------------------------------------------------
$3,500 Oregon EDA, (Georgia Pacific), (AMT),
6.35%, 8/1/25 $ 3,345,020
1,500 Oregon Solid Waste Disposal, (USG
Corp.), 6.40%, 12/1/29 1,468,575
3,500 Port of Astoria, Pollution Control
Revenue, (James River Corp.),
6.55%, 2/1/15 3,436,825
750 Port of Portland, (Ash Grove Cement
Co.), 7.25%, 10/1/09 781,890
1,000 Port of Portland, (North Portland Crown
Zellerbach Corp.), 6.125%, 5/15/08 1,000,530
- ------------------------------------------------------------------------
$10,032,840
- ------------------------------------------------------------------------
Insured-Education -- 4.6%
- ------------------------------------------------------------------------
$4,850 Oregon Health Science University,
(MBIA), 0.00%, 7/1/21 $ 1,348,300
1,000 Oregon Health, Housing, Educational and
Cultural Facilities Authority, (Lewis
and Clark College), (MBIA),
6.00%, 10/1/13 1,023,660
1,500 Oregon Health, Housing, Educational and
Cultural Facilities Authority, (Lewis
and Clark College), (MBIA),
6.125%, 10/1/24 1,509,570
- ------------------------------------------------------------------------
$ 3,881,530
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 8.5%
- ------------------------------------------------------------------------
$1,000 Emerald People's Utility District,
Electric System, (AMBAC), 5.75%, 11/1/16 $ 1,002,950
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
OREGON MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- ------------------------------------------------------------------------
$4,350 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 3,641,342
5,300 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 1,963,385
500 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 526,875
- ------------------------------------------------------------------------
$ 7,134,552
- ------------------------------------------------------------------------
Insured-General Obligations -- 3.5%
- ------------------------------------------------------------------------
$1,000 Columbia School District No. 502,
(FGIC), 0.00%, 6/1/17 $ 364,200
1,000 Salem-Keizer School District No. 24J,
(FGIC), 5.00%, 6/1/17 911,880
2,000 Umatilla County School District No.
008R, (MBIA), Variable Rate,
6/15/14(1)(2) 1,696,960
- ------------------------------------------------------------------------
$ 2,973,040
- ------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.5%
- ------------------------------------------------------------------------
$1,250 Oregon Department of General Services,
Real Property Financing Program,
(AMBAC), 6.25%, 9/1/15 $ 1,291,813
- ------------------------------------------------------------------------
$ 1,291,813
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.4%
- ------------------------------------------------------------------------
$1,000 Portland, Arena Natural Gas Tax Revenue
(AMBAC), 0.00%, 6/1/17 $ 351,280
1,400 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) 820,568
- ------------------------------------------------------------------------
$ 1,171,848
- ------------------------------------------------------------------------
Insured-Transportation -- 4.4%
- ------------------------------------------------------------------------
$1,000 Oregon Department of Transportation,
(Westside Light Rail), (MBIA),
6.25%, 6/1/09 $ 1,054,000
750 Port of Portland, (Portland
International Airport), (FGIC), (AMT),
5.00%, 7/1/28 632,250
2,000 Port of Portland, (Portland
International Airport), (FGIC), (AMT),
6.00%, 7/1/23 1,981,220
- ------------------------------------------------------------------------
$ 3,667,470
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Miscellaneous -- 1.1%
- ------------------------------------------------------------------------
$1,000 Union, Facility Revenue, (Buffalo Peak
Golf Club), 6.75%, 7/1/24 $ 956,820
- ------------------------------------------------------------------------
$ 956,820
- ------------------------------------------------------------------------
Special Tax Revenue -- 2.4%
- ------------------------------------------------------------------------
$2,000 Tri-County Metropolitan Transportation
District, Limited Tax Pledge,
5.70%, 8/1/13 $ 2,013,160
- ------------------------------------------------------------------------
$ 2,013,160
- ------------------------------------------------------------------------
Transportation -- 3.5%
- ------------------------------------------------------------------------
$1,500 Port of Portland, Special Obligation
Revenue Bonds, (Delta Airlines, Inc.),
(AMT), 6.20%, 9/1/22 $ 1,387,305
2,000 Tri-County Metropolitan Transportation
District, Variable Rate, 8/1/19(1)(2) 1,550,920
- ------------------------------------------------------------------------
$ 2,938,225
- ------------------------------------------------------------------------
Water and Sewer -- 2.5%
- ------------------------------------------------------------------------
$2,000 Clackamas County, Water Revenue,
6.375%, 10/1/14 $ 2,073,720
- ------------------------------------------------------------------------
$ 2,073,720
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.7%
(identified cost $85,065,183) $83,016,140
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 1,059,517
- ------------------------------------------------------------------------
Net Assets -- 100.0% $84,075,657
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Oregon
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 24.2% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 4.2% to 10.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
SOUTH CAROLINA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.6%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Electric Utilities -- 9.0%
- ------------------------------------------------------------------------
$1,650 Berkeley County, (South Carolina
Electric and Gas Co.), 6.50%, 10/1/14 $ 1,723,029
1,150 Darlington County, (Carolina Power and
Light Co.), 6.60%, 11/1/10 1,221,357
500 Piedmont Municipal Power Agency,
Electric Revenue, 5.25%, 1/1/21 406,630
- ------------------------------------------------------------------------
$ 3,351,016
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.0%
- ------------------------------------------------------------------------
$1,750 Myrtle Beach Convention Center,
Prerefunded to 7/1/02, 6.875%, 7/1/17 $ 1,862,822
- ------------------------------------------------------------------------
$ 1,862,822
- ------------------------------------------------------------------------
General Obligations -- 2.1%
- ------------------------------------------------------------------------
$ 500 Puerto Rico, 0.00%, 7/1/18 $ 166,705
270 Puerto Rico, 4.50%, 7/1/23 211,664
500 Puerto Rico, 4.75%, 7/1/23 409,820
- ------------------------------------------------------------------------
$ 788,189
- ------------------------------------------------------------------------
Hospital -- 7.1%
- ------------------------------------------------------------------------
$1,375 Horry County, (Conway Hospital),
6.75%, 7/1/12 $ 1,439,570
1,500 Loris, Community Hospital District,
5.625%, 1/1/29 1,196,190
- ------------------------------------------------------------------------
$ 2,635,760
- ------------------------------------------------------------------------
Housing -- 8.9%
- ------------------------------------------------------------------------
$1,280 South Carolina Housing Finance
Authority, MFMR, (Runaway Bay
Apartments), 6.20%, 12/1/20 $ 1,275,405
500 South Carolina Housing Finance
Authority, SFMR, 6.375%, 7/1/16 507,350
1,485 South Carolina Housing Finance
Authority, SFMR, 6.45%, 7/1/17 1,508,715
- ------------------------------------------------------------------------
$ 3,291,470
- ------------------------------------------------------------------------
Industrial Development Revenue -- 19.1%
- ------------------------------------------------------------------------
$ 500 Charleston County IDA, (Zeigler Coal
Holding), 6.95%, 8/10/28 $ 410,310
1,500 Darlington County, (Nucor Corp.), (AMT),
5.75%, 8/1/23 1,403,940
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue (continued)
- ------------------------------------------------------------------------
$1,000 Darlington County, (Sonoco Products),
6.00%, 4/1/26 $ 956,220
410 Florence County, (Stone Container Co.),
7.375%, 2/1/07 412,321
1,000 Georgetown County, (International Paper
Co.), 5.70%, 10/1/21 870,250
750 Georgetown County, (International Paper
Co.), 6.25%, 9/1/23 706,950
1,000 Richland County, (Union Camp Corp.),
(AMT), 6.75%, 5/1/22 1,041,160
1,500 York County, (Hoechst Celanese Corp.),
(AMT), 5.70%, 1/1/24 1,284,525
- ------------------------------------------------------------------------
$ 7,085,676
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 12.3%
- ------------------------------------------------------------------------
$1,000 Piedmont Municipal Power Agency,
Electric Revenue, (MBIA), 4.00%, 1/1/23 $ 717,190
195 Piedmont Municipal Power Agency,
Electric Revenue, (MBIA), 6.30%, 1/1/14 201,490
1,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 837,090
2,500 Puerto Rico Electric Power Authority,
(MBIA), 0.00%, 7/1/17 926,125
1,250 South Carolina Public Service Authority,
(AMBAC), 6.375%, 7/1/21 1,271,362
750 South Carolina Public Service Authority,
(MBIA), 5.00%, 1/1/29 622,335
- ------------------------------------------------------------------------
$ 4,575,592
- ------------------------------------------------------------------------
Insured-Hospital -- 7.7%
- ------------------------------------------------------------------------
$1,000 South Carolina Jobs Economic Development
Authority, (Baptist Hospital), (AMBAC),
5.45%, 8/1/15 $ 948,960
1,000 South Carolina Jobs Economic Development
Authority, (Baptist Hospital), (AMBAC),
Variable Rate, 8/1/15(1) 897,500
1,000 South Carolina Jobs Economic Development
Authority, (Oconee Memorial Hospital),
(CLEE), 6.15%, 3/1/25 992,800
- ------------------------------------------------------------------------
$ 2,839,260
- ------------------------------------------------------------------------
Insured-Housing -- 1.3%
- ------------------------------------------------------------------------
$ 495 South Carolina Housing Finance and
Development Authority, SFMR, (AMBAC),
(AMT), 5.95%, 7/1/29 $ 489,803
- ------------------------------------------------------------------------
$ 489,803
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
SOUTH CAROLINA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 4.2%
- ------------------------------------------------------------------------
$ 500 Charleston County, (Charleston Public
Facilities Corp.), (MBIA), 6.10%, 6/1/11 $ 519,395
1,000 Florence County, (Law Enforcement
Center), (AMBAC), 6.00%, 3/1/14 1,018,770
- ------------------------------------------------------------------------
$ 1,538,165
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.4%
- ------------------------------------------------------------------------
$ 260 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(2) $ 152,391
- ------------------------------------------------------------------------
$ 152,391
- ------------------------------------------------------------------------
Insured-Transportation -- 1.6%
- ------------------------------------------------------------------------
$ 750 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 602,858
- ------------------------------------------------------------------------
$ 602,858
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 7.6%
- ------------------------------------------------------------------------
$2,000 Charleston, Waterworks and Sewer
Revenue, (FGIC), 4.50%, 1/1/24 $ 1,561,760
500 Edgefield County, Water and Sewer
Authority, (FGIC), 5.00%, 1/1/28 422,320
500 Spartanburg, Sanitary Sewer District,
(MBIA), 5.00%, 3/1/26 426,140
500 Spartanburg, Sanitary Sewer District,
(MBIA), 5.00%, 3/1/28 423,585
- ------------------------------------------------------------------------
$ 2,833,805
- ------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.2%
- ------------------------------------------------------------------------
$ 750 Lexington County School District,
6.90%, 7/1/08 $ 796,050
- ------------------------------------------------------------------------
$ 796,050
- ------------------------------------------------------------------------
Pooled Loans -- 2.8%
- ------------------------------------------------------------------------
$1,000 South Carolina Education Authority,
Student Loan, (AMT), 6.30%, 9/1/08 $ 1,023,510
- ------------------------------------------------------------------------
$ 1,023,510
- ------------------------------------------------------------------------
Solid Waste -- 4.3%
- ------------------------------------------------------------------------
$1,500 Spartanburg County, Solid Waste,
(Bavarian Motor Works Corp.), (AMT),
7.55%, 11/1/24 $ 1,593,060
- ------------------------------------------------------------------------
$ 1,593,060
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Transportation -- 2.0%
- ------------------------------------------------------------------------
$1,000 Connector 2000 Association Inc., Bridge
& Toll Road Revenue, (Southern
Connector), 5.25%, 1/1/23 $ 740,500
- ------------------------------------------------------------------------
$ 740,500
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.6%
(identified cost $37,044,460) $36,199,927
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.4% $ 889,138
- ------------------------------------------------------------------------
Net Assets -- 100.0% $37,089,065
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by South Carolina
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 36.0% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 2.7% to 13.2% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Education -- 5.1%
- ------------------------------------------------------------------------
$1,000 Metropolitan Government of Nashville and
Davidson County, (Belmont University),
6.40%, 12/1/19 $ 1,009,190
1,500 Metropolitan Government of Nashville and
Davidson County, (Vanderbilt
University), 5.00%, 10/1/28 1,270,125
- ------------------------------------------------------------------------
$ 2,279,315
- ------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.7%
- ------------------------------------------------------------------------
$1,000 Johnson, School District Sales Tax,
(AMBAC), Prerefunded to 5/1/06,
6.70%, 5/1/21 $ 1,085,650
1,500 Shelby County, (Lebonheur Children's
Hospital), (MBIA), Escrowed to Maturity,
5.50%, 8/15/12 1,491,285
- ------------------------------------------------------------------------
$ 2,576,935
- ------------------------------------------------------------------------
General Obligations -- 2.3%
- ------------------------------------------------------------------------
$1,000 Shelby County, 5.125%, 3/1/16 $ 1,018,690
- ------------------------------------------------------------------------
$ 1,018,690
- ------------------------------------------------------------------------
Hospital -- 6.2%
- ------------------------------------------------------------------------
$ 250 Knox County, HEFA, (Mercy Health
System), 6.50%, 10/1/12 $ 245,980
750 Metropolitan Government of Nashville and
Davidson County, (Charity Obligated
Group), 5.125%, 11/1/27 735,975
1,000 Montgomery County, (Clarksville Regional
Health System), 5.375%, 1/1/28 742,010
1,000 Sumner County, (Sumner Regional Health
Systems), 7.50%, 11/1/14 1,072,210
- ------------------------------------------------------------------------
$ 2,796,175
- ------------------------------------------------------------------------
Housing -- 11.2%
- ------------------------------------------------------------------------
$ 750 Knoxville Community Development Corp.,
(Clinton Towers), 6.65%, 10/15/10 $ 763,327
1,500 Metropolitan Government of Nashville and
Davidson County, (The Park at
Hermitage), 5.90%, 2/1/19 1,426,185
1,000 Tennessee Housing Development Agency,
5.375%, 7/1/23 914,940
985 Tennessee Housing Development Agency,
5.85%, 7/1/13 975,032
1,000 Tennessee Housing Development Agency,
(AMT), 5.75%, 7/1/24 954,600
- ------------------------------------------------------------------------
$ 5,034,084
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Industrial Development Revenue -- 23.7%
- ------------------------------------------------------------------------
$1,000 Chattanooga, (E.I. du Pont de Nemours
and Co.), 6.35%, 7/1/22 $ 1,020,710
1,000 Humphreys County, (E.I. du Pont de
Nemours and Co.), (AMT), 6.70%, 5/1/24 1,034,780
400 Knox County, Industrial Development
Board Revenue (Melrose Place Ltd),
6.875%, 12/1/14 382,652
1,000 Loudon County, (Kimberly-Clark Corp.),
(AMT), 6.20%, 2/1/23 1,000,060
2,250 Maury County, (Saturn Corp.),
6.50%, 9/1/24 2,244,510
1,500 McMinn County, (Calhoun Newsprint Co. -
Bowater, Inc.), (AMT), 7.40%, 12/1/22 1,532,775
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), 6.75%, 9/1/12 1,047,780
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), (AMT),
6.20%, 7/1/14 960,580
500 Metropolitan Government of Nashville and
Davidson County, (Osco Treatment
Systems), (AMT), 6.00%, 5/1/03 496,585
1,000 South Fulton County, (Tyson Foods Co.),
(AMT), 6.40%, 10/1/20 969,060
- ------------------------------------------------------------------------
$10,689,492
- ------------------------------------------------------------------------
Insured-Education -- 4.7%
- ------------------------------------------------------------------------
$1,230 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 6.00%, 12/1/19 $ 1,252,029
1,000 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 5.00%, 12/1/24 849,610
- ------------------------------------------------------------------------
$ 2,101,639
- ------------------------------------------------------------------------
Insured-Electric Utilities -- 6.8%
- ------------------------------------------------------------------------
$1,000 Lawrenceburg, Electric Revenues, (MBIA),
6.625%, 7/1/18 $ 1,100,070
1,750 Madison County Suburban Utility
District, (MBIA), 5.00%, 2/1/19 1,541,820
400 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) 421,500
- ------------------------------------------------------------------------
$ 3,063,390
- ------------------------------------------------------------------------
Insured-General Obligations -- 2.6%
- ------------------------------------------------------------------------
$1,425 Franklin, Special School District,
(FSA), 0.00%, 6/1/19 $ 439,755
2,500 Franklin, Special School District,
(FSA), 0.00%, 6/1/20 721,525
- ------------------------------------------------------------------------
$ 1,161,280
- ------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Insured-Hospital -- 4.6%
- ------------------------------------------------------------------------
$ 500 Bristol, (Bristol Memorial Hospital),
(FGIC), 6.75%, 9/1/10 $ 551,260
250 Chattanooga, (Memorial Hospital),
(MBIA), 6.625%, 9/1/09 275,565
1,500 Chattanooga-Hamilton County, (Erlanger
Medical Center), (MBIA), 5.00%, 10/1/28 1,247,415
- ------------------------------------------------------------------------
$ 2,074,240
- ------------------------------------------------------------------------
Insured-Housing -- 2.4%
- ------------------------------------------------------------------------
$1,000 Knox County, SCA Realty, MFMR, (FSA),
7.125%, 1/1/30 $ 1,062,960
- ------------------------------------------------------------------------
$ 1,062,960
- ------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.8%
- ------------------------------------------------------------------------
$ 500 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) $ 367,950
- ------------------------------------------------------------------------
$ 367,950
- ------------------------------------------------------------------------
Insured-Transportation -- 5.7%
- ------------------------------------------------------------------------
$1,500 Memphis-Shelby County Airport Authority,
(MBIA), (AMT), 6.00%, 3/1/24 $ 1,482,150
1,000 Memphis-Shelby County Airport Authority,
(MBIA), (AMT), 6.50%, 2/15/08 1,071,800
- ------------------------------------------------------------------------
$ 2,553,950
- ------------------------------------------------------------------------
Insured-Water and Sewer -- 3.0%
- ------------------------------------------------------------------------
$ 350 Metropolitan Government of Nashville and
Davidson County, Water System, (AMBAC),
Variable Rate, 1/1/22(1) $ 376,688
1,000 Metropolitan Government of Nashville and
Davidson County, Water System, (FGIC),
5.20%, 1/1/13 971,570
- ------------------------------------------------------------------------
$ 1,348,258
- ------------------------------------------------------------------------
Lease Revenue/Certificates of Participation -- 1.1%
- ------------------------------------------------------------------------
$ 500 Hardeman County, (Correctional
Facilities Corp.), 7.75%, 8/1/17 $ 513,040
- ------------------------------------------------------------------------
$ 513,040
- ------------------------------------------------------------------------
Nursing Home -- 2.3%
- ------------------------------------------------------------------------
$1,000 Tennessee State Veterans' Homes Board,
(Humboldt), 6.65%, 2/1/14 $ 1,035,420
- ------------------------------------------------------------------------
$ 1,035,420
- ------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ------------------------------------------------------------------------
Pooled Loans -- 3.9%
- ------------------------------------------------------------------------
$1,200 Tennessee Local Development Authority,
Community Provider, 6.55%, 10/1/23 $ 1,294,236
500 Tennessee Local Development Authority,
State Loan Program, 5.00%, 3/1/15 451,675
- ------------------------------------------------------------------------
$ 1,745,911
- ------------------------------------------------------------------------
Transportation -- 5.6%
- ------------------------------------------------------------------------
$ 820 Memphis-Shelby County Airport Authority,
6.12%, 12/1/16 $ 755,819
1,825 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,511,611
300 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(2)(3) 244,677
- ------------------------------------------------------------------------
$ 2,512,107
- ------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.7%
(identified cost $44,413,468) $43,934,836
- ------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.3% $ 1,056,877
- ------------------------------------------------------------------------
Net Assets -- 100.0% $44,991,713
- ------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Tennessee
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 37.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 3.5% to 18.7% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.6%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Education -- 4.3%
- -------------------------------------------------------------------------
$ 250 Alexandria IDA, Educational Facility
Revenue, (Episcopal High School),
5.875%, 1/1/29 $ 244,542
2,000 Lynchburgh, (Randolph-Macon Woman's
College), 5.875%, 9/1/23 1,916,540
2,000 Medical College of Hampton Roads,
6.875%, 11/15/11 2,087,580
1,000 Virginia College Building Authority,
(Hampton University), 5.75%, 4/1/14 999,460
- -------------------------------------------------------------------------
$ 5,248,122
- -------------------------------------------------------------------------
Electric Utilities -- 0.7%
- -------------------------------------------------------------------------
$1,000 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 $ 843,000
- -------------------------------------------------------------------------
$ 843,000
- -------------------------------------------------------------------------
Escrowed / Prerefunded -- 15.1%
- -------------------------------------------------------------------------
$1,665 Arlington County IDA, (AMBAC),
Prerefunded to 9/1/03, 5.00%, 9/1/21 $ 1,444,521
1,000 Arlington County IDA, (Arlington
Hospital), Prerefunded to 9/1/01,
7.125%, 9/1/21 1,056,820
1,000 Fairfax County, Prerefunded to 6/1/02,
5.625%, 6/1/14 1,037,900
2,000 Loudoun County IDA, (Falcons Landing),
Prerefunded to 11/1/04, 8.75%, 11/1/24 2,356,200
3,500 Peninsula Ports Authority of Virginia,
(Riverside Health System), Prerefunded
to 7/1/02, 6.625%, 7/1/10 3,705,695
2,400 Prince William County IDA, (Potomac
Hospital), Prerefunded to 10/1/05,
6.85%, 10/1/25 2,651,064
900 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 952,875
1,000 Virgin Islands Public Finance Authority,
Prerefunded to 10/1/02, 7.25%, 10/1/18 1,084,520
1,700 Virginia Beach, Water and Sewer System,
Prerefunded to 2/1/02, 6.625%, 2/1/17 1,789,046
1,060 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/02, 7.00%, 7/1/22 1,130,988
1,000 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/05, 6.00%, 7/1/14 1,053,200
- -------------------------------------------------------------------------
$ 18,262,829
- -------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Hospital -- 6.3%
- -------------------------------------------------------------------------
$3,550 Albermarle County IDA, (Martha Jefferson
Hospital), 5.50%, 10/1/20 $ 3,058,183
90 Chesapeake Hospital Authority,
(Chesapeake General Hospital),
7.60%, 7/1/00 90,942
2,910 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/14 2,682,787
2,000 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/15 1,823,760
- -------------------------------------------------------------------------
$ 7,655,672
- -------------------------------------------------------------------------
Housing -- 3.4%
- -------------------------------------------------------------------------
$1,000 Alexandria, Redevelopment and Housing
Authority, MFMR, (Buckingham Village
Apartments), (AMT), 5.45%, 7/1/18 $ 910,470
1,500 Prince William County IDA, (Melrose
Apartments), 5.40%, 1/1/29 1,321,395
1,900 Virginia HDA, SFMR, Variable Rate,
7/1/04(1) 1,904,750
- -------------------------------------------------------------------------
$ 4,136,615
- -------------------------------------------------------------------------
Industrial Development Revenue -- 20.8%
- -------------------------------------------------------------------------
$4,500 Bedford County, (Nekoosa Packaging),
(AMT), 5.60%, 12/1/25 $ 3,832,785
2,190 Chesapeake, (Cargill, Inc.),
5.875%, 3/1/13 2,209,425
1,500 Giles, (Hoechst Celanese Corp.), (AMT),
5.95%, 12/1/25 1,322,760
2,000 Giles, (Hoechst Celanese Corp.), (AMT),
6.45%, 5/1/26 1,893,720
500 Giles, (Hoechst Celanese Corp.), (AMT),
6.625%, 12/1/22 490,440
2,000 Henrico County, (Browning Ferris, Inc.),
(AMT), 5.45%, 1/1/14 1,671,660
4,000 Isle of Wright County IDA, (Union Camp
Corp.), (AMT), 6.55%, 4/1/24 3,994,880
1,000 James City County IDA, (Anheuser Busch),
(AMT), 6.00%, 4/1/32 979,450
1,400 Peninsula Ports Authority, (Zeigler
Coal), 6.90%, 5/2/22 1,156,526
1,500 Pennisula Ports Authority Revenue (CSX
Transportation), 6.00%, 12/15/12 1,470,360
980 West Point, (Chesapeake Corp.),
6.25%, 3/1/19 918,015
5,520 West Point, (Chesapeake Corp.), (AMT),
6.375%, 3/1/19 5,171,412
- -------------------------------------------------------------------------
$ 25,111,433
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
80
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-General Obligations -- 2.9%
- -------------------------------------------------------------------------
$4,000 Richmond, (FGIC), 5.00%, 1/15/21 $ 3,477,760
- -------------------------------------------------------------------------
$ 3,477,760
- -------------------------------------------------------------------------
Insured-Hospital -- 7.7%
- -------------------------------------------------------------------------
$1,085 Fredericksburg IDA, (Medicorp Health),
(AMBAC), 5.25%, 6/15/23 $ 956,916
1,500 Henrico County, (Bon Secour Health
Systems), (MBIA), 6.25%, 8/15/20 1,568,250
5,000 Virginia Beach, (Virginia Beach Memorial
Hospital), (AMBAC), 5.125%, 2/15/18 4,540,750
2,000 Winchester IDA, (Winchester Medical
Center), (AMBAC), Variable Rate,
1/21/14(1) 2,202,500
- -------------------------------------------------------------------------
$ 9,268,416
- -------------------------------------------------------------------------
Insured-Housing -- 1.1%
- -------------------------------------------------------------------------
$1,250 Fairfax County Redevelopment and Housing
Authority MFMR, (FHA), 7.00%, 5/1/26 $ 1,290,900
- -------------------------------------------------------------------------
$ 1,290,900
- -------------------------------------------------------------------------
Insured-Transportation -- 5.4%
- -------------------------------------------------------------------------
$3,500 Chesapeake Bay Bridge and Tunnel
Commission District Revenue, (General
Resolution), (MBIA), 5.50%, 7/1/25 $ 3,314,570
1,000 Metro Washington D.C., Airport
Authority, (FGIC), (AMT),
5.00%, 10/1/27 833,250
1,000 Metro Washington D.C., Airport
Authority, (MBIA), (AMT),
6.25%, 10/1/21 1,005,660
1,650 Norfolk, Parking System Revenue, (MBIA),
5.00%, 2/1/29 1,395,867
- -------------------------------------------------------------------------
$ 6,549,347
- -------------------------------------------------------------------------
Insured-Utilities -- 1.0%
- -------------------------------------------------------------------------
$1,345 Richmond, Public Utility Revenue,
(FGIC), 5.125%, 1/15/28 $ 1,166,478
- -------------------------------------------------------------------------
$ 1,166,478
- -------------------------------------------------------------------------
Insured-Water and Sewer -- 12.3%
- -------------------------------------------------------------------------
$3,950 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/30 $ 3,177,538
1,000 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/21 836,190
1,000 Prince William County Service Authority,
(FGIC), 4.75%, 7/1/29 805,610
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Insured-Water and Sewer (continued)
- -------------------------------------------------------------------------
$3,600 Richmond, Public Utility Revenue,
(MBIA), 5.125%, 1/15/28 $ 3,122,172
1,250 Upper Occoquan Sewage Authority, (MBIA),
5.00%, 7/1/25 1,064,400
1,000 Upper Occoquan Sewage Authority, (MBIA),
5.15%, 7/1/20 909,010
6,150 Upper Occoquan Sewer Authority, (MBIA),
4.75%, 7/1/29 4,926,580
- -------------------------------------------------------------------------
$ 14,841,500
- -------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 5.0%
- -------------------------------------------------------------------------
$2,000 Henrico County IDA, Lease, 7.00%, 8/1/13 $ 2,214,900
2,250 Henrico County IDA, Lease,
7.125%, 8/1/21 2,504,407
1,250 King George County IDA, Lease,
7.00%, 12/15/12 1,262,088
- -------------------------------------------------------------------------
$ 5,981,395
- -------------------------------------------------------------------------
Nursing Home -- 0.1%
- -------------------------------------------------------------------------
$ 145 Covington-Allegheny County IDA, (Beverly
Enterprises), 9.375%, 9/1/01 $ 147,413
- -------------------------------------------------------------------------
$ 147,413
- -------------------------------------------------------------------------
Solid Waste -- 1.8%
- -------------------------------------------------------------------------
$2,250 Southeastern Public Service Authority,
Solid Waste Systems, (AMT),
6.00%, 7/1/13 $ 2,193,435
- -------------------------------------------------------------------------
$ 2,193,435
- -------------------------------------------------------------------------
Special Tax Revenue -- 2.8%
- -------------------------------------------------------------------------
$1,500 Dulles Community Development Authority,
(Dulles Town Center), 6.25%, 3/1/26 $ 1,393,965
2,000 Heritage Hunt Community Development
Authority, 6.85%, 3/1/19 1,965,640
- -------------------------------------------------------------------------
$ 3,359,605
- -------------------------------------------------------------------------
Transportation -- 3.1%
- -------------------------------------------------------------------------
$1,750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 1,449,490
1,250 Virginia Port Authority, (AMT),
5.90%, 7/1/16 1,252,738
1,000 Virginia State Transportation Board
Revenue, Route 28, Variable Rate,
4/1/18(1) 1,052,370
- -------------------------------------------------------------------------
$ 3,754,598
- -------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF FEBRUARY 29, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -------------------------------------------------------------------------
Water and Sewer -- 4.8%
- -------------------------------------------------------------------------
$3,500 Fairfax County Water Authority,
5.00%, 4/1/21 $ 3,082,240
1,000 Fairfax County Water Authority,
Variable Rate, 4/1/29(1) 976,910
1,750 Virginia Resource Authority, Clean Water
Revenue, (Revolving Fund),
5.625%, 10/1/22 1,684,988
- -------------------------------------------------------------------------
$ 5,744,138
- -------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.6%
(identified cost $121,190,113) $119,032,656
- -------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.4% $ 1,732,160
- -------------------------------------------------------------------------
Net Assets -- 100.0% $120,764,816
- -------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Virginia
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at February 29, 2000, 32.8% 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 1.1% to 18.7% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $71,921,037 $44,616,524 $61,819,614 $83,415,772
Unrealized appreciation
(depreciation) (2,316,891) (645,208) (2,651,201) (475,111)
- ------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $69,604,146 $43,971,316 $59,168,413 $82,940,661
- ------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 74,684 $ --
Receivable for investments
sold -- 203,541 -- 1,525,916
Interest receivable 1,024,854 669,059 880,735 1,365,183
- ------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $70,629,000 $44,843,916 $60,123,832 $85,831,760
- ------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------
Demand note payable $ -- $ 100,000 $ -- $ 600,000
Payable for when-issued
securities -- -- 958,690 --
Due to bank 85,611 64,340 -- 59,452
Payable to affiliate for
Trustees' fees 1,181 425 1,160 1,020
Accrued expenses 6,519 7,276 5,726 6,051
- ------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 93,311 $ 172,041 $ 965,576 $ 666,523
- ------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST
IN PORTFOLIO $70,535,689 $44,671,875 $59,158,256 $85,165,237
- ------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions
and withdrawals $72,852,580 $45,317,083 $61,809,457 $85,640,348
Net unrealized depreciation
(computed on the basis of
identified cost) (2,316,891) (645,208) (2,651,201) (475,111)
- ------------------------------------------------------------------------------------------------------------
TOTAL $70,535,689 $44,671,875 $59,158,256 $85,165,237
- ------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $28,853,203 $89,106,902 $59,198,084 $102,436,375
Unrealized appreciation
(depreciation) (1,337,257) (6,549,698) (1,306,665) 416,018
- ---------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $27,515,946 $82,557,204 $57,891,419 $102,852,393
- ---------------------------------------------------------------------------------------------------------------------
Cash $ 952,257 $ 422,041 $ 64,561 $ 8,117,953
Receivable for investments
sold 165,164 35,353 45,000 1,191,000
Interest receivable 438,197 1,322,656 801,155 1,715,652
- ---------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $29,071,564 $84,337,254 $58,802,135 $113,876,998
- ---------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------
Payable to affiliate for
Trustees' fees $ -- $ 1,020 $ -- $ 1,535
Accrued expenses 6,550 6,668 8,121 7,595
- ---------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 6,550 $ 7,688 $ 8,121 $ 9,130
- ---------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST
IN PORTFOLIO $29,065,014 $84,329,566 $58,794,014 $113,867,868
- ---------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions
and withdrawals $30,402,271 $90,879,264 $60,100,679 $113,451,850
Net unrealized appreciation
(depreciation) (computed on
the basis of
identified cost) (1,337,257) (6,549,698) (1,306,665) 416,018
- ---------------------------------------------------------------------------------------------------------------------
TOTAL $29,065,014 $84,329,566 $58,794,014 $113,867,868
- ---------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF FEBRUARY 29, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $85,065,183 $37,044,460 $44,413,468 $121,190,113
Unrealized appreciation
(depreciation) (2,049,043) (844,533) (478,632) (2,157,457)
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $83,016,140 $36,199,927 $43,934,836 $119,032,656
- -------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 327,609 $ 372,080 $ --
Interest receivable 1,142,037 566,800 694,323 1,921,175
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $84,158,177 $37,094,336 $45,001,239 $120,953,831
- -------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Demand note payable $ -- $ -- $ -- $ 100,000
Due to bank 73,085 -- -- 76,941
Payable to affiliate for
Trustees' fees -- 425 -- 1,290
Accrued expenses 9,435 4,846 9,526 10,784
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 82,520 $ 5,271 $ 9,526 $ 189,015
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST
IN PORTFOLIO $84,075,657 $37,089,065 $44,991,713 $120,764,816
- -------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions
and withdrawals $86,124,700 $37,933,598 $45,470,345 $122,922,273
Net unrealized depreciation
(computed on the basis of
identified cost) (2,049,043) (844,533) (478,632) (2,157,457)
- -------------------------------------------------------------------------------------------------------------------
TOTAL $84,075,657 $37,089,065 $44,991,713 $120,764,816
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
- ----------------------------------------------------------------------------------------------------------------------
Interest $ 2,274,566 $ 1,428,546 $ 2,020,962 $ 2,817,748
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,274,566 $ 1,428,546 $ 2,020,962 $ 2,817,748
- ----------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 132,145 $ 64,845 $ 109,287 $ 170,662
Trustees fees and expenses 5,659 1,682 5,640 6,011
Legal and accounting services 23,537 23,890 24,743 26,091
Custodian fee 21,790 11,616 20,544 31,617
Miscellaneous 6,163 8,399 6,873 5,836
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 189,294 $ 110,432 $ 167,087 $ 240,217
- ----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ -- $ 10,973
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ -- $ 10,973
- ----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 189,294 $ 110,432 $ 167,087 $ 229,244
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,085,272 $ 1,318,114 $ 1,853,875 $ 2,588,504
- ----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (334,357) $ (276,649) $ (316,002) $ (343,912)
Financial futures contracts (1,157) 2,054 -- (5,213)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (335,514) $ (274,595) $ (316,002) $ (349,125)
- ----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,298,937) $(1,404,646) $(2,744,397) $(3,525,063)
- ----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(3,298,937) $(1,404,646) $(2,744,397) $(3,525,063)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,634,451) $(1,679,241) $(3,060,399) $(3,874,188)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,549,179) $ (361,127) $(1,206,524) $(1,285,684)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
86
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------------------------
Interest $ 925,820 $ 2,524,903 $ 1,985,196 $ 3,749,039
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 925,820 $ 2,524,903 $ 1,985,196 $ 3,749,039
- -------------------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 33,089 $ 161,974 $ 105,749 $ 243,930
Trustees fees and expenses 1,281 5,520 4,543 7,347
Legal and accounting services 20,699 26,407 22,572 26,790
Custodian fee 10,688 26,654 15,993 21,190
Miscellaneous 3,475 7,230 6,065 8,669
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 69,232 $ 227,785 $ 154,922 $ 307,926
- -------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 3,036 $ 11,094 $ -- $ --
- -------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 3,036 $ 11,094 $ -- $ --
- -------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 66,196 $ 216,691 $ 154,922 $ 307,926
- -------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 859,624 $ 2,308,212 $ 1,830,274 $ 3,441,113
- -------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (396,059) $ 158,757 $ 169,101 $ (223,571)
Financial futures contracts -- 1,051 -- --
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (396,059) $ 159,808 $ 169,101 $ (223,571)
- -------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(1,167,803) $(4,224,250) $(3,547,660) $(4,914,983)
- -------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(1,167,803) $(4,224,250) $(3,547,660) $(4,914,983)
- -------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,563,862) $(4,064,442) $(3,378,559) $(5,138,554)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (704,238) $(1,756,230) $(1,548,285) $(1,697,441)
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
87
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 2,708,547 $ 1,238,527 $ 1,406,800 $ 3,995,278
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,708,547 $ 1,238,527 $ 1,406,800 $ 3,995,278
- -----------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 164,125 $ 48,292 $ 63,954 $ 262,914
Trustees fees and expenses 4,500 1,682 1,281 7,102
Legal and accounting services 23,552 21,661 21,666 26,815
Custodian fee 23,341 14,741 11,643 34,777
Miscellaneous 10,039 4,657 5,814 14,148
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 225,557 $ 91,033 $ 104,358 $ 345,756
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 5,508 $ 3,663 $ -- $ --
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 5,508 $ 3,663 $ -- $ --
- -----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 220,049 $ 87,370 $ 104,358 $ 345,756
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,488,498 $ 1,151,157 $ 1,302,442 $ 3,649,522
- -----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 19,641 $ (153,588) $ 8,052 $ 243,633
Financial futures contracts -- 9,880 -- 5,868
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 19,641 $ (143,708) $ 8,052 $ 249,501
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(3,895,935) $(1,791,937) $(1,777,280) $(6,345,571)
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(3,895,935) $(1,791,937) $(1,777,280) $(6,345,571)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,876,294) $(1,935,645) $(1,769,228) $(6,096,070)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(1,387,796) $ (784,488) $ (466,786) $(2,446,548)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
88
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,085,272 $ 1,318,114 $ 1,853,875 $ 2,588,504
Net realized gain (loss) (335,514) (274,595) (316,002) (349,125)
Net change in unrealized appreciation
(depreciation) (3,298,937) (1,404,646) (2,744,397) (3,525,063)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,549,179) $ (361,127) $ (1,206,524) $ (1,285,684)
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,866,170 $ 1,805,948 $ 1,695,893 $ 5,295,248
Withdrawals (13,922,570) (7,263,717) (12,551,538) (16,606,237)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(10,056,400) $(5,457,769) $(10,855,645) $(11,310,989)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(11,605,579) $(5,818,896) $(12,062,169) $(12,596,673)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of period $ 82,141,268 $50,490,771 $ 71,220,425 $ 97,761,910
- ----------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 70,535,689 $44,671,875 $ 59,158,256 $ 85,165,237
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
89
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 859,624 $ 2,308,212 $ 1,830,274 $ 3,441,113
Net realized gain (loss) (396,059) 159,808 169,101 (223,571)
Net change in unrealized appreciation
(depreciation) (1,167,803) (4,224,250) (3,547,660) (4,914,983)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (704,238) $ (1,756,230) $(1,548,285) $ (1,697,441)
- -------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,671,830 $ 3,786,993 $ 1,312,737 $ 2,724,034
Withdrawals (5,570,078) (12,924,421) (9,234,725) (16,488,855)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(2,898,248) $ (9,137,428) $(7,921,988) $(13,764,821)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,602,486) $(10,893,658) $(9,470,273) $(15,462,262)
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
At beginning of period $32,667,500 $ 95,223,224 $68,264,287 $129,330,130
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $29,065,014 $ 84,329,566 $58,794,014 $113,867,868
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
90
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED FEBRUARY 29, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,488,498 $ 1,151,157 $ 1,302,442 $ 3,649,522
Net realized gain (loss) 19,641 (143,708) 8,052 249,501
Net change in unrealized appreciation
(depreciation) (3,895,935) (1,791,937) (1,777,280) (6,345,571)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (1,387,796) $ (784,488) $ (466,786) $ (2,446,548)
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,922,560 $ 1,513,436 $ 2,268,778 $ 4,507,281
Withdrawals (12,776,559) (8,472,906) (6,217,748) (18,920,171)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (8,853,999) $(6,959,470) $(3,948,970) $(14,412,890)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,241,795) $(7,743,958) $(4,415,756) $(16,859,438)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of period $ 94,317,452 $44,833,023 $49,407,469 $137,624,254
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 84,075,657 $37,089,065 $44,991,713 $120,764,816
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
91
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,645,606 $ 2,845,321 $ 4,288,064 $ 5,787,422
Net realized gain (loss) 1,822,635 765,765 1,152,984 987,147
Net change in unrealized appreciation
(depreciation) (7,171,556) (3,759,621) (7,104,173) (6,310,409)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (703,315) $ (148,535) $ (1,663,125) $ 464,160
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,798,450 $ 5,682,021 $ 5,916,906 $ 6,215,330
Withdrawals (19,730,570) (11,297,759) (20,284,630) (21,552,860)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(11,932,120) $ (5,615,738) $(14,367,724) $(15,337,530)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(12,635,435) $ (5,764,273) $(16,030,849) $(14,873,370)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,776,703 $ 56,255,044 $ 87,251,274 $112,635,280
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 82,141,268 $ 50,490,771 $ 71,220,425 $ 97,761,910
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
92
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,842,095 $ 5,197,771 $ 3,882,521 $ 7,585,943
Net realized gain (loss) (132,083) 1,057,196 531,100 1,052,272
Net change in unrealized appreciation
(depreciation) (2,534,222) (9,405,694) (5,290,349) (10,001,534)
- -------------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (824,210) $ (3,150,727) $ (876,728) $ (1,363,319)
- -------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,126,276 $ 11,497,954 $ 7,132,282 $ 7,046,445
Withdrawals (7,144,339) (18,276,256) (12,389,264) (29,283,120)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(3,018,063) $ (6,778,302) $ (5,256,982) $(22,236,675)
- -------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,842,273) $ (9,929,029) $ (6,133,710) $(23,599,994)
- -------------------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------------------
At beginning of year $36,509,773 $105,152,253 $ 74,397,997 $152,930,124
- -------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $32,667,500 $ 95,223,224 $ 68,264,287 $129,330,130
- -------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
93
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,266,291 $ 2,658,896 $ 2,778,943 $ 7,742,491
Net realized gain (loss) 1,043,805 (175,546) 111,739 1,479,464
Net change in unrealized appreciation
(depreciation) (6,028,925) (3,664,758) (2,876,879) (9,945,787)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 281,171 $ (1,181,408) $ 13,803 $ (723,832)
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 10,547,640 $ 6,573,386 $ 5,309,074 $ 12,279,948
Withdrawals (20,266,456) (10,676,028) (9,624,115) (25,189,332)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (9,718,816) $ (4,102,642) $(4,315,041) $(12,909,384)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,437,645) $ (5,284,050) $(4,301,238) $(13,633,216)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $103,755,097 $ 50,117,073 $53,708,707 $151,257,470
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,317,452 $ 44,833,023 $49,407,469 $137,624,254
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
94
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.51%(2) 0.46% 0.49% 0.50% 0.49% 0.47%
Expenses after custodian fee
reduction 0.51%(2) 0.45% 0.47% 0.49% 0.45% --
Net investment income 5.58%(2) 5.18% 5.21% 5.47% 5.50% 5.77%
Portfolio Turnover 5% 23% 23% 23% 52% 51%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $70,536 $82,141 $94,777 $102,356 $108,544 $118,486
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
95
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARKANSAS PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.47%(2) 0.45% 0.44% 0.49% 0.48% 0.46%
Expenses after custodian fee
reduction 0.47%(2) 0.43% 0.43% 0.48% 0.46% --
Net investment income 5.64%(2) 5.25% 5.22% 5.40% 5.40% 5.69%
Portfolio Turnover 12% 24% 13% 17% 11% 23%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $44,672 $50,491 $56,255 $62,686 $74,103 $81,535
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
96
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
GEORGIA PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.52%(2) 0.46% 0.48% 0.49% 0.50% 0.46%
Expenses after custodian fee
reduction 0.52%(2) 0.42% 0.47% 0.47% 0.45% --
Net investment income 5.72%(2) 5.31% 5.29% 5.55% 5.59% 5.73%
Portfolio Turnover 12% 38% 19% 13% 21% 48%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $59,158 $71,220 $87,251 $95,162 $108,974 $122,949
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
97
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
KENTUCKY PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.49% 0.49% 0.51% 0.53% 0.49%
Expenses after custodian fee
reduction 0.51%(2) 0.47% 0.48% 0.48% 0.50% --
Net investment income 5.75%(2) 5.36% 5.38% 5.56% 5.49% 5.75%
Portfolio Turnover 6% 11% 15% 28% 28% 30%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $85,165 $97,762 $112,635 $123,110 $133,017 $145,269
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
98
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- --------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.45%(2) 0.37% 0.39% 0.40% 0.30% 0.22%
Net expenses after custodian
fee reduction 0.43%(2) 0.34% 0.34% 0.38% 0.23% --
Net investment income 5.62%(2) 5.16% 5.25% 5.85% 5.90% 6.06%
Portfolio Turnover 12% 20% 43% 27% 99% 46%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $29,065 $32,668 $36,510 $34,432 $35,049 $34,309
- --------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an allocation of
expenses to the Investment Adviser, or both. Had such actions not been taken, the ratios would have been as
follows:
Expenses(1) 0.41% 0.33%
Expenses after custodian fee
reduction 0.35% --
Net investment income 5.79% 5.95%
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for the year
ended August 31, 1995 have not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
99
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MARYLAND PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.51%(2) 0.49% 0.48% 0.48% 0.51% 0.47%
Expenses after custodian fee
reduction 0.49%(2) 0.46% 0.44% 0.45% 0.48% --
Net investment income 5.18%(2) 5.05% 5.11% 5.38% 5.50% 5.79%
Portfolio Turnover 7% 31% 30% 30% 33% 30%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $84,330 $95,223 $105,152 $107,401 $110,588 $115,004
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting quidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
100
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSOURI PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.49%(2) 0.46% 0.47% 0.47% 0.49% 0.48%
Expenses after custodian fee
reduction 0.49%(2) 0.44% 0.45% 0.46% 0.47% --
Net investment income 5.80%(2) 5.28% 5.31% 5.52% 5.52% 5.76%
Portfolio Turnover 8% 21% 11% 5% 36% 24%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $58,794 $68,264 $74,398 $79,882 $85,162 $93,162
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
101
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NORTH CAROLINA PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.51%(2) 0.50% 0.51% 0.52% 0.52% 0.48%
Expenses after custodian fee
reduction 0.51%(2) 0.49% 0.48% 0.50% 0.48% --
Net investment income 5.73%(2) 5.24% 5.31% 5.53% 5.51% 5.78%
Portfolio Turnover 7% 3% 26% 42% 54% 33%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $113,868 $129,330 $152,930 $167,571 $187,044 $195,179
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
102
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OREGON PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.51%(2) 0.48% 0.48% 0.56% 0.50% 0.50%
Expenses after custodian fee
reduction 0.50%(2) 0.47% 0.48% 0.55% 0.47% --
Net investment income 5.67%(2) 5.27% 5.28% 5.46% 5.37% 5.60%
Portfolio Turnover 15% 35% 9% 22% 28% 22%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $84,076 $94,317 $103,755 $113,693 $129,759 $146,391
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
103
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SOUTH CAROLINA PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.46%(2) 0.43% 0.44% 0.51% 0.53% 0.44%
Expenses after custodian fee
reduction 0.44%(2) 0.40% 0.43% 0.50% 0.51% --
Net investment income 5.79%(2) 5.33% 5.37% 5.59% 5.65% 5.81%
Portfolio Turnover 8% 26% 21% 8% 36% 75%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $37,089 $44,833 $50,117 $53,970 $58,318 $61,412
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
104
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TENNESSEE PORTFOLIO
----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.45%(2) 0.42% 0.44% 0.43% 0.45% 0.41%
Expenses after custodian fee
reduction 0.45%(2) 0.41% 0.42% 0.42% 0.43% --
Net investment income 5.60%(2) 5.23% 5.20% 5.48% 5.52% 5.81%
Portfolio Turnover 8% 13% 21% 3% 39% 20%
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $44,992 $49,407 $53,709 $54,162 $56,065 $58,673
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
105
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
-----------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED AUGUST 31,
FEBRUARY 29, 2000 --------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------------------------
Expenses(1) 0.54%(2) 0.50% 0.52% 0.52% 0.51% 0.48%
Expenses after custodian fee
reduction 0.54%(2) 0.48% 0.50% 0.49% 0.48% --
Net investment income 5.68%(2) 5.26% 5.27% 5.53% 5.55% 5.81%
Portfolio Turnover 10% 17% 8% 25% 30% 38%
- ---------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $120,765 $137,624 $151,257 $161,658 $177,644 $191,748
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended August 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
106
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Alabama Municipals Portfolio (Alabama Portfolio), Arkansas Municipals
Portfolio (Arkansas Portfolio), Georgia Municipals Portfolio (Georgia
Portfolio), Kentucky Municipals Portfolio (Kentucky Portfolio), Louisiana
Municipals Portfolio (Louisiana Portfolio), Maryland Municipals Portfolio
(Maryland Portfolio), Missouri Municipals Portfolio (Missouri Portfolio),
North Carolina Municipals Portfolio (North Carolina Portfolio), Oregon
Municipals Portfolio (Oregon Portfolio), South Carolina Municipals Portfolio
(South Carolina Portfolio), Tennessee Municipals Portfolio (Tennessee
Portfolio) and Virginia Municipals Portfolio (Virginia Portfolio),
collectively the Portfolios, are registered under the Investment Company Act
of 1940, as amended, as diversified open-end management investment companies
which 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
of the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Financial futures contracts and
options on financial futures contracts listed on commodity exchanges are
valued at closing settlement prices. Over-the-counter options on financial
futures contracts are normally valued at the mean between the latest bid and
asked prices. Short-term obligations, maturing in sixty days or less, are
valued at amortized cost, which approximates value. Investments for which
valuations or market quotations are unavailable are valued at fair value
using methods determined in good faith by or at the direction of the
Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or accretion of discount when required
for federal income tax purposes.
C Federal Taxes -- The Portfolios are treated as partnerships for Federal tax
purposes. No provision is made by the Portfolios for federal or state taxes
on any taxable income of the Portfolios because each investor in the
Portfolios is ultimately responsible for the payment of any taxes. Since some
of the Portfolios' investors are regulated investment companies that invest
all or substantially all of their assets in the Portfolios, the Portfolios
normally must satisfy the applicable source of income and diversification
requirements (under the Internal Revenue Code) in order for their respective
investors to satisfy them. The Portfolios will allocate at least annually
among their respective investors each investor's distributive share of the
Portfolios' net taxable (if any) and tax-exempt investment income, net
realized capital gains, and any other items of income, gain, loss, deduction
or credit. Interest income received by the Portfolios on investments in
municipal bonds, which is excludable from gross income under the Internal
Revenue Code, will retain its status as income exempt from federal income tax
when allocated to each Portfolio's investors. The portion of such interest,
if any, earned on private activity bonds issued after August 7, 1986, may be
considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed for both hedging
against anticipated future changes in interest rates and investment purposes.
Should interest rates move unexpectedly, a Portfolio may not achieve the
anticipated benefits of the financial futures contracts and may realize a
loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, a Portfolio will realize a gain or loss depending on whether the
sales proceeds from the closing sale transaction are greater or less than the
cost of the option. When a Portfolio exercises a put option, settlement is
made in cash. The risk associated with purchasing put options is limited to
the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
107
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
G Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statement of Operations.
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
J Interim Financial Statements -- The interim financial statements relating to
February 29, 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 February 29, 2000 the Portfolios paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE(1)
<S> <C> <C>
-------------------------------------------------------------------------
Alabama $132,145 0.35%
Arkansas 64,845 0.28%
Georgia 109,287 0.34%
Kentucky 170,662 0.38%
Louisiana 33,089 0.22%
Maryland 161,974 0.36%
Missouri 105,749 0.33%
North Carolina 243,930 0.41%
Oregon 164,125 0.37%
South Carolina 48,292 0.24%
Tennessee 63,954 0.27%
Virginia 262,914 0.41%
</TABLE>
(1) 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.
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 February 29, 2000 no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the six months ended
February 29, 2000 were as follows:
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,544,251
Sales 11,171,017
<CAPTION>
ARKANSAS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 5,388,705
Sales 10,022,012
<CAPTION>
GEORGIA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 7,949,637
Sales 17,127,141
</TABLE>
108
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
KENTUCKY PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 5,117,118
Sales 14,137,660
<CAPTION>
LOUISIANA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,524,580
Sales 6,859,547
<CAPTION>
MARYLAND PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 5,847,700
Sales 13,306,069
<CAPTION>
MISSOURI PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,691,760
Sales 12,316,452
<CAPTION>
NORTH CAROLINA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 8,352,203
Sales 27,195,760
<CAPTION>
OREGON PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $13,419,602
Sales 18,546,878
<CAPTION>
SOUTH CAROLINA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,098,579
Sales 9,859,457
<CAPTION>
TENNESSEE PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,846,481
Sales 6,842,543
<CAPTION>
VIRGINIA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $13,283,999
Sales 23,682,982
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at February 29, 2000 as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 71,921,037
------------------------------------------------------
Gross unrealized appreciation $ 1,657,017
Gross unrealized depreciation (3,973,908)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,316,891)
------------------------------------------------------
<CAPTION>
ARKANSAS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 44,616,524
------------------------------------------------------
Gross unrealized appreciation $ 727,877
Gross unrealized depreciation (1,373,085)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (645,208)
------------------------------------------------------
<CAPTION>
GEORGIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 61,819,614
------------------------------------------------------
Gross unrealized appreciation $ 1,581,938
Gross unrealized depreciation (4,233,139)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,651,201)
------------------------------------------------------
<CAPTION>
KENTUCKY PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 83,415,772
------------------------------------------------------
Gross unrealized appreciation $ 2,283,330
Gross unrealized depreciation (2,758,441)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (475,111)
------------------------------------------------------
<CAPTION>
LOUISIANA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 28,853,203
------------------------------------------------------
Gross unrealized appreciation $ 302,649
Gross unrealized depreciation (1,639,906)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,337,257)
------------------------------------------------------
</TABLE>
109
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF FEBRUARY 29, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
MARYLAND PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 89,106,902
------------------------------------------------------
Gross unrealized appreciation $ 929,549
Gross unrealized depreciation (7,479,247)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (6,549,698)
------------------------------------------------------
<CAPTION>
MISSOURI PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 59,198,084
------------------------------------------------------
Gross unrealized appreciation $ 1,767,285
Gross unrealized depreciation (3,073,950)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,306,665)
------------------------------------------------------
<CAPTION>
NORTH CAROLINA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $102,436,375
------------------------------------------------------
Gross unrealized appreciation $ 3,484,683
Gross unrealized depreciation (3,068,665)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 416,018
------------------------------------------------------
<CAPTION>
OREGON PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 85,065,183
------------------------------------------------------
Gross unrealized appreciation $ 1,411,117
Gross unrealized depreciation (3,460,160)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,049,043)
------------------------------------------------------
<CAPTION>
SOUTH CAROLINA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 37,044,460
------------------------------------------------------
Gross unrealized appreciation $ 1,048,546
Gross unrealized depreciation (1,893,079)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (844,533)
------------------------------------------------------
<CAPTION>
TENNESSEE PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 44,413,468
------------------------------------------------------
Gross unrealized appreciation $ 965,282
Gross unrealized depreciation (1,443,914)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (478,632)
------------------------------------------------------
<CAPTION>
VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $121,190,113
------------------------------------------------------
Gross unrealized appreciation $ 2,810,342
Gross unrealized depreciation (4,967,799)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,157,457)
------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $150 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the portfolios or funds
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the Eurodollar rate or Federal Funds
effective rate. In addition, a fee computed at an annual rate of 0.10% on the
daily unused portion of the facility is allocated among the participating
portfolios and funds at the end of each quarter. At February 29, 2000 the
Arkansas Portfolio, Kentucky Portfolio and Virginia Portfolio had balances
outstanding pursuant to this line of credit of $100,000, $600,000 and
$100,000, respectively. The Portfolios did not have any significant
borrowings or allocated fees during the six months ended February 29, 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 February 29, 2000 there were no outstanding obligations under these
financial instruments.
110
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF FEBRUARY 29, 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 South Carolina
Municipals Portfolio
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Alabama, Kentucky,
and Maryland Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Georgia, Missouri, and
Tennessee Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio
Manager of Louisiana, North
Carolina, and Virginia Municipals
Portfolios
Thomas M. Metzold
Vice President and Portfolio
Manager of Arkansas and Oregon
Municipals Portfolios
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate Schoool 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
111
<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 distribution plan,
sales charges and expenses. Please read the prospectus carefully before you
invest or send money.
- -------------------------------------------------------------------------------
445/4/00 12MUNISRC-4/00
