<PAGE>
[LOGO]
EDUCATION
Annual Report July 31, 2000
EATON VANCE Arizona
MUNICIPALS
TRUST Colorado
Conneticut
[GRAPHIC] Michigan
Minnesota
New Jersey
[PHOTO] Pennsylvania
[PHOTO] Texas
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
LETTER TO SHAREHOLDERS
[PHOTO]
Thomas J. Fetter
President
While municipal bond investors have faced the challenge of rising interest
rates for much of the past year, the market has mounted a recovery in recent
months. In its fight against inflation, the Federal Reserve has aggressively
hiked interest rates, voicing concerns over higher labor costs, despite
improvements in productivity. Now, after raising its key Federal Funds rate
on six occasions since June 1999 for a total of 175 basis points (1.75%),
there are at last some signs that the economy may have moderated from its
blistering pace of the last year.
The bond market began the six-month period with a modest rally in February
and March, as investors sought some refuge from the increasingly volatile
equity markets. The rally stalled in April and May in anticipation of another
Fed rate hike. However, by the end of the period, the Fed was hinting that it
may be near the end of its interest-rate-hike cycle, which cheered bond
investors. For the six-month period ended July 31, 2000, the Lehman Brothers
Municipal Bond Index* - a widely recognized, unmanaged index of municipal
bonds - posted a return of 5.93%.
Municipal bonds remain an undervalued asset class...
Municipal bonds remained significantly undervalued relative to Treasury
bonds. The numbers are most compelling. At July 31, the ratio of municipal
yields to Treasury yields was 99% - exceptionally high by historical
standards. Market anomalies such as this often create unusual opportunities.
Indeed, considering their tax-exempt status, municipal bonds appear to be an
excellent bargain for income-oriented investors.
-----------------------------------------------------------------
MUNICIPAL BONDS YIELD 99% of TREASURY YIELDS
5.77% 9.55%
30-Year AAA-rated Taxable equivalent yield
General Obligation (G0) Bonds* in 39.6% tax bracket
5.78%
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 necessarily representative of a Fund's yield. Statistics
as of July 31, 2000.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
-----------------------------------------------------------------
The outlook for municipal bonds appears to be improving...
While municipal bond investors have endured difficulties over the past year,
we believe the outlook has improved. First, municipal issuance has declined
dramatically. Second, a surge in Federal tax receipts has resulted in rising
estimates for the Federal budget surplus, sharply reducing the Treasury's
borrowing needs. Third, the Treasury Department has announced that it will
buy back at least $30 billion of 10-to-30-year bonds this fiscal year. That
could, over time, contribute to lower long-term interest rates.
Finally, we are encouraged that, in the midst of an election year, Congress
and the Administration have continued to exercise a high degree of fiscal
discipline. While we will closely monitor the economic proposals of the major
party nominees for president, we are confident that the progress of recent
years can be maintained. That could result in a much improved outlook for all
fixed-income areas, including the municipal bond market.
Sincerely,
/s/ Thomas J. Fetter
Thomas J. Fetter
President
September 12, 2000
*It is not possible to invest directly in the Index.
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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.
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2
<PAGE>
EATON VANCE ARIZONA MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
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- Economic indicators showed very strong growth for Arizona in the first quarter
of 2000. The state's unemployment rate was only 3.6%, the lowest since 1969.
Manufacturing jobs experienced renewed growth, especially in the Tucson area,
which added such jobs at a 15% annual rate.
- Consumer spending remained healthy in early 2000, particularly for high-cost
items: motor vehicle sales increased by more than 20%. In contrast to national
trends, consumer confidence levels maintained record highs. Personal income
grew by 7% in 1999, placing Arizona 7th in the nation in that category.
- At 15% of the Portfolio, escrowed bonds constituted the largest weighting at
July 31. Escrowed bonds are pre-refunded in advance of their call date and,
backed by Treasury bonds, are deemed very high quality.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 52.2%
AA 14.7%
A 9.5%
BBB 4.4%
BB 3.2%
B 0.9%
Non-Rated 15.1%
</TABLE>
+ May not represent the Portfolio's current or future investments.
------------------------------------------------------------------------------
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.56% 0.81%
Five Years 5.20 4.56
Life of Fund+ 4.36 6.00
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
<S> <C> <C>
One Year -3.25% -4.00%
Five Years 4.19 4.23
Life of Fund+ 3.60 6.00
</TABLE>
+ Inception date: Class A: 12/13/93; Class B: 7/25/91
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.56% and 0.81%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.48 on July
31, 2000 from $9.85 on July 31, 1999, and the reinvestment of $0.502 per share
in tax-free income.(2) For Class B, this return resulted from a decline in NAV
to $10.54 from $10.95, and the reinvestment of $0.480 per share in tax-free
income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.27% for Class A and 4.51% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.19% and 7.86%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 4.94% and
4.41%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 8.62% and 7.69% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
ARIZONA MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
July 31, 1991 - July 31, 2000
<TABLE>
<CAPTION>
7/91 7/93 7/95 7/97 7/99 7/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Arizona
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
7/25/91. Index information is available only at month end; therefore, the
line comparison begins at the next month following the commencement of the
Fund's investment operations.The chart compares the total return of the
Fund's Class B shares with that of the Lehman Brothers Municipal Bond
Index,a broad-based, unmanaged market index. Returns are calculated by
determining the percentage change in net asset value (NAV) with all
distributions reinvested. The lines on the chart represent total returns
of $10,000 hypothetical investments in the Fund and the Lehman Brothers
Municipal Bond Index. An investment in Class A shares on 12/31/93 at net
asset value would have grown to $13,272 on 7/31/00; $12,640, including the
4.75% maximum sales charge. The Index's total return does not reflect
commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index.
It is not possible to invest directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid
to shareholders and is calculated daily by dividing the last distribution
per share (annualized) by the net asset value (NAV). (4) Taxable-
equivalent rates assume maximum 42.64% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent
figures. (5) The Fund's SEC yield is calculated by dividing the net
investment income per share for the 30-day period by the offering price
at the end of the period and annualizing the result. (6) Returns are
calculated by determining the percentage change in NAV with all
distributions reinvested. SEC average annual returns for Class A reflect
a sales charge of 4.75% and for Class B reflect applicable CDSC based
on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year;
3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.33% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
3
<PAGE>
EATON VANCE COLORADO MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
------------------------------------------------------------------------------
- Colorado's economy continued to exhibit signs of strong growth in the first
half of 2000, with the only indication of a slowdown occurring in the
construction market. The rising price of residential homes has resulted in a
shift away from single-family to multi-family construction. At July 31, bonds
for multi-family housing represented nearly 10% of the Portfolio.
- The Denver-Boulder inflation rate, an indicator of inflation for the state,
rose 2.9% in 1999, slightly higher than the national rate but still relatively
low. The forecasted increase for 2000 is 3.2%. Colorado has higher inflation
than the U.S. because of the strength of its economy and higher employment
costs.
- A recent study showed that Coloradans are highly dependent on their cars and
trucks - 85% of all trips in the state are made by motor vehicle. At 18% of
the Portfolio, the largest sector weighting at July 31 was insured
transportation issues,* including two issues from the Colorado Public Highway
Authority.
*Private insurance does not decrease the risk of loss of principal associated
with these investments.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 44.5%
AA 10.2%
A 16.6%
BBB 8.9%
Non-Rated 19.8%
</TABLE>
+May not represent the Portfolio's current or future investments.
------------------------------------------------------------------------------
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.18% 0.45%
Five Years 5.27 4.62
Life of Fund+ 4.00 4.97
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
---------------------------------------------------------------------------
<S> <C> <C>
One Year -3.65% -4.34%
Five Years 4.25 4.28
Life of Fund+ 3.24 4.97
</TABLE>
+Inception date: Class A: 12/10/93; Class B: 8/25/92
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.18% and 0.45%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.16 on
July 31, 2000 from $9.57 on July 31, 1999, and the reinvestment of $0.504
per share in tax-free income.(2) For Class B, this return resulted from a
decline in NAV to $9.97 from $10.41, and the reinvestment of $0.471 per share
in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.46% for Class A and 4.69% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.49% and 8.15%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 5.29% and
4.82%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 9.20% and 8.38% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
COLORADO MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
August 31, 1992 - July 31, 2000
<TABLE>
<CAPTION>
8/92 8/94 8/96 8/99 7/00
-----------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Colorado
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations
commenced on 8/25/92. Index information is available only at month end;
therefore, the line comparison begins at the next month following the
commencement of the Fund's investment operations.The chart compares the
total return of the Fund's Class B shares with that of the Lehman Brothers
Municipal Bond Index, a broad-based, unmanaged market index. Returns are
calculated by determining the percentage change in net asset value (NAV)
with all distributions reinvested. The lines on the chart represent total
returns of $10,000 hypothetical investments in the Fund and the Lehman
Brothers Municipal Bond Index. An investment in Class A shares on 12/31/93
at net asset value would have grown to $12,974 on 7/31/00; $12,356,
including the 4.75% maximum sales charge. The Index's total return does not
reflect commissions or expenses that would have been incurred if an investor
individually purchased or sold the securities represented in the Index. It
is not possible to invest directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume maximum
42.47% combined federal and state income tax rate. A lower rate would
result in lower tax-equivalent figures. (5) The Fund's SEC yield is
calculated by dividing the net investment income per share for the 30-day
period by the offering price at the end of the period and annualizing the
result. (6) Returns are calculated by determining the percentage change in
NAV with all distributions reinvested. SEC average annual returns for
Class A reflect a sales charge of 4.75% and for Class B reflect applicable
CDSC based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year;
3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.63% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
4
<PAGE>
EATON VANCE CONNECTICUT MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
-------------------------------------------------------------------------------
- The Connecticut economy maintained its strong expansion in the first half
of 2000. The unemployment rate continued to drop to record lows, and the
number of new jobs increased from 1999. Similar to the U.S. economy, however,
Connecticut has had some indications of a slowdown - the state's
manufacturing activity and housing starts are down this year.
- Education and insured education bonds,* combined, accounted for more than 20%
of the Portfolio's holdings at July 31. These bonds included issues from
University of Connecticut, Trinity College, and Yale University.
- Call protection remained an important element of management's strategy. As
more bonds reached early redemption dates, management increased call
protection to help improve the Portfolio's performance.
*Private insurance does not decrease the risk of loss of principal associated
with these investments.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 38.9%
AA 20.0%
A 11.0%
BBB 17.8%
BB 1.0%
Non-Rated 11.3%
</TABLE>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 2.09% 1.31%
Five Years 5.48 4.68
Life of Fund+ 5.72 5.00
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
---------------------------------------------------------------------------
<S> <C> <C>
One Year -2.74% -3.54%
Five Years 4.46 4.35
Life of Fund+ 4.91 5.00
</TABLE>
+ Inception date: Class A: 4/19/94; Class B: 5/1/92
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 2.09% and 1.31%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $10.14 on July
31, 2000 from $10.46 on July 31, 1999, and the reinvestment of $0.518 per
share in tax-free income.(2) For Class B, this return resulted from a
decline in NAV to $10.09 from $10.40, and the reinvestment of $0.431
per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.03% for Class A and 4.24% for Class B.(3) These
distribution rates are equivalent to taxable rates of 8.72% and 7.35%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 4.83% and
4.26%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 8.37% and 7.39% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
CONNECTICUT MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
May 31, 1992 - July 31, 2000
<TABLE>
<CAPTION>
5/92 5/94 5/96 5/98 7/00
------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Connecticut
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 5/1/92.
Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations. The chart compares the total return of the Fund's
Class B shares with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal Bond
Index. An investment in Class A shares on 4/30/94 at net asset value would
have grown to $14,193 on 7/31/00; $13,517, including the 4.75% maximum sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or
sold the securities represented in the Index. It is not possible to invest
directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume maximum
42.32% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result.
(6) Returns are calculated by determining the percentage change in NAV
with all distributions reinvested. SEC average annual returns for Class A
reflect a sales charge of 4.75% and for Class B reflect applicable CDSC
based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year;
3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.59% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
5
<PAGE>
EATON VANCE MICHIGAN MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
William H. Ahern
Portfolio Manager
MANAGEMENT UPDATE
------------------------------------------------------------------------------
- Critical components of the Michigan economy, car and light truck sales in the
U.S., as of April 2000, were up more than 10% from last year's phenomenal
pace. Real disposable income in the U.S, a leading indicator of durable goods
expenditures such as light vehicles, grew by 2.2% in the U.S. in the first
quarter and 4.0% for all of 1999, an encouraging sign for continuing strength
in Michigan's economy.
- Insured water and sewer issues* were among the Portfolio's largest holdings
(10.7%) at July 31. The pace of residential construction has increased the
need for infrastructure improvements, resulting in ample supply and attractive
yields for this sector.
- Healthcare bonds represented the Portfolio's largest sector weighting at July
31. In a very competitive Michigan healthcare market, the Portfolio focused on
those institutions with sound financial structures, good management and a
favorable demographic base.
*Private insurance does not decrease the risk of loss of principal associated
with these investments.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 55.4%
AA 2.4%
A 23.0%
BBB 7.5%
BB 0.8%
Non-Rated 10.9%
</TABLE>
+May not represent the Portfolio's current or future investments.
------------------------------------------------------------------------------
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.55% 0.75%
Five Years 4.80 4.24
Life of Fund+ 3.64 5.35
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
---------------------------------------------------------------------------
<S> <C> <C>
One Year -3.27% -4.04%
Five Years 3.78 3.91
Life of Fund+ 2.88 5.35
</TABLE>
+Inception date: Class A: 12/7/93; Class B: 4/19/91
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.55% and 0.75%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.04 on July
31, 2000 from $9.43 on July 31, 1999, and the reinvestment of $0.471 per share
in tax-free income and $0.043 per share capital gain distribution.(2) For
Class B, this return resulted from a decline in NAV to $10.09 from $10.52,
and the reinvestment of $0.447 per share in tax-free income and $0.043
per share capital gain distribution.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.27% for Class A and 4.46% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.22% and 7.81%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 4.88% and
4.41%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 8.54% and 7.72% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
MICHIGAN MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
April 30, 1991 - July 31, 2000
<TABLE>
<CAPTION>
4/91 4/93 4/95 4/97 4/99 7/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Michigan
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
4/19/91. Index information is available only at month end; therefore, the
line comparison begins at the next month following the commencement of the
Fund's investment operations. The chart compares the total return of the
Fund's Class B shares with that of the Lehman Brothers Municipal Bond Index,
a broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal Bond
Index. An investment in Class A shares on 12/31/93 at net asset value would
have grown to $12,685 on 7/31/00; $12,081, including the 4.75% maximum
sales charge. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually
purchased or sold the securities represented in the Index. It is not
possible to invest directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to federal
income and/or alternative minimum tax and state and local income tax.
(3) The Fund's distribution rate represents actual distributions paid to
shareholders and is calculated daily by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 42.86% combined federal and state income tax rate. A
lower rate would result in lower tax-equivalent figures. (5) The Fund's SEC
yield is calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and annualizing
the result. (6) Returns are calculated by determining the percentage change
in NAV with all distributions reinvested. SEC average annual returns for
Class A reflect a sales charge of 4.75% and for Class B reflect applicable
CDSC based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year;
3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 98.66% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
6
<PAGE>
EATON VANCE MINNESOTA MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
-------------------------------------------------------------------------------
- Minnesota's seasonally adjusted unemployment rate at the end of July was 2.5%.
Non-farm employment levels continued to rise, with the construction industry
leading the way with a job growth rate of 6.9% from April 1999 to April 2000.
Employment in retail and services also grew, offsetting a decrease in
manufacturing jobs.
- The Federal Reserve Bank of Minnesota forecasts continued economic expansion
for the region through 2001. An ongoing tight labor market will provide
steadily increasing wage and price pressure, however, as employers are forced
to lure qualified workers with higher compensation packages.
- In the Portfolio, management slightly reduced its exposure to zero-coupon
bonds, as falling interest rates through the year caused zero-coupon bonds
to appreciate dramatically. In addition, management chose not to increase
its exposure to the hospital/healthcare industry, which has been experiencing
intense competition and revenue pressures.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 38.6%
AA 15.0%
A 17.6%
BBB 17.2%
Non-Rated 11.6%
</TABLE>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.21% 0.52%
Five Years 4.87 4.18
Life of Fund+ 3.80 4.83
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
<S> <C> <C>
One Year -3.58% -4.29%
Five Years 3.87 3.85
Life of Fund+ 3.04 4.83
</TABLE>
+ Inception date: Class A: 12/9/93; Class B: 7/29/91
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.21% and 0.52%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.07 on July
31, 2000 from $9.46 on July 31, 1999, and the reinvestment of $0.486 per share
in tax-free income.(2) For Class B, this return resulted from a decline in NAV
to $9.77 from $ 10.17, and the reinvestment of $0.437 per share in tax-free
income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.35% for Class A and 4.52% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.63% and 8.13%,
respectively.(4)
- The SEC 30-day yields for July 31 were 5.17% and 4.63%, respectively.(5)
The SEC 30-day yields are equivalent to taxable yields of 9.30% and 8.33%
respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
MINNESOTA MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
July 31, 1991 - July 31, 2000
<TABLE>
<CAPTION>
7/91 7/93 7/95 7/97 7/99 7/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Minnesota
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
7/29/91. Index information is available only at month end; therefore, the
line comparison begins at the next month following the commencement of the
Fund's investment operations. The chart compares the total return of the
Fund's Class B shares with that of the Lehman Brothers Municipal Bond Index,
a broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal
Bond Index. An investment in Class A shares on 12/31/93 at net asset value
would have grown to $12,813 on 7/31/00; $12,203, including the 4.75% maximum
sales charge. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually purchased
or sold the securities represented in the Index. It is not possible to
invest directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for
Class B shares. (2) A portion of the Fund's income may be subject to
federal income and/or alternative minimum tax and state income tax.
(3) The Fund's distribution rate represents actual distributions paid
to shareholders and is calculated daily by dividing the last distribution
per share (annualized) by the net asset value (NAV). (4) Taxable-
equivalent rates assume maximum 44.43% combined federal and state
income tax rate. A lower rate would result in lower tax-equivalent
figures. (5) The Fund's SEC yield is calculated by dividing the net
investment income per share for the 30-day period by the offering price
at the end of the period and annualizing the result. (6) Returns are
calculated by determining the percentage change in NAV with all
distributions reinvested. SEC average annual returns for Class A reflect
a sales charge of 4.75% and for Class B reflect applicable CDSC based on
the following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th
year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.38% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
------------------------------------------------------------------------------
7
<PAGE>
EATON VANCE NEW JERSEY MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
MANAGEMENT UPDATE
-------------------------------------------------------------------------------
- Despite a continuing decline in manufacturing, the New Jersey economy was
sustained in the first half of 2000 by strong growth in the finance and trade
sectors. Non-farm employment dropped off somewhat in July, though seasonal job
losses were offset by gains in the retail and service sectors. The state's
July 2000 jobless rate was 3.7%, down from 4.7% a year ago.
- The New Jersey Shore tourism industry was on track for another strong summer.
Although unseasonably cool weather in 2000 resulted in a decline in some area
businesses, overall the Shore has been a thriving tourist destination, thanks
in part to New Jersey's strong economy.
- New Jersey tax-exempt bonds, experiencing strong demand from retail markets,
were recently trading at high price levels. Consequently, management continued
its exposure to non-traditional issuers, such as Puerto Rico and Guam, which
can provide sound investments at reasonable price levels. In addition, with
yield spreads tightening, management reduced positions in lower investment
grade-quality credits.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 24.6%
AA 16.3%
A 13.7%
BBB 15.9%
BB 7.2%
B 1.0%
Non-Rated 21.3%
</TABLE>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.34% 0.63%
Five Years 5.26 4.39
Life of Fund+ 5.41 5.61
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
<S> <C> <C>
One Year -3.49% -4.17%
Five Years 4.23 4.05
Life of Fund+ 4.60 5.61
</TABLE>
+Inception date: Class A: 4/13/94; Class B: 1/8/91
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.34% and 0.63%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.76 on July
31, 2000 from $10.19 on July 31, 1999, and the reinvestment of $0.543 per
share in tax-free income.(2) For Class B, this return resulted from a
decline in NAV to $10.18 from $ 10.61, and the reinvestment of $0.478
per share in tax-free income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.48% for Class A and 4.67% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.69% and 8.26%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 5.31%
and 4.80%, respectively.(5) The SEC 30-day yields are equivalent to
taxable yields of 9.39% and 8.49% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
NEW JERSEY MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
January 31, 1991 - July 31, 2000
<TABLE>
<CAPTION>
1/91 1/93 1/95 1/97 1/99 7/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance New Jersey
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 1/8/91.
Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations.The chart compares the total return of the Fund's
Class B shares with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal Bond
Index. An investment in Class A shares on 4/30/94 at net asset value would
have grown to $13,938 on 7/31/00; $13,274, including the 4.75% maximum sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest
directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state income tax. (3) The Fund's
distribution rate represents actual distributions paid to shareholders and
is calculated daily by dividing the last distribution per share (annualized)
by the net asset value (NAV). (4) Taxable-equivalent rates assume maximum
43.45% combined federal and state income tax rate. A lower rate would result
in lower tax-equivalent figures. (5) The Fund's SEC yield is calculated by
dividing the net investment income per share for the 30-day period by the
offering price at the end of the period and annualizing the result. (6)
Returns are calculated by determining the percentage change in NAV with all
distributions reinvested. SEC average annual returns for Class A reflect a
sales charge of 4.75% and for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.64% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
------------------------------------------------------------------------------
8
<PAGE>
EATON VANCE PENNSYLVANIA MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
MANAGEMENT UPDATE
-------------------------------------------------------------------------------
- Pennsylvania continued its economic expansion, paced by strong gains in the
construction and service sectors. Total non-farm jobs rose 55,000 over the
past year, paced by strong gains in the service sector. The Commonwealth's
July 2000 unemployment rate was 4.0%, remaining at the lowest level in 27
years.
- Lehigh Valley communities have made a concerted effort in recent years to draw
technology to an area whose economy was once dominated by steel production.
The cities of Allentown, Easton and Bethlehem have created nearly 40,000 new
high-tech jobs since the mid-1990s.
- The Portfolio maintained its exposure to industrial development revenue bonds
(IDBs), the largest sector weighting (17.2%) at July 31, 2000. In addition to
providing above-average coupons, IDBs provide financing for projects for
well-known companies, including SunCompany. and Corning, Inc.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 47.2%
AA 1.1%
A 13.7%
BBB 12.7%
BB 2.6%
Non-Rated 22.7%
</TABLE>
+May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 0.58% -0.15%
Five Years 4.72 3.83
Life of Fund+ 4.95 5.27
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
<S> <C> <C>
One Year -4.21% -4.91%
Five Years 3.70 3.50
Life of Fund+ 4.12 5.27
</TABLE>
+Inception date: Class A: 6/1/94; Class B: 1/8/91
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 0.58% and -0.15%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.48 on July
31, 2000 from $9.99 on July 31, 1999, and the reinvestment of $0.552 per share
in tax-free income.(2) For Class B, this return resulted from a decline in NAV
to $9.80 from $ 10.31, and the reinvestment of $0.482 per share in tax-free
income.2
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.70% for Class A and 4.85% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.71% and 8.26%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 5.57% and
5.09%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 9.49% and 8.67% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
PENNSYLVANIA MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
January 31, 1991 - July 31, 2000
<TABLE>
<CAPTION>
1/91 1/93 1/95 1/97 1/99 7/00
-------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Pennsylvania
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on 1/8/91.
Index information is available only at month end; therefore, the line
comparison begins at the next month following the commencement of the Fund's
investment operations.The chart compares the total return of the Fund's
Class B shares with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal
Bond Index. An investment in Class A shares on 6/30/94 at net asset value
would have grown to $13,472 on 7/31/00; $12,831, including the 4.75% maximum
sales charge. The Index's total return does not reflect commissions or
expenses that would have been incurred if an investor individually purchased
or sold the securities represented in the Index. It is not possible to
invest directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax and state and local income tax. (3) The
Fund's distribution rate represents actual distributions paid to
shareholders and is calculated daily by dividing the last distribution per
share (annualized) by the net asset value (NAV). (4) Taxable-equivalent
rates assume maximum 41.29% combined federal and state income tax rate. A
lower rate would result in lower tax-equivalent figures. (5) The Fund's SEC
yield is calculated by dividing the net investment income per share for the
30-day period by the offering price at the end of the period and annualizing
the result. (6) Returns are calculated by determining the percentage change
in NAV with all distributions reinvested. SEC average annual returns for
Class A reflect a sales charge of 4.75% and for Class B reflect applicable
CDSC based on the following schedule: 5% - 1st and 2nd years; 4% - 3rd year;
3% - 4th year; 2% - 5th year; 1% - 6th year.
Past performance is no guarantee of future results. Investment return and
return and principal value will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.59% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
9
<PAGE>
EATON VANCE TEXAS MUNICIPALS FUND AS OF JULY 31, 2000
INVESTMENT UPDATE
[PHOTO]
Thomas M. Metzold
Portfolio Manager
MANAGEMENT UPDATE
-------------------------------------------------------------------------------
- The seasonally adjusted unemployment rate in Texas was 4.1% in July 2000,
versus 4.6% the previous year. It is the lowest rate recorded in the state
since 1979. While non-farm employment fell in July, mostly due to losses in
government jobs, most other major industries saw employment gains, especially
the services sector.
- A thriving economy and a tight labor market have coincided with declining
unemployment rates near the Texas/Mexico border, which historically has had
some of the highest unemployment rates in the nation. Whether workers are
leaving the area to seek employment elsewhere in the state is as yet unclear,
but the border region is experiencing its lowest unemployment in decades and
is benefiting from the statewide economic boom.
- Constituting 31.8% of the Portfolio at July 31, general obligations played a
significant role in the Portfolio. Amid a strong economy and impressive
personal income growth, the state and local coffers enjoyed a surge in tax
revenues. The Portfolio's G.O. holdings included several regional school
systems, as well as Texas Veterans' Housing Assistance bonds.
[EDGAR REPRESENTATION OF PIE CHART]
<TABLE>
<CAPTION>
RATING DISTRIBUTION+
------------------------------------------------------------------------------
<S> <C>
AAA 55.9%
AA 13.2%
A 10.5%
BBB 5.5%
Non-Rated 14.9%
</TABLE>
+ May not represent the Portfolio's current or future investments.
FUND INFORMATION
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
---------------------------------------------------------------------------
AVERAGE ANNUAL TOTAL RETURNS (AT NET ASSET VALUE)
---------------------------------------------------------------------------
<S> <C> <C>
One Year 1.74% 0.91%
Five Years 5.43 4.79
Life of Fund+ 4.12 5.56
<CAPTION>
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
----------------------------------------------------------------------------
<S> <C> <C>
One Year -3.12% -3.90%
Five Years 4.41 4.46
Life of Fund+ 3.36 5.56
</TABLE>
+Inception date: Class A: 12/8/93; Class B: 3/24/92
THE FUND
-------------------------------------------------------------------------------
- During the year ended July 31, 2000, the Fund's Class A and Class B shares had
total returns of 1.74% and 0.91%, respectively.(1) For Class A, this return
resulted from a decline in net asset value (NAV) per share to $9.21 on July
31, 2000 from $9.56 on July 31, 1999, and the reinvestment of $0.495 per share
in tax-free income.(2) For Class B, this return resulted from a decline in NAV
to $10.31 from $ 10.71, and the reinvestment of $0.479 per share in tax-free
income.(2)
- Based on the Fund's most recent dividends and NAVs on July 31, 2000, the
distribution rates were 5.21% for Class A and 4.47% for Class B.(3) These
distribution rates are equivalent to taxable rates of 8.63% and 7.40%,
respectively.(4)
- The SEC 30-day yields for Class A and B shares at July 31 were 4.85% and
4.35%, respectively.(5) The SEC 30-day yields are equivalent to taxable yields
of 8.03% and 7.20% respectively.(4)
[EDGAR REPRESENTATION OF GRAPH]
COMPARISON OF CHANGE IN VALUE OF A $10,000 INVESTMENT IN EATON VANCE
TEXAS MUNICIPALS FUND, CLASS B VS. THE LEHMAN BROTHERS MUNICIPAL
BOND INDEX*
March 31, 1992 - July 31, 2000
<TABLE>
<CAPTION>
3/92 3/94 3/96 3/98 7/00
-------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
Lehman Brothers
Municipal Bond Index $10,000
Eaton Vance Texas
Municpals Fund, Class B $10,000
</TABLE>
* Source: TowersData, Bethesda, MD. Investment operations commenced on
3/24/92. Index information is available only at month end; therefore, the
line comparison begins at the next month following the commencement of the
Fund's investment operations.The chart compares the total return of the
Fund's Class B with that of the Lehman Brothers Municipal Bond Index, a
broad-based, unmanaged market index. Returns are calculated by determining
the percentage change in net asset value (NAV) with all distributions
reinvested. The lines on the chart represent total returns of $10,000
hypothetical investments in the Fund and the Lehman Brothers Municipal Bond
Index. An investment in Class A shares on 12/31/93 at net asset value would
have grown to $13,080 on 7/31/00; $12,458, including the 4.75% maximum sales
charge. The Index's total return does not reflect commissions or expenses
that would have been incurred if an investor individually purchased or sold
the securities represented in the Index. It is not possible to invest
directly in an Index.
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales charge (CDSC) for Class B
shares. (2) A portion of the Fund's income may be subject to federal income
and/or alternative minimum tax. (3) The Fund's distribution rate represents
actual distributions paid to shareholders and is calculated daily by
dividing the last distribution per share (annualized) by the net asset value
(NAV). (4) Taxable-equivalent rates assume maximum 39.6% federal income
tax rate. A lower rate would result in lower tax-equivalent figures.
(5) The Fund's SEC yield is calculated by dividing the net investment
income per share for the 30-day period by the offering price at the end of
the period and annualizing the result. (6) Returns are calculated by
determining the percentage change in NAV with all distributions reinvested.
SEC average annual returns for Class A reflect a sales charge of 4.75% and
for Class B reflect applicable CDSC based on the following schedule:
5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year;
1% - 6th year.
Past performance is no guarantee of future results. Investment return and
return and principal value will fluctuate so that shares, when redeemed, may
be worth more or less than their original cost.
-------------------------------------------------------------------------------
FEDERAL INCOME TAX INFORMATION ON DISTRIBUTIONS. For federal income tax
purposes, 99.86% of the total dividends paid by the Fund from net investment
income during the year ended July 31, 2000 was designated as an
exempt-interest dividend.
-------------------------------------------------------------------------------
10
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $72,776,275 $31,280,543 $132,350,790 $84,199,357
Unrealized appreciation
(depreciation) 847,705 (660,885) 785,841 1,377,091
------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT, AT VALUE $73,623,980 $30,619,658 $133,136,631 $85,576,448
------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 23,419 $ -- $ 258,555 $ 2,137
Prepaid expenses -- 7,400 9,400 --
------------------------------------------------------------------------------------------------------
TOTAL ASSETS $73,647,399 $30,627,058 $133,404,586 $85,578,585
------------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 50,334 $ 86,117 $ 300,118 $ 115,817
Dividends payable 127,272 55,825 222,566 149,753
Payable to affiliate for Trustees' fees 155 -- -- 403
Accrued expenses 27,777 13,405 53,433 32,357
------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 205,538 $ 155,347 $ 576,117 $ 298,330
------------------------------------------------------------------------------------------------------
NET ASSETS $73,441,861 $30,471,711 $132,828,469 $85,280,255
------------------------------------------------------------------------------------------------------
Sources of Net Assets
------------------------------------------------------------------------------------------------------
Paid-in capital $73,707,135 $31,901,945 $136,370,614 $85,687,532
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (985,707) (784,864) (4,237,847) (1,702,984)
Accumulated undistributed (distributions
in excess of) net investment income (127,272) 15,515 (90,139) (81,384)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of
identified cost) 847,705 (660,885) 785,841 1,377,091
------------------------------------------------------------------------------------------------------
TOTAL $73,441,861 $30,471,711 $132,828,469 $85,280,255
------------------------------------------------------------------------------------------------------
Class A Shares
------------------------------------------------------------------------------------------------------
NET ASSETS $ 5,063,889 $ 2,026,182 $ 8,850,880 $ 2,700,540
SHARES OUTSTANDING 534,409 221,213 872,686 298,694
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.48 $ 9.16 $ 10.14 $ 9.04
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.95 $ 9.62 $ 10.65 $ 9.49
------------------------------------------------------------------------------------------------------
Class B Shares
------------------------------------------------------------------------------------------------------
NET ASSETS $68,377,972 $28,445,529 $123,977,589 $82,579,715
SHARES OUTSTANDING 6,487,867 2,851,697 12,283,857 8,181,363
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.54 $ 9.97 $ 10.09 $ 10.09
------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND TEXAS FUND
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $48,131,894 $248,404,183 $246,457,700 $10,775,129
Unrealized appreciation
(depreciation) 715,974 (4,689) (8,765,560) 235,269
---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT, AT VALUE $48,847,868 $248,399,494 $237,692,140 $11,010,398
---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 1,778 $ 275,291 $ 67,741 $ 4,044
Prepaid expenses 4,439 9,400 -- 11,601
---------------------------------------------------------------------------------------------------------
TOTAL ASSETS $48,854,085 $248,684,185 $237,759,881 $11,026,043
---------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 3,887 $ 212,692 $ 151,147 $ --
Dividends payable 90,849 459,794 443,204 19,122
Payable to affiliate for Trustees' fees 21 -- 403 --
Accrued expenses 20,008 91,275 83,504 15,367
---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 114,765 $ 763,761 $ 678,258 $ 34,489
---------------------------------------------------------------------------------------------------------
NET ASSETS $48,739,320 $247,920,424 $237,081,623 $10,991,554
---------------------------------------------------------------------------------------------------------
Sources of Net Assets
---------------------------------------------------------------------------------------------------------
Paid-in capital $51,772,672 $254,354,406 $255,612,284 $11,191,984
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (3,745,078) (6,203,587) (9,314,660) (422,764)
Accumulated distributions in excess of
net investment income (4,248) (225,706) (450,441) (12,935)
Net unrealized appreciation
(depreciation) from Portfolio
(computed on the basis of
identified cost) 715,974 (4,689) (8,765,560) 235,269
---------------------------------------------------------------------------------------------------------
TOTAL $48,739,320 $247,920,424 $237,081,623 $10,991,554
---------------------------------------------------------------------------------------------------------
Class A Shares
---------------------------------------------------------------------------------------------------------
NET ASSETS $ 5,079,028 $ 14,690,197 $ 9,302,429 $ 343,330
SHARES OUTSTANDING 559,673 1,505,506 980,841 37,296
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.07 $ 9.76 $ 9.48 $ 9.21
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.52 $ 10.25 $ 9.95 $ 9.67
---------------------------------------------------------------------------------------------------------
Class B Shares
---------------------------------------------------------------------------------------------------------
NET ASSETS $43,660,292 $233,230,227 $227,779,194 $10,648,224
SHARES OUTSTANDING 4,470,552 22,920,416 23,236,685 1,032,709
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.77 $ 10.18 $ 9.80 $ 10.31
---------------------------------------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
Investment Income
------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 4,937,160 $ 2,062,167 $ 8,476,848 $ 5,768,483
Expenses allocated from Portfolio (406,321) (121,047) (683,140) (481,034)
------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 4,530,839 $ 1,941,120 $ 7,793,708 $ 5,287,449
------------------------------------------------------------------------------------------------------
Expenses
------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,042 $ 187 $ 4,391 $ 3,736
Distribution and service fees
Class A 8,625 3,766 15,221 2,481
Class B 699,977 289,724 1,253,308 816,678
Legal and accounting services 32,079 14,552 16,427 32,468
Printing and postage 10,113 3,887 15,303 12,036
Custodian fee 11,875 5,329 17,719 13,685
Transfer and dividend disbursing agent
fees 66,689 28,858 128,202 82,154
Registration fees 7,620 1,663 1,619 2,900
Miscellaneous 12,624 8,610 14,089 19,005
------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 850,644 $ 356,576 $ 1,466,279 $ 985,143
------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,680,195 $ 1,584,544 $ 6,327,429 $ 4,302,306
------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (527,758) $ (9,485) $ (388,620) $(1,675,035)
Financial futures contracts (1,488) 6,302 21,285 38,732
Options -- (5,327) (22,830) --
------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (529,246) $ (8,510) $ (390,165) $(1,636,303)
------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(3,317,432) $(1,669,441) $(4,808,155) $(2,821,594)
Financial futures contracts (1,787) 1,079 4,586 1,618
------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(3,319,219) $(1,668,362) $(4,803,569) $(2,819,976)
------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,848,465) $(1,676,872) $(5,193,734) $(4,456,279)
------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (168,270) $ (92,328) $ 1,133,695 $ (153,973)
------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND TEXAS FUND
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------
Investment Income
--------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 3,280,707 $ 17,202,166 $ 17,367,688 $ 818,649
Expenses allocated from Portfolio (223,602) (1,445,515) (1,549,519) (62,152)
--------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 3,057,105 $ 15,756,651 $ 15,818,169 $ 756,497
--------------------------------------------------------------------------------------------------------
Expenses
--------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 2,224 $ 4,391 $ 4,826 $ 241
Distribution and service fees
Class A 8,681 24,879 15,654 659
Class B 443,898 2,317,242 2,394,373 119,776
Legal and accounting services 5,566 4,673 32,130 14,716
Printing and postage 8,613 33,725 30,933 2,326
Custodian fee 9,207 25,810 26,735 6,530
Transfer and dividend disbursing agent
fees 48,198 231,714 258,355 10,926
Registration fees 712 11,285 6,950 2,060
Miscellaneous 11,731 23,937 30,508 6,512
--------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 538,830 $ 2,677,656 $ 2,800,464 $ 163,746
--------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,518,275 $ 13,078,995 $ 13,017,705 $ 592,751
--------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
--------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (607,081) $ (11,015) $ 210,641 $(291,803)
Financial futures contracts (1,277) (6,305) 11,827 --
--------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (608,358) $ (17,320) $ 222,468 $(291,803)
--------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(1,965,078) $(13,347,272) $(15,716,003) $(374,388)
Financial futures contracts (47,823) (409,911) (5,955) --
--------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(2,012,901) $(13,757,183) $(15,721,958) $(374,388)
--------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(2,621,259) $(13,774,503) $(15,499,490) $(666,191)
--------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (102,984) $ (695,508) $ (2,481,785) $ (73,440)
--------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,680,195 $ 1,584,544 $ 6,327,429 $ 4,302,306
Net realized loss (529,246) (8,510) (390,165) (1,636,303)
Net change in unrealized appreciation
(depreciation) (3,319,219) (1,668,362) (4,803,569) (2,819,976)
------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (168,270) $ (92,328) $ 1,133,695 $ (153,973)
------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (241,991) $ (106,729) $ (458,160) $ (115,116)
Class B (3,438,204) (1,484,089) (5,694,569) (4,061,767)
In excess of net investment income
Class A (4,234) -- -- --
Class B (31,164) -- -- --
In excess of net realized gain
Class A -- -- -- (12,152)
Class B -- -- -- (372,944)
------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (3,715,593) $(1,590,818) $ (6,152,729) $ (4,561,979)
------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,256,117 $ 409,768 $ 2,421,487 $ 1,766,416
Class B 3,886,251 2,109,410 6,078,777 2,345,318
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 156,624 56,650 266,074 45,897
Class B 1,224,573 728,019 2,677,695 2,138,787
Cost of shares redeemed
Class A (1,568,597) (379,583) (2,754,771) (805,002)
Class B (21,720,622) (8,492,691) (29,087,934) (24,588,871)
------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(16,765,654) $(5,568,427) $(20,398,672) $(19,097,455)
------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(20,649,517) $(7,251,573) $(25,417,706) $(23,813,407)
------------------------------------------------------------------------------------------------------
Net Assets
------------------------------------------------------------------------------------------------------
At beginning of year $ 94,091,378 $37,723,284 $158,246,175 $109,093,662
------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 73,441,861 $30,471,711 $132,828,469 $ 85,280,255
------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (127,272) $ 15,515 $ (90,139) $ (81,384)
------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND TEXAS FUND
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,518,275 $ 13,078,995 $ 13,017,705 $ 592,751
Net realized gain (loss) (608,358) (17,320) 222,468 (291,803)
Net change in unrealized appreciation
(depreciation) (2,012,901) (13,757,183) (15,721,958) (374,388)
---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (102,984) $ (695,508) $ (2,481,785) $ (73,440)
---------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (263,336) $ (896,106) $ (527,105) $ (22,049)
Class B (2,143,787) (11,892,126) (12,490,600) (582,429)
In excess of net investment income
Class A -- (4,341) (17,518) (693)
Class B -- -- (105,334) (11,501)
---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (2,407,123) $(12,792,573) $(13,140,557) $ (616,672)
---------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,573,689 $ 3,218,079 $ 1,932,075 $ 42,161
Class B 2,242,405 9,201,444 7,903,213 487,869
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 109,042 364,616 332,672 8,438
Class B 1,144,172 5,782,003 5,211,975 207,401
Cost of shares redeemed
Class A (1,249,986) (6,914,908) (3,097,089) (143,305)
Class B (12,747,156) (58,358,315) (73,380,671) (4,597,501)
---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (8,927,834) $(46,707,081) $(61,097,825) $(3,994,937)
---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(11,437,941) $(60,195,162) $(76,720,167) $(4,685,049)
---------------------------------------------------------------------------------------------------------
Net Assets
---------------------------------------------------------------------------------------------------------
At beginning of year $ 60,177,261 $308,115,586 $313,801,790 $15,676,603
---------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 48,739,320 $247,920,424 $237,081,623 $10,991,554
---------------------------------------------------------------------------------------------------------
Accumulated distributions
in excess of net
investment income included in net assets
---------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (4,248) $ (225,706) $ (450,441) $ (12,935)
---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,282,323 $ 1,740,925 $ 6,841,982 $ 4,920,189
Net realized gain 1,622,655 811,139 1,435,275 2,217,392
Net change in unrealized appreciation
(depreciation) (4,960,998) (2,289,164) (5,197,247) (6,686,326)
------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 943,980 $ 262,900 $ 3,080,010 $ 451,255
------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (301,613) $ (113,038) $ (367,948) $ (77,207)
Class B (3,980,710) (1,659,567) (6,438,328) (4,801,254)
In excess of net investment income
Class A (1,295) -- -- --
Class B (75,917) -- -- --
From net realized gain
Class A -- -- -- (2,684)
Class B -- -- -- (148,743)
------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (4,359,535) $(1,772,605) $ (6,806,276) $ (5,029,888)
------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 5,695,521 $ 410,035 $ 5,614,029 $ 476,350
Class B 7,317,398 3,574,611 10,368,849 4,918,939
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 145,259 58,140 213,503 50,026
Class B 1,488,338 842,774 3,425,924 2,605,627
Cost of shares redeemed
Class A (3,679,906) (536,119) (1,587,114) (244,401)
Class B (16,250,220) (4,822,974) (20,380,835) (23,876,690)
------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (5,283,610) $ (473,533) $ (2,345,644) $(16,070,149)
------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (8,699,165) $(1,983,238) $ (6,071,910) $(20,648,782)
------------------------------------------------------------------------------------------------------
Net Assets
------------------------------------------------------------------------------------------------------
At beginning of year $102,790,543 $39,706,522 $164,318,085 $129,742,444
------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,091,378 $37,723,284 $158,246,175 $109,093,662
------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (167,857) $ 21,789 $ (264,839) $ (203,652)
------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND TEXAS FUND
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,807,821 $ 14,517,141 $ 15,476,859 $ 737,118
Net realized gain 848,429 7,082,662 5,867,482 329,438
Net change in unrealized appreciation
(depreciation) (3,102,438) (19,049,564) (18,321,912) (862,442)
---------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 553,812 $ 2,550,239 $ 3,022,429 $ 204,114
---------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (225,700) $ (830,624) $ (567,134) $ (21,492)
Class B (2,582,121) (13,686,517) (15,120,969) (719,293)
In excess of net investment income
Class A (3,995) (8,497) (11,869) --
Class B (5,888) (19,571) (316,467) --
---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (2,817,704) $(14,545,209) $(16,016,439) $ (740,785)
---------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,586,280 $ 10,874,081 $ 9,157,522 $ 263,076
Class B 4,513,386 26,459,043 16,392,325 717,516
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 117,088 407,915 372,064 11,491
Class B 1,383,773 7,147,875 7,015,145 274,459
Cost of shares redeemed
Class A (681,021) (3,283,634) (6,986,416) (173,118)
Class B (11,372,093) (49,220,137) (57,299,191) (2,240,673)
---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ (4,452,587) $ (7,614,857) $(31,348,551) $(1,147,249)
---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (6,716,479) $(19,609,827) $(44,342,561) $(1,683,920)
---------------------------------------------------------------------------------------------------------
Net Assets
---------------------------------------------------------------------------------------------------------
At beginning of year $ 66,893,740 $327,725,413 $358,144,351 $17,360,523
---------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 60,177,261 $308,115,586 $313,801,790 $15,676,603
---------------------------------------------------------------------------------------------------------
Accumulated undistributed
(distributions in excess of) net
investment income included in net assets
---------------------------------------------------------------------------------------------------------
AT END OF YEAR $ (148,119) $ (512,128) $ (327,589) $ 10,986
---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.850 $10.200 $10.090
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.495 $ 0.504 $ 0.499
Net realized and unrealized
gain (loss) (0.363) (0.348) 0.126
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.132 $ 0.156 $ 0.625
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.493) $(0.504) $(0.499)
In excess of net investment
income (0.009) (0.002) (0.016)
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.502) $(0.506) $(0.515)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.480 $ 9.850 $10.200
------------------------------------------------------------------
TOTAL RETURN(2) 1.56% 1.48% 6.34%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 5,064 $ 5,409 $ 3,498
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.89% 0.77% 0.78%
Expenses after custodian
fee reduction(3) 0.88% 0.76% 0.76%
Net investment income 5.30% 4.90% 4.88%
Portfolio Turnover of the
Portfolio 25% 38% 23%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.950 $11.340 $11.220 $ 10.680 $ 10.530
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.476 $ 0.472 $ 0.476 $ 0.486 $ 0.482
Net realized and unrealized
gain (loss) (0.409) (0.381) 0.134 0.539 0.161
-----------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.067 $ 0.091 $ 0.610 $ 1.025 $ 0.643
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.473) $(0.472) $(0.476) $ (0.485) $ (0.488)
In excess of net investment
income (0.004) (0.009) (0.014) -- (0.005)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.477) $(0.481) $(0.490) $ (0.485) $ (0.493)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.540 $10.950 $11.340 $ 11.220 $ 10.680
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.81% 0.74% 5.54% 9.85% 6.17%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $68,378 $88,682 $99,293 $109,379 $127,681
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.63% 1.56% 1.57% 1.58% 1.56%
Expenses after custodian
fee reduction(3) 1.62% 1.55% 1.55% 1.57% 1.55%
Net investment income 4.58% 4.16% 4.22% 4.50% 4.49%
Portfolio Turnover of the
Portfolio 25% 38% 23% 10% 18%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
COLORADO FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000 1999 1998
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.570 $ 9.950 $ 9.920
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.495 $ 0.507 $ 0.507
Net realized and unrealized
gain (loss) (0.402) (0.374) 0.038
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.093 $ 0.133 $ 0.545
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.503) $(0.513) $(0.515)
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.503) $(0.513) $(0.515)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.160 $ 9.570 $ 9.950
------------------------------------------------------------------
TOTAL RETURN(1) 1.18% 1.27% 5.62%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year
(000's omitted) $ 2,026 $ 2,021 $ 2,172
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.78% 0.63% 0.74%
Expenses after custodian
fee reduction(2) 0.75% 0.59% 0.71%
Net investment income 5.48% 5.09% 5.14%
Portfolio Turnover of the
Portfolio 14% 33% 18%
------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
COLORADO FUND -- CLASS B
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.410 $10.820 $10.800 $10.170 $10.020
------------------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------------------
Net investment income $ 0.468 $ 0.467 $ 0.478 $ 0.491 $ 0.480
Net realized and unrealized
gain (loss) (0.440) (0.401) 0.025 0.621 0.162
------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.028 $ 0.066 $ 0.503 $ 1.112 $ 0.642
------------------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------------------
From net investment income $(0.468) $(0.476) $(0.483) $(0.482) $(0.492)
------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.468) $(0.476) $(0.483) $(0.482) $(0.492)
------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.970 $10.410 $10.820 $10.800 $10.170
------------------------------------------------------------------------------------------
TOTAL RETURN(1) 0.45% 0.54% 4.74% 11.26% 6.46%
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $28,446 $35,703 $37,535 $40,786 $42,972
Ratios (As a percentage of
average daily net assets):
Net expenses(2) 1.52% 1.46% 1.51% 1.53% 1.49%
Net expenses after
custodian fee
reduction(2) 1.49% 1.42% 1.48% 1.49% 1.45%
Net investment income 4.75% 4.32% 4.40% 4.75% 4.69%
Portfolio Turnover of the
Portfolio 14% 33% 18% 14% 53%
------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the
investment adviser fee, an allocation of expenses to the Investment Adviser or
Administrator, or both. Had such actions not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.51%
Expenses after custodian
fee reduction(2) 1.46%
Net investment income 4.67%
Net investment income per
share $ 0.478
------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CONNECTICUT FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000 1999 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $10.460 $10.710 $10.640
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.521 $ 0.539 $ 0.529
Net realized and unrealized
gain (loss) (0.323) (0.258) 0.091
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.198 $ 0.281 $ 0.620
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.518) $(0.531) $(0.529)
In excess of net investment
income -- -- (0.021)
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.518) $(0.531) $(0.550)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.140 $10.460 $10.710
------------------------------------------------------------------
TOTAL RETURN(2) 2.09% 2.60% 5.97%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 8,851 $ 9,222 $ 5,193
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.82% 0.75% 0.76%
Expenses after custodian
fee reduction(3) 0.80% 0.73% 0.75%
Net investment income 5.23% 4.89% 4.93%
Portfolio Turnover of the
Portfolio 20% 18% 7%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CONNECTICUT FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
2000 1999 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.400 $ 10.640 $ 10.570 $ 10.120 $ 9.970
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.439 $ 0.440 $ 0.438 $ 0.453 $ 0.452
Net realized and unrealized
gain (loss) (0.321) (0.243) 0.080 0.450 0.169
-----------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.118 $ 0.197 $ 0.518 $ 0.903 $ 0.621
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $ (0.428) $ (0.437) $ (0.438) $ (0.453) $ (0.452)
In excess of net investment
income -- -- (0.010) -- (0.019)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.428) $ (0.437) $ (0.448) $ (0.453) $ (0.471)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.090 $ 10.400 $ 10.640 $ 10.570 $ 10.120
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 1.31% 1.84% 4.99% 9.17% 6.30%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $123,978 $149,024 $159,125 $171,634 $181,608
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.56% 1.59% 1.60% 1.58%
Expenses after custodian
fee reduction(3) 1.58% 1.54% 1.58% 1.60% 1.57%
Net investment income 4.46% 4.11% 4.14% 4.45% 4.45%
Portfolio Turnover of the
Portfolio 20% 18% 7% 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.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.430 $ 9.820 $ 9.750
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.480 $ 0.471 $ 0.474
Net realized and unrealized
gain (loss) (0.356) (0.385) 0.092
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.124 $ 0.086 $ 0.566
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.471) $(0.461) $(0.496)
From net realized gain -- (0.015) --
In excess of net realized gain (0.043) -- --
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.514) $(0.476) $(0.496)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.040 $ 9.430 $ 9.820
------------------------------------------------------------------
TOTAL RETURN(2) 1.55% 0.81% 5.95%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 2,701 $ 1,737 $ 1,526
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.81% 0.80% 0.83%
Expenses after custodian
fee reduction(3) 0.81% 0.79% 0.81%
Net investment income 5.40% 4.81% 4.85%
Portfolio Turnover of the
Portfolio 30% 31% 26%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.520 $ 10.950 $ 10.870 $ 10.420 $ 10.250
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.459 $ 0.440 $ 0.448 $ 0.460 $ 0.464
Net realized and unrealized
gain (loss) (0.401) (0.420) 0.097 0.454 0.195
-----------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.058 $ 0.020 $ 0.545 $ 0.914 $ 0.659
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $(0.445) $ (0.435) $ (0.448) $ (0.462) $ (0.481)
In excess of net investment
income -- -- (0.017) (0.002) (0.008)
From net realized gain -- (0.015) -- -- --
In excess of net realized gain (0.043) -- -- -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.488) $ (0.450) $ (0.465) $ (0.464) $ (0.489)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.090 $ 10.520 $ 10.950 $ 10.870 $ 10.420
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.75% 0.11% 5.11% 9.01% 6.50%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $82,580 $107,357 $128,216 $148,542 $171,067
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.58% 1.59% 1.60% 1.61%
Expenses after custodian
fee reduction(3) 1.60% 1.57% 1.57% 1.58% 1.60%
Net investment income 4.61% 4.03% 4.12% 4.40% 4.44%
Portfolio Turnover of the
Portfolio 30% 31% 26% 16% 49%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MINNESOTA FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000 1999(1) 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.460 $ 9.820 $ 9.770
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.491 $ 0.490 $ 0.492
Net realized and unrealized
gain (loss) (0.395) (0.351) 0.073
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.096 $ 0.139 $ 0.565
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.486) $(0.490) $(0.515)
In excess of net investment
income -- (0.009) --
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.486) $(0.499) $(0.515)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.070 $ 9.460 $ 9.820
------------------------------------------------------------------
TOTAL RETURN(2) 1.21% 1.34% 5.94%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 5,079 $ 4,822 $ 3,995
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.79% 0.73% 0.73%
Expenses after custodian
fee reduction(3) 0.77% 0.71% 0.71%
Net investment income 5.48% 4.97% 5.03%
Portfolio Turnover of the
Portfolio 12% 19% 23%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MINNESOTA FUND -- CLASS B
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.170 $10.540 $10.490 $10.070 $ 9.950
------------------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------------------
Net investment income $ 0.453 $ 0.446 $ 0.439 $ 0.466 $ 0.468
Net realized and unrealized
gain (loss) (0.418) (0.369) 0.073 0.415 0.123
------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.035 $ 0.077 $ 0.512 $ 0.881 $ 0.591
------------------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------------------
From net investment income $(0.435) $(0.446) $(0.439) $(0.461) $(0.468)
In excess of net investment
income -- (0.001) (0.023) -- (0.003)
------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.435) $(0.447) $(0.462) $(0.461) $(0.471)
------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.770 $10.170 $10.540 $10.490 $10.070
------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.52% 0.65% 4.99% 9.01% 6.00%
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $43,660 $55,355 $62,899 $67,781 $74,374
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.55% 1.55% 1.58% 1.58% 1.56%
Expenses after custodian
fee reduction(3) 1.53% 1.53% 1.56% 1.55% 1.54%
Net investment income 4.74% 4.21% 4.19% 4.62% 4.63%
Portfolio Turnover of the
Portfolio 12% 19% 23% 22% 45%
------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW JERSEY FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000(1) 1999(1) 1998(1)
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $10.190 $10.590 $10.530
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.543 $ 0.548 $ 0.558
Net realized and unrealized
gain (loss) (0.430) (0.394) 0.082
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.113 $ 0.154 $ 0.640
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.540) $(0.548) $(0.558)
In excess of net investment
income (0.003) (0.006) (0.022)
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.543) $(0.554) $(0.580)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.760 $10.190 $10.590
------------------------------------------------------------------
TOTAL RETURN(2) 1.34% 1.39% 6.24%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $14,690 $18,897 $11,570
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.83% 0.73% 0.77%
Expenses after custodian
fee reduction(3) 0.83% 0.72% 0.75%
Net investment income 5.64% 5.14% 5.25%
Portfolio Turnover of the
Portfolio 26% 32% 14%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW JERSEY FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998(1) 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.610 $ 11.020 $ 10.940 $ 10.440 $ 10.360
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.489 $ 0.481 $ 0.491 $ 0.506 $ 0.505
Net realized and unrealized
gain (loss) (0.443) (0.409) 0.089 0.493 0.084
-----------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.046 $ 0.072 $ 0.580 $ 0.999 $ 0.589
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $ (0.476) $ (0.481) $ (0.491) $ (0.499) $ (0.505)
In excess of net investment
income -- (0.001) (0.009) -- (0.004)
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.476) $ (0.482) $ (0.500) $ (0.499) $ (0.509)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 10.180 $ 10.610 $ 11.020 $ 10.940 $ 10.440
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) 0.63% 0.59% 5.41% 9.85% 5.74%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $233,230 $289,219 $316,155 $345,080 $378,649
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.60% 1.57% 1.61% 1.59% 1.57%
Expenses after custodian
fee reduction(3) 1.60% 1.56% 1.59% 1.57% 1.56%
Net investment income 4.88% 4.37% 4.48% 4.82% 4.80%
Portfolio Turnover of the
Portfolio 26% 32% 14% 24% 39%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PENNSYLVANIA FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000(1) 1999(1) 1998
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.990 $10.400 $10.550
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.534 $ 0.546 $ 0.578
Net realized and unrealized
loss (0.492) (0.393) (0.143)
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.042 $ 0.153 $ 0.435
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.534) $(0.546) $(0.578)
In excess of net investment
income (0.018) (0.017) (0.007)
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.552) $(0.563) $(0.585)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.480 $ 9.990 $10.400
------------------------------------------------------------------
TOTAL RETURN(2) 0.58% 1.42% 4.17%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 9,302 $10,652 $ 8,552
Ratios (As a percentage of
average daily net assets):
Expenses(3) 0.90% 0.75% 0.74%
Expenses after custodian
fee reduction(3) 0.90% 0.71% 0.70%
Net investment income 5.63% 5.29% 5.40%
Portfolio Turnover of the
Portfolio 18% 27% 13%
------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PENNSYLVANIA FUND -- CLASS B
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
2000(1) 1999(1) 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $ 10.310 $ 10.730 $ 10.900 $ 10.430 $ 10.320
-----------------------------------------------------------------------------------------------
Income (loss) from operations
-----------------------------------------------------------------------------------------------
Net investment income $ 0.477 $ 0.477 $ 0.506 $ 0.522 $ 0.512
Net realized and unrealized
gain (loss) (0.508) (0.404) (0.156) 0.458 0.108
-----------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $ (0.031) $ 0.073 $ 0.350 $ 0.980 $ 0.620
-----------------------------------------------------------------------------------------------
Less distributions
-----------------------------------------------------------------------------------------------
From net investment income $ (0.475) $ (0.483) $ (0.520) $ (0.510) $ (0.510)
In excess of net investment
income (0.004) (0.010) -- -- --
-----------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.479) $ (0.493) $ (0.520) $ (0.510) $ (0.510)
-----------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.800 $ 10.310 $ 10.730 $ 10.900 $ 10.430
-----------------------------------------------------------------------------------------------
TOTAL RETURN(2) (0.15)% 0.64% 3.23% 9.66% 6.08%
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Net assets, end of year (000's
omitted) $227,779 $303,150 $349,593 $395,974 $441,104
Ratios (As a percentage of
average daily net assets):
Expenses(3) 1.66% 1.58% 1.59% 1.61% 1.58%
Expenses after custodian
fee reduction(3) 1.66% 1.54% 1.55% 1.56% 1.54%
Net investment income 4.86% 4.47% 4.63% 4.93% 4.89%
Portfolio Turnover of the
Portfolio 18% 27% 13% 17% 30%
-----------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TEXAS FUND -- CLASS A
--------------------------------
YEAR ENDED JULY 31,
--------------------------------
2000 1999 1998
<S> <C> <C> <C>
------------------------------------------------------------------
Net asset value -- Beginning
of year $ 9.560 $ 9.890 $ 9.770
------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------
Net investment income $ 0.472 $ 0.511 $ 0.515
Net realized and unrealized
gain (loss) (0.327) (0.336) 0.110
------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.145 $ 0.175 $ 0.625
------------------------------------------------------------------
Less distributions
------------------------------------------------------------------
From net investment income $(0.480) $(0.505) $(0.505)
In excess of net investment
income (0.015) -- --
------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.495) $(0.505) $(0.505)
------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $ 9.210 $ 9.560 $ 9.890
------------------------------------------------------------------
TOTAL RETURN(1) 1.74% 1.72% 6.55%
------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------
Net assets, end of year (000's
omitted) $ 343 $ 458 $ 373
Ratios (As a percentage of
average daily net assets):
Expenses(2) 0.97% 0.75% 0.72%
Expenses after custodian
fee reduction(2) 0.97% 0.72% 0.69%
Net investment income 5.33% 5.11% 5.22%
Portfolio Turnover of the
Portfolio 35% 55% 17%
------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TEXAS FUND -- CLASS B
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Net asset value -- Beginning
of year $10.710 $11.080 $10.960 $10.440 $10.280
------------------------------------------------------------------------------------------
Income (loss) from operations
------------------------------------------------------------------------------------------
Net investment income $ 0.456 $ 0.485 $ 0.496 $ 0.489 $ 0.492
Net realized and unrealized
gain (loss) (0.380) (0.368) 0.120 0.526 0.177
------------------------------------------------------------------------------------------
TOTAL INCOME FROM OPERATIONS $ 0.076 $ 0.117 $ 0.616 $ 1.015 $ 0.669
------------------------------------------------------------------------------------------
Less distributions
------------------------------------------------------------------------------------------
From net investment income $(0.467) $(0.487) $(0.496) $(0.495) $(0.509)
In excess of net investment
income (0.009) -- -- -- --
------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.476) $(0.487) $(0.496) $(0.495) $(0.509)
------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF YEAR $10.310 $10.710 $11.080 $10.960 $10.440
------------------------------------------------------------------------------------------
TOTAL RETURN(1) 0.91% 1.01% 5.74% 10.00% 6.60%
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Net assets, end of year
(000's omitted) $10,648 $15,219 $16,988 $21,283 $23,996
Ratios (As a percentage of
average daily net assets):
Net expenses(2) 1.77% 1.54% 1.49% 1.57% 1.43%
Net expenses after
custodian fee
reduction(2) 1.77% 1.51% 1.46% 1.55% 1.39%
Net investment income 4.54% 4.37% 4.50% 4.61% 4.70%
Portfolio Turnover of the
Portfolio 35% 55% 17% 17% 39%
------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the
investment adviser fee, an allocation of expenses to the Investment Adviser or
Administrator, or both. Had such actions not been taken, the ratios and net investment
income per share would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(2) 1.53%
Expenses after custodian
fee reduction(2) 1.49%
Net investment income 4.60%
Net investment income per
share $ 0.482
------------------------------------------------------------------------------------------
</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 shares of its corresponding Portfolio's allocated
expenses.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each diversified, are included in these financial statements. They
include Eaton Vance Arizona Municipals Fund (Arizona Fund), Eaton Vance
Colorado Municipals Fund (Colorado Fund), Eaton Vance Connecticut Municipals
Fund (Connecticut Fund), Eaton Vance Michigan Municipals Fund (Michigan
Fund), Eaton Vance Minnesota Municipals Fund (Minnesota Fund), Eaton Vance
New Jersey Municipals Fund (New Jersey Fund), Eaton Vance Pennsylvania
Municipals Fund (Pennsylvania Fund) and Eaton Vance Texas Municipals Fund
(Texas 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 Arizona
Fund invests its assets in the Arizona Municipals Portfolio, the Colorado
Fund invests its assets in the Colorado Municipals Portfolio, the Connecticut
Fund invests its assets in the Connecticut Municipals Portfolio, the Michigan
Fund invests its assets in the Michigan Municipals Portfolio, the Minnesota
Fund invests its assets in the Minnesota Municipals Portfolio, the New Jersey
Fund invests its assets in the New Jersey Municipals Portfolio, the
Pennsylvania Fund invests its assets in the Pennsylvania Municipals Portfolio
and the Texas Fund invests its assets in the Texas 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 July 31, 2000 for each Fund). The performance of each
Fund is directly affected by the performance of its corresponding Portfolio.
The financial statements of each Portfolio, including the portfolio of
investments, are included elsewhere in this report and should be read in
conjunction with each Fund's financial statements. The following is a summary
of significant accounting policies consistently followed by the Trust in the
preparation of its financial statements. The policies are in conformity with
generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolios is
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. The Michigan Fund
hereby designates approximately $382,000 as a capital gain dividend for the
purpose of the dividend paid deduction. At July 31, 2000, the Funds, for
federal income tax purposes, had capital loss carryovers which will reduce
taxable income arising from future net realized gain on investments, if any,
to the extent permitted by the Internal Revenue Code, and thus will reduce
the amount of the distributions to shareholders which would otherwise be
necessary to relieve the Funds of any liability for federal income or excise
tax. The amounts and expiration dates of the capital loss carryovers are as
follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
--------------------------------------------------------------------
Arizona Fund $ 177,375 July 31, 2008
431,585 July 31, 2004
Colorado Fund 668,429 July 31, 2004
Connecticut Fund 242,814 July 31, 2008
91,011 July 31, 2005
3,755,736 July 31, 2004
Michigan Fund 1,520,989 July 31, 2008
Minnesota Fund 340,808 July 31, 2008
329,867 July 31, 2005
2,802,385 July 31, 2004
New Jersey Fund 23,676 July 31, 2005
5,684,649 July 31, 2004
</TABLE>
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
--------------------------------------------------------------------
Pennsylvania Fund $1,809,455 July 31, 2005
7,461,554 July 31, 2004
Texas Fund 199,620 July 31, 2008
84,793 July 31, 2005
46,167 July 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. Pursuant to section 852 of
the Internal Revenue Code, the Michigan Fund redesignates $3,156 of
distributions from long term capital gain dividends to exempt interest for
its taxable year ending July 31, 2000.
Additionally, at July 31, 2000, Arizona Fund, Colorado Fund, Connecticut
Fund, Michigan Fund, Minnesota Fund, New Jersey Fund, and Texas Fund had net
capital losses of $378,538, $115,354, $142,765, $131,571, $315,373, $896,326,
and $92,183, respectively, attributable to security transactions incurred
after October 31, 1999. These are treated as arising on the first day of each
Fund's next taxable year.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Funds or the Portfolios maintain with
IBT. All significant credit balances used to reduce the Funds' custodian fees
are reported as a reduction of total expenses on the Statement of Operations.
E Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of income and expense during the reporting period. Actual results could
differ from those estimates.
F Other -- Investment transactions are accounted for on a trade-date basis.
2 Distributions to Shareholders
-------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. Distributions of allocated realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of each Fund at the net asset value as of the ex-dividend
date.
The Funds distinguish between distributions on a tax basis and a financial
reporting basis. Generally accepted accounting principles require that only
distributions in excess of tax basis earnings and profits be reported in the
financial statements as a return of capital. Differences in the recognition
or classification of income between the financial statements and tax earnings
and profits which result in temporary over distributions for financial
statement purposes are classified as distributions in excess of net
investment income or accumulated net realized gains. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Shares of Beneficial Interest
-------------------------------------------
The Funds' Declaration of Trust permits the Trustees to issue an unlimited
number of full and fractional shares of beneficial interest (without par
value). Such shares may be issued in a number of different series (such as
the Funds) and classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
ARIZONA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 136,109 556,423
Issued to shareholders electing to
receive payments of distributions in
Fund shares 16,808 14,297
Redemptions (167,660) (364,504)
------------------------------------------------------------------
NET INCREASE (DECREASE) (14,743) 206,216
------------------------------------------------------------------
</TABLE>
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
ARIZONA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 376,348 644,520
Issued to shareholders electing to
receive payments of distributions in
Fund shares 118,088 131,278
Redemptions (2,102,679) (1,431,988)
------------------------------------------------------------------
NET DECREASE (1,608,243) (656,190)
------------------------------------------------------------------
<CAPTION>
COLORADO FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 45,312 41,160
Issued to shareholders electing to
receive payments of distributions in
Fund shares 6,262 5,870
Redemptions (41,489) (54,245)
------------------------------------------------------------------
NET INCREASE (DECREASE) 10,085 (7,215)
------------------------------------------------------------------
<CAPTION>
COLORADO FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 212,048 329,508
Issued to shareholders electing to
receive payments of distributions in
Fund shares 73,808 78,095
Redemptions (863,025) (447,093)
------------------------------------------------------------------
NET DECREASE (577,169) (39,490)
------------------------------------------------------------------
<CAPTION>
CONNECTICUT FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 241,719 524,295
Issued to shareholders electing to
receive payments of distributions in
Fund shares 26,639 19,896
Redemptions (277,526) (147,351)
------------------------------------------------------------------
NET INCREASE (DECREASE) (9,168) 396,840
------------------------------------------------------------------
<CAPTION>
CONNECTICUT FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 609,057 967,806
Issued to shareholders electing to
receive payments of distributions in
Fund shares 269,384 320,758
Redemptions (2,928,042) (1,912,012)
------------------------------------------------------------------
NET DECREASE (2,049,601) (623,448)
------------------------------------------------------------------
<CAPTION>
MICHIGAN FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 198,769 48,762
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,159 5,120
Redemptions (89,435) (25,127)
------------------------------------------------------------------
NET INCREASE 114,493 28,755
------------------------------------------------------------------
<CAPTION>
MICHIGAN FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 236,066 449,210
Issued to shareholders electing to
receive payments of distributions in
Fund shares 215,231 238,514
Redemptions (2,477,976) (2,185,130)
------------------------------------------------------------------
NET DECREASE (2,026,679) (1,497,406)
------------------------------------------------------------------
<CAPTION>
MINNESOTA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 176,471 159,290
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,172 12,797
Redemptions (138,626) (69,272)
------------------------------------------------------------------
NET INCREASE 50,017 102,815
------------------------------------------------------------------
</TABLE>
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
MINNESOTA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 231,997 425,368
Issued to shareholders electing to
receive payments of distributions in
Fund shares 118,670 130,884
Redemptions (1,324,612) (1,078,648)
------------------------------------------------------------------
NET DECREASE (973,945) (522,396)
------------------------------------------------------------------
<CAPTION>
NEW JERSEY FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 332,821 1,033,440
Issued to shareholders electing to
receive payments of distributions in
Fund shares 37,898 38,666
Redemptions (719,104) (310,720)
------------------------------------------------------------------
NET INCREASE (DECREASE) (348,385) 761,386
------------------------------------------------------------------
<CAPTION>
NEW JERSEY FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 915,140 2,398,545
Issued to shareholders electing to
receive payments of distributions in
Fund shares 576,376 649,772
Redemptions (5,824,367) (4,488,554)
------------------------------------------------------------------
NET DECREASE (4,332,851) (1,440,237)
------------------------------------------------------------------
<CAPTION>
PENNSYLVANIA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 204,947 881,964
Issued to shareholders electing to
receive payments of distributions in
Fund shares 35,124 36,031
Redemptions (325,280) (674,530)
------------------------------------------------------------------
NET INCREASE (DECREASE) (85,209) 243,465
------------------------------------------------------------------
<CAPTION>
PENNSYLVANIA FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 809,359 1,533,768
Issued to shareholders electing to
receive payments of distributions in
Fund shares 532,238 657,662
Redemptions (7,502,867) (5,385,455)
------------------------------------------------------------------
NET DECREASE (6,161,270) (3,194,025)
------------------------------------------------------------------
<CAPTION>
TEXAS FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS A 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 4,647 26,766
Issued to shareholders electing to
receive payments of distributions in
Fund shares 933 1,162
Redemptions (16,168) (17,726)
------------------------------------------------------------------
NET INCREASE (DECREASE) (10,588) 10,202
------------------------------------------------------------------
<CAPTION>
TEXAS FUND
------------------------
YEAR ENDED JULY 31,
------------------------
CLASS B 2000 1999
<S> <C> <C>
------------------------------------------------------------------
Sales 48,231 64,343
Issued to shareholders electing to
receive payments of distributions in
Fund shares 20,443 24,770
Redemptions (456,577) (202,053)
------------------------------------------------------------------
NET DECREASE (387,903) (112,940)
------------------------------------------------------------------
</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. Except as to 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. Each Fund was
informed that Eaton Vance Distributors, Inc. (EVD), a subsidiary of EVM and
the Funds' principal underwriter, received $1,321, $991, $3,102, $665,
$1,318, $4,194, $2,138 and $39 from the Arizona Fund, Colorado Fund,
Connecticut Fund, Michigan Fund, Minnesota Fund, New Jersey Fund,
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
Pennsylvania Fund and Texas Fund, respectively, as its portion of the sales
charge on sales of Class A shares for the year ended July 31, 2000.
Certain officers and Trustees of the Funds and of the Portfolios are officers
of the above organizations.
5 Distribution and Service Plans
-------------------------------------------
Each Fund has in effect a distribution plan for Class B (Class B Plan)
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan for Class A (Class A Plans) (collectively, the Plans). The Class B Plan
requires the Fund to pay the principal underwriter, EVD, amounts equal to
1/365 of 0.75% of each Fund's daily net assets attributable to Class B
shares, for providing ongoing distribution services and facilities to the
respective Fund. The Funds 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 (see Note 6) and amounts
theretofore paid to EVD. The amount payable to EVD with respect to each day
is accrued on such day as a liability of each Class B and, accordingly,
reduces net assets. For the year ended July 31, 2000, the Class B shares of
the Arizona Fund, Colorado Fund, Connecticut Fund, Michigan Fund, Minnesota
Fund, New Jersey Fund, Pennsylvania Fund and Texas Fund paid $563,102,
$233,575, $990,437, $680,619, $356,612, $1,874,418, $1,927,943, and $94,358,
respectively, to EVD, representing 0.75% of each Fund's Class B average daily
net assets. At July 31, 2000, the amount of Uncovered Distribution Charges of
EVD calculated under the Class B Plans for Arizona Fund, Colorado Fund,
Connecticut Fund, Michigan Fund, Minnesota Fund, New Jersey Fund,
Pennsylvania Fund and Texas Fund were approximately $1,999,000, $1,184,000,
$3,351,000, $1,711,000, $1,300,000, $4,782,000, $5,453,000, and
$260,000, respectively.
The Plans also authorize each class to make payments of service fees to EVD,
investment dealers and other persons in amounts not exceeding 0.25% of each
Fund's average daily net assets attributable to Class A and Class B shares
for any fiscal year. The Trustees initially implemented the Plans by
authorizing each class to make quarterly payments of service fees 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 Fund's average daily net assets attributable to
Class A and Class B shares for any fiscal year on shares of the Fund sold on
or after October 12, 1999. Service fee payments will be made for personal
services and/or the maintenance of shareholder accounts. Service fees are
separate and distinct from the sales commissions and distribution fees
payable by each Fund to EVD, and as such are not subject to automatic
discontinuance when there are no outstanding Uncovered Distribution Charges
of EVD. For the year ended July 31, 2000, Arizona Fund, Colorado Fund,
Connecticut Fund, Michigan Fund, Minnesota Fund, New Jersey Fund,
Pennsylvania Fund and Texas Fund paid or accrued service fees to or payable
to EVD in the amount of $8,625, $3,766, $15,221, $2,481, $8,681, $24,879,
$15,654 and $659, respectively, for Class A shares, and $136,875, $56,149,
$262,871, $136,059, $87,286, $442,824, $466,430 and $25,418 respectively, for
Class B shares.
Certain officers and Trustees of the Funds are officers or directors of the
above organizations.
6 Contingent Deferred Sales Charge
-------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class B shares acquired by reinvestment of
dividends or capital gains distributions. The CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second
year after purchase, declining one percentage point each subsequent year. No
CDSC is levied on Class B shares which have been sold to EVD or its
affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Distribution Plan (see Note 5). CDSC charges received when no
Uncovered Distribution Charges exist will be credited to each Fund. EVD
received approximately $166,000, $50,000, $97,000, $97,000, $74,000,
$276,000, $579,000 and $10,000 of CDSC paid by Class B shareholders of
Arizona Fund, Colorado Fund, Connecticut Fund, Michigan Fund, Minnesota Fund,
New Jersey Fund, Pennsylvania Fund and Texas Fund, respectively, for the year
ended July 31, 2000.
39
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
7 Investment Transactions
-------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the year ended July 31, 2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,242,737
Decreases 26,634,396
<CAPTION>
COLORADO FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,519,178
Decreases 10,037,815
<CAPTION>
CONNECTICUT FUND
<S> <C>
-----------------------------------------------------
Increases $ 9,001,578
Decreases 36,358,485
<CAPTION>
MICHIGAN FUND
<S> <C>
-----------------------------------------------------
Increases $ 4,120,260
Decreases 28,838,316
<CAPTION>
MINNESOTA FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,948,681
Decreases 15,929,506
<CAPTION>
NEW JERSEY FUND
<S> <C>
-----------------------------------------------------
Increases $12,359,592
Decreases 75,275,630
<CAPTION>
PENNSYLVANIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 9,874,314
Decreases 87,374,122
<CAPTION>
TEXAS FUND
<S> <C>
-----------------------------------------------------
Increases $ 526,482
Decreases 5,371,519
</TABLE>
40
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND SHAREHOLDERS
OF EATON VANCE MUNICIPALS TRUST:
---------------------------------------------
We have audited the accompanying statements of assets and liabilities of Eaton
Vance Arizona Municipals Fund, Eaton Vance Colorado Municipals Fund, Eaton Vance
Connecticut Municipals Fund, Eaton Vance Michigan Municipals Fund, Eaton Vance
Minnesota Municipals Fund, Eaton Vance New Jersey Municipals Fund, Eaton Vance
Pennsylvania Municipals Fund and Eaton Vance Texas Municipals Fund (the Funds)
(certain of the series of Eaton Vance Municipals Trust) as of July 31, 2000, the
related statements of operations for the year then ended, the statements of
changes in net assets for the years ended July 31, 2000 and 1999 and financial
highlights for each of the years in the five year period ended July 31, 2000.
These financial statements and financial highlights are the responsibility of
the Trust's management. Our responsibility is to express an opinion on the
financial statements and financial highlights based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and financial highlights are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the
accounting principles used and significant estimates made by management, as well
as evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, such financial statements and financial highlights referred to
above present fairly, in all material respects, the financial position of the
aforementioned Funds of Eaton Vance Municipals Trust at July 31, 2000, the
results of their operations, the changes in their net assets and their financial
highlights for the respective stated periods in conformity with accounting
principles generally accepted in the United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 8, 2000
41
<PAGE>
ARIZONA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Assisted Living -- 2.1%
------------------------------------------------------------------------
$1,800 Arizona Health Facilities Authority,
(Care Institute, Inc. - Mesa),
7.625%, 1/1/26 $ 1,561,302
------------------------------------------------------------------------
$ 1,561,302
------------------------------------------------------------------------
Education -- 2.8%
------------------------------------------------------------------------
$2,000 Arizona Educational Loan Marketing
Corp., (AMT), 6.30%, 12/1/08 $ 2,091,220
------------------------------------------------------------------------
$ 2,091,220
------------------------------------------------------------------------
Electric Utilities -- 6.7%
------------------------------------------------------------------------
$2,000 Coconino County, Pollution Control,
(Nevada Power Co.), (AMT),
5.80%, 11/1/32 $ 1,735,040
1,500 Maricopa County, Pollution Control,
(Public Service Co. of New Mexico),
6.375%, 8/15/23 1,448,235
1,000 Pima County, IDA, (Tucson Electric Power
Co.), 6.00%, 9/1/29 914,380
1,000 Salt River Agriculture Improvement and
Power District, Residual Certificates,
Variable Rate, 1/1/25(1)(2) 820,240
------------------------------------------------------------------------
$ 4,917,895
------------------------------------------------------------------------
Escrowed / Prerefunded -- 15.1%
------------------------------------------------------------------------
$1,000 Glendale, IDA, (Thunderbird-American
Graduate School), Prerefunded to 7/1/05,
7.125%, 7/1/20 $ 1,117,220
2,000 Maricopa County, (Samaritan Health
Services), (MBIA), Escrowed to Maturity,
7.00%, 12/1/16 2,301,120
1,250 Maricopa County, IDA, (Place Five and
The Greenery), Escrowed to Maturity,
8.625%, 1/1/27 1,523,712
7,500 Maricopa County, SFM, Escrowed to
Maturity, 0.00%, 2/1/16 3,176,625
6,500 Phoenix, IDA, Single Family, Escrowed to
Maturity, 0.00%, 12/1/14 2,982,395
------------------------------------------------------------------------
$11,101,072
------------------------------------------------------------------------
General Obligations -- 5.2%
------------------------------------------------------------------------
$1,125 Puerto Rico, 0.00%, 7/1/18 $ 410,996
2,275 Tucson, 4.50%, 7/1/19 1,950,744
1,500 Tucson, 5.375%, 7/1/21 1,481,385
------------------------------------------------------------------------
$ 3,843,125
------------------------------------------------------------------------
Hospital -- 5.6%
------------------------------------------------------------------------
$1,130 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital),
8.125%, 6/1/12 $ 1,120,508
1,250 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital),
8.20%, 6/1/21(3) 1,186,087
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Hospital (continued)
------------------------------------------------------------------------
$1,250 Maricopa County, IDA, (Mayo Foundation),
Residual Certificates, Variable Rate,
11/15/37(1)(2) $ 1,004,475
1,000 Winslow, IDA, (Winslow Memorial
Hospital), 5.50%, 6/1/22 790,250
------------------------------------------------------------------------
$ 4,101,320
------------------------------------------------------------------------
Housing -- 6.8%
------------------------------------------------------------------------
$2,000 Maricopa County, IDA, (Laguna Point
Apartments), 6.75%, 7/1/19 $ 2,079,100
935 Maricopa County, IDA, (National Health
Facilities II), 6.375%, 1/1/19 871,308
1,000 Phoenix, IDA, (Woodstone and Silver
Springs Apartments), (Asset Guaranty),
6.25%, 4/1/23 1,004,700
1,000 Tempe, IDA, (Quadrangle Village
Apartments), 6.25%, 6/1/26 1,012,340
------------------------------------------------------------------------
$ 4,967,448
------------------------------------------------------------------------
Industrial Development Revenue -- 6.7%
------------------------------------------------------------------------
$1,000 Casa Grande, Pollution Control, (Frito
Lay, Inc.), 6.60%, 12/1/10 $ 1,063,080
1,750 Gila County, IDA, (Asarco, Inc.),
5.55%, 1/1/27 1,359,120
750 Phoenix Airport Authority, (America West
Airlines, Inc.), (AMT), 6.25%, 6/1/19 674,933
2,000 Yavapai County, IDA, (Citizens Utilities
Co.), (AMT), 5.45%, 6/1/33 1,863,060
------------------------------------------------------------------------
$ 4,960,193
------------------------------------------------------------------------
Insured-Electric Utilities -- 4.5%
------------------------------------------------------------------------
$2,315 Pima County, (Irvington Power), (FGIC),
7.25%, 7/15/10 $ 2,446,585
1,000 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 880,160
------------------------------------------------------------------------
$ 3,326,745
------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
------------------------------------------------------------------------
$1,000 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) $ 1,040,000
1,000 Puerto Rico, (FSA), Variable Rate,
7/1/20(1) 1,028,750
------------------------------------------------------------------------
$ 2,068,750
------------------------------------------------------------------------
Insured-Hospital -- 13.9%
------------------------------------------------------------------------
$1,000 Arizona Health Facilities Authority,
(Northern Arizona Healthcare System),
(AMBAC), 4.75%, 10/1/30 $ 849,270
2,000 Maricopa County, Hospital District No.
1, (FGIC), 6.125%, 6/1/15 2,145,360
2,000 Mohave County, (Kingman Regional Medical
Center), (FGIC), 6.50%, 6/1/15 2,075,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
ARIZONA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Hospital (continued)
------------------------------------------------------------------------
$1,000 Pima County, IDA, (Carondelet Health
Care Corp.), (MBIA), 5.25%, 7/1/12 $ 1,016,360
1,000 Pima County, IDA, (Carondolet Health
Care Corp.), (MBIA), 5.25%, 7/1/11 1,022,910
1,500 Pima County, IDA, (Tucson Medical
Center), (MBIA), 6.375%, 4/1/12 1,564,875
1,500 Scottsdale, IDA, (Scottsdale Memorial
Hospital), (AMBAC), 6.125%, 9/1/17 1,576,635
------------------------------------------------------------------------
$10,250,610
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 8.0%
------------------------------------------------------------------------
$1,400 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(4) $ 1,079,456
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) 856,310
4,750 Scottsdale, Preservation Authority,
(FGIC), 4.50%, 7/1/24 3,975,228
------------------------------------------------------------------------
$ 5,910,994
------------------------------------------------------------------------
Insured-Transportation -- 2.0%
------------------------------------------------------------------------
$1,500 Tucson Street and Highway Revenue,
(FGIC), 5.00%, 7/1/18 $ 1,432,425
------------------------------------------------------------------------
$ 1,432,425
------------------------------------------------------------------------
Insured-Water and Sewer -- 1.6%
------------------------------------------------------------------------
$1,205 Peoria, Water and Sewer, (FGIC),
5.00%, 7/1/18 $ 1,144,075
------------------------------------------------------------------------
$ 1,144,075
------------------------------------------------------------------------
Miscellaneous Health Care -- 1.8%
------------------------------------------------------------------------
$1,000 Coconino County, IDA, Health Care
Insurance, (Guidance Center, Inc.),
5.80%, 6/1/11 $ 895,110
500 Yavapai County, IDA Health Care
Institute, (West Yavapai Guidance),
6.625%, 8/15/24 455,705
------------------------------------------------------------------------
$ 1,350,815
------------------------------------------------------------------------
Pooled Loans -- 5.1%
------------------------------------------------------------------------
$2,000 Arizona Educational Loan Marketing
Corp., (AMT), 6.25%, 6/1/06 $ 2,132,780
1,500 Arizona Student Loan Acquisition
Authority, (AMT), 7.625%, 5/1/10 1,615,410
------------------------------------------------------------------------
$ 3,748,190
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Transportation -- 0.9%
------------------------------------------------------------------------
$ 750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 672,923
------------------------------------------------------------------------
$ 672,923
------------------------------------------------------------------------
Utilities -- 1.5%
------------------------------------------------------------------------
$1,000 Puerto Rico Telephone Authority,
Variable Rate, 1/1/20(1) $ 1,073,560
------------------------------------------------------------------------
$ 1,073,560
------------------------------------------------------------------------
Water and Sewer -- 6.1%
------------------------------------------------------------------------
$1,000 Central Arizona Water Conservation
District, 5.50%, 11/1/09 $ 1,051,330
1,500 Phoenix, Civic Improvement Corp.,
Wastewater, 4.75%, 7/1/23 1,307,640
2,500 Scottsdale, Water and Sewer Revenue,
4.50%, 7/1/20 2,144,075
------------------------------------------------------------------------
$ 4,503,045
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.2%
(identified cost $72,176,216) $73,025,707
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.8% $ 598,296
------------------------------------------------------------------------
Net Assets -- 100.0% $73,624,003
------------------------------------------------------------------------
</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 Arizona
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 July 31, 2000, 36.2% 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 2.8% to 18.1% 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.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
COLORADO MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Education -- 7.7%
------------------------------------------------------------------------
$1,000 Colorado Educational and Cultural
Facilities, (Alexander Dawson School),
5.30%, 2/15/29 $ 920,070
1,500 Colorado Springs, (Colorado College),
5.25%, 6/1/24 1,422,765
------------------------------------------------------------------------
$ 2,342,835
------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.0%
------------------------------------------------------------------------
$1,500 Dawson Ridge, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 $ 332,385
3,000 Dawson Ridge, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 664,770
500 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 527,500
------------------------------------------------------------------------
$ 1,524,655
------------------------------------------------------------------------
General Obligations -- 2.4%
------------------------------------------------------------------------
$ 400 Bachelor Gulch, (Metropolitan District),
6.70%, 11/15/19 $ 398,232
370 Bell Mountain Ranch, (Metropolitan
District), 6.625%, 11/15/25 339,804
------------------------------------------------------------------------
$ 738,036
------------------------------------------------------------------------
Hospital -- 12.7%
------------------------------------------------------------------------
$ 350 Aspen Valley, (Hospital District),
6.80%, 10/15/24 $ 356,191
900 Colorado Health Facilities Authority,
(Cleo Wallace Center), 7.00%, 8/1/15 878,832
1,000 Colorado Health Facilities Authority,
(Parkview Memorial Hospital),
6.125%, 9/1/25 879,080
350 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.70%, 9/15/23 286,699
1,000 Denver Health and Hospital Authority,
(Denver Health Medical Center),
5.375%, 12/1/28 786,560
400 La Junta, (Arkansas Valley Regional
Medical Center), 6.10%, 4/1/24 352,064
420 Lake County, (St. Vincent General
Hospital), 6.00%, 12/1/19 358,462
------------------------------------------------------------------------
$ 3,897,888
------------------------------------------------------------------------
Housing -- 13.4%
------------------------------------------------------------------------
$ 500 Colorado HFA, Multifamily, (AMT),
6.40%, 10/1/27 $ 508,720
1,000 Colorado HFA, SFMR, 5.35%, 11/1/16 904,040
255 Colorado HFA, SFMR, 8.00%, 12/1/24 272,980
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Housing (continued)
------------------------------------------------------------------------
$1,000 Denver, Multifamily, (Bank Lofts),
(FHA), (AMT), 6.15%, 12/1/16 $ 1,014,610
390 Lake Creek, (Affordable Housing Corp.),
Multifamily, 6.25%, 12/1/23 362,462
1,000 Lakewood, Multifamily, (FHA), (AMT),
6.65%, 10/1/25 1,034,370
------------------------------------------------------------------------
$ 4,097,182
------------------------------------------------------------------------
Industrial Development Revenue -- 6.2%
------------------------------------------------------------------------
$ 500 Denver Airport Special Facilities,
(United Airlines), (AMT),
6.875%, 10/1/32 $ 498,135
1,000 Puerto Rico Industrial, Medical and
Environmental Pollution Control Facility
Finance Authority, (American Home
Products), 5.10%, 12/1/18 910,080
500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 495,520
------------------------------------------------------------------------
$ 1,903,735
------------------------------------------------------------------------
Insured-Education -- 2.8%
------------------------------------------------------------------------
$1,000 Colorado Educational and Cultural
Facilities, (Auraria
Foundation/University of Colorado),
(AMBAC), 4.75%, 9/1/28 $ 858,710
------------------------------------------------------------------------
$ 858,710
------------------------------------------------------------------------
Insured-Electric Utilities -- 1.0%
------------------------------------------------------------------------
$ 300 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/03(1) $ 316,500
------------------------------------------------------------------------
$ 316,500
------------------------------------------------------------------------
Insured-General Obligations -- 3.5%
------------------------------------------------------------------------
$1,000 Eagle, Garfield and Routt Counties,
School District No. RE 50J, (FGIC),
6.30%, 12/1/12 $ 1,083,480
------------------------------------------------------------------------
$ 1,083,480
------------------------------------------------------------------------
Insured-Hospital -- 3.3%
------------------------------------------------------------------------
$1,000 Colorado HFA, (Vail Valley Medical
Center), (ACA), 6.60%, 1/15/20 $ 1,023,590
------------------------------------------------------------------------
$ 1,023,590
------------------------------------------------------------------------
Insured-Housing -- 3.5%
------------------------------------------------------------------------
$1,000 Thornton, SCA Realty MFMR, (FSA),
7.10%, 1/1/30 $ 1,063,720
------------------------------------------------------------------------
$ 1,063,720
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
COLORADO MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Transportation -- 18.0%
------------------------------------------------------------------------
$3,500 Colorado Public Highway Authority
Revenue, (MBIA), 0.00%, 9/1/16 $ 1,406,370
1,830 Colorado Public Highway Authority
Revenue, (MBIA), 4.75%, 9/1/23(2) 1,592,375
1,500 Denver, Airport Revenue, (FSA), (AMT),
5.00%, 11/15/25 1,331,730
3,095 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 1,164,679
------------------------------------------------------------------------
$ 5,495,154
------------------------------------------------------------------------
Senior Living / Life Care -- 2.3%
------------------------------------------------------------------------
$ 400 Colorado Health Facilities Athority,
Revenue Refunding and Improvement,
(Volunteers), 5.875%, 7/1/28 $ 324,596
430 Logan County, Industrial Development
Revenue, (TLC Care Choices, Inc.),
6.875%, 12/1/23 380,808
------------------------------------------------------------------------
$ 705,404
------------------------------------------------------------------------
Special Tax Revenue -- 4.6%
------------------------------------------------------------------------
$ 400 Black Hawk, Business Improvement
District, 6.50%, 12/1/11 $ 385,236
1,000 Cottonwood, Water and Sanitation
District, 7.75%, 12/1/20 1,028,830
------------------------------------------------------------------------
$ 1,414,066
------------------------------------------------------------------------
Transportation -- 5.6%
------------------------------------------------------------------------
$ 500 Eagle County, (Eagle County Airport
Terminal), (AMT), 7.50%, 5/1/21 $ 506,760
250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 224,308
1,000 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 987,440
------------------------------------------------------------------------
$ 1,718,508
------------------------------------------------------------------------
Utilities -- 2.8%
------------------------------------------------------------------------
$1,000 Colorado Springs, Utility Revenue
System, 4.75%, 11/15/26 $ 865,800
------------------------------------------------------------------------
$ 865,800
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Water and Sewer -- 3.2%
------------------------------------------------------------------------
$1,000 Colorado Water Resources, Power
Development Authority, 5.25%, 9/1/19 $ 968,910
------------------------------------------------------------------------
$ 968,910
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.0%
(identified cost $30,680,138) $30,018,173
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.0% $ 601,504
------------------------------------------------------------------------
Net Assets -- 100.0% $30,619,677
------------------------------------------------------------------------
</TABLE>
The Portfolio invests primarily in debt securities issued by Colorado
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 July 31, 2000, 34.5% 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 3.4% to 11.8% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Cogeneration -- 2.8%
-------------------------------------------------------------------------
$4,500 Eastern Connecticut Resource Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.50%, 1/1/20 $ 3,706,245
-------------------------------------------------------------------------
$ 3,706,245
-------------------------------------------------------------------------
Education -- 12.3%
-------------------------------------------------------------------------
$1,675 Connecticut HEFA, (Quinnipiac College),
6.00%, 7/1/23 $ 1,586,258
5,500 Connecticut HEFA, (University of
Hartford), 6.80%, 7/1/22 5,548,840
3,400 Connecticut HEFA, (Yale University),
Variable
Rate, 6/10/30(1) 3,404,250
1,040 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 6.20%, 11/15/09 1,088,100
2,110 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 7.50%, 11/15/10 2,121,795
3,000 University of Connecticut,
4.75%, 11/15/24 2,636,370
-------------------------------------------------------------------------
$ 16,385,613
-------------------------------------------------------------------------
Electric Utilities -- 5.5%
-------------------------------------------------------------------------
$ 800 Connecticut Development Authority,
(Western Mass Electric), Variable Rate,
9/1/28(1)(2) $ 672,224
1,500 Connecticut Development Authority,
Pollution Control Revenue, (Connecticut
Light and Power), (AMT), 5.95%, 9/1/28 1,381,380
1,625 Guam Power Authority, 6.30%, 10/1/22 1,726,481
1,100 Guam Power Authority, 6.625%, 10/1/14 1,216,512
2,500 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 2,272,975
-------------------------------------------------------------------------
$ 7,269,572
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.5%
-------------------------------------------------------------------------
$3,100 Connecticut HEFA, (Quinnipiac College),
Prerefunded to 7/1/03, 6.00%, 7/1/23 $ 3,267,431
1,000 Connecticut HEFA, (Sacred Heart
University), Prerefunded to 7/1/02,
6.80%, 7/1/12 1,059,400
2,890 Virgin Islands Water and Power
Authority, Prerefunded to 7/1/01,
7.40%, 7/1/11 2,999,820
-------------------------------------------------------------------------
$ 7,326,651
-------------------------------------------------------------------------
General Obligations -- 5.7%
-------------------------------------------------------------------------
$1,750 Connecticut, 0.00%, 11/1/09 $ 1,099,315
1,270 Danbury, 4.50%, 2/1/14 1,166,584
500 Guam, 5.40%, 11/15/18 463,720
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
General Obligations (continued)
-------------------------------------------------------------------------
$ 500 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/15 $ 485,900
1,065 Puerto Rico, Public Improvement,
0.00%, 7/1/15 472,029
2,000 Puerto Rico, Public Improvement,
5.00%, 7/1/27 1,823,740
400 Redding, 5.50%, 10/15/18 407,124
650 Redding, 5.625%, 10/15/19 669,259
535 Wilton, 5.25%, 7/15/18 529,773
535 Wilton, 5.25%, 7/15/19 527,719
-------------------------------------------------------------------------
$ 7,645,163
-------------------------------------------------------------------------
Hospital -- 4.7%
-------------------------------------------------------------------------
$5,400 Connecticut HEFA, (Griffin Hospital),
5.75%, 7/1/23 $ 4,433,508
500 Connecticut HEFA, (Hospital for Special
Care), 5.375%, 7/1/17 417,965
1,280 Connecticut HEFA, (William W. Backus
Hospital), 6.375%, 7/1/22 1,346,202
-------------------------------------------------------------------------
$ 6,197,675
-------------------------------------------------------------------------
Housing -- 3.8%
-------------------------------------------------------------------------
$ 970 Connecticut HFA, Multifamily,
6.60%, 11/15/23 $ 1,004,183
3,940 Connecticut HFA, Multifamily, (AMT),
6.20%, 11/15/22 4,004,183
-------------------------------------------------------------------------
$ 5,008,366
-------------------------------------------------------------------------
Industrial Development Revenue -- 4.4%
-------------------------------------------------------------------------
$1,000 Connecticut Development Authority PCR,
(Pfizer, Inc.), 6.55%, 2/15/13 $ 1,055,030
3,065 Connecticut Development Authority,
Airport Facility, (Signature Flight),
(AMT), 6.625%, 12/1/14 3,017,370
200 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 198,208
500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.30%, 6/1/23 498,745
1,250 Sprague, Environmental Improvement,
(International Paper Co.), (AMT),
5.70%, 10/1/21 1,149,187
-------------------------------------------------------------------------
$ 5,918,540
-------------------------------------------------------------------------
Insured-Education -- 11.0%
-------------------------------------------------------------------------
$3,000 Connecticut HEFA, (Choate Rosemary
College), (MBIA), 5.00%, 7/1/27 $ 2,716,410
1,000 Connecticut HEFA, (Choate Rosemary
College), (MBIA), 6.80%, 7/1/15(3) 1,086,460
2,000 Connecticut HEFA, (Fairfield
University), (MBIA), 5.00%, 7/1/28 1,815,780
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Education (continued)
-------------------------------------------------------------------------
$2,500 Connecticut HEFA, (Fairfield
University), (MBIA), 5.25%, 7/1/25 $ 2,384,700
5,305 Connecticut HEFA, (Trinity College),
(MBIA), 5.50%, 7/1/21 5,334,284
1,440 Connecticut HEFA, (Westminster School),
(MBIA), 5.00%, 7/1/29 1,304,496
-------------------------------------------------------------------------
$ 14,642,130
-------------------------------------------------------------------------
Insured-Electric Utilities -- 2.7%
-------------------------------------------------------------------------
$4,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 3,561,960
-------------------------------------------------------------------------
$ 3,561,960
-------------------------------------------------------------------------
Insured-General Obligations -- 0.8%
-------------------------------------------------------------------------
$1,000 New Britain, (MBIA), 6.00%, 3/1/12 $ 1,086,620
-------------------------------------------------------------------------
$ 1,086,620
-------------------------------------------------------------------------
Insured-Hospital -- 7.4%
-------------------------------------------------------------------------
$1,000 Connecticut HEFA, (Bridgeport Hospital),
(MBIA), 6.625%, 7/1/18 $ 1,053,040
1,000 Connecticut HEFA, (Danbury Hospital),
(AMBAC), 5.375%, 7/1/17 987,920
1,000 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC), 6.50%, 7/1/11 1,124,520
1,500 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC), 6.625%, 7/1/14 1,553,520
2,350 Connecticut HEFA, (Lawrence and Memorial
Hospital), (MBIA), 5.00%, 7/1/22 2,111,616
1,000 Connecticut HEFA, (Stamford Hospital),
(MBIA), 5.00%, 7/1/24 902,530
2,000 Connecticut HEFA, (Yale-New Haven
Hospital), (MBIA), 6.50%, 7/1/12 2,084,660
-------------------------------------------------------------------------
$ 9,817,806
-------------------------------------------------------------------------
Insured-Housing -- 0.2%
-------------------------------------------------------------------------
$ 290 Puerto Rico Housing Finance Corp.,
(AMBAC), 7.50%, 10/1/11 $ 290,476
-------------------------------------------------------------------------
$ 290,476
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.4%
-------------------------------------------------------------------------
$2,000 Puerto Rico Infrastructure Financing
Authority, (AMBAC), 5.00%, 7/1/28 $ 1,847,360
-------------------------------------------------------------------------
$ 1,847,360
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation -- 5.1%
-------------------------------------------------------------------------
$1,750 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 $ 748,230
4,965 Puerto Rico Highway and Transportation
Authority, (FSA), 5.50%, 7/1/15 5,167,820
1,020 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 883,493
-------------------------------------------------------------------------
$ 6,799,543
-------------------------------------------------------------------------
Insured-Water and Sewer -- 0.9%
-------------------------------------------------------------------------
$1,340 South Central Connecticut Regional Water
Authority, (FGIC), 5.125%, 8/1/29 $ 1,241,309
-------------------------------------------------------------------------
$ 1,241,309
-------------------------------------------------------------------------
Nursing Home -- 10.1%
-------------------------------------------------------------------------
$1,240 Connecticut Development Authority,
(Baptist Homes), 9.00%, 9/1/22 $ 1,367,732
720 Connecticut HEFA, (NHP) (Highland View),
(AMT), 7.00%, 11/1/07 790,193
1,305 Connecticut HEFA, (NHP), (Sharon
Healthcare), 6.25%, 11/1/14 1,359,184
655 Connecticut HEFA, (NHP), (St. Camillus),
6.25%, 11/1/18 666,934
3,250 Connecticut HEFA, (NHP), (St. Joseph's
Manor), 6.25%, 11/1/16 3,365,830
335 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.00%, 11/1/07 367,659
2,000 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.50%, 11/1/16 2,204,100
3,000 Connecticut HEFA, (NHP), (Windsor),
7.125%, 11/1/14 3,331,800
-------------------------------------------------------------------------
$ 13,453,432
-------------------------------------------------------------------------
Solid Waste -- 4.8%
-------------------------------------------------------------------------
$2,500 Bristol Resource Recovery Facility,
(Ogden Martin Systems), 6.50%, 7/1/14 $ 2,572,600
4,250 Connecticut Resources Recovery
Authority, (American REF-FUEL Co.),
(AMT), 6.45%, 11/15/22 3,824,575
-------------------------------------------------------------------------
$ 6,397,175
-------------------------------------------------------------------------
Special Tax Revenue -- 4.6%
-------------------------------------------------------------------------
$3,180 Connecticut Special Tax Transportation
Infrastructure, 6.125%, 9/1/12 $ 3,490,750
2,000 Connecticut Special Tax Transportation
Infrastructure, 6.50%, 10/1/12 2,262,020
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Special Tax Revenue (continued)
-------------------------------------------------------------------------
$ 375 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 317,760
-------------------------------------------------------------------------
$ 6,070,530
-------------------------------------------------------------------------
Transportation -- 4.5%
-------------------------------------------------------------------------
$2,350 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/22 $ 2,171,752
3,680 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 3,299,782
500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 515,145
-------------------------------------------------------------------------
$ 5,986,679
-------------------------------------------------------------------------
Water and Sewer -- 1.0%
-------------------------------------------------------------------------
$1,250 Connecticut Clean Water Fund,
6.00%, 10/1/12 $ 1,363,413
-------------------------------------------------------------------------
$ 1,363,413
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.2%
(identified cost $131,235,003) $132,016,258
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.8% $ 1,120,397
-------------------------------------------------------------------------
Net Assets -- 100.0% $133,136,655
-------------------------------------------------------------------------
</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 Connecticut
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 July 31, 2000, 29.8% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 0.9% to 16.6% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Electric Utilities -- 0.6%
------------------------------------------------------------------------
$ 500 Michigan South Central Power Agency
Supply System, 6.75%, 11/1/10 $ 519,175
------------------------------------------------------------------------
$ 519,175
------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.6%
------------------------------------------------------------------------
$1,000 Lake Orion, School District, Prerefunded
to 5/1/05, (AMBAC), 7.00%, 5/1/20 $ 1,108,200
1,070 South Redford School District,
Prerefunded to 5/10/07, (FGIC),
5.50%, 5/1/22 1,119,252
------------------------------------------------------------------------
$ 2,227,452
------------------------------------------------------------------------
General Obligations -- 8.7%
------------------------------------------------------------------------
$ 500 Avondale School District, 6.75%, 5/1/14 $ 512,890
4,710 Detroit, 6.35%, 4/1/14 4,940,036
475 Detroit, 6.70%, 4/1/10 519,954
1,000 Mattawan Consolidated Schools,
6.40%, 5/1/09 1,048,710
1,100 Puerto Rico, 0.00%, 7/1/16 456,676
------------------------------------------------------------------------
$ 7,478,266
------------------------------------------------------------------------
Hospital -- 11.2%
------------------------------------------------------------------------
$ 500 Allegan Hospital Finance Authority,
(Allegan General Hospital),
7.00%, 11/15/21 $ 501,085
1,000 Dickinson County Health System,
5.80%, 11/1/24 775,090
1,000 John Tolfree Health System Corp.,
6.00%, 9/15/23 836,350
1,000 Mecosta County, (Michigan General
Hospital), 5.75%, 5/15/09 939,250
2,000 Michigan HFA, (Central Michigan
Community Hospital), 6.25%, 10/1/27 1,732,100
250 Michigan HFA, (Henry Ford Continuing
Care Corp.), 6.75%, 7/1/11 259,232
6,000 Michigan HFA, (McLaren Obligated Group),
4.50%, 10/15/21 4,508,100
------------------------------------------------------------------------
$ 9,551,207
------------------------------------------------------------------------
Housing -- 0.3%
------------------------------------------------------------------------
$ 205 Michigan HDA, Rental Housing, (AMT),
7.15%, 4/1/10 $ 213,333
------------------------------------------------------------------------
$ 213,333
------------------------------------------------------------------------
Industrial Development Revenue -- 6.4%
------------------------------------------------------------------------
$2,000 Dickinson, PCR, (Champion
International), 5.85%, 10/1/18 $ 1,894,960
1,000 Michigan Strategic Fund, (Crown Paper),
(AMT), 6.50%, 8/1/21 682,500
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Industrial Development Revenue (continued)
------------------------------------------------------------------------
$ 110 Michigan Strategic Fund, (KMart Corp.),
6.80%, 12/15/07 $ 110,708
2,200 Michigan Strategic Fund, (S.D. Warren
Co.), (AMT), 7.375%, 1/15/22 2,278,540
530 Richmond EDC, (KMart Corp.),
6.625%, 1/1/07 533,562
------------------------------------------------------------------------
$ 5,500,270
------------------------------------------------------------------------
Insured-Education -- 6.8%
------------------------------------------------------------------------
$1,000 Ferris State University, (AMBAC),
5.00%, 10/1/23 $ 908,720
500 Ferris State University, (AMBAC),
5.00%, 10/1/28 447,825
2,750 Ferris State University, (MBIA),
5.25%, 10/1/20 2,626,333
2,000 Western Michigan University, (FGIC),
5.125%, 11/15/22 1,864,060
------------------------------------------------------------------------
$ 5,846,938
------------------------------------------------------------------------
Insured-Electric Utilities -- 5.9%
------------------------------------------------------------------------
$ 300 Michigan Strategic Fund, (Detroit Edison
Co.), (FGIC), 6.95%, 5/1/11 $ 347,865
2,000 Michigan Strategic Fund, (Detroit Edison
Co.), (MBIA), (AMT), 5.55%, 9/1/29 1,915,160
550 Monroe County, PCR, (Detroit Edison
Co.), (FGIC), (AMT), 7.65%, 9/1/20 562,265
500 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/21 450,555
2,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 1,780,980
------------------------------------------------------------------------
$ 5,056,825
------------------------------------------------------------------------
Insured-General Obligations -- 15.0%
------------------------------------------------------------------------
$ 750 Anchor Bay School District, (FGIC),
4.75%, 5/1/26 $ 644,865
1,000 Avondale School District, (AMBAC),
4.75%, 5/1/22 871,640
1,000 Coopersville Area Public School
District, (MBIA), 5.00%, 5/1/29 893,110
400 Haslett Public School District, (FSA),
4.75%, 5/1/26 341,932
1,900 Holland School District, (AMBAC),
0.00%, 5/1/17 741,152
3,000 Lake Orion, Community School District,
(FGIC), 5.125%, 5/1/23 2,783,520
1,000 Novi Building Authority, (FSA),
5.50%, 10/1/25 974,010
2,410 Okemos Public Schools, (MBIA),
0.00%, 5/1/16 997,499
370 Parchment School District, (MBIA),
5.00%, 5/1/25 342,058
1,000 Redford Union School District No.1,
(AMBAC), 5.00%, 5/1/22 929,150
2,500 Wyoming Public Schools, (FGIC),
5.125%, 5/1/23 2,319,600
1,000 Zeeland Public Schools, (FGIC),
5.25%, 5/1/22 948,390
------------------------------------------------------------------------
$12,786,926
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Hospital -- 4.4%
------------------------------------------------------------------------
$3,500 Kent HFA, (Butterworth Health System),
(MBIA), 6.125%, 1/15/16 $ 3,785,635
------------------------------------------------------------------------
$ 3,785,635
------------------------------------------------------------------------
Insured-Housing -- 1.9%
------------------------------------------------------------------------
$ 500 Michigan HDA, (Parkway Meadows), (FSA),
6.85%, 10/15/18 $ 522,785
1,250 Michigan HDA, Rental Housing, (MBIA),
(AMT), 5.30%, 10/1/37 1,125,363
------------------------------------------------------------------------
$ 1,648,148
------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 2.4%
------------------------------------------------------------------------
$2,200 Hancock HFA, (Portage Health), (MBIA),
5.45%, 8/1/47 $ 2,043,448
------------------------------------------------------------------------
$ 2,043,448
------------------------------------------------------------------------
Insured-Transportation -- 1.0%
------------------------------------------------------------------------
$1,000 Wayne Charter County Airport, (MBIA),
(AMT), 5.00%, 12/1/28 $ 870,080
------------------------------------------------------------------------
$ 870,080
------------------------------------------------------------------------
Insured-Water and Sewer -- 10.7%
------------------------------------------------------------------------
$5,000 Detroit, City Water Supply System,
(FGIC), 4.75%, 7/1/19 $ 4,388,450
4,400 Grand Rapids, Sanitary Sewer System,
(FGIC), 4.75%, 1/1/28 3,780,128
1,000 Warren, Water and Sewer, (FSA),
5.25%, 11/1/26 940,960
------------------------------------------------------------------------
$ 9,109,538
------------------------------------------------------------------------
Miscellaneous -- 1.2%
------------------------------------------------------------------------
$1,100 Pittsfield Township EDC, (Arbor
Hospice), 7.875%, 8/15/27 $ 1,052,700
------------------------------------------------------------------------
$ 1,052,700
------------------------------------------------------------------------
Pooled Loans -- 3.0%
------------------------------------------------------------------------
$1,825 Michigan Municipal Bond Authority Local
Government Loan, 6.75%, 5/1/12 $ 1,928,770
590 Michigan Municipal Bond Authority Local
Government Loan, 6.90%, 5/1/21 615,665
------------------------------------------------------------------------
$ 2,544,435
------------------------------------------------------------------------
Senior Living / Life Care -- 2.6%
------------------------------------------------------------------------
$1,500 Kalamazoo EDC, (Friendship Village),
6.25%, 5/15/27 $ 1,315,650
1,000 Michigan HFA, (Presbyterian Village),
6.50%, 1/1/25 912,530
------------------------------------------------------------------------
$ 2,228,180
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Special Tax Revenue -- 10.1%
------------------------------------------------------------------------
$ 250 Battle Creek, Downtown Development
Authority Tax Increment, 7.60%, 5/1/16 $ 278,880
1,315 Battle Creek, Downtown Development
Authority Tax Increment, 7.65%, 5/1/22 1,469,157
1,500 Detroit Local Development Finance
Authority, (Chrysler Corp.),
5.375%, 5/1/21 1,414,020
3,800 Detroit, (Convention Facility Cobo Hall
Expansion), 5.25%, 9/30/12(1) 3,711,308
3,050 Detroit, Downtown Tax Increment,
0.00%, 7/1/16 1,192,123
2,000 Detroit, Downtown Tax Increment,
0.00%, 7/1/20 598,540
------------------------------------------------------------------------
$ 8,664,028
------------------------------------------------------------------------
Transportation -- 3.6%
------------------------------------------------------------------------
$1,500 Kent County Airport Facility, (AMT),
Variable Rate, 1/1/25(2)(3) $ 1,223,010
345 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(3)(4) 335,771
2,000 Wayne Charter County Airport, (AMT),
Variable Rate, 12/1/28(2)(3) 1,480,360
------------------------------------------------------------------------
$ 3,039,141
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.4%
(identified cost $82,790,253) $84,165,725
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.6% $ 1,410,743
------------------------------------------------------------------------
Net Assets -- 100.0% $85,576,468
------------------------------------------------------------------------
</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 Michigan
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 July 31, 2000, 51.5% 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 5.9% to 22.3% of
total investments.
(1) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(2) Security has been issued as an inverse floater bond.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Assisted Living -- 2.2%
------------------------------------------------------------------------
$ 990 St. Paul, Housing and Redevelopment,
(Care Institute, Inc.-Highland),
8.75%, 11/1/24 $ 1,072,843
------------------------------------------------------------------------
$ 1,072,843
------------------------------------------------------------------------
Education -- 6.5%
------------------------------------------------------------------------
$ 1,000 Hopkins, (Blake School), 5.50%, 9/1/24 $ 980,980
1,250 Minnesota Higher Education Facilities
Authority, (Hamline University),
6.00%, 10/1/29 1,222,112
500 Minnesota Higher Education Facilities
Authority, (St. John's University),
5.40%, 10/1/22 472,505
500 Minnesota Higher Education Facilities
Authority, (St. Mary's College),
6.15%, 10/1/23 499,275
------------------------------------------------------------------------
$ 3,174,872
------------------------------------------------------------------------
Electric Utilities -- 4.1%
------------------------------------------------------------------------
$ 2,000 Chaska, Electric Revenue, 6.10%, 10/1/30 $ 2,012,580
------------------------------------------------------------------------
$ 2,012,580
------------------------------------------------------------------------
Escrowed / Prerefunded -- 10.0%
------------------------------------------------------------------------
$ 1,700 Minnesota State, Prerefunded to 8/1/02,
Variable Rate, 8/1/11(1) $ 1,816,688
3,000 St. Paul, Housing and Redevelopment
Authority, (Civic Center), (MBIA),
Escrowed to Maturity, 5.45%, 11/1/13 3,069,180
------------------------------------------------------------------------
$ 4,885,868
------------------------------------------------------------------------
General Obligations -- 2.6%
------------------------------------------------------------------------
$ 1,000 Minnesota State, (Duluth Airport),
(AMT), 6.25%, 8/1/14 $ 1,049,970
200 St. Cloud, Water and Sewer, Variable
Rate, 8/1/13(1) 206,000
------------------------------------------------------------------------
$ 1,255,970
------------------------------------------------------------------------
Hospital -- 18.2%
------------------------------------------------------------------------
$ 700 Martin County, (Fairmont Community
Hospital Association), 6.625%, 9/1/22 $ 640,304
1,250 Minneapolis and St. Paul, Housing and
Redevelopment Authority, (Group Health
Plan, Inc.), 6.75%, 12/1/13 1,246,700
250 Minneapolis and St. Paul, Housing and
Redevelopment Authority, (Group Health
Plan, Inc.), 6.90%, 10/15/22 246,337
2,120 Red Wing Health Care Facilities, (River
Region Obligation Group), 6.50%, 9/1/22 2,265,305
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Hospital (continued)
------------------------------------------------------------------------
$ 500 Rochester Health Care Facilities, (Mayo
Clinic), Variable Rate, 11/15/27(1)(2) $ 469,165
2,200 Rochester Health Care Facilities, (Mayo
Clinic), Variable Rate, 11/15/15(1) 2,293,500
1,945 St. Paul, Housing and Redevelopment
Authority, (Healtheast),
6.625%, 11/1/17 1,707,477
------------------------------------------------------------------------
$ 8,868,788
------------------------------------------------------------------------
Housing -- 11.5%
------------------------------------------------------------------------
$ 300 Coon Rapids, Multifamily Housing,
(Browns Meadow), (FHA), (AMT),
6.85%, 8/1/33 $ 308,133
50 Minneapolis and St. Paul, Housing
Finance Board, SFMR, (GNMA), (AMT),
7.30%, 8/1/31 51,142
3,765 Minnesota HFA, SFMR, (AMT),
6.50%, 1/1/26(3) 3,797,718
1,650 Minnetonka, Multifamily, (Archer Heights
Apartments), (AMT), 6.00%, 1/20/27 1,479,637
------------------------------------------------------------------------
$ 5,636,630
------------------------------------------------------------------------
Industrial Development Revenue -- 10.8%
------------------------------------------------------------------------
$ 1,205 Cloquet PCR, (Potlach Corp.),
5.90%, 10/1/26 $ 1,104,623
750 Minneapolis, Community Development
Agency, 6.00%, 6/1/11 760,223
100 Minneapolis, Community Development
Agency, 7.35%, 12/1/09 104,381
1,250 Minneapolis, Community Development
Agency, 7.40%, 12/1/21 1,311,638
1,605 Minneapolis, Community Development
Agency, (AMT), 6.80%, 12/1/24 1,666,760
300 Minneapolis, Community Development
Agency, (Firemans Ins.), 6.40%, 12/1/04 301,590
------------------------------------------------------------------------
$ 5,249,215
------------------------------------------------------------------------
Insured-Electric Utilities -- 11.1%
------------------------------------------------------------------------
$ 1,000 Northern Minnesota Municipal Power
Agency, (AMBAC), 4.75%, 1/1/20 $ 887,640
400 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 352,064
3,000 Southern Minnesota Municipal Power
Agency, (MBIA), 0.00%, 10/1/21 931,740
10,000 Southern Minnesota Municipal Power
Agency, (MBIA), 0.00%, 1/1/25 2,440,800
300 Southern Minnesota Municipal Power
Agency, (MBIA), (AMT), Variable Rate,
1/1/18(1)(2)(4) 305,250
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Insured-Electric Utilities (continued)
------------------------------------------------------------------------
$ 510 Western Minnesota Municipal Power
Agency, (MBIA), 5.50%, 1/1/15 $ 509,990
------------------------------------------------------------------------
$ 5,427,484
------------------------------------------------------------------------
Insured-General Obligations -- 2.9%
------------------------------------------------------------------------
$ 1,330 St. Francis, Independent School District
No. 15, (FGIC), 6.35%, 2/1/12 $ 1,433,607
------------------------------------------------------------------------
$ 1,433,607
------------------------------------------------------------------------
Insured-Hospital -- 3.4%
------------------------------------------------------------------------
$ 250 Minneapolis, (Fairview Hospital),
(MBIA), 6.50%, 1/1/11 $ 260,415
450 Plymouth, (Westhealth), (FSA),
6.25%, 6/1/16 465,224
1,000 St. Louis Park, (Care Institute),
(AMBAC), Variable Rate, 7/1/13(1) 917,500
------------------------------------------------------------------------
$ 1,643,139
------------------------------------------------------------------------
Insured-Housing -- 3.3%
------------------------------------------------------------------------
$ 1,500 SCA MFMR Receipts, Burnsville, (FSA),
7.10%, 1/1/30 $ 1,595,580
------------------------------------------------------------------------
$ 1,595,580
------------------------------------------------------------------------
Insured-Transportation -- 1.8%
------------------------------------------------------------------------
$ 1,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 866,170
------------------------------------------------------------------------
$ 866,170
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.7%
------------------------------------------------------------------------
$ 350 Cambridge EDA, Public Lease,
6.25%, 2/1/14 $ 358,932
------------------------------------------------------------------------
$ 358,932
------------------------------------------------------------------------
Miscellaneous -- 1.9%
------------------------------------------------------------------------
$ 1,000 Red Lake Band of Chippewa Indians,
(AMT), 6.25%, 8/1/13 $ 943,330
------------------------------------------------------------------------
$ 943,330
------------------------------------------------------------------------
Nursing Home -- 4.1%
------------------------------------------------------------------------
$ 1,000 Columbia Heights, Multifamily,
(Crestview Corp.), 6.00%, 3/1/33 $ 817,060
800 Minneapolis, (Walker Methodist Senior
Services), 6.00%, 11/15/28 668,328
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Nursing Home (continued)
------------------------------------------------------------------------
$ 500 Minnesota Agricultural and Economic
Development Revenue, (Evangelical
Lutheran), 6.625%, 8/1/25(5) $ 494,285
------------------------------------------------------------------------
$ 1,979,673
------------------------------------------------------------------------
Solid Waste -- 0.9%
------------------------------------------------------------------------
$ 450 Anoka County, Solid Waste Disposal,
National Rural Utility, (AMT),
6.95%, 12/1/08 $ 462,119
------------------------------------------------------------------------
$ 462,119
------------------------------------------------------------------------
Transportation -- 2.7%
------------------------------------------------------------------------
$ 1,500 Minneapolis and St. Paul, Metropolitan
Airport Commission, (AMT), 4.50%, 1/1/15 $ 1,326,615
------------------------------------------------------------------------
$ 1,326,615
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.7%
(identified cost $47,429,619) $48,193,415
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 654,473
------------------------------------------------------------------------
Net Assets -- 100.0% $48,847,888
------------------------------------------------------------------------
</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 Minnesota
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 July 31, 2000, 29.1% 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 3.0% to 16.3% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(4) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(5) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.8%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Assisted Living -- 3.1%
-------------------------------------------------------------------------
$ 3,750 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.25%, 10/1/20 $ 3,860,100
3,480 New Jersey EDA, (Forsgate), (AMT),
8.625%, 6/1/25 3,753,006
-------------------------------------------------------------------------
$ 7,613,106
-------------------------------------------------------------------------
Cogeneration -- 7.1%
-------------------------------------------------------------------------
$ 1,725 New Jersey EDA, (Trigen Trenton), (AMT),
6.20%, 12/1/07 $ 1,701,212
10,530 New Jersey EDA, (Vineland Cogeneration),
(AMT), 7.875%, 6/1/19 10,846,005
5,000 Port Authority of New York and New
Jersey, (KIAC), (AMT), 6.75%, 10/1/19 5,040,850
-------------------------------------------------------------------------
$ 17,588,067
-------------------------------------------------------------------------
Economic Development Revenue -- 0.7%
-------------------------------------------------------------------------
$ 2,155 New Jersey EDA, RITES, 8.00%, 5/1/18 $ 1,822,677
-------------------------------------------------------------------------
$ 1,822,677
-------------------------------------------------------------------------
Education -- 1.6%
-------------------------------------------------------------------------
$ 8,800 New Jersey Higher Educational Student
Loan Bonds, (AMT), 0.00%, 7/1/10 $ 4,108,632
-------------------------------------------------------------------------
$ 4,108,632
-------------------------------------------------------------------------
Electric Utilities -- 1.7%
-------------------------------------------------------------------------
$ 9,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 $ 3,501,000
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 778,000
-------------------------------------------------------------------------
$ 4,279,000
-------------------------------------------------------------------------
General Obligations -- 5.0%
-------------------------------------------------------------------------
$ 8,000 Guam, 5.40%, 11/15/18 $ 7,419,520
1,500 Hudson County Improvement Authority,
6.625%, 8/1/25 1,575,810
3,000 Mercer County Improvement Authority,
0.00%, 4/1/10 1,842,870
1,000 New Jersey, 5.75%, 5/1/20 1,025,790
1,500 Puerto Rico, 0.00%, 7/1/16 622,740
-------------------------------------------------------------------------
$ 12,486,730
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Hospital -- 12.5%
-------------------------------------------------------------------------
$ 3,750 Camden County, Improvement Authority,
(Cooper Health System), 6.00%, 2/15/27 $ 2,544,262
2,300 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Center), 6.80%, 7/1/11 2,410,883
1,250 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.125%, 7/1/12 1,022,975
3,500 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.25%, 7/1/17 2,737,910
1,750 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.25%, 7/1/27 1,273,632
5,400 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 6.00%, 7/1/27 4,552,632
5,875 New Jersey Health Care Facilities
Financing Authority, (Deborah Heart and
Lung Center), 6.30%, 7/1/23 5,166,416
2,700 New Jersey Health Care Facilities
Financing Authority, (Hackensack
University Medical Center),
6.00%, 1/1/25 2,719,575
4,000 New Jersey Health Care Facilities
Financing Authority, (Southern Ocean
County Hospital), 6.25%, 7/1/23 3,557,880
2,890 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Health Center),
Variable Rate, 7/1/28(1)(2) 1,680,824
850 New Jersey Health Care Facilities
Financing Authority, (St. Elizabeth's
Hospital), 6.00%, 7/1/20 739,270
2,500 New Jersey Health Care Facilities
Financing Authority, (Trinitas
Hospital), 7.50%, 7/1/30 2,542,100
-------------------------------------------------------------------------
$ 30,948,359
-------------------------------------------------------------------------
Housing -- 1.3%
-------------------------------------------------------------------------
$ 1,000 Guam Housing Corp., Single Family,
(AMT), 5.75%, 9/1/31 $ 989,800
2,650 New Jersey EDA, (1st Fellowship),
5.50%, 1/1/18 2,181,559
-------------------------------------------------------------------------
$ 3,171,359
-------------------------------------------------------------------------
Industrial Development Revenue -- 16.2%
-------------------------------------------------------------------------
$ 4,000 Middlesex County Pollution Control
Financing Authority, (Amerada Hess
Corp.), 6.875%, 12/1/22(3) $ 4,123,240
2,000 Middlesex County Pollution Control
Financing Authority, (Amerada Hess
Corp.), 7.875%, 6/1/22 2,158,000
7,500 New Jersey EDA, (Continental Airlines),
(AMT), 6.25%, 9/15/29 6,855,825
4,500 New Jersey EDA, (Elizabethtown Water
Company), (AMT), 6.70%, 8/1/21 4,659,165
3,000 New Jersey EDA, (Garden State Paper
Co.), 7.125%, 4/1/22 3,147,330
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Industrial Development Revenue (continued)
-------------------------------------------------------------------------
$ 2,135 New Jersey EDA, (GATX Terminals Corp.),
7.30%, 9/1/19 $ 2,250,141
3,500 New Jersey EDA, (Glimcher Properties
REIT), (AMT), 6.00%, 11/1/28 3,174,360
5,640 New Jersey EDA, (Holt Hauling),
8.95%, 12/15/18 5,516,484
1,500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 1,457,430
2,250 New Jersey EDA, (Kapkowsi Mall),
6.375%, 4/1/31 2,174,918
1,160 New Jersey EDA, (National Association of
Accountants), 7.65%, 7/1/09 1,191,065
2,000 New Jersey EDA, (The Seeing Eye, Inc.),
7.30%, 4/1/11 2,040,600
1,520 South Jersey Transportation Authority,
(Raytheon Aircraft), (AMT),
6.15%, 1/1/22 1,398,886
-------------------------------------------------------------------------
$ 40,147,444
-------------------------------------------------------------------------
Insured-Education -- 0.5%
-------------------------------------------------------------------------
$ 1,525 New Brunswick, Housing Authority,
(Rutgers University), (FGIC),
4.625%, 7/1/24 $ 1,318,561
-------------------------------------------------------------------------
$ 1,318,561
-------------------------------------------------------------------------
Insured-General Obligations -- 0.9%
-------------------------------------------------------------------------
$ 2,100 Lafayette Yard, Community Development
Corporation, (Hotel and Conference
Center), (MBIA), 5.80%, 4/1/35 $ 2,134,881
-------------------------------------------------------------------------
$ 2,134,881
-------------------------------------------------------------------------
Insured-Hospital -- 4.2%
-------------------------------------------------------------------------
$ 4,250 New Jersey EDA, (Hillcrest Health
Services), (AMBAC), 0.00%, 1/1/19 $ 1,505,563
3,000 New Jersey EDA, (Hillcrest Health
Services), (AMBAC), 0.00%, 1/1/21 941,970
10,620 New Jersey EDA, (St. Barnabas Medical
Center), (MBIA), 0.00%, 7/1/26 2,398,102
6,000 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), (MBIA), 0.00%, 7/1/23 1,577,580
2,750 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), (MBIA), 4.75%, 7/1/28 2,366,458
2,150 New Jersey Health Care Facilities
Financing Authority, (Virtua Health),
(FSA), 4.50%, 7/1/28 1,770,805
-------------------------------------------------------------------------
$ 10,560,478
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 4.3%
-------------------------------------------------------------------------
$ 5,500 Delaware River Port Authority, (FSA),
5.75%, 1/1/26 $ 5,577,495
1,600 New Jersey EDA, (Educational Testing
Service), (MBIA), 4.75%, 5/15/25 1,411,952
2,500 New Jersey EDA, (New Jersey American
Water Co. Inc.), (FGIC), (AMT),
5.375%, 5/1/32 2,360,900
1,150 New Jersey EDA, (New Jersey American
Water Co. Inc.), (FGIC), (AMT),
6.875%, 11/1/34 1,247,635
-------------------------------------------------------------------------
$ 10,597,982
-------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 1.1%
-------------------------------------------------------------------------
$ 2,500 Hudson County Improvement Authority,
Secondary Yield Curve Notes, (FGIC),
Variable Rate, 12/1/25(2)(4) $ 2,762,700
-------------------------------------------------------------------------
$ 2,762,700
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 3.0%
-------------------------------------------------------------------------
$ 3,555 New Jersey Sports and Exposition
Authority, (MBIA), 4.50%, 9/1/20 $ 3,069,529
5,100 New Jersey Sports and Exposition
Authority, (MBIA), 4.50%, 3/1/24 4,314,294
-------------------------------------------------------------------------
$ 7,383,823
-------------------------------------------------------------------------
Insured-Transportation -- 7.0%
-------------------------------------------------------------------------
$ 1,000 New Jersey Transportation Trust Fund
Authority, (Transportation System),
(FSA), 5.00%, 6/15/18 $ 946,220
1,000 New Jersey Turnpike Authority, (MBIA),
5.75%, 1/1/19 1,025,890
2,000 New Jersey Turnpike Authority, (MBIA),
6.50%, 1/1/16 2,240,860
5,000 New Jersey Turnpike Authority, RITES,
(MBIA), Variable Rate, 1/1/16(4) 6,204,450
1,750 Port Authority of New York and New
Jersey, (MBIA), 4.75%, 8/1/33 1,507,450
5,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 4,330,850
1,250 South Jersey Transportation Authority,
(AMBAC), 5.00%, 11/1/18 1,184,675
-------------------------------------------------------------------------
$ 17,440,395
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Water and Sewer -- 2.8%
-------------------------------------------------------------------------
$ 2,500 Middlesex County, Utilities Authority,
(MBIA), 6.25%, 8/15/10 $ 2,715,450
5,000 Mount Holly, Municipal Utilities
Authority, Sewer Revenue, (MBIA),
4.75%, 12/1/28 4,358,550
-------------------------------------------------------------------------
$ 7,074,000
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 3.0%
-------------------------------------------------------------------------
$ 720 Atlantic County, Public Facilities Lease
Agreement, 8.875%, 1/15/14 $ 927,670
785 Atlantic County, Public Facilities Lease
Agreement, 8.875%, 1/15/15 1,014,142
2,591 New Jersey Building Authority, (Garden
State Savings Bonds), 0.00%, 6/15/10 1,575,224
1,650 New Jersey EDA, (Economic Recovery),
0.00%, 9/15/09 1,046,430
5,500 New Jersey EDA, (Economic Recovery),
0.00%, 3/15/13 2,805,495
-------------------------------------------------------------------------
$ 7,368,961
-------------------------------------------------------------------------
Nursing Home -- 1.6%
-------------------------------------------------------------------------
$ 1,370 New Jersey EDA, (Claremont Health
System, Inc.), 9.10%, 9/1/22 $ 1,456,228
2,380 New Jersey EDA, (Victoria Health Corp.),
7.65%, 1/1/14 2,446,926
-------------------------------------------------------------------------
$ 3,903,154
-------------------------------------------------------------------------
Senior Living / Life Care -- 0.5%
-------------------------------------------------------------------------
$ 1,430 New Jersey EDA, (Hudson County
Occupational Center), 6.50%, 7/1/18 $ 1,284,369
-------------------------------------------------------------------------
$ 1,284,369
-------------------------------------------------------------------------
Special Tax Revenue -- 1.3%
-------------------------------------------------------------------------
$ 3,775 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(2)(4) $ 3,198,784
-------------------------------------------------------------------------
$ 3,198,784
-------------------------------------------------------------------------
Transportation -- 17.2%
-------------------------------------------------------------------------
$ 3,500 New Jersey Transportation Authority,
Variable Rate, 6/15/17(4)(2) $ 3,180,905
5,000 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 4,844,700
19,000 Port Authority of New York and New
Jersey, 6.125%, 6/1/24 20,314,990
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Transportation (continued)
-------------------------------------------------------------------------
$14,650 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 $ 14,465,996
-------------------------------------------------------------------------
$ 42,806,591
-------------------------------------------------------------------------
Water and Sewer -- 2.2%
-------------------------------------------------------------------------
$ 6,000 New Jersey EDA, (Atlantic City Sewer),
(AMT), 5.45%, 4/1/28 $ 5,321,160
80 New Jersey Wastewater Treatment Trust,
6.875%, 6/15/09 81,751
20 New Jersey Wastewater Treatment Trust,
7.00%, 6/15/10 20,439
-------------------------------------------------------------------------
$ 5,423,350
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.8%
(identified cost $245,018,182) $245,423,403
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.2% $ 2,976,114
-------------------------------------------------------------------------
Net Assets -- 100.0% $248,399,517
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by New Jersey
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 July 31, 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 1.5% to 14.4% of
total investments.
(1) Security has been issued as a leveraged inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(4) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Assisted Living -- 4.5%
-------------------------------------------------------------------------
$ 5,000 Chester IDA, (Senior Life Choice of
Kimberton), (AMT), 8.50%, 9/1/25 $ 5,331,200
2,645 Chester IDA, (Senior Life Choice of
Paoli, L.P.), (AMT), 8.05%, 1/1/24 2,726,730
2,565 Delaware IDA, (Glen Riddle), (AMT),
8.625%, 9/1/25 2,752,031
-------------------------------------------------------------------------
$ 10,809,961
-------------------------------------------------------------------------
Certificates of Participation -- 0.8%
-------------------------------------------------------------------------
$ 2,000 Cliff House Trust, (AMT),
6.625%, 6/21/27 $ 1,822,240
-------------------------------------------------------------------------
$ 1,822,240
-------------------------------------------------------------------------
Cogeneration -- 2.5%
-------------------------------------------------------------------------
$ 6,000 Pennsylvania EDA, (Northampton
Generating), (AMT), 6.50%, 1/1/13 $ 5,864,940
-------------------------------------------------------------------------
$ 5,864,940
-------------------------------------------------------------------------
Education -- 5.1%
-------------------------------------------------------------------------
$ 1,100 Lehigh County General Purpose Authority,
(Cedar Crest College), 6.70%, 4/1/26 $ 1,114,509
3,000 Pennsylvania Higher Education Facilities
Authority, (Delaware Valley College of
Science and Agriculture),
5.35%, 4/15/28 2,545,950
1,800 Pennsylvania Higher Education Facilities
Authority, (Geneva College),
5.375%, 4/1/23 1,564,254
3,000 Pennsylvania Higher Education Facilities
Authority, (University of Pennsylvania),
4.625%, 7/15/30 2,492,550
4,225 Scranton-Lackawanna Health & Welfare
Authority, (University of Scranton),
6.40%, 3/1/07 4,400,464
-------------------------------------------------------------------------
$ 12,117,727
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.6%
-------------------------------------------------------------------------
$ 7,500 Keystone Oaks School District, (AMBAC),
Prerefunded to 9/1/02, Variable Rate,
9/1/16(1) $ 8,100,000
5,000 Philadelphia HEFA, (Pennsylvania
Hospital), (FGIC), Prerefunded to
2/15/04, Variable Rate, 3/6/12(1) 4,831,250
4,845 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/19 1,631,360
5,400 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20 1,710,504
5,780 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20 1,830,873
-------------------------------------------------------------------------
$ 18,103,987
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
General Obligations -- 4.3%
-------------------------------------------------------------------------
$ 5,600 Berks County, (FGIC), Partially
Prerefunded to 12/01/02, Variable Rate,
11/10/20(1)(2) $ 6,216,000
3,000 Dauphin County, 6.90%, 6/1/26 3,100,290
1,000 Puerto Rico, 4.75%, 7/1/23 881,000
-------------------------------------------------------------------------
$ 10,197,290
-------------------------------------------------------------------------
Health Care -- 0.2%
-------------------------------------------------------------------------
$ 500 Montgomery County Higher Education and
Health Authority Revenue, (Faulkeways at
Gwynedd), 6.75%, 11/15/24 $ 490,060
-------------------------------------------------------------------------
$ 490,060
-------------------------------------------------------------------------
Health Care-Miscellaneous -- 1.4%
-------------------------------------------------------------------------
$ 3,500 Chester County HEFA, (Devereux
Foundation), 6.00%, 11/1/29 $ 3,300,080
-------------------------------------------------------------------------
$ 3,300,080
-------------------------------------------------------------------------
Hospital -- 11.8%
-------------------------------------------------------------------------
$ 5,330 Allegheny County HDA, (St. Francis
Medical Center), 5.75%, 5/15/27 $ 3,897,083
2,000 Allegheny County HDA, (Villa
St. Joseph), 6.00%, 8/15/28 1,650,680
1,275 Allegheny County HDA, (West Penn
Allegheny Health), 9.25%, 11/15/15(3) 1,244,234
2,170 Allegheny County IDA, (Presbyterian
Medical Center), 6.75%, 2/1/26 2,292,865
1,150 Horizon Hospital Systems Authority,
(Horizon Hospital Systems, Inc.),
6.35%, 5/15/26 1,017,692
2,670 Indiana County Hospital Authority,
(Indiana Hospital), 7.125%, 7/1/23 2,804,595
2,550 Monroeville Hospital Authority, (Forbes
Health System), 6.25%, 10/1/15 2,040,000
1,375 Montgomery Hospital Authority,
(Montgomery Hospital Medical Center),
6.60%, 7/1/10 1,360,164
5,626 Philadelphia HEFA, (Graduate Health
System), 6.625%, 7/1/21(4) 1,954,969
7,116 Philadelphia HEFA, (Graduate Health
System), 7.25%, 7/1/18(4) 2,472,827
7,000 Washington County Hospital Authority,
(Monongahela Valley Hospital),
6.75%, 12/1/08 7,292,250
-------------------------------------------------------------------------
$ 28,027,359
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Housing -- 1.3%
-------------------------------------------------------------------------
$ 5 Pittsburgh Urban Redevelopment
Authority, 7.45%, 4/1/10 $ 5,126
3,000 Pittsburgh Urban Redevelopment
Authority, (AMT), 7.10%, 4/1/24 3,153,120
-------------------------------------------------------------------------
$ 3,158,246
-------------------------------------------------------------------------
Industrial Development Revenue -- 17.2%
-------------------------------------------------------------------------
$ 6,450 Butler County IDA, (Witco Corp.),
5.85%, 12/1/23 $ 5,949,351
2,000 Carbon County IDA, (Panther Creek
Partners), 6.65%, 5/1/10 2,019,280
1,005 Clearfield County IDA, (Kmart Corp.),
6.80%, 5/15/07 1,017,723
4,000 Franklin County IDA, (Corning, Inc.),
6.25%, 8/1/05 4,276,200
11,000 New Morgan IDA, (New Morgan Landfill),
(AMT), 6.50%, 4/1/19(5) 9,762,060
5,500 Pennsylvania EDA, (Colver), (AMT),
7.125%, 12/1/15 5,632,275
4,450 Pennsylvania IDA, (Sun Company), (AMT),
7.60%, 12/1/24(5) 4,667,382
6,500 Philadelphia IDA, (Refrigerated
Enterprises), (AMT), 9.05%, 12/1/19 6,356,740
1,105 Shamokin IDA, (Kmart Corp.),
6.70%, 7/1/07 1,111,597
-------------------------------------------------------------------------
$ 40,792,608
-------------------------------------------------------------------------
Insured-Education -- 1.8%
-------------------------------------------------------------------------
$ 3,000 Delaware County, (Villanova University),
(MBIA), 5.00%, 12/1/28 $ 2,689,290
1,805 Northeastern Pennsylvania HEFA, (Wyoming
Seminary), (MBIA), 4.75%, 10/1/28 1,549,177
-------------------------------------------------------------------------
$ 4,238,467
-------------------------------------------------------------------------
Insured-Electric Utilities -- 7.8%
-------------------------------------------------------------------------
$ 3,500 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.00%, 6/1/21 $ 3,630,935
10,000 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.05%, 10/1/20 11,026,800
3,800 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 3,942,500
-------------------------------------------------------------------------
$ 18,600,235
-------------------------------------------------------------------------
Insured-General Obligations -- 12.9%
-------------------------------------------------------------------------
$ 3,000 Butler School District, (FGIC),
4.75%, 10/1/22 $ 2,618,040
1,000 Butler School District, (FGIC),
5.00%, 10/1/26 902,200
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/20 682,942
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-General Obligations (continued)
-------------------------------------------------------------------------
$ 2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/21 $ 643,427
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/22 606,059
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/23 569,495
2,500 Erie School District, (MBIA),
0.00%, 5/1/19 855,775
2,625 Erie School District, (MBIA),
0.00%, 5/1/20 845,381
2,625 Erie School District, (MBIA),
0.00%, 5/1/21 795,034
3,625 Erie School District, (MBIA),
0.00%, 5/1/22 1,032,110
2,365 Harrisburg, (AMBAC), 0.00%, 3/15/17 921,711
5,175 Hazelton School District, (FGIC),
0.00%, 3/1/21 1,579,306
1,000 Hopewell School District, (FSA),
0.00%, 9/1/22 279,290
2,000 Hopewell School District, (FSA),
0.00%, 9/1/26 437,780
1,935 Lancaster, (FGIC), 4.50%, 5/1/28 1,591,731
1,430 Mars Area School District, (MBIA),
0.00%, 3/1/14 678,921
1,000 McGuffey School District, (AMBAC),
4.75%, 8/1/28 858,800
1,400 Penn Manor School District, (FGIC),
5.20%, 6/1/16 1,437,058
1,000 Philadelphia School District, (MBIA),
4.50%, 4/1/23 838,780
3,650 Philadelphia School District, (MBIA),
4.75%, 4/1/27 3,134,547
2,530 Philadelphia, (FSA), 5.00%, 3/15/28 2,260,125
1,000 Ridley School District, (FGIC),
5.00%, 11/15/29 897,520
655 Rochester Area School District, (AMBAC),
0.00%, 5/1/10 397,257
4,000 Spring Ford School District, (FGIC),
4.75%, 3/1/25 3,469,720
1,400 Upper Darby School District, (AMBAC),
5.00%, 5/1/19 1,300,824
1,000 Venango County, (AMBAC), 6.30%, 12/1/19 1,034,620
-------------------------------------------------------------------------
$ 30,668,453
-------------------------------------------------------------------------
Insured-Hospital -- 6.5%
-------------------------------------------------------------------------
$ 3,750 Allegheny County Hospital Authority,
(Magee-Womens Hospital), (FGIC),
0.00%, 10/1/15 $ 1,617,938
2,500 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.00%, 8/15/08 2,585,025
1,400 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.25%, 6/1/13 1,461,376
1,700 Dauphin County Hospital Authority,
(Pinnacle Health System), (MBIA),
5.00%, 8/15/27 1,494,249
3,000 Delaware County Hospital Authority,
(Riddle Memorial Hospital), (FSA),
5.00%, 1/1/28 2,633,310
1,250 Montgomery County HEFA, (Pottstown
Healthcare Corp.), (FSA), 5.00%, 1/1/27 1,101,063
4,000 Pennsylvania HEFA, (UPMC Health System),
(FSA), 5.00%, 8/1/29 3,566,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Hospital (continued)
-------------------------------------------------------------------------
$ 1,250 Sharon Health System Authority, (Sharon
Regional Health System), (MBIA),
5.00%, 12/1/28 $ 1,093,763
-------------------------------------------------------------------------
$ 15,552,924
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.8%
-------------------------------------------------------------------------
$ 2,500 Pennsylvania Turnpike Commission Oil
Franchise, (AMBAC), Variable Rate,
12/1/27(1)(6) $ 1,802,450
-------------------------------------------------------------------------
$ 1,802,450
-------------------------------------------------------------------------
Insured-Transportation -- 0.6%
-------------------------------------------------------------------------
$ 2,000 Southeastern Pennsylvania Transit
Authority, (FGIC), Variable Rate,
3/1/29(1)(6) $ 1,429,340
-------------------------------------------------------------------------
$ 1,429,340
-------------------------------------------------------------------------
Insured-Water and Sewer -- 2.7%
-------------------------------------------------------------------------
$ 1,750 Lower Moreland Township Authority, Sewer
Revenue, (FSA), 5.00%, 8/1/29 $ 1,566,968
1,000 Philadelphia Water and Wastewater,
(FGIC), 7.63%, 6/15/12(1) 1,078,750
1,500 Philadelphia Water and Wastewater,
(FGIC), 7.63%, 6/15/12(1) 1,526,250
2,490 Pittsburgh Water and Sewer Authority,
(FGIC), 4.75%, 9/1/16 2,263,709
-------------------------------------------------------------------------
$ 6,435,677
-------------------------------------------------------------------------
Nursing Home -- 4.3%
-------------------------------------------------------------------------
$ 1,230 Chartiers Valley IDA, (Beverly
Enterprises, Inc.), 5.375%, 6/1/07 $ 1,161,366
190 Clarion County, IDA, (Beverly
Enterprises, Inc.), 5.50%, 5/1/03 184,629
1,700 Crawford County Hospital Authority,
(Wesbury United Methodist Community),
6.25%, 8/15/29 1,491,410
1,510 Green County, IDA, (Beverly Enterprises,
Inc.), 5.75%, 3/1/13 1,316,524
3,405 Montgomery IDA, (Advancement of
Geriatric Health Care Institute),
8.375%, 7/1/23 3,508,172
1,100 Philadelphia HEFA, (The Philadelphia
Protestant Home), 6.50%, 7/1/27 985,050
1,405 Westmoreland County IDA, (Highland
Health Systems, Inc.), 9.25%, 6/1/22 1,493,796
-------------------------------------------------------------------------
$ 10,140,947
-------------------------------------------------------------------------
Senior Living / Life Care -- 3.5%
-------------------------------------------------------------------------
$ 4,050 Delaware County, (White Horse Village),
7.50%, 7/1/18 $ 4,101,314
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Senior Living / Life Care (continued)
-------------------------------------------------------------------------
$ 2,000 Grove City, Area Hospital Authority,
(Grove Manor), 6.625%, 8/15/29 $ 1,773,800
3,060 Hazelton Health Service Authority,
(Hazelton General Hospital),
5.50%, 7/1/27 2,385,239
-------------------------------------------------------------------------
$ 8,260,353
-------------------------------------------------------------------------
Transportation -- 0.7%
-------------------------------------------------------------------------
$ 1,000 Erie Municipal Airport Authority, (AMT),
5.875%, 7/1/16 $ 919,930
865 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(6)(7) 841,861
-------------------------------------------------------------------------
$ 1,761,791
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $242,334,742) $233,575,135
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 4,117,028
-------------------------------------------------------------------------
Net Assets -- 100.0% $237,692,163
-------------------------------------------------------------------------
</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 Pennsylvania
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 July 31, 2000, 44.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 6.8% to 22.0% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) When-issued security.
(4) Non-income producing security.
(5) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(6) 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.
(7) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
TEXAS MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.5%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Assisted Living -- 3.5%
------------------------------------------------------------------------
$ 350 Bell County, Health Facilities, (Care
Institute, Inc.), 9.00%, 11/1/24 $ 380,086
------------------------------------------------------------------------
$ 380,086
------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.7%
------------------------------------------------------------------------
$ 200 Bexar County, Health Facilities,
(St. Luke's Lutheran), Escrowed to
Maturity, 7.00%, 5/1/21 $ 235,586
100 Harris County, Hospital District,
(Memorial), Prerefunded to 6/1/02,
7.125%, 6/1/15 106,109
150 Texas National Research Lab Super
Collider, Escrowed to Maturity,
6.95%, 12/1/12 171,804
------------------------------------------------------------------------
$ 513,499
------------------------------------------------------------------------
General Obligations -- 31.8%
------------------------------------------------------------------------
$1,000 Bastrop Independent School District,
(PSF), 0.00%, 2/15/13 $ 507,070
1,500 Grape-vine-Colleyville Independent
School District, (PSF), 0.00%, 8/15/25 339,720
500 Houston, Independent School District,
(PSF), 4.75%, 2/15/26 429,600
200 Katy Independent School District,
4.75%, 2/15/27 171,344
500 Leander, 6.75%, 8/15/16 551,470
1,000 New Braunfels Independent School
District, (PSF), 0.00%, 2/1/13 508,140
690 Texas Veterans' Housing Assistance U.T.,
(AMT), 6.70%, 12/1/24 709,306
275 Texas Veterans' Housing Assistance U.T.,
(AMT), 6.80%, 12/1/23 285,774
------------------------------------------------------------------------
$ 3,502,424
------------------------------------------------------------------------
Hospital -- 9.2%
------------------------------------------------------------------------
$ 185 Bell County, (Heritage Oaks Healthcare),
6.70%, 6/1/29 $ 163,187
330 Denison Hospital Authority, (Texoma
Medical Center), 7.10%, 8/15/04 325,684
500 Tarrant County, (Methodist Health
System), 6.00%, 9/1/24 525,220
------------------------------------------------------------------------
$ 1,014,091
------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Housing -- 14.7%
------------------------------------------------------------------------
$ 65 Bexar County, HFC, 8.10%, 3/1/24 $ 66,990
500 Texas Department of Housing and
Community Affairs, (Meadow Ridge
Apartments), (AMT), 5.55%, 8/1/30 477,025
500 Texas Department of Housing and
Community Affairs, (NHP
Foundation-Asmara), 6.40%, 1/1/27 506,775
550 Travis County, HFC, (GNMA) (FNMA),
7.05%, 12/1/25 566,835
------------------------------------------------------------------------
$ 1,617,625
------------------------------------------------------------------------
Industrial Development Revenue -- 7.1%
------------------------------------------------------------------------
$ 250 Abia Dev. Corp., (Austin Cargoport),
9.25%, 10/1/21 $ 273,695
500 Trinity River Authority, (Texas
Instruments), (AMT), 6.20%, 3/1/20 509,555
------------------------------------------------------------------------
$ 783,250
------------------------------------------------------------------------
Insured-Electric Utilities -- 8.2%
------------------------------------------------------------------------
$ 500 Brazos River Authority (Houston Lighting
and Power Co.), (AMBAC), (AMT),
5.05%, 11/1/18 $ 451,140
500 Lower Colorado River Authority Junior
Lien, (FGIC), 0.00%, 1/1/12 273,345
200 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 178,098
------------------------------------------------------------------------
$ 902,583
------------------------------------------------------------------------
Insured-Hospital -- 9.6%
------------------------------------------------------------------------
$ 500 Harris County, HFC, (Hermann Hospital),
(MBIA), 6.375%, 10/1/24 $ 537,500
500 Tyler County, HFC, (Mother Frances
Hospital), (FGIC), 6.50%, 7/1/22 524,260
------------------------------------------------------------------------
$ 1,061,760
------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.5%
------------------------------------------------------------------------
$ 350 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(1) $ 269,864
------------------------------------------------------------------------
$ 269,864
------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 2.4%
------------------------------------------------------------------------
$ 250 Rio Grande, Independent School District
Lease, 6.75%, 7/15/10 $ 263,198
------------------------------------------------------------------------
$ 263,198
------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
TEXAS MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
------------------------------------------------------------------------
Utilities-Electrical and Gas -- 3.8%
------------------------------------------------------------------------
$ 500 San Antonio, Electric and Natural Gas
Revenue, 4.50%, 2/1/21 $ 421,845
------------------------------------------------------------------------
$ 421,845
------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.5%
(identified cost $10,494,957) $10,730,225
------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.5% $ 280,195
------------------------------------------------------------------------
Net Assets -- 100.0% $11,010,420
------------------------------------------------------------------------
</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 Texas
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 July 31, 2000, 20.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 1.6% to 7.2% of
total investments.
(1) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $72,176,216 $30,680,138 $131,235,003 $82,790,253
Unrealized appreciation
(depreciation) 849,491 (661,965) 781,255 1,375,472
----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $73,025,707 $30,018,173 $132,016,258 $84,165,725
----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 198,548 $ -- $ 240,392
Interest receivable 680,262 396,072 1,298,540 1,184,225
Receivable for daily variation
margin on open
financial futures contracts 2,250 1,000 4,250 1,500
Prepaid expenses -- 14,642 20,676 --
----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $73,708,219 $30,628,435 $133,339,724 $85,591,842
----------------------------------------------------------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------------------------------------------------------
Demand note payable $ -- $ -- $ 100,000 $ --
Due to bank 70,088 -- 84,673 --
Payable to affiliate for Trustees'
fees 100 -- -- --
Accrued expenses 14,028 8,758 18,396 15,374
----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 84,216 $ 8,758 $ 203,069 $ 15,374
----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $73,624,003 $30,619,677 $133,136,655 $85,576,468
----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $72,776,299 $31,280,563 $132,350,814 $84,199,378
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 847,704 (660,886) 785,841 1,377,090
----------------------------------------------------------------------------------------------------------------------
TOTAL $73,624,003 $30,619,677 $133,136,655 $85,576,468
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $47,429,619 $245,018,182 $242,334,742 $10,494,957
Unrealized appreciation
(depreciation) 763,796 405,221 (8,759,607) 235,268
------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $48,193,415 $245,423,403 $233,575,135 $10,730,225
------------------------------------------------------------------------------------------------------------------------
Cash $ 486,566 $ 28,950 $ 1,802,077 $ 110,717
Receivable for investments sold -- -- 337,163 --
Interest receivable 652,240 2,947,883 3,273,676 161,737
Receivable for daily variation
margin on open
financial futures contracts -- -- 7,500 --
Prepaid expenses 16,523 35,714 -- 15,053
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $49,348,744 $248,435,950 $238,995,551 $11,017,732
------------------------------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin
on open
financial futures contracts $ 437 $ 3,750 $ -- $ --
Payable for when-issued securities 490,276 -- 1,269,517 --
Payable to affiliate for Trustees'
fees 78 -- -- --
Accrued expenses 10,065 32,683 33,871 7,312
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 500,856 $ 36,433 $ 1,303,388 $ 7,312
------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $48,847,888 $248,399,517 $237,692,163 $11,010,420
------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $48,131,915 $248,404,207 $246,457,725 $10,775,152
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 715,973 (4,690) (8,765,562) 235,268
------------------------------------------------------------------------------------------------------------------------
TOTAL $48,847,888 $248,399,517 $237,692,163 $11,010,420
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Investment Income
----------------------------------------------------------------------------------------------------------------------
Interest $ 4,937,160 $ 2,062,167 $ 8,476,848 $ 5,768,485
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 4,937,160 $ 2,062,167 $ 8,476,848 $ 5,768,485
----------------------------------------------------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 291,302 $ 75,588 $ 581,800 $ 355,554
Trustees fees and expenses 8,969 2,520 13,128 10,215
Legal and accounting services 51,512 20,684 26,874 50,542
Custodian fee 50,359 24,926 78,954 45,804
Miscellaneous 12,769 8,131 15,439 18,919
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 414,911 $ 131,849 $ 716,195 $ 481,034
----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 8,590 $ 10,802 $ 33,055 $ --
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 8,590 $ 10,802 $ 33,055 $ --
----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 406,321 $ 121,047 $ 683,140 $ 481,034
----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 4,530,839 $ 1,941,120 $ 7,793,708 $ 5,287,451
----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (527,758) $ (9,486) $ (388,620) $(1,675,035)
Financial futures contracts (1,488) 6,302 21,285 38,732
Written options -- (5,327) (22,830) --
----------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (529,246) $ (8,511) $ (390,165) $(1,636,303)
----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(3,317,432) $(1,669,441) $(4,808,155) $(2,821,594)
Financial futures contracts (1,787) 1,079 4,586 1,618
----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(3,319,219) $(1,668,362) $(4,803,569) $(2,819,976)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,848,465) $(1,676,873) $(5,193,734) $(4,456,279)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 682,374 $ 264,247 $ 2,599,974 $ 831,172
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Investment Income
------------------------------------------------------------------------------------------------------------------------
Interest $ 3,280,707 $ 17,202,166 $ 17,367,690 $ 818,649
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 3,280,707 $ 17,202,166 $ 17,367,690 $ 818,649
------------------------------------------------------------------------------------------------------------------------
Expenses
------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 158,394 $ 1,216,412 $ 1,223,892 $ 21,272
Trustees fees and expenses 8,789 20,170 20,368 536
Legal and accounting services 22,671 43,610 81,494 19,739
Custodian fee 34,419 114,342 146,348 15,936
Miscellaneous 10,648 50,981 77,417 4,669
------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 234,921 $ 1,445,515 $ 1,549,519 $ 62,152
------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 11,319 $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 11,319 $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 223,602 $ 1,445,515 $ 1,549,519 $ 62,152
------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,057,105 $ 15,756,651 $ 15,818,171 $ 756,497
------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (607,081) $ (11,015) $ 210,641 $ (291,804)
Financial futures contracts (1,277) (6,305) 11,827 --
------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (608,358) $ (17,320) $ 222,468 $ (291,804)
------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(1,965,079) $(13,347,272) $(15,716,004) $ (374,388)
Financial futures contracts (47,823) (409,911) (5,955) --
------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(2,012,902) $(13,757,183) $(15,721,959) $ (374,388)
------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(2,621,260) $(13,774,503) $(15,499,491) $ (666,192)
------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 435,845 $ 1,982,148 $ 318,680 $ 90,305
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,530,839 $ 1,941,120 $ 7,793,708 $ 5,287,451
Net realized loss (529,246) (8,511) (390,165) (1,636,303)
Net change in unrealized appreciation
(depreciation) (3,319,219) (1,668,362) (4,803,569) (2,819,976)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 682,374 $ 264,247 $ 2,599,974 $ 831,172
--------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,242,737 $ 2,519,178 $ 9,001,578 $ 4,120,260
Withdrawals (26,634,396) (10,037,815) (36,358,485) (28,838,316)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(21,391,659) $ (7,518,637) $(27,356,907) $(24,718,056)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(20,709,285) $ (7,254,390) $(24,756,933) $(23,886,884)
--------------------------------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,333,288 $ 37,874,067 $157,893,588 $109,463,352
--------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 73,624,003 $ 30,619,677 $133,136,655 $ 85,576,468
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,057,105 $ 15,756,651 $ 15,818,171 $ 756,497
Net realized gain (loss) (608,358) (17,320) 222,468 (291,804)
Net change in unrealized appreciation
(depreciation) (2,012,902) (13,757,183) (15,721,959) (374,388)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 435,845 $ 1,982,148 $ 318,680 $ 90,305
----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,948,681 $ 12,359,592 $ 9,874,314 $ 526,482
Withdrawals (15,929,506) (75,275,630) (87,374,122) (5,371,519)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(11,980,825) $(62,916,038) $(77,499,808) $(4,845,037)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(11,544,980) $(60,933,890) $(77,181,128) $(4,754,732)
----------------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 60,392,868 $309,333,407 $314,873,291 $15,765,152
----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 48,847,888 $248,399,517 $237,692,163 $11,010,420
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,318,760 $ 2,146,952 $ 8,526,230 $ 6,229,950
Net realized gain 1,622,656 811,139 1,435,275 2,217,392
Net change in unrealized appreciation
(depreciation) (4,960,999) (2,289,165) (5,177,956) (6,686,327)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,980,417 $ 668,926 $ 4,783,549 $ 1,761,015
--------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 13,039,976 $ 3,990,873 $ 15,311,591 $ 5,494,726
Withdrawals (23,779,211) (6,586,932) (27,156,440) (28,028,857)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(10,739,235) $(2,596,059) $(11,844,849) $(22,534,131)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (8,758,818) $(1,927,133) $ (7,061,300) $(20,773,116)
--------------------------------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------------------------------
At beginning of year $103,092,106 $39,801,200 $164,954,888 $130,236,468
--------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,333,288 $37,874,067 $157,893,588 $109,463,352
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,484,876 $ 17,814,663 $ 18,951,880 $ 927,072
Net realized gain 848,429 7,082,663 5,867,482 329,438
Net change in unrealized appreciation
(depreciation) (3,102,439) (19,049,566) (18,321,913) (862,443)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,230,866 $ 5,847,760 $ 6,497,449 $ 394,067
----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 6,142,642 $ 37,233,317 $ 25,746,805 $ 980,095
Withdrawals (13,964,317) (62,376,808) (76,902,838) (3,446,497)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (7,821,675) $(25,143,491) $(51,156,033) $(2,466,402)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (6,590,809) $(19,295,731) $(44,658,584) $(2,072,335)
----------------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 66,983,677 $328,629,138 $359,531,875 $17,837,487
----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 60,392,868 $309,333,407 $314,873,291 $15,765,152
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.50% 0.50% 0.51%
Expenses after custodian
fee reduction 0.51% 0.48% 0.48% 0.49% 0.50%
Net investment income 5.67% 5.21% 5.27% 5.56% 5.53%
Portfolio Turnover 25% 38% 23% 10% 18%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $73,624 $94,333 $103,092 $112,472 $129,862
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.39% 0.39% 0.40% 0.40% 0.40%
Net expenses after
custodian fee reduction 0.36% 0.35% 0.37% 0.36% 0.36%
Net investment income 5.85% 5.36% 5.49% 5.86% 5.75%
Portfolio Turnover 14% 33% 18% 14% 53%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $30,620 $37,874 $39,801 $42,624 $45,416
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.42%
Expenses after custodian
fee reduction 0.38%
Net investment income 5.73%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.50% 0.50% 0.51% 0.53% 0.52%
Expenses after custodian
fee reduction 0.48% 0.48% 0.50% 0.53% 0.50%
Net investment income 5.53% 5.15% 5.20% 5.50% 5.49%
Portfolio Turnover 20% 18% 7% 11% 23%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $133,137 $157,894 $164,955 $174,978 $187,617
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.50% 0.52% 0.54%
Expenses after custodian
fee reduction 0.52% 0.48% 0.48% 0.50% 0.52%
Net investment income 5.67% 5.10% 5.19% 5.45% 5.50%
Portfolio Turnover 30% 31% 26% 16% 49%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $85,576 $109,463 $130,236 $150,224 $173,465
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.45% 0.46% 0.47% 0.47% 0.48%
Expenses after custodian
fee reduction 0.43% 0.44% 0.45% 0.44% 0.46%
Net investment income 5.81% 5.28% 5.28% 5.71% 5.69%
Portfolio Turnover 12% 19% 23% 22% 45%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $48,848 $60,393 $66,984 $70,674 $76,090
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.53% 0.54% 0.54% 0.53%
Expenses after custodian
fee reduction 0.54% 0.52% 0.52% 0.52% 0.52%
Net investment income 5.91% 5.39% 5.52% 5.84% 5.82%
Portfolio Turnover 26% 32% 14% 24% 39%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $248,400 $309,333 $328,629 $352,772 $386,244
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.58% 0.54% 0.54% 0.55% 0.54%
Expenses after custodian
fee reduction 0.58% 0.50% 0.50% 0.51% 0.50%
Net investment income 5.92% 5.49% 5.66% 5.96% 5.90%
Portfolio Turnover 18% 27% 13% 17% 30%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $237,692 $314,873 $359,532 $402,221 $448,182
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TEXAS PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.48% 0.39% 0.38% 0.37% 0.32%
Net expenses after
custodian fee reduction 0.48% 0.36% 0.35% 0.35% 0.27%
Net investment income 5.79% 5.50% 5.58% 5.79% 5.81%
Portfolio Turnover 35% 55% 17% 17% 39%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $11,010 $15,765 $17,837 $21,676 $24,367
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
action not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.42%
Expenses after custodian
fee reduction 0.37%
Net investment income 5.71%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Arizona Municipals Portfolio (Arizona Portfolio), Colorado Municipals
Portfolio (Colorado Portfolio), Connecticut Municipals Portfolio (Connecticut
Portfolio), Michigan Municipals Portfolio (Michigan Portfolio), Minnesota
Municipals Portfolio (Minnesota Portfolio), New Jersey Municipals Portfolio
(New Jersey Portfolio), Pennsylvania Municipals Portfolio (Pennsylvania
Portfolio) and Texas Municipals Portfolio (Texas 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 Portfolios seek to achieve current income, exempt from regular federal
income tax and from particular state or local income or other taxes, by
investing primarily in investment grade municipal obligations. 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. Futures contracts and options on
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 discount when required for federal
income tax purposes.
C Federal Income 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 only to hedge against
anticipated future changes in interest rates. 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, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When a Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing options is limited to
the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued or 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.
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
Securities purchased on a when-issued or delayed delivery basis are
marked-to-market daily and begin earning interest on settlement date.
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 revenue and expense during the reporting period. Actual results could
differ from those estimates.
2 Investment Adviser Fee and Other Transactions with Affiliates
-------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended July 31, 2000, each Portfolio paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
---------------------------------------------------------------------
Arizona $ 291,302 0.36%
Colorado 75,588 0.23%
Connecticut 581,800 0.41%
Michigan 355,554 0.38%
Minnesota 158,394 0.30%
New Jersey 1,216,412 0.46%
Pennsylvania 1,223,892 0.46%
Texas 21,272 0.16%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios who are not affiliated with the Investment Adviser
may elect to defer receipt of all or a percentage of their annual fees in
accordance with the terms of the Trustees Deferred Compensation Plan. For the
year ended July 31, 2000, no significant amounts have been deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
3 Investments
-------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended July 31,
2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 19,406,091
Sales 36,476,082
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 4,678,698
Sales 10,643,554
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 28,163,159
Sales 45,867,541
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 27,601,481
Sales 47,276,154
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 6,411,225
Sales 15,846,085
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 68,086,835
Sales 117,229,413
</TABLE>
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 46,708,313
Sales 110,180,535
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 4,559,456
Sales 8,691,272
</TABLE>
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at July 31, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 72,176,216
------------------------------------------------------
Gross unrealized appreciation $ 3,769,467
Gross unrealized depreciation (2,919,976)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 849,491
------------------------------------------------------
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 30,680,138
------------------------------------------------------
Gross unrealized appreciation $ 702,956
Gross unrealized depreciation (1,364,921)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (661,965)
------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $131,235,003
------------------------------------------------------
Gross unrealized appreciation $ 4,046,435
Gross unrealized depreciation (3,265,180)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 781,255
------------------------------------------------------
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 82,790,253
------------------------------------------------------
Gross unrealized appreciation $ 4,020,687
Gross unrealized depreciation (2,645,215)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,375,472
------------------------------------------------------
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 47,429,619
------------------------------------------------------
Gross unrealized appreciation $ 1,879,704
Gross unrealized depreciation (1,115,908)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 763,796
------------------------------------------------------
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $245,027,029
------------------------------------------------------
Gross unrealized appreciation $ 10,432,424
Gross unrealized depreciation (10,036,050)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 396,374
------------------------------------------------------
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $242,384,348
------------------------------------------------------
Gross unrealized appreciation $ 8,114,626
Gross unrealized depreciation (16,923,839)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (8,809,213)
------------------------------------------------------
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 10,494,957
------------------------------------------------------
Gross unrealized appreciation $ 520,291
Gross unrealized depreciation (285,023)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 235,268
------------------------------------------------------
</TABLE>
5 Line of Credit
-------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and their affiliates in a committed $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 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 July 31, 2000, the
Connecticut Portfolio had a balance outstanding pursuant to this line of
credit of $100,000. The Portfolios did not have any significant borrowings or
allocated fees during the year ended July 31, 2000.
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
6 Financial Instruments
-------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at July 31, 2000
is as follows:
<TABLE>
<CAPTION>
FUTURES
CONTRACTS NET UNREALIZED
EXPIRATION APPRECIATION
PORTFOLIO DATE CONTRACTS POSITION (DEPRECIATION)
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
Arizona 9/00 18 U.S. Treasury Bond Short $ (1,787)
------------------------------------------------------------------------------------------------
Colorado 9/00 8 U.S. Treasury Bond Short $ 1,079
------------------------------------------------------------------------------------------------
Connecticut 9/00 34 U.S. Treasury Bond Short $ 4,586
------------------------------------------------------------------------------------------------
Michigan 9/00 6 U.S. Treasury Bond Short $ 1,618
------------------------------------------------------------------------------------------------
Minnesota 9/00 14 U.S. Treasury Bond Short $ (47,823)
------------------------------------------------------------------------------------------------
New Jersey 9/00 120 U.S. Treasury Bond Short $(409,911)
------------------------------------------------------------------------------------------------
Pennsylvania 9/00 60 U.S. Treasury Bond Short $ (5,955)
</TABLE>
At July 31, 2000, the Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF ARIZONA MUNICIPALS PORTFOLIO, COLORADO
MUNICIPALS PORTFOLIO, CONNECTICUT MUNICIPALS PORTFOLIO, MICHIGAN MUNICIPALS
PORTFOLIO, MINNESOTA MUNICIPALS PORTFOLIO, NEW JERSEY MUNICIPALS PORTFOLIO,
PENNSYLVANIA MUNICIPALS PORTFOLIO AND TEXAS MUNICIPALS PORTFOLIO:
---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Arizona Municipals Portfolio, Colorado
Municipals Portfolio, Connecticut Municipals Portfolio, Michigan Municipals
Portfolio, Minnesota Municipals Portfolio, New Jersey Municipals Portfolio,
Pennsylvania Municipals Portfolio and Texas Municipals Portfolio as of July 31,
2000, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended July 31, 2000 and 1999
and supplementary data for each of the years in the five year period ended
July 31, 2000. These financial statements and supplementary data are the
responsibility of the Trusts' management. Our responsibility is to express an
opinion on the financial statements and supplementary data based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at July 31, 2000, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of Arizona Municipals
Portfolio, Colorado Municipals Portfolio, Connecticut Municipals Portfolio,
Michigan Municipals Portfolio, Minnesota Municipals Portfolio, New Jersey
Municipals Portfolio, Pennsylvania Municipals Portfolio and Texas Municipals
Portfolio at July 31, 2000, the results of their operations, the changes in
their net assets and their supplementary data for the respective stated periods
in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 8, 2000
81
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
INVESTMENT MANAGEMENT
EATON VANCE MUNICIPALS FUNDS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
Thomas M. Metzold
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Colorado,
Connecticut and Michigan
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Arizona and
Pennsylvania Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio
Manager of Minnesota and
New Jersey Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio
Manager of Texas
Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
82
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INVESTMENT ADVISER OF THE PORTFOLIOS
Boston Management and Research
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF THE FUNDS
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
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
PFPC, Inc.
Attn: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
(800) 262-1122
INDEPENDENT AUDITORS
Deloitte & Touche LLP
200 Berkeley Street
Boston, MA 02116-5022
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
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This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution
plan, sales charges and expenses. Please read the prospectus carefully before
you invest or send money.
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313-9/00 8CSRC
