<PAGE>
[EATON VANCE LOGO]
[EDUCATION SIGN PHOTO]
SEMIANNUAL REPORT JANUARY 31, 2000
[HIGHWAY PHOTO]
EATON VANCE
MUNICIPALS
TRUST
Arizona
Colorado
Connecticut
[EATON VANCE 75TH ANNIVERSARY LOGO]
Michigan
Minnesota
New Jersey
[BRIDGE PHOTO] Pennsylvania
Texas
<PAGE>
EATON VANCE MUNICIPALS FUNDS as of January 31, 2000
- --------------------------------------------------------------------------------
LETTER TO SHAREHOLDERS
- --------------------------------------------------------------------------------
[PHOTO]
Thomas J. Fetter
President
The past year proved very challenging for bond investors, as a strong economy
led to higher interest rates and a difficult environment for fixed-income
vehicles. Amid a continuing robust economy, the Federal Reserve maintained a
watchful eye for any sign of inflation. On four occasions during the past twelve
months, the Fed has raised its Federal Funds rate - a key barometer of
short-term interest rates - in an attempt to reduce the potential for inflation.
The bond markets - including the municipal market - were on the defensive for
much of the year, and posted their worst showing since 1994.
IN THE WAKE OF LAST YEAR'S BOND MARKET DECLINE, MUNICIPAL YIELDS NEARLY EQUAL
TREASURY YIELDS...
Rising interest rates pushed municipal bond yields significantly higher in 1999.
As a result, the ratio of municipal bond yields to Treasury yields was very high
by historical standards, reaching around 96% of Treasury yields at January 31,
2000.
A GROWING BUDGET SURPLUS SUGGESTS A FAVORABLE LONG-TERM OUTLOOK FOR MUNICIPAL
BONDS...
A strong economy combined with low inflation has resulted in the first budget
surplus in a generation. Not surprisingly, the Treasury Department has announced
that it will start to selectively buy back outstanding debt issues. That could
well create a favorable long-term scenario for bonds. In addition, the forward
calendar of new MUNICIPAL issuance is significantly lighter than in recent
years. That should be a positive factor for municipal bonds because the market
should be less impacted by supply pressures.
[CHART]
Municipal bonds yield 96% of Treasury yields
6.25% 10.35%
30-Year AAA-rated Taxable equivalent yield
General Obligation (60) Bonds* in 39.6% tax bracket
6.49%
30-Year Treasury bond
Principle interest payment of Treasury securities are guaranteed by the
U.S. government.
*GO yields are a compilation of a representative variety of general
obligations and are not necessarily representative of the Funds' yields.
Statistics as of January 31, 2000.
Past performance is no guarantee of future results.
Source: Bloomberg, L.P.
MUNICIPAL BONDS FINANCE VITAL PUBLIC PROJECTS WHILE PROVIDING RELIEF TO
TAX-WEARY INVESTORS...
Through their purchases of municipal bonds, investors provide financing for a
broad array of vital public works, including those for transportation
facilities, highway construction and industrial development. These projects not
only improve our quality of life, but also promote private enterprise and create
new jobs.
Adding to their unique role, municipal bonds are among the few tax-advantaged
vehicles remaining for investors. Eaton Vance Municipals Funds will continue
their traditional investment pursuit: maintaining a portfolio of primarily
high-quality bonds with competitive levels of tax-exempt income. Our goal
remains to provide excellent income opportunities for today's tax-burdened
investors.
Sincerely,
/s/ Thomas J. Fetter
----------------------------
Thomas J. Fetter
President
March 8, 2000
- --------------------------------------------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE SUBJECT
TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED. YIELDS WILL
CHANGE.
- --------------------------------------------------------------------------------
2
<PAGE>
EATON VANCE ARIZONA MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Consumer spending and a booming housing market continued to drive Arizona's
robust economy in 1999. Retail stores, motor vehicle dealers, apparel and
accessories merchants, and furniture stores all recorded strong gains,
while housing permits remained near their record levels reached in March
1999.
- - There have been preliminary signs of a slowdown in two key economic
indicators: employment and personal income growth. However, University of
Arizona economists report that the latest data are subject to significant
upward revision, suggesting that Arizona's economy is continuing to expand
at a rapid pace.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -5.70% and -6.04%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.04 on January 31, 2000 from $9.85 on July 31, 1999, and the
reinvestment of $0.253 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $10.05 from $10.95, and the
reinvestment of $0.245 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 5.53% for Class A and 4.73% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.16% and 7.83%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.45% and
4.96%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 9.02% and 8.21% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - New municipal bond issuance in Arizona has been limited. However, Eaton
Vance's long-standing relationships with brokers have allowed us access to
some attractive deals.
- - Call protection remained an important structural consideration. Management
has continued to try to improve call protection whenever possible to help
improve the Portfolio's performance characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 55
- - Average Maturity: 20.2 years
- - Average Rating: AA-
- - Average Call: 8.1 years
- - Average Dollar Price: $89.98
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 52.3%
AA 15.7%
A 8.8%
BBB 7.6%
BB 3.1%
B 0.9%
Non-Rated 11.6%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -7.83% -8.55%
Five Years 5.07 4.52
Life of Fund+ 3.46 5.49
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -12.24% -12.92%
Five Years 4.06 4.18
Life of Fund+ 2.64 5.49
</TABLE>
+Inception date: Class A: 12/13/93; Class B: 7/25/91
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By Net Assets
[CHART]
<TABLE>
<S> <C>
Escrowed/Prerefunded 17.4%
Insured Hospital* 12.9%
Electric Utilities 8.9%
Insured Electric Utilities* 8.0%
Industrial Devel. Revenue 6.8%
</TABLE>
(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 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 historical and are calculated
by determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect the maximum
4.75% sales charge. SEC average annual returns for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd
years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year.
(7)May not represent the Portfolio's current or future investments.
Five largest sectors represent 54.0% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
3
<PAGE>
EATON VANCE COLORADO MUNICIPALS FUND AS OF JANUARY 31, 2000
- --------------------------------------------------------------------------------
INVESTMENT UPDATE
- --------------------------------------------------------------------------------
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Colorado economy remained strong in 1999, though some key data showed
signs of a slight slowdown going into 2000. While the unemployment rate
continued to drop (2.8% as of year-end), employment growth was also
decreasing. Inflation, already above the national rate, increased slightly
in 1999.
- - The primary factors preventing further expansion in Colorado are a labor
shortage, caused by full employment, and a slowdown in the construction
industry, which had been the strongest aspect of the Colorado economy
throughout the 1990s. Analysts predict that advanced technology, service,
and tourism will take the lead as the state's strongest economic sectors.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -5.87% and -6.13%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.76 on January 31, 2000 from $9.57 on July 31, 1999, and the
reinvestment of $0.255 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.54 from $10.41, and the
reinvestment of $0.240 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 5.71% for Class A and 4.91% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.45% and 8.12%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.38% and
4.87%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 8.91% and 8.06% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - Call protection remained an important structural consideration. As more
bonds have reached early redemption dates, management continued to try to
increase call protection to improve the Portfolio's performance
characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 41
- - Average Maturity: 22.2 years
- - Average Rating: A+
- - Average Call: 10.0 years
- - Average Dollar Price: $86.12
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 39.6%
AA 8.0%
A 11.8%
BBB 20.3%
Non-Rated 20.3%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -7.84% -8.55%
Five Years 4.97 4.44
Life of Fund+ 3.11 4.35
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -12.21% -12.91%
Five Years 3.96 4.10
Life of Fund+ 2.29 4.35
</TABLE>
+Inception date: Class A: 12/10/93; Class B: 8/25/92
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
BY NET ASSETS
[CHART]
<TABLE>
<S> <C>
Hospital 20.8%
Insured Transportation* 14.3%
Housing 12.6%
Industrial Development Revenue 8.6%
Ins. Gen'l Obligation* 5.9%
</TABLE>
(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 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 historical
and are calculated by determining the percentage change in NAV with
all distributions reinvested. SEC average annual returns for Class A
reflect the maximum 4.75% sales charge. SEC average annual returns
for Class B reflect applicable CDSC based on the following schedule:
5% - 1st and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year;
1% - 6th year. (7)May not represent the Portfolio's current or future
investments. Five largest sectors represent 62.2% of the Portfolio's net
assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
4
<PAGE>
EATON VANCE CONNECTICUT MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Connecticut's economy remained strong heading into the year 2000. Key
indicators - including employment, income, housing permits, and retail
sales - all showed healthy gains for 1999. Consumer confidence recorded a
slight dip at year-end; however, no real signs of an economic slowdown
appear to be on the horizon.
- - Economic analysts predict another year of slower, but sustainable, growth
for the Connecticut economy. Employment may increase at a slightly lesser
pace than in 1999, as the labor market grows tighter. Unemployment, which
reached an all-time low of 2.1% in August 1999, was at 2.8% as of December.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -4.32% and -4.67%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.75 on January 31, 2000 from $10.46 on July 31, 1999, and the
reinvestment of $0.262 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.70 from $10.40, and the
reinvestment of $0.219 per share in tax-free income. (2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 5.33% for Class A and 4.41% for Class B.(3) These
distribution rates are equivalent to taxable rates of 8.82% and 7.30%,
respectively. (4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 4.99% and
4.51%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 8.26% and 7.47% respectively. (4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - With more bonds reaching early redemption dates, call protection remained
an important aspect of the Portfolio's strategy. Management continued to
try to increase call protection to improve the Portfolio's performance
characteristics.
- - With the municipal market in decline in 1999, management took advantage of
the environment by selectively establishing tax losses to offset possible
future gains. The proceeds of those sales were used to buy bonds with more
attractive yields and trading characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 72
- - Average Maturity: 20.1 years
- - Average Rating: A+
- - Average Call: 8.2 years
- - Average Dollar Price: $94.94
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 34.2%
AA 19.4%
A 14.7%
BBB 18.7%
BB 1.0%
Non-Rated 12.0%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -5.58% -6.33%
Five Years 5.49 4.69
Life of Fund+ 5.05 4.51
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -10.06% -10.82%
Five Years 4.48 4.35
Life of Fund+ 4.17 4.51
</TABLE>
+Inception date: Class A: 4/19/94; Class B: 5/1/92
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By net assets
[CHART]
<TABLE>
<S> <C>
Insured Education* 10.0%
Nursing Home 9.8%
Transportation 9.7%
Education 7.5%
Hospital 7.3%
</TABLE>
(1) These returns do not include the 4.75% maximum sales charge for Class A
shares or the applicable contingent deferred sales 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 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 historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect the maximum
4.75% sales charge. SEC average annual returns for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. (7)May not
represent the Portfolio's current or future investments. Five largest
sectors represent 44.3% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
5
<PAGE>
EATON VANCE MICHIGAN MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
William H. Ahern
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Michigan's unemployment rate ended 1999 at 3.6%, slightly below the 3.8%
level of a year ago. Job growth in the retail sector was strong at
year-end, as stores geared up for the holidays, but these gains were offset
by job losses in construction. Inflation in Michigan was approximately 2.6%
in 1999, a small increase from 1998.
- - Michigan governor John Engler recently announced that, for the third year
in a row, Michigan was the top state in the U.S. for new plants and
expansion projects, edging out California. In addition, the study named
Detroit the nation's top metropolitan area for attracting new business in
1999.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -6.14% and -6.46%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.62 on January 31, 2000 from $9.43 on July 31, 1999, and the
reinvestment of $0.236 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.62 from $10.52, and the
reinvestment of $0.227 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 5.41% for Class A and 4.57% for Class B.(3) These
distribution rates are equivalent to taxable rates of 8.96% and 7.56%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.16% and
4.62%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 8.54% and 7.65% respectively.(4)
MANAGEMENT UPDATE
- - We are pleased to announce that as of January 17, 2000, William H. Ahern
became the Portfolio Manager of Eaton Vance Michigan Municipals Fund. Mr.
Ahern, a Certified Financial Analyst, is a Vice President of Eaton Vance.
- - Call protection remained an important structural consideration. With more
bonds reaching early redemption dates, management increased call protection
to improve the Portfolio's performance characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 72
- - Average Maturity: 21.8 years
- - Average Rating: AA-
- - Average Call: 7.12 years
- - Average Dollar Price: $88.54
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 54.1%
AA 4.1%
A 20.8%
BBB 10.8%
BB 0.7%
B 0.9%
Non-Rated 8.6%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -8.41% -9.11%
Five Years 4.36 3.89
Life of Fund+ 2.62 4.77
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -12.73% -13.46%
Five Years 3.34 3.55
Life of Fund+ 1.81 4.77
+Inception date: Class A: 12/7/93; Class B: 4/19/91
</TABLE>
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By total net assets
[CHART]
<TABLE>
<S> <C>
Insured General Obligation* 17.6%
Hospital 10.6%
Special tax Revenue 8.9%
Industrial Development Revenue 8.4%
Insured Water & Sewer* 8.2%
</TABLE>
(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 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 historical and are calculated by determining the percentage
change in NAV with all distributions reinvested. SEC average annual
returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% -3rd year; 3% - 4th year;
2% - 5th year; 1% - 6th year. (7)May not represent the Portfolio's current
or future investments. Five largest sectors represent 53.7% of the
Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
6
<PAGE>
EATON VANCE MINNESOTA MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Minnesota was one of seven states named to the Corporation for Enterprise
Development Honor Roll in 1999, for the sixth consecutive year. This honor
was given in recognition of Minnesota's strong employment opportunities,
dynamic business sector, and outstanding resources for future economic
growth.
- - Minnesota had an extremely low unemployment rate of 2.8% for 1999, the
third-lowest in the nation. More than 53,000 new jobs were added during the
year, with construction jobs growing by 10%. The seasonally adjusted rate
for the month of January 2000 was 2.5%, unchanged from December 1999, with
the strongest gains coming from the services industry.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -5.40% and -5.85%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $8.71 on January 31, 2000 from $9.46 on July 31, 1999, and the
reinvestment of $0.244 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.36 from $10.17, and the
reinvestment of $0.221 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000,
the distribution rates were 5.57% for Class A and 4.62% for Class B.(3)
These distribution rates are equivalent to taxable rates of 9.22% and
7.65%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.25% and
5.05%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 8.69% and 8.36% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - With more bonds reaching early redemption dates, call protection remained
an important aspect of the Portfolio's strategy. Management increased call
protection to improve the Portfolio's performance characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 49
- - Average Maturity: 21.5 years
- - Average Rating: AA-
- - Average Call: 10.5 years
- - Average Dollar Price: $87.62
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 43.3%
AA 16.9%
A 12.5%
BBB 16.0%
Non-Rated/Investment Grade 4.5%
Non-Rated/Below Investment Grade 6.8%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -7.96% -8.72%
Five Years 4.62 3.98
Life of Fund+ 2.98 4.32
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -12.36% -13.09%
Five Years 3.60 3.65
Life of Fund+ 2.16 4.32
</TABLE>
+Inception date: Class A: 12/9/93; Class B: 7/29/91
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By net assets
[CHART]
<TABLE>
<S> <C>
Housing 16.8%
Hospital 16.7%
Insured Electric Utilities* 15.1%
Industrial Development 10.3%
Escrowed 9.5%
</TABLE>
(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 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 historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect the maximum
4.75% sales charge. SEC average annual returns for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. (7) May not
represent the Portfolio's current or future investments. Five largest
sectors represent 68.4% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
7
<PAGE>
EATON VANCE NEW JERSEY MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
Robert B. MacIntosh
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - New Jersey ended 1999 with strong gains in non-farm payroll employment. The
construction industry, spurred by a strong overall economy and warm
weather, recorded the biggest employment increase, adding 1,300 jobs in
December. Gains were widespread throughout the service sector as well,
especially in business and computer services. The unemployment rate was
4.1% in December.
- - In keeping with national trends, two key economic indicators pointed to
ongoing strength in the New Jersey economy:strong consumer confidence
levels and continued low inflation. In addition, new building permits rose
in 1999, suggesting the construction industry will remain robust.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and
Class B shares had total returns of -5.81% and -6.26%, respectively. (1)
For Class A, this return resulted from a decrease in net asset value
(NAV) per share to $9.33 on January 31, 2000 from $10.19 on July 31,
1999, and the reinvestment of $0.275 per share in tax-free income. (2)
For Class B, this return resulted from a decrease in NAV to $9.71 from
$10.61, and the reinvestment of $0.243 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000,
the distribution rates were 5.84% for Class A and 4.89% for Class B. (3)
These distribution rates are equivalent to taxable rates of 9.67% and
8.10%, respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.44% and
4.98%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 9.01% and 8.25% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - The usually dynamic healthcare sector came under closer scrutiny in recent
months, as New Jersey's healthcare market became increasingly competitive.
- - Call protection remained an important consideration. With more bonds
reaching early redemption dates, management increased call protection to
improve the Portfolio's performance characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 86
- - Average Maturity: 27.9 years
- - Average Rating: A
- - Average Call: 18.3 years
- - Average Dollar Price: $90.31
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 30.6%
AA 15.1%
A 11.6%
BBB 15.6%
BB 6.9%
B 1.0%
Non-Rated/Investment Grade 9.0%
Non-Rated/Below Investment Grade 10.2%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -7.94% -8.77%
Five Years 4.89 4.03
Life of Fund+ 4.56 5.10
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -12.29% -13.12%
Five Years 3.38 3.70
Life of Fund+ 3.69 5.10
+Inception date: Class A: 4/13/94; Class B: 1/8/91
</TABLE>
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By net assets
[CHART]
<TABLE>
<S> <C>
Industrial Development Revenue 17.2%
Transportation 16.3%
Hospital 10.8%
Insured Transportation* 10.0%
Cogeneration 6.9%
</TABLE>
(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 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 historical
and are calculated by determining the percentage change in NAV with
all distributions reinvested. SEC average annual returns for Class A
reflect the maximum 4.75% sales charge. SEC average annual returns for
Class B reflect applicable CDSC based on the following schedule: 5% - 1st
and 2nd years; 4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th
year. (7)May not represent the Portfolio's current or future investments.
Five largest sectors represent 61.2% of the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks associated with these
investments.
8
<PAGE>
EATON VANCE PENNSYLVANIA MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
Cynthia J. Clemson
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - Pennsylvania's unemployment rate reached 4.2% in December of 1999, down
0.3% from the year before. Goods-producing industries posted strong job
gains, with growth concentrated in the areas of construction and durable
goods. Jobs in the services group increased by 1.2% overall during the
year.
- - Levels of personal income in Pennsylvania rose by 1.2% in the second
quarter of 1999, according to the most recent available data, trailing the
national rate of 2.5%. Average hourly earnings across the Commonwealth
increased by 22 cents, or 1.6%, over the year. All but one industry,
transportation equipment, posted advances for the 12-month period.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and Class
B shares had total returns of -4.66% and -5.05%, respectively.(1) For Class
A, this return resulted from a decrease in net asset value (NAV) per share
to $9.25 on January 31, 2000 from $9.99 on July 31, 1999, and the
reinvestment of $0.280 per share in tax-free income.(2) For Class B, this
return resulted from a decrease in NAV to $9.55 from $10.31, and the
reinvestment of $0.246 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 6.00% for Class A and 5.03% for Class B.(3) These
distribution rates are equivalent to taxable rates of 9.93% and 8.33%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 6.15% and
5.60%, respectively.(5) The SEC 30-day yields are equivalent to taxable
yields of 10.18% and 9.27% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - We are pleased to announce that, as of January 17, 2000, Cynthia J. Clemson
became the Portfolio Manager of Eaton Vance Pennsylvania Municipals Fund.
Ms.Clemson is a Vice President of Eaton Vance.
- - With municipals declining in 1999, management took advantage of the market
environment by selectively establishing tax losses to offset possible
future gains. The proceeds of those sales were used to buy bonds with more
attractive yields and trading characteristics.
- - Call protection remained an important component of management's strategy.
With more bonds reaching early redemption dates, management continued to
try to improve call protection whenever possible.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 107
- - Average Maturity: 20.2 years
- - Average Rating: A+
- - Average Call: 8.8 years
- - Average Dollar Price: $91.01
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 45.3%
AA 1.3%
A 13.1%
BBB 18.7%
BB 0.8%
Non-Rated 20.8%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -6.19% -6.94%
Five Years 4.98 4.14
Life of Fund+ 4.41 4.98
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -10.65% -11.38%
Five Years 3.96 3.81
Life of Fund+ 3.51 4.98
</TABLE>
+Inception date: Class A: 6/1/94; Class B: 1/8/91
5 LARGEST SECTORS(7)
- -------------------------------------------------------------------------------
By total net assets
[CHART]
<TABLE>
<S> <C>
Industrial Development Revenue 19.7%
Hospital 10.6%
Insured General Obligation* 10.3%
Escrowed/Prerefunded 9.0%
Insured - Hospital* 7.9%
</TABLE>
(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 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 historical and are calculated by
determining the percentage change in NAV with all distributions
reinvested. SEC average annual returns for Class A reflect the maximum
4.75% sales charge. SEC average annual returns for Class B reflect
applicable CDSC based on the following schedule: 5% - 1st and 2nd years;
4% - 3rd year; 3% - 4th year; 2% - 5th year; 1% - 6th year. (7)May not
represent the Portfolio's current or future investments. Five largest
sectors represent 57.5% of the Portfolio's net assets.
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.
*Private insurance does not remove the interest rate risks associated with these
investments.
9
<PAGE>
EATON VANCE TEXAS MUNICIPALS FUND AS OF JANUARY 31, 2000
- -------------------------------------------------------------------------------
INVESTMENT UPDATE
- -------------------------------------------------------------------------------
[PHOTO]
Thomas M. Metzold
Portfolio Manager
THE ECONOMY
- -------------------------------------------------------------------------------
- - The Texas economy remained robust in 1999. Consumer confidence posted
healthy gains, and gross state product was projected to reach $697.6
billion. Economic expansion is expected to continue to outpace the national
rate. Texas now accounts for 7.2% of total U.S. employment, and leads all
states in net job creation during the 1990s.
- - Seasonally adjusted unemployment in Texas was 4.3% in January 2000, down
0.3% from the previous year. New job growth was moderate throughout 1999,
with services, wholesale, and retail trade recording the strongest gains.
Contrary to the national trend, Texas also had significant increases in
manufacturing employment.
THE FUND
- -------------------------------------------------------------------------------
- - During the six months ended January 31, 2000, the Fund's Class A and
Class B shares had total returns of -5.36% and -5.68%, respectively. (1)
For Class A, this return resulted from a decrease in net asset value
(NAV) per share to $8.80 on January 31, 2000 from $9.56 on July 31,
1999, and the reinvestment of $0.252 per share in tax-free income. (2)
For Class B, this return resulted from a decrease in NAV to $9.86 from
$10.71, and the reinvestment of $0.247 per share in tax-free income.(2)
- - Based on the Fund's most recent dividends and NAVs on January 31, 2000, the
distribution rates were 5.63% for Class A and 4.83% for Class B. (3) These
distribution rates are equivalent to taxable rates of 9.32% and 8.00%,
respectively.(4)
- - The SEC 30-day yields for Class A and B shares at January 31 were 5.38% and
4.62%, respectively. (5) The SEC 30-day yields are equivalent to taxable
yields of 8.91% and 7.65% respectively.(4)
MANAGEMENT UPDATE
- -------------------------------------------------------------------------------
- - The Portfolio was characterized by relatively little turnover, as the Texas
municipal market featured limited new issuance. Management maintained its
"barbell" strategy, complementing high-coupon issues for yield with
discount issues.
- - Call protection remained an important structural consideration. As more
bonds reached early redemption dates, management increased call protection
to improve the Portfolio's performance characteristics.
- - Management took advantage of the market decline by selectively establishing
tax losses to offset possible future gains. The proceeds of those sales
were used to buy bonds with more attractive yields and trading
characteristics.
<TABLE>
<CAPTION>
PORTFOLIO STATISTICS*
- -------------------------------------------------------------------------------
<S> <C>
- - Number of Issues: 35
- - Average Maturity: 21.5 years
- - Average Rating: AA+
- - Average Call: 10.1 years
- - Average Dollar Price: $91.42
</TABLE>
RATING DISTRIBUTION*
- -------------------------------------------------------------------------------
[CHART]
AAA 61.6%
AA 15.6%
A 8.2%
BBB 6.9%
Non-Rated 7.7%
*May not represent the Portfolio's current or future investments.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
PERFORMANCE(6) Class A Class B
- -------------------------------------------------------------------------------
Average Annual Total Returns (at net asset value)
- -------------------------------------------------------------------------------
<S> <C> <C>
One Year -7.27% -7.98%
Five Years 5.11 4.61
Life of Fund+ 3.24 5.01
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- -------------------------------------------------------------------------------
One Year -11.68% -12.37%
Five Years 4.10 4.28
Life of Fund+ 2.43 5.01
</TABLE>
+Inception date: Class A: 12/8/93; Class B: 3/24/92
5 LARGEST SECTORS (7)
- -------------------------------------------------------------------------------
By total net assets
[CHART]
<TABLE>
<S> <C>
General Obligation 24.4%
Housing 18.8%
Insured Hospital* 9.6%
Insured Electric Utilities* 9.0%
Insured Utilities* 8.2%
</TABLE>
(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 historical and are calculated by determining the
percentage change in NAV with all distributions reinvested. SEC average
annual returns for Class A reflect the maximum 4.75% sales charge. SEC
average annual returns for Class B reflect applicable CDSC based on the
following schedule: 5% - 1st and 2nd years; 4% - 3rd year; 3% -4th year;
2% - 5th year; 1% - 6th year. (7)May not represent the Portfolio's
current or future investments. Five largest sectors represent 70.0% of
the Portfolio's net assets.
Past performance is no guarantee of future results. Investment return and
principal value may fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
*Private insurance does not remove the interest rate risks
associated with these investments.
10
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------
Investment in Municipals Portfolio --
Identified cost $79,663,227 $34,186,025 $140,646,050 $95,101,947
Unrealized depreciation (2,692,220) (2,173,001) (4,836,085) (3,328,282)
- ------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT, AT VALUE $76,971,007 $32,013,024 $135,809,965 $91,773,665
- ------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 12,517 $ 4,820 $ 255,455 $ --
- ------------------------------------------------------------------------------------------------------
TOTAL ASSETS $76,983,524 $32,017,844 $136,065,420 $91,773,665
- ------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 243,877 $ -- $ 128,619 $ 55,748
Dividends payable 140,837 61,671 239,204 154,520
Payable to affiliate for Trustees' fees 1,398 -- -- --
Accrued expenses 39,989 9,011 36,680 72,516
- ------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 426,101 $ 70,682 $ 404,503 $ 282,784
- ------------------------------------------------------------------------------------------------------
NET ASSETS $76,557,423 $31,947,162 $135,660,917 $91,490,881
- ------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------
Paid-in capital $80,432,552 $34,781,017 $144,510,138 $96,099,048
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (964,842) (658,886) (3,818,525) (1,075,224)
Accumulated distributions in excess of
net investment income (218,067) (1,968) (194,611) (204,661)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (2,692,220) (2,173,001) (4,836,085) (3,328,282)
- ------------------------------------------------------------------------------------------------------
TOTAL $76,557,423 $31,947,162 $135,660,917 $91,490,881
- ------------------------------------------------------------------------------------------------------
Class A Shares
- ------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,029,922 $ 1,888,669 $ 8,772,153 $ 2,462,021
SHARES OUTSTANDING 445,913 215,637 899,741 285,588
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.04 $ 8.76 $ 9.75 $ 8.62
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.49 $ 9.20 $ 10.24 $ 9.05
- ------------------------------------------------------------------------------------------------------
Class B Shares
- ------------------------------------------------------------------------------------------------------
NET ASSETS $72,527,501 $30,058,493 $126,888,764 $89,028,860
SHARES OUTSTANDING 7,216,534 3,152,415 13,084,850 9,256,487
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 10.05 $ 9.54 $ 9.70 $ 9.62
- ------------------------------------------------------------------------------------------------------
</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 JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 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 $51,817,126 $267,993,684 $273,903,821 $13,838,241
Unrealized depreciation (1,295,300) (11,694,073) (15,164,896) (370,217)
- ---------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT, AT VALUE $50,521,826 $256,299,611 $258,738,925 $13,468,024
- ---------------------------------------------------------------------------------------------------------
Receivable for Fund shares sold $ 28,799 $ 32,498 $ 50,559 $ 671
- ---------------------------------------------------------------------------------------------------------
TOTAL ASSETS $50,550,625 $256,332,109 $258,789,484 $13,468,695
- ---------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------
Payable for Fund shares redeemed $ 13,919 $ 608,181 $ 651,803 $ --
Dividends payable 97,046 494,596 465,401 24,477
Payable to affiliate for Trustees' fees -- -- 40 --
Accrued expenses 20,730 64,569 81,525 6,502
- ---------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 131,695 $ 1,167,346 $ 1,198,769 $ 30,979
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $50,418,930 $255,164,763 $257,590,715 $13,437,716
- ---------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------
Paid-in capital $55,562,207 $273,174,867 $282,455,211 $14,153,985
Accumulated net realized loss from
Portfolio (computed on the basis of
identified cost) (3,753,612) (5,872,471) (9,292,300) (327,272)
Accumulated distributions in excess of
net investment income (94,365) (443,560) (407,300) (18,780)
Net unrealized depreciation from
Portfolio (computed on the basis of
identified cost) (1,295,300) (11,694,073) (15,164,896) (370,217)
- ---------------------------------------------------------------------------------------------------------
TOTAL $50,418,930 $255,164,763 $257,590,715 $13,437,716
- ---------------------------------------------------------------------------------------------------------
Class A Shares
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $ 4,882,636 $ 15,495,873 $ 9,175,239 $ 407,568
SHARES OUTSTANDING 560,735 1,661,703 991,953 46,292
NET ASSET VALUE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 8.71 $ 9.33 $ 9.25 $ 8.80
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of net asset
value per share) $ 9.14 $ 9.80 $ 9.71 $ 9.24
- ---------------------------------------------------------------------------------------------------------
Class B Shares
- ---------------------------------------------------------------------------------------------------------
NET ASSETS $45,536,294 $239,668,890 $248,415,476 $13,030,148
SHARES OUTSTANDING 4,863,032 24,671,809 26,011,341 1,321,173
NET ASSET VALUE, OFFERING PRICE AND
REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of
beneficial interest outstanding) $ 9.36 $ 9.71 $ 9.55 $ 9.86
- ---------------------------------------------------------------------------------------------------------
</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 JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA FUND COLORADO FUND CONNECTICUT FUND MICHIGAN FUND
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 2,629,388 $ 1,083,316 $ 4,419,907 $ 3,037,246
Expenses allocated from Portfolio (222,052) (75,218) (365,394) (259,351)
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 2,407,336 $ 1,008,098 $ 4,054,513 $ 2,777,895
- ------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,196 $ 77 $ 2,198 $ 2,244
Distribution and service fees
Class A 3,550 1,784 7,366 1,999
Class B 376,408 154,426 653,072 465,334
Legal and accounting services 20,348 13,666 1,699 18,362
Printing and postage 5,375 1,967 8,091 5,044
Custodian fee 5,824 2,926 7,407 6,842
Transfer and dividend disbursing agent
fees 38,654 11,472 57,075 44,097
Registration fees 6,420 838 2,892 2,900
Miscellaneous 8,701 5,897 7,456 14,329
- ------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 466,476 $ 193,053 $ 747,256 $ 561,151
- ------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,940,860 $ 815,045 $ 3,307,257 $ 2,216,744
- ------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (506,893) $ 119,013 $ 39,517 $(1,394,672)
Financial futures contracts (1,488) (1,545) (10,360) 4,188
- ------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (508,381) $ 117,468 $ 29,157 $(1,390,484)
- ------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(6,859,144) $(3,180,478) $(10,425,495) $(7,525,349)
- ------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(6,859,144) $(3,180,478) $(10,425,495) $(7,525,349)
- ------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(7,367,525) $(3,063,010) $(10,396,338) $(8,915,833)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(5,426,665) $(2,247,965) $ (7,089,081) $(6,699,089)
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA FUND NEW JERSEY FUND PENNSYLVANIA FUND TEXAS FUND
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------
Interest allocated from Portfolio $ 1,726,420 $ 9,029,127 $ 9,284,011 $ 451,671
Expenses allocated from Portfolio (128,299) (780,796) (831,767) (39,956)
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 1,598,121 $ 8,248,331 $ 8,452,244 $ 411,715
- ---------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------
Trustees fees and expenses $ 1,113 $ 2,213 $ 2,284 $ 130
Distribution and service fees
Class A 3,955 11,159 4,965 405
Class B 238,818 1,225,204 1,293,746 65,381
Legal and accounting services 2,731 4,127 16,923 13,380
Printing and postage 5,550 19,308 13,716 1,317
Custodian fee 4,210 10,528 11,957 2,795
Transfer and dividend disbursing agent
fees 22,397 99,283 143,446 6,275
Registration fees 1,234 5,689 2,083 900
Miscellaneous 6,073 14,284 17,968 5,019
- ---------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 286,081 $ 1,391,795 $ 1,507,088 $ 95,602
- ---------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,312,040 $ 6,856,536 $ 6,945,156 $ 316,113
- ---------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) from Portfolio
- ---------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (615,615) $ 320,180 $ 233,001 $ (196,311)
Financial futures contracts (1,277) (6,384) 11,827 --
- ---------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (616,892) $ 313,796 $ 244,828 $ (196,311)
- ---------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments $(4,024,175) $(25,446,567) $(22,121,294) $ (979,874)
- ---------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(4,024,175) $(25,446,567) $(22,121,294) $ (979,874)
- ---------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(4,641,067) $(25,132,771) $(21,876,466) $(1,176,185)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,329,027) $(18,276,235) $(14,931,310) $ (860,072)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 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 $ 1,940,860 $ 815,045 $ 3,307,257 $ 2,216,744
Net realized gain (loss) (508,381) 117,468 29,157 (1,390,484)
Net change in unrealized appreciation
(depreciation) (6,859,144) (3,180,478) (10,425,495) (7,525,349)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (5,426,665) $(2,247,965) $ (7,089,081) $ (6,699,089)
- ------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (123,141) $ (52,704) $ (239,726) $ (48,816)
Class B (1,817,719) (783,430) (2,997,239) (2,168,456)
In excess of net investment income
Class A (3,008) -- (64) --
Class B (47,202) (2,668) -- (481)
- ------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (1,991,070) $ (838,802) $ (3,237,029) $ (2,217,753)
- ------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 309,656 $ 266,493 $ 1,197,046 $ 1,475,934
Class B 2,243,139 1,241,739 3,995,404 1,893,928
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 71,714 23,906 126,158 21,825
Class B 663,174 391,593 1,439,354 1,056,643
Cost of shares redeemed
Class A (1,350,003) (252,819) (1,131,890) (607,611)
Class B (12,053,900) (4,360,267) (17,885,220) (12,526,658)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(10,116,220) $(2,689,355) $(12,259,148) $ (8,685,939)
- ------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(17,533,955) $(5,776,122) $(22,585,258) $(17,602,781)
- ------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------
At beginning of period $ 94,091,378 $37,723,284 $158,246,175 $109,093,662
- ------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 76,557,423 $31,947,162 $135,660,917 $ 91,490,881
- ------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in net assets
- ------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (218,067) $ (1,968) $ (194,611) $ (204,661)
- ------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 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 $ 1,312,040 $ 6,856,536 $ 6,945,156 $ 316,113
Net realized gain (loss) (616,892) 313,796 244,828 (196,311)
Net change in unrealized appreciation
(depreciation) (4,024,175) (25,446,567) (22,121,294) (979,874)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,329,027) $(18,276,235) $(14,931,310) $ (860,072)
- ---------------------------------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (125,211) $ (480,598) $ (269,642) $ (11,490)
Class B (1,133,075) (6,303,562) (6,675,514) (316,350)
In excess of net investment income
Class A -- (3,808) (6,468) (990)
Class B -- -- (73,243) (17,049)
- ---------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $(1,258,286) $ (6,787,968) $ (7,024,867) $ (345,879)
- ---------------------------------------------------------------------------------------------------------
Transactions in shares of beneficial
interest --
Proceeds from sale of shares
Class A $ 1,123,997 $ 2,590,035 $ 1,419,432 $ 40,768
Class B 1,495,898 5,398,405 5,087,947 390,949
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 49,269 173,867 173,251 3,780
Class B 606,874 3,136,635 2,835,990 113,127
Cost of shares redeemed
Class A (723,851) (4,628,754) (2,322,798) (57,943)
Class B (7,723,205) (34,556,808) (41,448,720) (1,523,617)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $(5,171,018) $(27,886,620) $(34,254,898) $(1,032,936)
- ---------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(9,758,331) $(52,950,823) $(56,211,075) $(2,238,887)
- ---------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------
At beginning of period $60,177,261 $308,115,586 $313,801,790 $15,676,603
- ---------------------------------------------------------------------------------------------------------
AT END OF PERIOD $50,418,930 $255,164,763 $257,590,715 $13,437,716
- ---------------------------------------------------------------------------------------------------------
Accumulated distributions in excess of net
investment income included in net assets
- ---------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ (94,365) $ (443,560) $ (407,300) $ (18,780)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) 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 JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) 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) --
From net realized gain
Class A -- -- -- --
Class B -- -- -- --
- ---------------------------------------------------------------------------------------------------------
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 JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.850 $10.200 $10.090
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.247 $ 0.504 $ 0.499
Net realized and unrealized gain
(loss) (0.804) (0.348) 0.126
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.557) $ 0.156 $ 0.625
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.247) $(0.504) $(0.499)
In excess of net investment income (0.006) (0.002) (0.016)
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.253) $(0.506) $(0.515)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.040 $ 9.850 $10.200
- ----------------------------------------------------------------------------------
TOTAL RETURN(2) (5.70)% 1.48% 6.34%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 4,030 $ 5,409 $ 3,498
Ratios (As a percentage of average
daily net assets):
Expenses(3) 0.88%(4) 0.77% 0.78%
Expenses after custodian fee
reduction(3) 0.87%(4) 0.76% 0.76%
Net investment income 5.27%(4) 4.90% 4.88%
Portfolio Turnover of the Portfolio 19% 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.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
19
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
ARIZONA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.950 $11.340 $11.220 $ 10.680 $ 10.530 $ 10.390
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.232 $ 0.472 $ 0.476 $ 0.486 $ 0.482 $ 0.492
Net realized and unrealized gain
(loss) (0.891) (0.381) 0.134 0.539 0.161 0.164
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.659) $ 0.091 $ 0.610 $ 1.025 $ 0.643 $ 0.656
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.235) $(0.472) $(0.476) $ (0.485) $ (0.488) $ (0.492)
In excess of net investment income (0.006) (0.009) (0.014) -- (0.005) (0.024)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.241) $(0.481) $(0.490) $ (0.485) $ (0.493) $ (0.516)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $10.050 $10.950 $11.340 $ 11.220 $ 10.680 $ 10.530
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (6.04)% 0.74% 5.54% 9.85% 6.17% 6.64%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $72,528 $88,682 $99,293 $109,379 $127,681 $141,859
Ratios (As a percentage of average
daily net assets):
Expenses(3)(4) 1.67%(5) 1.56% 1.57% 1.58% 1.56% 1.53%
Expenses after custodian fee
reduction(3) 1.66%(5) 1.55% 1.55% 1.57% 1.55% --
Net investment income 4.50%(5) 4.16% 4.22% 4.50% 4.49% 4.81%
Portfolio Turnover of the Portfolio 19% 38% 23% 10% 18% 22%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
20
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
COLORADO FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999 1998
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.570 $ 9.950 $ 9.920
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.245 $ 0.507 $ 0.507
Net realized and unrealized gain
(loss) (0.800) (0.374) 0.038
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.555) $ 0.133 $ 0.545
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.255) $(0.513) $(0.515)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 8.760 $ 9.570 $ 9.950
- ----------------------------------------------------------------------------------
TOTAL RETURN(1) (5.87)% 1.27% 5.62%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 1,889 $ 2,021 $ 2,172
Ratios (As a percentage of average
daily net assets):
Expenses(2) 0.88%(3) 0.63% 0.74%
Expenses after custodian fee
reduction(2) 0.83%(3) 0.59% 0.71%
Net investment income 5.33%(3) 5.09% 5.14%
Portfolio Turnover of the Portfolio 3% 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.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
COLORADO FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning
of period $10.410 $10.820 $10.800 $10.170 $10.020 $10.010
- -------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.229 $ 0.467 $ 0.478 $ 0.491 $ 0.480 $ 0.494
Net realized and unrealized
gain (loss) (0.863) (0.401) 0.025 0.621 0.162 0.033
- -------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM
OPERATIONS $(0.634) $ 0.066 $ 0.503 $ 1.112 $ 0.642 $ 0.527
- -------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------
From net investment income $(0.235) $(0.476) $(0.483) $(0.482) $(0.492) $(0.494)
In excess of net investment
income (0.001) -- -- -- -- (0.023)
- -------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.236) $(0.476) $(0.483) $(0.482) $(0.492) $(0.517)
- -------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF
PERIOD $ 9.540 $10.410 $10.820 $10.800 $10.170 $10.020
- -------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) (6.13)% 0.54% 4.74% 11.26% 6.46% 5.58%
- -------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------
Net assets, end of period
(000's omitted) $30,058 $35,703 $37,535 $40,786 $42,972 $43,900
Ratios (As a percentage of
average daily net assets):
Net expenses(2)(3) 1.62%(4) 1.46% 1.51% 1.53% 1.49% 1.28%
Net expenses after
custodian fee
reduction(2) 1.57%(4) 1.42% 1.48% 1.49% 1.45% --
Net investment income 4.60%(4) 4.32% 4.40% 4.75% 4.69% 5.03%
Portfolio Turnover of the
Portfolio 3% 33% 18% 14% 53% 52%
- -------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the 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)(3) 1.51% 1.43%
Expenses after custodian
fee reduction(2) 1.46% --
Net investment income 4.67% 4.88%
Net investment income per
share $ 0.478 $ 0.479
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratios for the year ended July 31, 1995 have not been adjusted
to reflect this change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
22
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CONNECTICUT FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999 1998(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.460 $10.710 $10.640
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.262 $ 0.539 $ 0.529
Net realized and unrealized gain
(loss) (0.710) (0.258) 0.091
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.448) $ 0.281 $ 0.620
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.262) $(0.531) $(0.529)
In excess of net investment income (0.000)(2) -- (0.021)
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.262) $(0.531) $(0.550)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.750 $10.460 $10.710
- ----------------------------------------------------------------------------------
TOTAL RETURN(3) (4.32)% 2.60% 5.97%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 8,772 $ 9,222 $ 5,193
Ratios (As a percentage of average
daily net assets):
Expenses(4) 0.79%(5) 0.75% 0.76%
Expenses after custodian fee
reduction(4) 0.75%(5) 0.73% 0.75%
Net investment income 5.20%(5) 4.89% 4.93%
Portfolio Turnover of the Portfolio 12% 18% 7%
- ----------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Distributions in excess of net investment income are less than $0.001
per share.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
23
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
CONNECTICUT FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 10.400 $ 10.640 $ 10.570 $ 10.120 $ 9.970 $ 10.050
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.219 $ 0.440 $ 0.438 $ 0.453 $ 0.452 $ 0.465
Net realized and unrealized gain
(loss) (0.703) (0.243) 0.080 0.450 0.169 (0.037)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ (0.484) $ 0.197 $ 0.518 $ 0.903 $ 0.621 $ 0.428
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.216) $ (0.437) $ (0.438) $ (0.453) $ (0.452) $ (0.465)
In excess of net investment income -- -- (0.010) -- (0.019) (0.043)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.216) $ (0.437) $ (0.448) $ (0.453) $ (0.471) $ (0.508)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.700 $ 10.400 $ 10.640 $ 10.570 $ 10.120 $ 9.970
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (4.67)% 1.84% 4.99% 9.17% 6.30% 4.55%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $126,889 $149,024 $159,125 $171,634 $181,608 $188,900
Ratios (As a percentage of average
daily net assets):
Expenses(3)(4) 1.59%(5) 1.56% 1.59% 1.60% 1.58% 1.55%
Expenses after custodian fee
reduction(3) 1.55%(5) 1.54% 1.58% 1.60% 1.57% --
Net investment income 4.42% 4.11% 4.14% 4.45% 4.45% 4.77%
Portfolio Turnover of the Portfolio 12% 18% 7% 11% 23% 29%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed to be
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
24
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.430 $ 9.820 $ 9.750
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.224 $ 0.471 $ 0.474
Net realized and unrealized gain
(loss) (0.798) (0.385) 0.092
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.574) $ 0.086 $ 0.566
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.236) $(0.461) $(0.496)
From net realized gain -- (0.015) --
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.236) $(0.476) $(0.496)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 8.620 $ 9.430 $ 9.820
- ----------------------------------------------------------------------------------
TOTAL RETURN(2) (6.14)% 0.81% 5.95%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 2,462 $ 1,737 $ 1,526
Ratios (As a percentage of average
daily net assets):
Expenses(3) 0.90%(4) 0.80% 0.83%
Expenses after custodian fee
reduction(3) 0.90%(4) 0.79% 0.81%
Net investment income 5.12%(4) 4.81% 4.85%
Portfolio Turnover of the Portfolio 25% 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.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
25
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MICHIGAN FUND -- CLASS B
-----------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.520 $ 10.950 $ 10.870 $ 10.420 $ 10.250 $ 10.210
- ---------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.221 $ 0.440 $ 0.448 $ 0.460 $ 0.464 $ 0.486
Net realized and unrealized gain
(loss) (0.898) (0.420) 0.097 0.454 0.195 0.059
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.677) $ 0.020 $ 0.545 $ 0.914 $ 0.659 $ 0.545
- ---------------------------------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.223) $ (0.435) $ (0.448) $ (0.462) $ (0.481) $ (0.486)
In excess of net investment income (0.000)(2) -- (0.017) (0.002) (0.008) (0.019)
From net realized gain -- (0.015) -- -- -- --
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.223) $ (0.450) $ (0.465) $ (0.464) $ (0.489) $ (0.505)
- ---------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.620 $ 10.520 $ 10.950 $ 10.870 $ 10.420 $ 10.250
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (6.46)% 0.11% 5.11% 9.01% 6.50% 5.61%
- ---------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ---------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $89,029 $107,357 $128,216 $148,542 $171,067 $186,363
Ratios (As a percentage of average
daily net assets):
Expenses(4)(5) 1.66%(6) 1.58% 1.59% 1.60% 1.61% 1.51%
Expenses after custodian fee
reduction(4) 1.66%(6) 1.57% 1.57% 1.58% 1.60% --
Net investment income 4.44%(6) 4.03% 4.12% 4.40% 4.44% 4.84%
Portfolio Turnover of the Portfolio 25% 31% 26% 16% 49% 54%
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Distributions in excess of net investment income are less than $0.001
per share.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
26
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MINNESOTA FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999(1) 1998(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.460 $ 9.820 $ 9.770
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.245 $ 0.490 $ 0.492
Net realized and unrealized gain
(loss) (0.751) (0.351) 0.073
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.506) $ 0.139 $ 0.565
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.244) $(0.490) $(0.515)
In excess of net investment income -- (0.009) --
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.244) $(0.499) $(0.515)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 8.710 $ 9.460 $ 9.820
- ----------------------------------------------------------------------------------
TOTAL RETURN(2) (5.40)% 1.34% 5.94%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 4,883 $ 4,822 $ 3,995
Ratios (As a percentage of average
daily net assets):
Expenses(3) 0.81%(4) 0.73% 0.73%
Expenses after custodian fee
reduction(3) 0.78%(4) 0.71% 0.71%
Net investment income 5.41%(4) 4.97% 5.03%
Portfolio Turnover of the Portfolio 7% 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.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
27
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
MINNESOTA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.170 $10.540 $10.490 $10.070 $ 9.950 $10.040
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.225 $ 0.446 $ 0.439 $ 0.466 $ 0.468 $ 0.470
Net realized and unrealized gain
(loss) (0.817) (0.369) 0.073 0.415 0.123 (0.053)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.592) $ 0.077 $ 0.512 $ 0.881 $ 0.591 $ 0.417
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.218) $(0.446) $(0.439) $(0.461) $(0.468) $(0.470)
In excess of net investment income -- (0.001) (0.023) -- (0.003) (0.037)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.218) $(0.447) $(0.462) $(0.461) $(0.471) $(0.507)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.360 $10.170 $10.540 $10.490 $10.070 $ 9.950
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (5.85)% 0.65% 4.99% 9.01% 6.00% 4.41%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $45,536 $55,355 $62,899 $67,781 $74,374 $78,970
Ratios (As a percentage of average
daily net assets):
Expenses(3)(4) 1.59%(5) 1.55% 1.58% 1.58% 1.56% 1.52%
Expenses after custodian fee
reduction(3) 1.56%(5) 1.53% 1.56% 1.55% 1.54% --
Net investment income 4.66%(5) 4.21% 4.19% 4.62% 4.63% 4.80%
Portfolio Turnover of the Portfolio 7% 19% 23% 22% 45% 76%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
28
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW JERSEY FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998(1)
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.190 $10.590 $10.530
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.273 $ 0.548 $ 0.558
Net realized and unrealized gain
(loss) (0.858) (0.394) 0.082
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.585) $ 0.154 $ 0.640
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.273) $(0.548) $(0.558)
In excess of net investment income (0.002) (0.006) (0.022)
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.275) $(0.554) $(0.580)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.330 $10.190 $10.590
- ----------------------------------------------------------------------------------
TOTAL RETURN(2) (5.81)% 1.39% 6.24%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $15,496 $18,897 $11,570
Ratios (As a percentage of average
daily net assets):
Expenses(3) 0.78%(4) 0.73% 0.77%
Expenses after custodian fee
reduction(3) 0.78%(4) 0.72% 0.75%
Net investment income 5.58%(4) 5.14% 5.25%
Portfolio Turnover of the Portfolio 17% 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.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
29
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
NEW JERSEY FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998(1) 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 10.610 $ 11.020 $ 10.940 $ 10.440 $ 10.360 $ 10.410
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.244 $ 0.481 $ 0.491 $ 0.506 $ 0.505 $ 0.505
Net realized and unrealized gain
(loss) (0.905) (0.409) 0.089 0.493 0.084 (0.009)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ (0.661) $ 0.072 $ 0.580 $ 0.999 $ 0.589 $ 0.496
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.239) $ (0.481) $ (0.491) $ (0.499) $ (0.505) $ (0.505)
In excess of net investment income -- (0.001) (0.009) -- (0.004) (0.035)
In excess of net realized gain -- -- -- -- -- (0.006)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.239) $ (0.482) $ (0.500) $ (0.499) $ (0.509) $ (0.546)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.710 $ 10.610 $ 11.020 $ 10.940 $ 10.440 $ 10.360
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(2) (6.26)% 0.59% 5.41% 9.85% 5.74% 5.04%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $239,669 $289,219 $316,155 $345,080 $378,649 $404,861
Ratios (As a percentage of average
daily net assets):
Expenses(3)(4) 1.58%(5) 1.57% 1.61% 1.59% 1.57% 1.53%
Expenses after custodian fee
reduction(3) 1.58%(5) 1.56% 1.59% 1.57% 1.56% --
Net investment income 4.78%(5) 4.37% 4.48% 4.82% 4.80% 4.97%
Portfolio Turnover of the Portfolio 17% 32% 14% 24% 39% 54%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(3) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(4) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
30
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PENNSYLVANIA FUND -- CLASS A
------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED)(1) 1999(1) 1998
<S> <C> <C> <C>
- ----------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.990 $10.400 $10.550
- ----------------------------------------------------------------------------------
Income (loss) from operations
- ----------------------------------------------------------------------------------
Net investment income $ 0.273 $ 0.546 $ 0.578
Net realized and unrealized loss (0.733) (0.393) (0.143)
- ----------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.460) $ 0.153 $ 0.435
- ----------------------------------------------------------------------------------
Less distributions
- ----------------------------------------------------------------------------------
From net investment income $(0.273) $(0.546) $(0.578)
In excess of net investment income (0.007) (0.017) (0.007)
- ----------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.280) $(0.563) $(0.585)
- ----------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.250 $ 9.990 $10.400
- ----------------------------------------------------------------------------------
TOTAL RETURN(2) (4.66)% 1.42% 4.17%
- ----------------------------------------------------------------------------------
Ratios/Supplemental Data
- ----------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 9,175 $10,652 $ 8,552
Ratios (As a percentage of average
daily net assets):
Expenses(3) 0.83%(4) 0.75% 0.74%
Expenses after custodian fee
reduction(3) 0.83%(4) 0.71% 0.70%
Net investment income 5.64%(4) 5.29% 5.40%
Portfolio Turnover of the Portfolio 14% 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.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
31
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
PENNSYLVANIA FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED)(1) 1999(1) 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 10.310 $ 10.730 $ 10.900 $ 10.430 $ 10.320 $ 10.340
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.239 $ 0.477 $ 0.506 $ 0.522 $ 0.512 $ 0.507
Net realized and unrealized gain
(loss) (0.757) (0.404) (0.156) 0.458 0.108 0.004(2)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $ (0.518) $ 0.073 $ 0.350 $ 0.980 $ 0.620 $ 0.511
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $ (0.239) $ (0.483) $ (0.520) $ (0.510) $ (0.510) $ (0.507)
In excess of net investment income (0.003) (0.010) -- -- -- (0.024)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $ (0.242) $ (0.493) $ (0.520) $ (0.510) $ (0.510) $ (0.531)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.550 $ 10.310 $ 10.730 $ 10.900 $ 10.430 $ 10.320
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (5.05)% 0.64% 3.23% 9.66% 6.08% 5.24%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $248,415 $303,150 $349,593 $395,974 $441,104 $495,856
Ratios (As a percentage of average
daily net assets):
Expenses(4)(5) 1.66%(6) 1.58% 1.59% 1.61% 1.58% 1.51%
Expenses after custodian fee
reduction(4) 1.66%(6) 1.54% 1.55% 1.56% 1.54% --
Net investment income 4.81%(6) 4.47% 4.63% 4.93% 4.89% 5.04%
Portfolio Turnover of the Portfolio 14% 27% 13% 17% 30% 44%
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) The per share amount is not in accord with the net realized and
unrealized gain (loss) on investments for the period because of the
timing of sales of Fund shares and the amount of the per share realized
and unrealized gains and losses at such time.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(4) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(5) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
(6) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
32
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TEXAS FUND -- CLASS A
--------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ----------------------
(UNAUDITED) 1999 1998
<S> <C> <C> <C>
- ------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $ 9.560 $ 9.890 $ 9.770
- ------------------------------------------------------------------------------------
Income (loss) from operations
- ------------------------------------------------------------------------------------
Net investment income $ 0.230 $ 0.511 $ 0.515
Net realized and unrealized gain
(loss) (0.738) (0.336) 0.110
- ------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.508) $ 0.175 $ 0.625
- ------------------------------------------------------------------------------------
Less distributions
- ------------------------------------------------------------------------------------
From net investment income $(0.232) $(0.505) $(0.505)
In excess of net investment income (0.020) -- --
- ------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.252) $(0.505) $(0.505)
- ------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 8.800 $ 9.560 $ 9.890
- ------------------------------------------------------------------------------------
TOTAL RETURN(1) (5.36)% 1.72% 6.55%
- ------------------------------------------------------------------------------------
Ratios/Supplemental Data
- ------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $ 408 $ 458 $ 373
Ratios (As a percentage of average
daily net assets):
Expenses(2) 1.16%(3) 0.75% 0.72%
Expenses after custodian fee
reduction(2) 1.14%(3) 0.72% 0.69%
Net investment income 5.10%(3) 5.11% 5.22%
Portfolio Turnover of the Portfolio 29% 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.
(3) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
33
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
TEXAS FUND -- CLASS B
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Net asset value -- Beginning of
period $10.710 $11.080 $10.960 $10.440 $10.280 $10.210
- -------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- -------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.222 $ 0.485 $ 0.496 $ 0.489 $ 0.492 $ 0.532
Net realized and unrealized gain
(loss) (0.830) (0.368) 0.120 0.526 0.177 0.084
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS) FROM OPERATIONS $(0.608) $ 0.117 $ 0.616 $ 1.015 $ 0.669 $ 0.616
- -------------------------------------------------------------------------------------------------------------------------
Less distributions
- -------------------------------------------------------------------------------------------------------------------------
From net investment income $(0.230) $(0.487) $(0.496) $(0.495) $(0.509) $(0.532)
In excess of net investment income (0.012) -- -- -- -- (0.014)
- -------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.242) $(0.487) $(0.496) $(0.495) $(0.509) $(0.546)
- -------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END OF PERIOD $ 9.860 $10.710 $11.080 $10.960 $10.440 $10.280
- -------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(1) (5.68)% 1.01% 5.74% 10.00% 6.60% 6.36%
- -------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- -------------------------------------------------------------------------------------------------------------------------
Net assets, end of period (000's
omitted) $13,030 $15,219 $16,988 $21,283 $23,996 $27,762
Ratios (As a percentage of average
daily net assets):
Expenses(2)(3) 1.92%(4) 1.54% 1.49% 1.57% 1.43% 0.99%
Expenses after custodian fee
reduction(2) 1.90%(4) 1.51% 1.46% 1.55% 1.39% --
Net investment income 4.35%(4) 4.37% 4.50% 4.61% 4.70% 5.29%
Portfolio Turnover of the Portfolio 29% 55% 17% 17% 39% 49%
- -------------------------------------------------------------------------------------------------------------------------
+ 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)(3) 1.53% 1.44%
Expenses after custodian fee
reduction(2) 1.49% --
Net investment income 4.60% 4.84%
Net investment income per share $ 0.482 $ 0.487
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return
is not computed on an annualized basis.
(2) Includes the Fund's share of its corresponding Portfolio's allocated
expenses.
(3) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Fund, as well as
its corresponding Portfolio, to increase its expense ratio by the effect
of any expense offset arrangements with its service providers. The
expense ratios for the year ended July 31, 1995 have not been adjusted
to reflect this change.
(4) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
34
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance Municipals Trust (the Trust) is an entity of the type commonly
known as a Massachusetts business trust and is registered under the
Investment Company Act of 1940, as amended, as an open-end management
investment company. The Trust presently consists of twenty-nine Funds, eight
of which, each diversified, are included in these financial statements. They
include Eaton Vance 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 January 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 are
discussed in Note 1A of the Portfolios' Notes to Financial Statements, which
are included elsewhere in this report.
B Income -- Each Fund's net investment income consists of the Fund's pro rata
share of the net investment income of its corresponding Portfolio, less all
actual and accrued expenses of each Fund determined in accordance with
generally accepted accounting principles.
C Federal Taxes -- Each Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable and tax-exempt
income, including any net realized gain on investments. Accordingly, no
provision for federal income or excise tax is necessary. At July 31, 1999,
the Funds, for federal income tax purposes, had capital loss carryovers which
will reduce taxable income arising from future net realized gain on
investments, if any, to the extent permitted by the Internal Revenue Code,
and thus will reduce the amount of the distributions to shareholders which
would otherwise be necessary to relieve the Funds of any liability for
federal income or excise tax. A portion of such capital loss carryovers were
acquired through the Fund Reorganization (see Note 8) and may be subject to
certain limitations. The amounts and expiration dates of the capital loss
carryovers are as follows:
<TABLE>
<CAPTION>
FUND AMOUNT EXPIRES
<S> <C> <C>
-------------------------------------------------------------------
Arizona Fund $ 431,585 July 31, 2004
Colorado Fund 776,352 July 31, 2004
Connecticut Fund 91,011 July 31, 2005
3,755,736 July 31, 2004
Minnesota Fund 329,867 July 31, 2005
2,802,385 July 31, 2004
New Jersey Fund 23,676 July 31, 2005
6,131,408 July 31, 2004
Pennsylvania Fund 1,809,455 July 31, 2005
7,652,773 July 31, 2004
Texas Fund 84,793 July 31, 2005
46,167 July 31, 2004
</TABLE>
35
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
Dividends paid by each Fund from net interest on tax-exempt municipal bonds
allocated from its corresponding Portfolio are not includable by shareholders
as gross income for federal income tax purposes because each Fund and
Portfolio intend to meet certain requirements of the Internal Revenue Code
applicable to regulated investment companies which will enable the Funds to
pay tax-exempt interest dividends. The portion of such interest, if any,
earned on private activity bonds issued after August 7, 1986 may be
considered a tax preference item
to shareholders.
D Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Funds and the Portfolios. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Funds or the Portfolios maintain with
IBT. All significant credit balances used to reduce the Funds' custodian fees
are reported as a reduction of total expenses in 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.
G Interim Financial Statements -- The interim financial statements relating to
January 31, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Funds'
management reflect all adjustments, consisting only of normal recurring
adjustments, necessary for the fair presentation of the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
The net income of each Fund is determined daily and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. Distributions of allocated realized capital gains, if any, are made
at least annually. Shareholders may reinvest capital gain distributions in
additional shares of 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
-------------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
------------------------- ----------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------
Sales 33,271 216,157 556,423 644,520
Issued to shareholders electing to
receive payments of distributions in
Fund shares 7,638 63,503 14,297 131,278
Redemptions (144,148) (1,159,236) (364,504) (1,431,988)
-------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (103,239) (879,576) 206,216 (656,190)
-------------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
COLORADO FUND
----------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
------------------- -------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------
Sales 29,321 123,072 41,160 329,508
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,606 39,313 5,870 78,095
Redemptions (27,418) (438,836) (54,245) (447,093)
----------------------------------------------------------------------------------
NET INCREASE (DECREASE) 4,509 (276,451) (7,215) (39,490)
----------------------------------------------------------------------------------
</TABLE>
36
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
CONNECTICUT FUND
----------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
---------------------- ----------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
Sales 118,750 399,572 524,295 967,806
Issued to shareholders electing to
receive payments of distributions in
Fund shares 12,521 143,826 19,896 320,758
Redemptions (113,384) (1,792,006) (147,351) (1,912,012)
----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 17,887 (1,248,608) 396,840 (623,448)
----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MICHIGAN FUND
--------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
--------------------- ---------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Sales 165,916 195,798 48,762 449,210
Issued to shareholders electing to
receive payments of distributions in
Fund shares 2,440 105,485 5,120 238,514
Redemptions (66,969) (1,252,838) (25,127) (2,185,130)
--------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 101,387 (951,555) 28,755 (1,497,406)
--------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
MINNESOTA FUND
------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
------------------- ---------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------
Sales 125,445 153,854 159,290 425,368
Issued to shareholders electing to
receive payments of distributions in
Fund shares 5,441 62,478 12,797 130,884
Redemptions (79,807) (797,797) (69,272) (1,078,648)
------------------------------------------------------------------------------------
NET INCREASE (DECREASE) 51,079 (581,465) 102,815 (522,396)
------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
NEW JERSEY FUND
-----------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
---------------------- -----------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------
Sales 266,558 531,569 1,033,440 2,398,545
Issued to shareholders electing to
receive payments of distributions in
Fund shares 17,853 309,797 38,666 649,772
Redemptions (476,599) (3,422,824) (310,720) (4,488,554)
-----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (192,188) (2,581,458) 761,386 (1,440,237)
-----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
PENNSYLVANIA FUND
----------------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
---------------------- ----------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------
Sales 150,075 517,991 881,964 1,533,768
Issued to shareholders electing to
receive payments of distributions in
Fund shares 18,104 286,161 36,031 657,662
Redemptions (242,276) (4,190,766) (674,530) (5,385,455)
----------------------------------------------------------------------------------------
NET INCREASE (DECREASE) (74,097) (3,386,614) 243,465 (3,194,025)
----------------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
TEXAS FUND
---------------------------------------
SIX MONTHS ENDED
JANUARY 31, 2000 YEAR ENDED
(UNAUDITED) JULY 31, 1999
------------------ -------------------
CLASS A CLASS B CLASS A CLASS B
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------
Sales 4,493 38,516 26,766 64,343
Issued to shareholders electing to
receive payments of distributions
in Fund shares 415 11,080 1,162 24,770
Redemptions (6,500) (149,035) (17,726) (202,053)
---------------------------------------------------------------------------------
NET INCREASE (DECREASE) (1,592) (99,439) 10,202 (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 $224, $607, $2,008, $186, $950,
$2,842, $886 and $39 from the Arizona Fund, Colorado Fund, Connecticut Fund,
Michigan Fund, Minnesota Fund, New Jersey Fund, Pennsylvania Fund and Texas
Fund, respectively, as its portion of the sales charge on sales of Class A
shares for the six months ended January 31, 2000.
Certain officers and Trustees of the Funds and of the Portfolios are officers
of the above organizations.
37
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
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 six months ended January 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
$303,047, $124,640, $521,419, $367,041, $192,354, $1,000,172, $1,042,497 and
$52,589, respectively, to EVD, representing 0.75% (annualized) of each Fund's
Class B average daily net assets. At January 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
$2,224,000, $1,255,000, $3,648,000, $1,989,000, $1,391,000, $5,471,000,
$6,122,000 and $286,000, 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 Funds 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 six
months ended January 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
$3,550, $1,784, $7,366, $1,999, $3,955, $11,159, $4,965 and $405,
respectively, for Class A shares, and $73,361, $29,786, $131,653, $98,293,
$46,464, $225,032, $251,249 and $12,792, respectively, for Class B shares.
Certain officers and Trustees of the Funds are officers or directors of EVD.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase. Generally, the CDSC is
based upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on Class B shares acquired by reinvestment of
dividends or capital gains distributions. The CDSC is imposed at declining
rates that begin at 5% in the case of redemptions in the first and second
year after purchase, declining one percentage point each subsequent year. No
CDSC is levied on Class B shares which have been sold to EVD or its
affiliates or to their respective employees or clients and may be waived
under certain other limited conditions. CDSC charges are paid to EVD to
reduce the amount of Uncovered Distribution Charges calculated under each
Fund's Class B Distribution Plan (see Note 5). CDSC charges received when no
Uncovered Distribution Charges exist will be credited to each Fund. EVD
received approximately $78,000, $26,000, $52,000, $52,000, $55,000, $166,000,
$296,000 and $7,000 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 six months
ended January 31, 2000.
38
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
7 Investment Transactions
- -------------------------------------------
Increases and decreases in each Fund's investment in its corresponding
Portfolio for the six months ended January 31, 2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,664,067
Decreases 15,066,136
<CAPTION>
COLORADO FUND
<S> <C>
-----------------------------------------------------
Increases $ 1,503,412
Decreases 5,309,523
<CAPTION>
CONNECTICUT FUND
<S> <C>
-----------------------------------------------------
Increases $ 5,714,375
Decreases 21,456,149
<CAPTION>
MICHIGAN FUND
<S> <C>
-----------------------------------------------------
Increases $ 3,433,800
Decreases 14,985,531
<CAPTION>
MINNESOTA FUND
<S> <C>
-----------------------------------------------------
Increases $ 2,725,460
Decreases 9,553,535
<CAPTION>
NEW JERSEY FUND
<S> <C>
-----------------------------------------------------
Increases $ 8,171,301
Decreases 44,320,634
<CAPTION>
PENNSYLVANIA FUND
<S> <C>
-----------------------------------------------------
Increases $ 6,563,586
Decreases 49,273,708
<CAPTION>
TEXAS FUND
<S> <C>
-----------------------------------------------------
Increases $ 431,542
Decreases 1,964,177
</TABLE>
39
<PAGE>
ARIZONA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 99.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Assisted Living -- 2.2%
- ----------------------------------------------------------------------------
$ 1,800 Arizona Health Facilities Authority,
(Care Institute, Inc. - Mesa),
7.625%, 1/1/26 $ 1,679,130
- ----------------------------------------------------------------------------
$ 1,679,130
- ----------------------------------------------------------------------------
Education -- 2.7%
- ----------------------------------------------------------------------------
$ 2,000 Arizona Educational Loan Marketing
Corp., (AMT), 6.30%, 12/1/08 $ 2,050,180
- ----------------------------------------------------------------------------
$ 2,050,180
- ----------------------------------------------------------------------------
Electric Utilities -- 8.9%
- ----------------------------------------------------------------------------
$ 2,000 Coconino County, Pollution Control,
(Nevada Power Co.), (AMT),
5.80%, 11/1/32 $ 1,668,640
500 Maricopa County, Pollution Control,
(Public Service Co. of New Mexico),
5.75%, 11/1/22 429,065
3,500 Maricopa County, Pollution Control,
(Public Service Co. of New Mexico),
6.375%, 8/15/23 3,243,555
1,000 Pima County, IDA, (Tucson Electric Power
Co.), 6.00%, 9/1/29 852,210
1,000 Salt River Agricultural Improvement and
Power District, Residual Certificates,
Variable Rate, 1/1/25(1)(2) 665,340
- ----------------------------------------------------------------------------
$ 6,858,810
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 17.4%
- ----------------------------------------------------------------------------
$ 1,000 Glendale, IDA, (Thunderbird-American
Graduate School), Prerefunded to 7/1/05,
7.125%, 7/1/20 $ 1,106,340
2,000 Maricopa County, (Samaritan Health
Services), (MBIA), (Escrowed to
Maturity), 7.00%, 12/1/16 2,255,980
2,850 Maricopa County, IDA, (Place Five and
The Greenery), Escrowed to Maturity,
6.625%, 1/1/27 2,958,556
1,250 Maricopa County, IDA, (Place Five and
The Greenery), Escrowed to Maturity,
8.625%, 1/1/27 1,522,587
7,500 Maricopa County, SFM, Escrowed to
Maturity, 0.00%, 2/1/16 2,836,650
6,500 Phoenix, IDA, Single Family, Escrowed to
Maturity, 0.00%, 12/1/14 2,685,020
- ----------------------------------------------------------------------------
$13,365,133
- ----------------------------------------------------------------------------
General Obligations -- 4.6%
- ----------------------------------------------------------------------------
$ 1,125 Puerto Rico, 0.00%, 7/1/18 $ 363,465
2,275 Tucson, 4.50%, 7/1/19 1,816,565
1,500 Tucson, 5.375%, 7/1/21 1,382,625
- ----------------------------------------------------------------------------
$ 3,562,655
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Hospital -- 5.1%
- ----------------------------------------------------------------------------
$ 1,130 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital),
8.125%, 6/1/12 $ 1,132,045
1,250 Arizona Health Facilities Authority,
(Phoenix Memorial Hospital),
8.20%, 6/1/21 1,209,537
1,250 Maricopa County, IDA, (Mayo Foundation),
Residual Certificates, Variable Rate,
11/15/37(1)(2) 813,950
1,000 Winslow, IDA, (Winslow Memorial
Hospital), 5.50%, 6/1/22 778,460
- ----------------------------------------------------------------------------
$ 3,933,992
- ----------------------------------------------------------------------------
Housing -- 6.4%
- ----------------------------------------------------------------------------
$ 2,000 Maricopa County, IDA, (Laguna Point
Apartments), 6.75%, 7/1/19 $ 2,065,260
950 Maricopa County, IDA, (National Health
Facilities II), 6.375%, 1/1/19 867,806
1,000 Phoenix, IDA, (Woodstone and Silver
Springs Apartments), (Asset Guaranty),
6.25%, 4/1/23 997,470
1,000 Tempe, IDA, (Quadrangle Village
Apartments), 6.25%, 6/1/26 1,009,350
- ----------------------------------------------------------------------------
$ 4,939,886
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 6.8%
- ----------------------------------------------------------------------------
$ 1,000 Casa Grande, Pollution Control, (Frito
Lay, Inc.), 6.60%, 12/1/10 $ 1,046,810
1,750 Gila County, IDA, (Asarco, Inc.),
5.55%, 1/1/27 1,323,595
750 Phoenix Airport Authority, (America West
Airlines, Inc.), (AMT), 6.25%, 6/1/19 666,030
500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 472,870
2,000 Yavapai County, IDA, (Citizens Utilities
Co.), (AMT), 5.45%, 6/1/33 1,722,980
- ----------------------------------------------------------------------------
$ 5,232,285
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 8.0%
- ----------------------------------------------------------------------------
$ 2,800 Navajo County, PCR, (Arizona Public
Service Co.), (MBIA), 5.875%, 8/15/28 $ 2,695,840
2,315 Pima County, (Irvington Power), (FGIC),
7.25%, 7/15/10 2,468,485
1,200 Puerto Rico Electric Power Authority,
(MBIA), 4.50%, 7/1/18 984,084
- ----------------------------------------------------------------------------
$ 6,148,409
- ----------------------------------------------------------------------------
Insured-General Obligations -- 3.3%
- ----------------------------------------------------------------------------
$ 1,000 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) $ 970,000
1,000 Puerto Rico, (FSA), Variable Rate,
7/1/20(1) 950,000
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
40
<PAGE>
ARIZONA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-General Obligations (continued)
- ----------------------------------------------------------------------------
$ 750 Puerto Rico, (Public Improvements),
(FSA), 4.50%, 7/1/23 $ 588,503
- ----------------------------------------------------------------------------
$ 2,508,503
- ----------------------------------------------------------------------------
Insured-Hospital -- 12.9%
- ----------------------------------------------------------------------------
$ 1,000 Arizona Health Facilities Authority,
(Northern Arizona Healthcare System),
(AMBAC), 4.75%, 10/1/30 $ 768,010
2,000 Maricopa County, Hospital District No.
1, (FGIC), 6.125%, 6/1/15 2,109,040
2,000 Mohave County, (Kingman Regional Medical
Center), (FGIC), 6.50%, 6/1/15 2,049,280
1,000 Pima County, IDA, (Carondelet Health
Care Corp.), (MBIA), 5.25%, 7/1/12 977,230
1,000 Pima County, IDA, (Carondolet Health
Care Corp.), (MBIA), 5.25%, 7/1/11 982,700
1,500 Pima County, IDA, (Tucson Medical
Center), (MBIA), 6.375%, 4/1/12 1,558,770
1,500 Scottsdale, IDA, (Scottsdale Memorial
Hospital), (AMBAC), 6.125%, 9/1/17 1,512,885
- ----------------------------------------------------------------------------
$ 9,957,915
- ----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 6.6%
- ----------------------------------------------------------------------------
$ 1,400 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(3) $ 725,354
1,000 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) 691,420
4,750 Scottsdale, Preservation Authority,
(FGIC), 4.50%, 7/1/24 3,664,245
- ----------------------------------------------------------------------------
$ 5,081,019
- ----------------------------------------------------------------------------
Miscellaneous Health Care -- 1.7%
- ----------------------------------------------------------------------------
$ 1,000 Coconino County, IDA, Health Care
Insurance, (Guidance Center, Inc.),
5.80%, 6/1/11 $ 896,310
500 Yavapai County, IDA Health Care
Institute, (West Yavapai Guidance),
6.625%, 8/15/24 449,680
- ----------------------------------------------------------------------------
$ 1,345,990
- ----------------------------------------------------------------------------
Pooled Loans -- 4.7%
- ----------------------------------------------------------------------------
$ 2,000 Arizona Educational Loan Marketing
Corp., (AMT), 6.25%, 6/1/06 $ 2,086,180
1,500 Arizona Student Loan Acquisition
Authority, (AMT), 7.625%, 5/1/10 1,570,695
- ----------------------------------------------------------------------------
$ 3,656,875
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Transportation -- 0.8%
- ----------------------------------------------------------------------------
$ 750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 600,683
- ----------------------------------------------------------------------------
$ 600,683
- ----------------------------------------------------------------------------
Utilities -- 1.4%
- ----------------------------------------------------------------------------
$ 1,000 Puerto Rico Telephone Authority,
Variable Rate, 1/1/20(1) $ 1,077,880
- ----------------------------------------------------------------------------
$ 1,077,880
- ----------------------------------------------------------------------------
Water and Sewer -- 5.5%
- ----------------------------------------------------------------------------
$ 1,000 Central Arizona Water Conservation
District, 5.50%, 11/1/09 $ 1,014,610
1,500 Phoenix, Civic Improvement Corp.,
Wastewater, 4.75%, 7/1/23 1,200,885
2,500 Scottsdale, Water and Sewer Revenue,
4.50%, 7/1/20 1,988,125
- ----------------------------------------------------------------------------
$ 4,203,620
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.0%
(identified cost $78,895,188) $76,202,965
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.0% $ 768,064
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $76,971,029
- ----------------------------------------------------------------------------
</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 January 31, 2000, 34.1% 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 3.3% to 13.5% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
41
<PAGE>
COLORADO MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 96.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Education -- 5.4%
- ----------------------------------------------------------------------------
$1,000 Colorado Educational and Cultural
Facilities, (Alexander Dawson School),
5.30%, 2/15/29 $ 842,230
1,000 Colorado Springs, (Colorado College),
5.25%, 6/1/24 878,530
- ----------------------------------------------------------------------------
$ 1,720,760
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 4.6%
- ----------------------------------------------------------------------------
$1,500 Dawson Ridge, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 $ 312,945
3,000 Dawson Ridge, Metropolitan District #1,
Escrowed to Maturity, 0.00%, 10/1/22 625,890
500 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 530,000
- ----------------------------------------------------------------------------
$ 1,468,835
- ----------------------------------------------------------------------------
General Obligations -- 2.2%
- ----------------------------------------------------------------------------
$ 400 Bachelor Gulch, (Metropolitan District),
6.70%, 11/15/19 $ 389,488
370 Bell Mountain Ranch, (Metropolitan
District), 6.625%, 11/15/25 331,587
- ----------------------------------------------------------------------------
$ 721,075
- ----------------------------------------------------------------------------
Hospital -- 20.8%
- ----------------------------------------------------------------------------
$ 350 Aspen Valley, (Hospital District),
6.80%, 10/15/24 $ 343,024
900 Colorado Health Facilities Authority,
(Cleo Wallace Center), 7.00%, 8/1/15 868,725
2,000 Colorado Health Facilities Authority,
(Parkview Memorial Hospital),
6.125%, 9/1/25 1,727,300
425 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.00%, 9/15/03 409,645
2,000 Colorado Health Facilities Authority,
(Vail Valley Medical Center),
6.60%, 1/15/20 1,871,860
1,000 Denver, Health and Hospital Authority,
(Denver Health Medical Center),
5.375%, 12/1/28 743,040
400 La Junta, (Arkansas Valley Regional
Medical Center), 6.10%, 4/1/24 337,492
420 Lake County, (St. Vincent General
Hospital), 6.00%, 12/1/19 353,930
- ----------------------------------------------------------------------------
$ 6,655,016
- ----------------------------------------------------------------------------
Housing -- 12.6%
- ----------------------------------------------------------------------------
$ 500 Colorado HFA, Multifamily, (AMT),
6.40%, 10/1/27 $ 503,415
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Housing (continued)
- ----------------------------------------------------------------------------
$1,000 Colorado HFA, SFMR, 5.35%, 11/1/16 $ 862,050
270 Colorado HFA, Single Family Access
Program, 8.00%, 12/1/24 285,228
1,000 Denver, Multifamily, (Bank Lofts),
(FHA), (AMT), 6.15%, 12/1/16 1,004,210
390 Lake Creek, (Affordable Housing Corp.),
Multifamily, 6.25%, 12/1/23 356,694
1,000 Lakewood, Multifamily, FHA Insured
Mortgage Loan, (AMT), 6.65%, 10/1/25 1,025,180
- ----------------------------------------------------------------------------
$ 4,036,777
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 8.6%
- ----------------------------------------------------------------------------
$1,000 Denver Airport Special Facilities,
(United Airlines), (AMT),
6.875%, 10/1/32 $ 971,300
1,000 Puerto Rico Industrial, Medical and
Environmental
Pollution Control Facility Finance
Authority, (American Home Products),
5.10%, 12/1/18 847,840
1,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 945,740
- ----------------------------------------------------------------------------
$ 2,764,880
- ----------------------------------------------------------------------------
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 -- 5.9%
- ----------------------------------------------------------------------------
$1,750 Eagle, Garfield and Routt Counties,
School District No. RE 50J, (FGIC),
6.30%, 12/1/12 $ 1,880,130
- ----------------------------------------------------------------------------
$ 1,880,130
- ----------------------------------------------------------------------------
Insured-Housing -- 3.3%
- ----------------------------------------------------------------------------
$1,000 Thornton, SCA Realty MFMR, (FSA),
7.10%, 1/1/30 $ 1,059,410
- ----------------------------------------------------------------------------
$ 1,059,410
- ----------------------------------------------------------------------------
Insured-Transportation -- 14.3%
- ----------------------------------------------------------------------------
$3,500 Colorado Public Highway Authority
Revenue, (MBIA), 0.00%, 9/1/16 $ 1,257,270
1,830 Colorado Public Highway Authority
Revenue, (MBIA), 4.75%, 9/1/23 1,477,231
1,000 Denver, Airport Revenue, (FSA), (AMT),
5.00%, 11/15/25 810,810
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
42
<PAGE>
COLORADO MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Transportation (continued)
- ----------------------------------------------------------------------------
$3,095 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/18 $ 1,036,330
- ----------------------------------------------------------------------------
$ 4,581,641
- ----------------------------------------------------------------------------
Nursing Home -- 0.9%
- ----------------------------------------------------------------------------
$ 350 Colorado Health Facilities Authority,
(Steamboat Springs Health),
5.70%, 9/15/23 $ 280,070
- ----------------------------------------------------------------------------
$ 280,070
- ----------------------------------------------------------------------------
Senior Living / Life Care -- 2.2%
- ----------------------------------------------------------------------------
$ 400 Colorado Health Facilities Authority,
Revenue Refunding and Improvement,
(Volunteers), 5.875%, 7/1/28 $ 321,248
430 Logan County, Industrial Development
Revenue, (TLC Care Choices, Inc.),
6.875%, 12/1/23 377,970
- ----------------------------------------------------------------------------
$ 699,218
- ----------------------------------------------------------------------------
Special Tax Revenue -- 4.3%
- ----------------------------------------------------------------------------
$ 400 Black Hawk, Business Improvement
District, 6.50%, 12/1/11 $ 374,728
1,000 Cottonwood, Water and Sanitation
District, 7.75%, 12/1/20 1,016,100
- ----------------------------------------------------------------------------
$ 1,390,828
- ----------------------------------------------------------------------------
Transportation -- 5.0%
- ----------------------------------------------------------------------------
$ 500 Eagle County, (Eagle County Airport
Terminal), (AMT), 7.50%, 5/1/21 $ 506,785
250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 200,227
1,000 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 884,940
- ----------------------------------------------------------------------------
$ 1,591,952
- ----------------------------------------------------------------------------
Utilities -- 2.5%
- ----------------------------------------------------------------------------
$1,000 Colorado Springs, Utility Revenue
System, 4.75%, 11/15/26 $ 796,780
- ----------------------------------------------------------------------------
$ 796,780
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Water and Sewer -- 2.8%
- ----------------------------------------------------------------------------
$1,000 Colorado Water Resources, Power
Development Authority, 5.25%, 9/1/19 $ 897,770
- ----------------------------------------------------------------------------
$ 897,770
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments
(identified cost $33,032,599) $30,861,642
- ----------------------------------------------------------------------------
</TABLE>
PUT OPTIONS PURCHASED -- 0.0%
<TABLE>
<CAPTION>
<C> <S> <C>
- ----------------------------------------------------------------------------
$ 14 March, 2000 US Long Bond Futures
Contracts, expires 2/19/00, strike price
$90 $ 3,280
- ----------------------------------------------------------------------------
Total Put Options Purchased
(identified cost, $5,327) $ 3,280
- ----------------------------------------------------------------------------
Total Investments -- 96.4%
(identified cost $33,037,926) $30,864,922
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 3.6% $ 1,148,120
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $32,013,042
- ----------------------------------------------------------------------------
</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 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 January 31, 2000, 27.1% 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 3.4% to 10.6% of
total investments.
(1) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
43
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Cogeneration -- 4.8%
- -----------------------------------------------------------------------------
$8,000 Eastern Connecticut Resource Recovery
Authority, (Wheelabrator Lisbon), (AMT),
5.50%, 1/1/20 $ 6,528,720
- -----------------------------------------------------------------------------
$ 6,528,720
- -----------------------------------------------------------------------------
Education -- 7.5%
- -----------------------------------------------------------------------------
$1,675 Connecticut HEFA, (Quinnipiac College),
6.00%, 7/1/23 $ 1,507,282
5,500 Connecticut HEFA, (University of
Hartford), 6.80%, 7/1/22 5,535,695
3,400 Connecticut HEFA, (Yale University),
Variable Rate, 6/10/30(1) 3,166,250
- -----------------------------------------------------------------------------
$ 10,209,227
- -----------------------------------------------------------------------------
Electric Utilities -- 5.0%
- -----------------------------------------------------------------------------
$ 800 Connecticut Development Authority,
(Western Mass Electric), Variable Rate,
9/1/28(1)(2) $ 571,192
1,500 Connecticut Development Authority,
Pollution Control Revenue, (Connecticut
Light and Power), (AMT), 5.95%, 9/1/28 1,287,570
1,625 Guam Power Authority, 6.30%, 10/1/22 1,724,775
1,100 Guam Power Authority, 6.625%, 10/1/14 1,198,890
2,500 Puerto Rico Electric Power Authority,
5.00%, 7/1/28 2,049,325
- -----------------------------------------------------------------------------
$ 6,831,752
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.5%
- -----------------------------------------------------------------------------
$3,100 Connecticut HEFA, (Quinnipiac College),
Prerefunded to 7/1/03, 6.00%, 7/1/23 $ 3,255,992
1,000 Connecticut HEFA, (Sacred Heart
University), Prerefunded to 7/1/02,
6.80%, 7/1/12 1,063,260
3,060 Virgin Islands Water and Power
Authority, Prerefunded to 7/1/01,
7.40%, 7/1/11 3,203,330
- -----------------------------------------------------------------------------
$ 7,522,582
- -----------------------------------------------------------------------------
General Obligations -- 4.5%
- -----------------------------------------------------------------------------
$1,750 Connecticut, 0.00%, 11/1/09 $ 1,022,315
1,270 Danbury, 4.50%, 2/1/14 1,111,529
500 Guam, 5.40%, 11/15/18 430,865
500 Puerto Rico Aqueduct and Sewer
Authority, 5.00%, 7/1/15 444,370
1,065 Puerto Rico, Public Improvement,
0.00%, 7/1/15 422,997
2,000 Puerto Rico, Public Improvement,
5.00%, 7/1/27 1,645,280
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
General Obligations (continued)
- -----------------------------------------------------------------------------
$ 400 Redding, 5.50%, 10/15/18 $ 386,152
650 Redding, 5.625%, 10/15/19 633,334
- -----------------------------------------------------------------------------
$ 6,096,842
- -----------------------------------------------------------------------------
Hospital -- 7.3%
- -----------------------------------------------------------------------------
$5,400 Connecticut HEFA, (Griffin Hospital),
5.75%, 7/1/23 $ 4,334,202
500 Connecticut HEFA, (Hospital for Special
Care), 5.375%, 7/1/17 411,925
2,000 Connecticut HEFA, (New Britain Memorial
Hospital), 7.75%, 7/1/22 2,172,260
2,780 Connecticut HEFA, (William W. Backus
Hospital), 6.375%, 7/1/22 2,929,203
- -----------------------------------------------------------------------------
$ 9,847,590
- -----------------------------------------------------------------------------
Housing -- 3.6%
- -----------------------------------------------------------------------------
$ 970 Connecticut HFA, Multifamily,
6.60%, 11/15/23 $ 1,000,303
3,940 Connecticut HFA, Multifamily, (AMT),
6.20%, 11/15/22 3,934,760
- -----------------------------------------------------------------------------
$ 4,935,063
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 2.2%
- -----------------------------------------------------------------------------
$1,000 Connecticut Development Authority PCR,
(Pfizer, Inc.), 6.55%, 2/15/13 $ 1,054,290
400 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 378,296
500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.30%, 6/1/23 477,070
1,250 Sprague, Environmental Improvement,
(International Paper Co.), (AMT),
5.70%, 10/1/21 1,085,612
- -----------------------------------------------------------------------------
$ 2,995,268
- -----------------------------------------------------------------------------
Insured-Education -- 10.0%
- -----------------------------------------------------------------------------
$3,000 Connecticut HEFA, (Choate Rosemary
College), (MBIA), 5.00%, 7/1/27 $ 2,498,220
1,000 Connecticut HEFA, (Choate Rosemary
College), (MBIA), 6.80%, 7/1/15 1,081,210
2,000 Connecticut HEFA, (Fairfield
University), (MBIA), 5.00%, 7/1/28 1,655,280
2,500 Connecticut HEFA, (Fairfield
University), (MBIA), 5.25%, 7/1/25 2,187,850
5,305 Connecticut HEFA, (Trinity College),
(MBIA), 5.50%, 7/1/21 5,002,509
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
44
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Education (continued)
- -----------------------------------------------------------------------------
$1,440 Connecticut HEFA, (Westminster School),
(MBIA), 5.00%, 7/1/29 $ 1,188,216
- -----------------------------------------------------------------------------
$ 13,613,285
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 2.4%
- -----------------------------------------------------------------------------
$4,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 $ 3,264,160
- -----------------------------------------------------------------------------
$ 3,264,160
- -----------------------------------------------------------------------------
Insured-General Obligations -- 0.8%
- -----------------------------------------------------------------------------
$1,000 New Britain, (MBIA), 6.00%, 3/1/12 $ 1,044,110
- -----------------------------------------------------------------------------
$ 1,044,110
- -----------------------------------------------------------------------------
Insured-Hospital -- 7.0%
- -----------------------------------------------------------------------------
$1,000 Connecticut HEFA, (Bridgeport Hospital),
(MBIA), 6.625%, 7/1/18 $ 1,042,080
1,000 Connecticut HEFA, (Danbury Hospital),
(AMBAC), 5.375%, 7/1/17 913,320
1,000 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC), 6.50%, 7/1/11 1,088,770
1,500 Connecticut HEFA, (Hospital of St.
Raphael), (AMBAC), 6.625%, 7/1/14 1,557,585
2,350 Connecticut HEFA, (Lawrence and Memorial
Hospital), (MBIA), 5.00%, 7/1/22 1,947,680
1,000 Connecticut HEFA, (Stamford Hospital),
(MBIA), 5.00%, 7/1/24 830,860
2,000 Connecticut HEFA, (Yale-New Haven
Hospital), (MBIA), 6.50%, 7/1/12 2,093,780
- -----------------------------------------------------------------------------
$ 9,474,075
- -----------------------------------------------------------------------------
Insured-Housing -- 0.2%
- -----------------------------------------------------------------------------
$ 305 Puerto Rico Housing Finance Corp.,
(AMBAC), 7.50%, 10/1/11 $ 305,918
- -----------------------------------------------------------------------------
$ 305,918
- -----------------------------------------------------------------------------
Insured-Transportation -- 4.8%
- -----------------------------------------------------------------------------
$3,000 Connecticut Airport Revenue, (Bradley
International), (FGIC), 7.65%, 10/1/12 $ 3,317,640
1,750 Puerto Rico Highway and Transportation
Authority, (AMBAC), 0.00%, 7/1/16 669,428
2,035 Puerto Rico Highway and Transportation
Authority, (AMBAC), 5.00%, 7/1/28 1,705,757
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Transportation (continued)
- -----------------------------------------------------------------------------
$1,020 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 791,561
- -----------------------------------------------------------------------------
$ 6,484,386
- -----------------------------------------------------------------------------
Insured-Water and Sewer -- 0.8%
- -----------------------------------------------------------------------------
$1,340 South Central Connecticut Regional Water
Authority, Water System Revenue, (FGIC),
5.125%, 8/1/29 $ 1,134,270
- -----------------------------------------------------------------------------
$ 1,134,270
- -----------------------------------------------------------------------------
Nursing Home -- 9.8%
- -----------------------------------------------------------------------------
$1,240 Connecticut Development Authority,
(Baptist Homes), 9.00%, 9/1/22 $ 1,381,769
720 Connecticut HEFA, (NHP), (Highland
View), (AMT), 7.00%, 11/1/07 786,406
1,305 Connecticut HEFA, (NHP), (Sharon
Healthcare), 6.25%, 11/1/14 1,331,074
655 Connecticut HEFA, (NHP), (St. Camillus),
6.25%, 11/1/18 644,631
3,250 Connecticut HEFA, (NHP), (St. Joseph's
Manor), 6.25%, 11/1/16 3,296,865
335 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.00%, 11/1/07 365,897
2,000 Connecticut HEFA, (NHP), (Wadsworth
Glen), (AMT), 7.50%, 11/1/16 2,193,680
3,000 Connecticut HEFA, (NHP), (Windsor),
7.125%, 11/1/14 3,313,320
- -----------------------------------------------------------------------------
$ 13,313,642
- -----------------------------------------------------------------------------
Pooled Loans -- 2.5%
- -----------------------------------------------------------------------------
$1,075 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 6.20%, 11/15/09 $ 1,094,812
2,195 Connecticut Higher Education
Supplemental Loan Authority Revenue
Bonds, (AMT), 7.50%, 11/15/10 2,219,101
- -----------------------------------------------------------------------------
$ 3,313,913
- -----------------------------------------------------------------------------
Solid Waste -- 4.6%
- -----------------------------------------------------------------------------
$2,500 Bristol Resource Recovery Facility,
(Ogden Martin Systems), 6.50%, 7/1/14 $ 2,498,650
4,250 Connecticut Resources Recovery
Authority, (American REF-FUEL Co.),
(AMT), 6.45%, 11/15/22 3,796,865
- -----------------------------------------------------------------------------
$ 6,295,515
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
45
<PAGE>
CONNECTICUT MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Special Tax Revenue -- 4.3%
- -----------------------------------------------------------------------------
$3,180 Connecticut Special Tax Transportation
Infrastructure, 6.125%, 9/1/12 $ 3,345,296
2,000 Connecticut Special Tax Transportation
Infrastructure, 6.50%, 10/1/12 2,171,980
375 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) 254,528
- -----------------------------------------------------------------------------
$ 5,771,804
- -----------------------------------------------------------------------------
Transportation -- 9.7%
- -----------------------------------------------------------------------------
$3,065 Connecticut Development Authority,
Airport Facility, (Signature Flight),
(AMT), 6.625%, 12/1/14 $ 3,012,190
2,350 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/22 1,964,718
3,680 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/38 2,935,499
500 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 482,110
4,965 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/15 4,787,352
- -----------------------------------------------------------------------------
$ 13,181,869
- -----------------------------------------------------------------------------
Water and Sewer -- 1.0%
- -----------------------------------------------------------------------------
$1,250 Connecticut Clean Water Fund,
6.00%, 10/1/12 $ 1,311,613
- -----------------------------------------------------------------------------
$ 1,311,613
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments
(identified cost $138,302,919) $133,475,604
- -----------------------------------------------------------------------------
</TABLE>
PUT OPTIONS PURCHASED -- 0.0%
<TABLE>
<CAPTION>
<C> <S> <C>
- -----------------------------------------------------------------------------
$ 60 March, 2000 US Long Bond Futures
Contracts, expires 2/19/00, strike price
$90 $ 14,058
- -----------------------------------------------------------------------------
Total Put Options Purchased
(identified cost, $22,830) $ 14,058
- -----------------------------------------------------------------------------
Total Investments -- 98.3%
(identified cost $138,325,749) $133,489,662
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 2,320,325
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $135,809,987
- -----------------------------------------------------------------------------
</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 January 31, 2000, 26.5% 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 3.0% to 15.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
46
<PAGE>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.5%
<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 $ 519,970
- ----------------------------------------------------------------------------
$ 519,970
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.8%
- ----------------------------------------------------------------------------
$1,000 Lake Orion School District, Prerefunded
to 5/1/05, (AMBAC), 7.00%, 5/1/20 $ 1,099,210
1,470 South Redford School District,
Prerefunded to 5/10/07, (FGIC),
5.50%, 5/1/22 1,501,120
- ----------------------------------------------------------------------------
$ 2,600,330
- ----------------------------------------------------------------------------
General Obligations -- 8.2%
- ----------------------------------------------------------------------------
$ 500 Avondale School District, 6.75%, 5/1/14 $ 515,305
4,920 Detroit, 6.35%, 4/1/14 5,059,138
475 Detroit, 6.70%, 4/1/10 515,118
1,000 Mattawan Consolidated Schools,
6.40%, 5/1/09 1,051,840
1,100 Puerto Rico, 0.00%, 7/1/16 408,232
- ----------------------------------------------------------------------------
$ 7,549,633
- ----------------------------------------------------------------------------
Hospital -- 10.6%
- ----------------------------------------------------------------------------
$1,000 Allegan Hospital Finance Authority,
(Allegan General Hospital),
7.00%, 11/15/21 $ 939,970
1,000 Dickinson County Health System,
5.80%, 11/1/24 792,060
1,000 John Tolfree Health System Corp.,
6.00%, 9/15/23 824,570
1,000 Mecosta County, (Michigan General
Hospital), 5.75%, 5/15/09 920,750
2,000 Michigan HFA, (Central Michigan
Community Hospital), 6.25%, 10/1/27 1,697,660
250 Michigan HFA, (Henry Ford Continuing
Care Corp.), 6.75%, 7/1/11 260,735
6,000 Michigan HFA, (McLaren Obligated Group),
4.50%, 10/15/21 4,298,520
- ----------------------------------------------------------------------------
$ 9,734,265
- ----------------------------------------------------------------------------
Housing -- 1.2%
- ----------------------------------------------------------------------------
$ 205 Michigan HDA, Rental Housing, (AMT),
7.15%, 4/1/10 $ 214,069
880 Michigan HDA, SFMR, (AMT),
6.20%, 12/1/27 863,896
- ----------------------------------------------------------------------------
$ 1,077,965
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 8.4%
- ----------------------------------------------------------------------------
$2,000 Dickinson, PCR, (Champion
International), 5.85%, 10/1/18 $ 1,792,800
1,000 Michigan Strategic Fund, (Crown Paper),
(AMT), 6.50%, 8/1/21 785,000
110 Michigan Strategic Fund, (KMart Corp.),
6.80%, 12/15/07 109,266
2,500 Michigan Strategic Fund, (S.D. Warren
Co.), (AMT), 7.375%, 1/15/22 2,576,450
2,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 1,891,480
530 Richmond EDC, (KMart Corp.),
6.625%, 1/1/07 525,627
- ----------------------------------------------------------------------------
$ 7,680,623
- ----------------------------------------------------------------------------
Insured-Education -- 6.9%
- ----------------------------------------------------------------------------
$1,000 Ferris State University, (AMBAC),
5.00%, 10/1/23 $ 836,270
500 Ferris State University, (AMBAC),
5.00%, 10/1/28 411,710
2,750 Ferris State University, (MBIA),
5.25%, 10/1/20 2,428,717
1,000 Michigan State University-Grand Valley,
(MBIA), 5.25%, 10/1/17 910,280
2,000 Western Michigan University, (FGIC),
5.125%, 11/15/22 1,712,800
- ----------------------------------------------------------------------------
$ 6,299,777
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 5.1%
- ----------------------------------------------------------------------------
$ 300 Michigan Strategic Fund, (Detroit Edison
Co.), (FGIC), 6.95%, 5/1/11 $ 336,339
2,000 Michigan Strategic Fund, (Detroit Edison
Co.), (MBIA), (AMT), 5.55%, 9/1/29 1,757,540
550 Monroe County, PCR, (Detroit Edison
Co.), (FGIC), (AMT), 7.65%, 9/1/20 569,530
500 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/21 414,925
2,000 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 1,632,080
- ----------------------------------------------------------------------------
$ 4,710,414
- ----------------------------------------------------------------------------
Insured-General Obligations -- 17.6%
- ----------------------------------------------------------------------------
$ 750 Anchor Bay School District, (FGIC),
4.75%, 5/1/26 $ 594,765
1,000 Coopersville Area Public School
District, (MBIA), 5.00%, 5/1/29 822,030
1,000 Grand Ledge School District, (MBIA),
5.375%, 5/1/24 891,940
400 Haslett Public School District, (FSA),
4.75%, 5/1/26 317,592
1,900 Holland School District, (AMBAC),
0.00%, 5/1/17 657,191
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-General Obligations (continued)
- ----------------------------------------------------------------------------
$2,000 Kalamazoo, (MBIA), 5.40%, 5/1/14 $ 1,949,600
500 Kaleva Norman Etc School District,
(Building and Site), (FGIC),
5.95%, 5/1/22 485,905
500 Kaleva Norman Etc School District,
(Building and Site), (FGIC),
6.00%, 5/1/25 493,925
3,000 Lake Orion, Community School District,
(FGIC), 5.125%, 5/1/23 2,577,690
1,500 Lincoln Park School District, (FGIC),
5.90%, 5/1/26 1,575,585
1,000 Novi Building Authority, (FSA),
5.50%, 10/1/25 908,770
2,410 Okemos Public Schools, (MBIA),
0.00%, 5/1/16 893,532
370 Parchment School District, (MBIA),
5.00%, 5/1/25 313,053
1,000 Redford Union School District No.1,
(AMBAC), 5.00%, 5/1/22 850,230
770 South Redford School District, (FGIC),
5.50%, 5/1/22 707,499
2,500 Wyoming Public Schools, (FGIC),
5.125%, 5/1/23 2,148,075
- ----------------------------------------------------------------------------
$16,187,382
- ----------------------------------------------------------------------------
Insured-Hospital -- 4.1%
- ----------------------------------------------------------------------------
$3,500 Kent HFA, (Butterworth Health System),
(MBIA), 6.125%, 1/15/16 $ 3,729,390
- ----------------------------------------------------------------------------
$ 3,729,390
- ----------------------------------------------------------------------------
Insured-Housing -- 1.7%
- ----------------------------------------------------------------------------
$1,250 Michigan HDA, (MBIA), 5.30%, 10/1/37 $ 1,050,463
500 Michigan HDA, (Parkway Meadows), (FSA),
6.85%, 10/15/18 520,220
- ----------------------------------------------------------------------------
$ 1,570,683
- ----------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 2.0%
- ----------------------------------------------------------------------------
$2,200 Hancock HFA, (Portage Health), (MBIA),
5.45%, 8/1/47 $ 1,856,932
- ----------------------------------------------------------------------------
$ 1,856,932
- ----------------------------------------------------------------------------
Insured-Transportation -- 1.8%
- ----------------------------------------------------------------------------
$1,000 Bishop International Airport Authority,
(AMBAC), 5.00%, 12/1/23 $ 837,920
1,000 Wayne Charter County, Airport, (MBIA),
(AMT), 5.00%, 12/1/28 799,740
- ----------------------------------------------------------------------------
$ 1,637,660
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Water and Sewer -- 8.2%
- ----------------------------------------------------------------------------
$5,000 Detroit, City Water Supply System,
(FGIC), 4.75%, 7/1/19 $ 4,087,650
4,400 Grand Rapids, Sanitary Sewer System,
(FGIC), 4.75%, 1/1/28 3,467,948
- ----------------------------------------------------------------------------
$ 7,555,598
- ----------------------------------------------------------------------------
Miscellaneous -- 1.6%
- ----------------------------------------------------------------------------
$1,500 Pittsfield Township EDC, (Arbor
Hospice), 7.875%, 8/15/27 $ 1,421,250
- ----------------------------------------------------------------------------
$ 1,421,250
- ----------------------------------------------------------------------------
Pooled Loans -- 2.8%
- ----------------------------------------------------------------------------
$1,825 Michigan Municipal Bond Authority Local
Government Loan, 6.75%, 5/1/12 $ 1,928,368
590 Michigan Municipal Bond Authority Local
Government Loan, 6.90%, 5/1/21 617,040
- ----------------------------------------------------------------------------
$ 2,545,408
- ----------------------------------------------------------------------------
Senior Living / Life Care -- 2.4%
- ----------------------------------------------------------------------------
$1,500 Kalamazoo EDC, (Friendship Village),
6.25%, 5/15/27 $ 1,289,460
1,000 Michigan HFA, (Presbyterian Village),
6.50%, 1/1/25 897,150
- ----------------------------------------------------------------------------
$ 2,186,610
- ----------------------------------------------------------------------------
Special Tax Revenue -- 8.9%
- ----------------------------------------------------------------------------
$ 250 Battle Creek, Downtown Development
Authority Tax Increment, 7.60%, 5/1/16 $ 278,208
1,315 Battle Creek, Downtown Development
Authority Tax Increment, 7.65%, 5/1/22 1,465,857
3,800 Detroit, (Convention Facility Cobo Hall
Expansion), 5.25%, 9/30/12 3,515,950
3,050 Detroit, Downtown Tax Increment,
0.00%, 7/1/16 1,073,997
2,000 Detroit, Downtown Tax Increment,
0.00%, 7/1/20 524,940
1,500 Detroit, Local Development Finance
Authority, 5.375%, 5/1/21 1,324,965
- ----------------------------------------------------------------------------
$ 8,183,917
- ----------------------------------------------------------------------------
Transportation -- 2.7%
- ----------------------------------------------------------------------------
$1,500 Kent County Airport Facility, Variable
Rate, 1/1/25(1)(2) $ 1,017,720
345 Puerto Rico Highway and Transportation
Authority, Highway Revenue, RITES,
9.402%, 7/1/26(2)(3) 260,782
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
MICHIGAN MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Transportation (continued)
- ----------------------------------------------------------------------------
$2,000 Wayne Charter County Airport, Variable
Rate, 12/1/28(1)(2) $ 1,203,280
- ----------------------------------------------------------------------------
$ 2,481,782
- ----------------------------------------------------------------------------
Water and Sewer -- 0.9%
- ----------------------------------------------------------------------------
$1,000 Michigan Municipal Bond Authority,
(Clean Water Revolving Fund),
4.75%, 10/1/18 $ 831,660
- ----------------------------------------------------------------------------
$ 831,660
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments
(identified cost $93,683,395) $90,361,249
- ----------------------------------------------------------------------------
</TABLE>
PUT OPTIONS PURCHASED -- 0.0%
<TABLE>
<CAPTION>
<C> <S> <C>
- ----------------------------------------------------------------------------
$ 42 March, 2000 US Long Bond Futures
Contracts, expires 2/19/00, strike price
$90 $ 9,844
- ----------------------------------------------------------------------------
Total Put Options Purchased
(identified cost, $15,981) $ 9,844
- ----------------------------------------------------------------------------
Total Investments -- 98.5%
(identified cost $93,699,376) $90,371,093
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.5% $ 1,402,590
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $91,773,683
- ----------------------------------------------------------------------------
</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 January 31, 2000, 51.1% 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 4.2% to 22.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(3) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.6%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Assisted Living -- 0.8%
- ----------------------------------------------------------------------------
$ 990 St. Paul, Housing and Redevelopment, $ 407,914
(Care Institute, Inc.-Highland),
8.75%, 11/1/24
- ----------------------------------------------------------------------------
$ 407,914
- ----------------------------------------------------------------------------
Education -- 5.9%
- ----------------------------------------------------------------------------
$ 1,000 Hopkins, (Blake School), 5.50%, 9/1/24 $ 913,970
1,250 Minnesota Higher Education Facilities 1,168,900
Authority, (Hamline University),
6.00%, 10/1/29
500 Minnesota Higher Education Facilities 440,075
Authority, (St. John's University),
5.40%, 10/1/22
500 Minnesota Higher Education Facilities 479,820
Authority, (St. Mary's College),
6.15%, 10/1/23
- ----------------------------------------------------------------------------
$ 3,002,765
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.5%
- ----------------------------------------------------------------------------
$ 1,700 Minnesota State, Prerefunded to 8/1/02, $ 1,823,233
Variable Rate, 8/1/11(1)
3,000 St. Paul, Housing and Redevelopment 2,974,830
Authority, (Civic Center), (MBIA),
Escrowed to Maturity, 5.45%, 11/1/13
- ----------------------------------------------------------------------------
$ 4,798,063
- ----------------------------------------------------------------------------
General Obligations -- 2.4%
- ----------------------------------------------------------------------------
$ 1,000 Minnesota State, (Duluth Airport), $ 1,026,840
(AMT), 6.25%, 8/1/14
200 St. Cloud, Water and Sewer, Variable 204,000
Rate, 8/1/13(1)
- ----------------------------------------------------------------------------
$ 1,230,840
- ----------------------------------------------------------------------------
Hospital -- 16.7%
- ----------------------------------------------------------------------------
$ 700 Martin County, (Fairmont Community $ 632,009
Hospital Association), 6.625%, 9/1/22
1,250 Minneapolis and St. Paul, Housing and 1,232,312
Redevelopment Authority, (Group Health
Plan, Inc.), 6.75%, 12/1/13
250 Minneapolis and St. Paul, Housing and 242,722
Redevelopment Authority, (Group Health
Plan, Inc.), 6.90%, 10/15/22
2,120 Red Wing Health Care Facilities, (River 1,975,501
Region Obligation Group), 6.50%, 9/1/22
500 Rochester Health Care Facilities, (Mayo 392,690
Clinic), Variable Rate, 11/15/27(1)(2)
2,200 Rochester Health Care Facilities, (Mayo 2,227,500
Clinic), (AMT), Variable Rate,
11/15/15(1)
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Hospital (continued)
- ----------------------------------------------------------------------------
$ 1,945 St. Paul, Housing and Redevelopment $ 1,739,005
Authority, (Healtheast), 6.625%, 11/1/17
- ----------------------------------------------------------------------------
$ 8,441,739
- ----------------------------------------------------------------------------
Housing -- 16.8%
- ----------------------------------------------------------------------------
$ 300 Coon Rapids, Multifamily Housing, $ 307,134
(Browns Meadow), (FHA), (AMT),
6.85%, 8/1/33
50 Minneapolis and St. Paul, Housing 51,078
Finance Board, SFMR, (GNMA), (AMT),
7.30%, 8/1/31
3,775 Minnesota HFA, SFMR, (AMT), 3,782,588
6.50%, 1/1/26
1,650 Minnetonka, Multifamily, (Archer Heights 1,472,955
Apartments), 6.00%, 1/20/27
1,250 St. Louis Park, (Knollwood Apartments), 1,246,550
(FHA), 6.25%, 12/1/28
1,685 St. Paul, Housing and Redevelopment 1,629,783
Authority, (Cliffe Apartments), (GNMA),
6.00%, 1/1/31
- ----------------------------------------------------------------------------
$ 8,490,088
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 10.3%
- ----------------------------------------------------------------------------
$ 1,205 Cloquet PCR, (Potlach Corp.), $ 1,066,823
5.90%, 10/1/26
750 Minneapolis, Community Development 743,250
Agency, 6.00%, 6/1/11
100 Minneapolis, Community Development 104,913
Agency, 7.35%, 12/1/09
1,250 Minneapolis, Community Development 1,320,737
Agency, 7.40%, 12/1/21
1,605 Minneapolis, Community Development 1,637,614
Agency, (AMT), 6.80%, 12/1/24
300 Minneapolis, Community Development 303,078
Agency, (Firemans Ins.), 6.40%, 12/1/04
- ----------------------------------------------------------------------------
$ 5,176,415
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 15.1%
- ----------------------------------------------------------------------------
$ 1,000 Northern Minnesota Municipal Power $ 818,090
Agency, (AMBAC), 4.75%, 1/1/20
400 Puerto Rico Electric Power Authority, 328,028
(MBIA), 4.50%, 7/1/18
3,000 Southern Minnesota Municipal Power 814,740
Agency, (MBIA), 0.00%, 10/1/21
10,000 Southern Minnesota Municipal Power 2,091,200
Agency, (MBIA), 0.00%, 1/1/25
9,880 Southern Minnesota Municipal Power 1,935,492
Agency, (MBIA), 0.00%, 1/1/26
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
50
<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- ----------------------------------------------------------------------------
$ 4,800 Southern Minnesota Municipal Power $ 882,960
Agency, (MBIA), 0.00%, 1/1/27
300 Southern Minnesota Municipal Power 276,000
Agency, (MBIA), (AMT), Variable Rate,
1/1/18(1)(2)
510 Western Minnesota Municipal Power 490,651
Agency, (MBIA), 5.50%, 1/1/15
- ----------------------------------------------------------------------------
$ 7,637,161
- ----------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
- ----------------------------------------------------------------------------
$ 1,330 St. Francis, Independent School District $ 1,413,245
No. 15, (FGIC), 6.35%, 2/1/12
- ----------------------------------------------------------------------------
$ 1,413,245
- ----------------------------------------------------------------------------
Insured-Hospital -- 3.1%
- ----------------------------------------------------------------------------
$ 250 Minneapolis, (Fairview Hospital), $ 261,260
(MBIA), 6.50%, 1/1/11
450 Plymouth, (Westhealth), (FSA), 455,220
6.25%, 6/1/16
1,000 St. Louis Park, (Care Institute), 852,500
(AMBAC), Variable Rate, 7/1/13(1)
- ----------------------------------------------------------------------------
$ 1,568,980
- ----------------------------------------------------------------------------
Insured-Housing -- 3.2%
- ----------------------------------------------------------------------------
$ 1,500 SCA MFMR Receipts, Burnsville, (FSA), $ 1,589,115
7.10%, 1/1/30
- ----------------------------------------------------------------------------
$ 1,589,115
- ----------------------------------------------------------------------------
Insured-Transportation -- 1.5%
- ----------------------------------------------------------------------------
$ 1,000 Puerto Rico Highway and Transportation $ 776,040
Authority, (FSA), 4.75%, 7/1/38
- ----------------------------------------------------------------------------
$ 776,040
- ----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.7%
- ----------------------------------------------------------------------------
$ 350 Cambridge EDA, Public Lease, $ 360,139
6.25%, 2/1/14
- ----------------------------------------------------------------------------
$ 360,139
- ----------------------------------------------------------------------------
Miscellaneous -- 1.8%
- ----------------------------------------------------------------------------
$ 1,000 Red Lake Band of Chippewa Indians, $ 924,270
6.25%, 8/1/13
- ----------------------------------------------------------------------------
$ 924,270
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Nursing Home -- 2.9%
- ----------------------------------------------------------------------------
$ 1,000 Columbia Heights, Multifamily, $ 810,280
(Crestview Corp.), 6.00%, 3/1/33
800 Minneapolis, (Walker Methodist Senior 643,328
Services), 6.00%, 11/15/28
- ----------------------------------------------------------------------------
$ 1,453,608
- ----------------------------------------------------------------------------
Solid Waste -- 0.9%
- ----------------------------------------------------------------------------
$ 450 Anoka County, Solid Waste Disposal, $ 462,609
National Rural Utility, (AMT),
6.95%, 12/1/08
- ----------------------------------------------------------------------------
$ 462,609
- ----------------------------------------------------------------------------
Transportation -- 3.2%
- ----------------------------------------------------------------------------
$ 1,500 Minneapolis and St. Paul, Metropolitan $ 1,238,085
Airport Commission, (AMT), 4.50%, 1/1/15
400 Puerto Rico Highway and Transportation 353,976
Authority, 5.50%, 7/1/36
- ----------------------------------------------------------------------------
$ 1,592,061
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.6%
(identified cost $50,620,354) $49,325,052
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.4% $ 1,196,793
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $50,521,845
- ----------------------------------------------------------------------------
</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 January 31, 2000, 32.4% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 2.9% to 20.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
51
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 99.9%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Assisted Living -- 3.0%
- -----------------------------------------------------------------------------
$ 3,750 New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.25%, 10/1/20 $ 3,836,475
3,525 New Jersey EDA, (Forsgate), (AMT),
8.625%, 6/1/25 3,796,601
- -----------------------------------------------------------------------------
$ 7,633,076
- -----------------------------------------------------------------------------
Cogeneration -- 6.9%
- -----------------------------------------------------------------------------
$ 1,725 New Jersey EDA, (Trigen Trenton), (AMT),
6.20%, 12/1/07 $ 1,679,339
10,750 New Jersey EDA, (Vineland Cogeneration),
(AMT), 7.875%, 6/1/19 11,068,630
5,000 Port Authority of New York and New
Jersey, (KIAC), 6.75%, 10/1/19 5,005,850
- -----------------------------------------------------------------------------
$ 17,753,819
- -----------------------------------------------------------------------------
Economic Development Revenue -- 0.5%
- -----------------------------------------------------------------------------
$ 2,155 New Jersey EDA, RITES, 8.00%, 5/1/18 $ 1,426,782
- -----------------------------------------------------------------------------
$ 1,426,782
- -----------------------------------------------------------------------------
Education -- 1.5%
- -----------------------------------------------------------------------------
$ 8,800 New Jersey Higher Educational Student
Loan Bonds, (AMT), 0.00%, 7/1/10 $ 3,953,840
- -----------------------------------------------------------------------------
$ 3,953,840
- -----------------------------------------------------------------------------
Electric Utilities -- 1.2%
- -----------------------------------------------------------------------------
$ 6,500 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 $ 2,267,135
2,000 Puerto Rico Electric Power Authority,
0.00%, 7/1/17 697,580
- -----------------------------------------------------------------------------
$ 2,964,715
- -----------------------------------------------------------------------------
General Obligations -- 4.5%
- -----------------------------------------------------------------------------
$ 8,000 Guam, 5.40%, 11/15/18 $ 6,893,840
1,500 Hudson County Improvement Authority,
6.625%, 8/1/25 1,535,430
3,000 Mercer County Improvement Authority,
0.00%, 4/1/10 1,696,710
1,500 Puerto Rico, 0.00%, 7/1/16 556,680
1,000 Puerto Rico, 4.50%, 7/1/23 763,520
- -----------------------------------------------------------------------------
$ 11,446,180
- -----------------------------------------------------------------------------
Hospital -- 10.8%
- -----------------------------------------------------------------------------
$ 3,750 Camden County, Improvement Authority,
(Cooper Health System), 6.00%, 2/15/27 $ 2,595,000
2,300 New Jersey Health Care Facilities
Financing Authority, (Atlantic City
Medical Center), 6.80%, 7/1/11 2,415,023
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Hospital (continued)
- -----------------------------------------------------------------------------
$ 1,250 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.125%, 7/1/12 $ 1,030,387
3,500 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.25%, 7/1/17 2,723,980
1,750 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 5.25%, 7/1/27 1,269,397
5,400 New Jersey Health Care Facilities
Financing Authority, (Capital Health
System), 6.00%, 7/1/27 4,251,096
5,875 New Jersey Health Care Facilities
Financing Authority, (Deborah Heart and
Lung Center), 6.30%, 7/1/23 5,067,599
4,000 New Jersey Health Care Facilities
Financing Authority, (Southern Ocean
County Hospital), 6.25%, 7/1/23 3,467,640
2,890 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), Variable Rate,
7/1/28(1)(2) 1,682,963
850 New Jersey Health Care Facilities
Financing Authority, (St. Elizabeth's
Hospital), 6.00%, 7/1/20 694,161
2,500 New Jersey Health Care Facilities
Financing Authority, (Trinitas Hospital
Obligated Group), 7.50%, 7/1/30 2,432,775
- -----------------------------------------------------------------------------
$ 27,630,021
- -----------------------------------------------------------------------------
Housing -- 0.4%
- -----------------------------------------------------------------------------
$ 1,000 Guam Housing Corp., Single Family,
5.75%, 9/1/31 $ 936,470
- -----------------------------------------------------------------------------
$ 936,470
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 17.2%
- -----------------------------------------------------------------------------
$ 4,000 Middlesex County Pollution Control
Financing Authority, (Amerada Hess
Corp.), 6.875%, 12/1/22 $ 4,028,000
2,000 Middlesex County Pollution Control
Financing Authority, (Amerada Hess
Corp.), 7.875%, 6/1/22 2,163,180
7,500 New Jersey EDA, (Continental Airlines),
(AMT), 6.25%, 9/15/29 6,606,675
4,500 New Jersey EDA, (Elizabethtown Water
Company), (AMT), 6.70%, 8/1/21 4,671,270
3,000 New Jersey EDA, (Garden State Paper
Co.), 7.125%, 4/1/22 3,158,580
2,135 New Jersey EDA, (GATX Terminals Corp.),
7.30%, 9/1/19 2,240,576
3,500 New Jersey EDA, (Glimcher Properties
REIT), (AMT), 6.00%, 11/1/28 3,119,900
5,640 New Jersey EDA, (Holt Hauling),
8.95%, 12/15/18 5,994,418
1,500 New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 1,589,895
2,250 New Jersey EDA, (Kapkowsi Mall),
6.375%, 4/1/31 2,107,372
1,160 New Jersey EDA, (National Association of
Accountants), 7.65%, 7/1/09 1,192,097
2,000 New Jersey EDA, (The Seeing Eye, Inc.),
7.30%, 4/1/11 2,041,500
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Industrial Development Revenue (continued)
- -----------------------------------------------------------------------------
$ 4,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.30%, 6/1/23 $ 3,816,560
1,520 South Jersey Transportation Authority,
(Raytheon Aircraft), 6.15%, 1/1/22 1,366,009
- -----------------------------------------------------------------------------
$ 44,096,032
- -----------------------------------------------------------------------------
Insured-Education -- 0.5%
- -----------------------------------------------------------------------------
$ 1,525 New Brunswick, Housing Authority,
(Rutgers University), (FGIC),
4.625%, 7/1/24 $ 1,216,660
- -----------------------------------------------------------------------------
$ 1,216,660
- -----------------------------------------------------------------------------
Insured-General Obligations -- 0.8%
- -----------------------------------------------------------------------------
$ 1,000 Middletown Township, Board of Education,
(MBIA), 5.85%, 8/1/26 $ 975,690
1,000 Middletown Township, Board of Education,
(MBIA), 5.85%, 8/1/27 974,930
- -----------------------------------------------------------------------------
$ 1,950,620
- -----------------------------------------------------------------------------
Insured-Hospital -- 5.5%
- -----------------------------------------------------------------------------
$ 4,250 New Jersey EDA, (Hillcrest Health
Services), (AMBAC), 0.00%, 1/1/19 $ 1,301,435
3,000 New Jersey EDA, (Hillcrest Health
Services), (AMBAC), 0.00%, 1/1/21 804,060
10,620 New Jersey EDA, (St. Barnabas Medical
Center), (MBIA), 0.00%, 7/1/26 1,987,852
2,380 New Jersey Health Care Facilities
Financing Authority, (Cathedral Health
Services), (MBIA), 5.20%, 8/1/15 2,204,761
6,000 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), (MBIA), 0.00%, 7/1/23 1,367,760
4,720 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), (MBIA), 4.75%, 7/1/28 3,729,178
1,150 New Jersey Health Care Facilities
Financing Authority, (St. Barnabas
Medical Center), (MBIA), 5.25%, 7/1/13 1,098,227
2,150 New Jersey Health Care Facilities
Financing Authority, (Virtua Health),
(FSA), 4.50%, 7/1/28 1,626,109
- -----------------------------------------------------------------------------
$ 14,119,382
- -----------------------------------------------------------------------------
Insured-Housing -- 0.6%
- -----------------------------------------------------------------------------
$ 1,475 Pennsauken Township, Housing Finance
Corp., (MBIA), 8.00%, 4/1/11 $ 1,522,937
- -----------------------------------------------------------------------------
$ 1,522,937
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 5.7%
- -----------------------------------------------------------------------------
$ 3,000 Delaware River Port Authority, (FSA),
5.625%, 1/1/26 $ 2,824,710
7,500 Delaware River Port Authority, (FSA),
5.75%, 1/1/26 7,221,225
1,600 New Jersey EDA, (Educational Testing
Service), (MBIA), 4.75%, 5/15/25 1,297,712
1,150 New Jersey EDA, (New Jersey American
Water Co.), (AMT) (FGIC),
6.875%, 11/1/34 1,206,005
2,500 New Jersey EDA, Water Facilities
Revenue, (New Jersey American Water Co.
Inc.), (FGIC), (AMT), 5.375%, 5/1/32 2,186,025
- -----------------------------------------------------------------------------
$ 14,735,677
- -----------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 3.4%
- -----------------------------------------------------------------------------
$ 3,900 Atlantic County, Public Facilities Lease
Agreement, (FGIC), 6.00%, 3/1/13 $ 4,067,037
2,500 Hudson County Improvement Authority,
Secondary Yield Curve Notes, (FGIC),
Variable Rate, 12/1/25(1)(3) 2,755,550
1,750 Hudson County, Correctional Facility,
(MBIA), 6.50%, 12/1/11 1,829,188
- -----------------------------------------------------------------------------
$ 8,651,775
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 2.7%
- -----------------------------------------------------------------------------
$ 3,555 New Jersey Sports and Exposition
Authority, (MBIA), 4.50%, 9/1/20 $ 2,831,131
5,100 New Jersey Sports and Exposition
Authority, (MBIA), 4.50%, 3/1/24 3,998,757
- -----------------------------------------------------------------------------
$ 6,829,888
- -----------------------------------------------------------------------------
Insured-Transportation -- 10.0%
- -----------------------------------------------------------------------------
$ 3,500 New Jersey State Transportation
Authority, (FSA), 4.50%, 6/15/19 $ 2,829,050
1,000 New Jersey Transportation Trust Fund
Authority, (Transportation System),
(FSA), 5.00%, 6/15/18 884,940
9,285 New Jersey Turnpike Authority, (MBIA),
6.50%, 1/1/16 9,978,032
1,000 New Jersey Turnpike Authority, (MBIA),
6.50%, 1/1/16 1,074,640
5,000 New Jersey Turnpike Authority, RITES
(MBIA), Variable Rate, 1/1/16(3) 5,739,950
1,750 Port Authority of New York and New
Jersey, (MBIA), 4.75%, 8/1/33 1,368,343
5,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 3,880,200
- -----------------------------------------------------------------------------
$ 25,755,155
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
NEW JERSEY MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Water and Sewer -- 1.0%
- -----------------------------------------------------------------------------
$ 2,500 Middlesex County, Utilities Authority,
(MBIA), 6.25%, 8/15/10 $ 2,650,450
- -----------------------------------------------------------------------------
$ 2,650,450
- -----------------------------------------------------------------------------
Lease Revenue/Certificates of Participation -- 2.7%
- -----------------------------------------------------------------------------
$ 720 Atlantic County, Public Facilities Lease
Agreement, 8.875%, 1/15/14 $ 900,979
785 Atlantic County, Public Facilities Lease
Agreement, 8.875%, 1/15/15 984,029
2,591 New Jersey Building Authority, (Garden
State Savings Bonds), 0.00%, 6/15/10 1,448,628
1,650 New Jersey EDA, (Economic Recovery),
0.00%, 9/15/09 967,544
5,500 New Jersey EDA, (Economic Recovery),
0.00%, 3/15/13 2,546,500
- -----------------------------------------------------------------------------
$ 6,847,680
- -----------------------------------------------------------------------------
Nursing Home -- 1.5%
- -----------------------------------------------------------------------------
$ 1,370 New Jersey EDA, (Claremont Health
System, Inc.), 9.10%, 9/1/22 $ 1,462,448
2,380 New Jersey EDA, (Victoria Health Corp.),
7.65%, 1/1/14 2,436,692
- -----------------------------------------------------------------------------
$ 3,899,140
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 0.5%
- -----------------------------------------------------------------------------
$ 1,465 New Jersey EDA, (Hudson County
Occupational Center), 6.50%, 7/1/18 $ 1,297,931
- -----------------------------------------------------------------------------
$ 1,297,931
- -----------------------------------------------------------------------------
Special Tax Revenue -- 0.7%
- -----------------------------------------------------------------------------
$ 2,650 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(3) $ 1,798,661
- -----------------------------------------------------------------------------
$ 1,798,661
- -----------------------------------------------------------------------------
Transportation -- 16.3%
- -----------------------------------------------------------------------------
$ 3,500 New Jersey Transportation Authority,
Variable Rate, 6/15/17(1)(3) $ 2,788,940
7,600 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 6,796,148
19,000 Port Authority of New York and New
Jersey, 6.125%, 6/1/24 19,190,570
14,650 Puerto Rico Highway and Transportation
Authority, 5.50%, 7/1/36 12,964,371
- -----------------------------------------------------------------------------
$ 41,740,029
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Water and Sewer -- 2.0%
- -----------------------------------------------------------------------------
$ 6,000 New Jersey EDA, (Atlantic City Sewer),
(AMT), 5.45%, 4/1/28 $ 4,966,680
80 New Jersey Wastewater Treatment Trust,
6.875%, 6/15/09 82,389
20 New Jersey Wastewater Treatment Trust,
7.00%, 6/15/10 20,602
- -----------------------------------------------------------------------------
$ 5,069,671
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.9%
(identified cost $267,620,665) $255,926,591
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.1% $ 373,043
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $256,299,634
- -----------------------------------------------------------------------------
</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 January 31, 2000, 30.3% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 0.8% to 17.4% of
total investments.
(1) 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.
(2) Security has been issued as a leveraged inverse floater bond.
(3) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 98.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Assisted Living -- 5.2%
- -----------------------------------------------------------------------------
$ 5,000 Chester IDA, (Senior Life Choice of $ 5,316,650
Kimberton), (AMT), 8.50%, 9/1/25
2,645 Chester IDA, (Senior Life Choice of 2,757,254
Paoli, L.P.), (AMT), 8.05%, 1/1/24
4,965 Delaware IDA, (Glen Riddle), (AMT), 5,317,763
8.625%, 9/1/25
- -----------------------------------------------------------------------------
$ 13,391,667
- -----------------------------------------------------------------------------
Certificates of Participation -- 0.7%
- -----------------------------------------------------------------------------
$ 2,000 Cliff House Trust, (AMT), 6.625%, 6/1/27 $ 1,801,840
- -----------------------------------------------------------------------------
$ 1,801,840
- -----------------------------------------------------------------------------
Cogeneration -- 3.4%
- -----------------------------------------------------------------------------
$ 9,000 Pennsylvania EDA, (Northampton $ 8,822,520
Generating), (AMT), 6.50%, 1/1/13
- -----------------------------------------------------------------------------
$ 8,822,520
- -----------------------------------------------------------------------------
Education -- 4.9%
- -----------------------------------------------------------------------------
$ 1,100 Lehigh County General Purpose Authority, $ 1,064,987
(Cedar Crest College), 6.70%, 4/1/26
3,000 Pennsylvania Higher Educational 2,386,380
Facilities Authority, (Delaware Valley
College of Science and Agriculture),
5.35%, 4/15/28
3,000 Pennsylvania Higher Educational 2,537,340
Facilities Authority, (Gwynedd-Mercy
College), 5.60%, 11/1/22
3,000 Pennsylvania Higher Educational 2,267,460
Facilities Authority, (University of
Pennsylvania), 4.625%, 7/15/30
4,225 Scranton-Lackawanna Health & Welfare 4,388,507
Authority, (University of Scranton),
6.40%, 3/1/07
- -----------------------------------------------------------------------------
$ 12,644,674
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.0%
- -----------------------------------------------------------------------------
$ 5,600 Berks County, (FGIC), Partially $ 6,209,000
Prerefunded to 12/01/02, Variable Rate,
11/10/20(1)
7,500 Keystone Oaks School District, (AMBAC), 8,090,625
Prerefunded to 9/1/02, Variable Rate,
9/1/16(1)
5,000 Philadelphia HEFA, (Pennsylvania 4,506,250
Hospital), (FGIC), Prerefunded to
2/15/04, Variable Rate, 3/6/12(1)
4,845 Westmoreland Municipal Authority, 1,428,354
(FGIC), Escrowed to Maturity,
0.00%, 8/15/19
5,400 Westmoreland Municipal Authority, 1,486,566
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20
5,780 Westmoreland Municipal Authority, $ 1,591,176
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20
- -----------------------------------------------------------------------------
$ 23,311,971
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
General Obligations -- 1.5%
- -----------------------------------------------------------------------------
$ 3,000 Dauphin County, 6.90%, 6/1/26 $ 3,097,680
1,000 Puerto Rico, 4.75%, 7/1/23 798,540
- -----------------------------------------------------------------------------
$ 3,896,220
- -----------------------------------------------------------------------------
Health Care -- 0.2%
- -----------------------------------------------------------------------------
$ 500 Montgomery County Higher Education and $ 461,135
Health Authority Revenue, (Faulkeways at
Gwynedd), 6.75%, 11/15/24
- -----------------------------------------------------------------------------
$ 461,135
- -----------------------------------------------------------------------------
Health Care-Miscellaneous -- 1.2%
- -----------------------------------------------------------------------------
$ 3,500 Chester County HEFA, (Devereux $ 3,097,710
Foundation), 6.00%, 11/1/29
- -----------------------------------------------------------------------------
$ 3,097,710
- -----------------------------------------------------------------------------
Hospital -- 10.6%
- -----------------------------------------------------------------------------
$ 5,330 Allegheny County HDA, (St. Francis $ 4,186,182
Medical Center), 5.75%, 5/15/27
2,000 Allegheny County HDA, (Villa St. 1,636,860
Joseph), 6.00%, 8/15/28
2,205 Allegheny County IDA, (Presbyterian 2,301,535
Medical Center), 6.75%, 2/1/26
1,150 Horizon Hospital Systems Authority, 997,774
(Horizon Hospital Systems, Inc.),
6.35%, 5/15/26
2,670 Indiana County Hospital Authority, 2,805,235
(Indiana Hospital), 7.125%, 7/1/23
2,550 Monroeville Hospital Authority, (Forbes 2,280,337
Health System), 6.25%, 10/1/15
1,375 Montgomery Hospital Authority, 1,339,140
(Montgomery Hospital Medical Center),
6.60%, 7/1/10
5,625 Philadelphia HEFA, (Graduate Health 2,032,031
System), 6.625%, 7/1/21(2)
7,115 Philadelphia HEFA, (Graduate Health 2,570,294
System), 7.25%, 7/1/18(2)
7,000 Washington County Hospital Authority, 7,367,360
(Monongahela Valley Hospital),
6.75%, 12/1/08
- -----------------------------------------------------------------------------
$ 27,516,748
- -----------------------------------------------------------------------------
Housing -- 1.8%
- -----------------------------------------------------------------------------
$ 1,000 Pennsylvania HFA, (AMT), Variable Rate, $ 1,068,750
10/3/23(1)
160 Pittsburgh Urban Redevelopment 163,899
Authority, 7.45%, 4/1/10
3,165 Pittsburgh Urban Redevelopment 3,315,369
Authority, (AMT), 7.10%, 4/1/24
- -----------------------------------------------------------------------------
$ 4,548,018
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 19.7%
- -----------------------------------------------------------------------------
$ 6,450 Butler County IDA, (Witco Corp.), $ 5,683,095
5.85%, 12/1/23
1,005 Clearfield County IDA, (Kmart Corp.), 1,005,965
6.80%, 5/15/07
4,000 Franklin County IDA, (Corning, Inc.), 4,227,040
6.25%, 8/1/05
11,000 New Morgan IDA, (New Morgan Landfill), 9,868,980
(AMT), 6.50%, 4/1/19
9,000 Pennsylvania EDA, (Colver), (AMT), 9,352,980
7.125%, 12/1/15
5,000 Pennsylvania EDA, (Colver), (AMT), 5,076,050
7.15%, 12/1/18
4,450 Pennsylvania IDA, (Sun Company), (AMT), 4,693,504
7.60%, 12/1/24
6,500 Philadelphia IDA, (Refrigerated 6,967,285
Enterprises), (AMT), 9.05%, 12/1/19
3,250 Puerto Rico Port Authority, (American 3,073,655
Airlines), (AMT), 6.25%, 6/1/26
1,105 Shamokin IDA, (Kmart Corp.), 1,094,458
6.70%, 7/1/07
- -----------------------------------------------------------------------------
$ 51,043,012
- -----------------------------------------------------------------------------
Insured-Education -- 1.7%
- -----------------------------------------------------------------------------
$ 3,000 Delaware County, (Villanova University), $ 2,465,400
(MBIA), 5.00%, 12/1/28
1,805 Northeastern Pennsylvania HEFA, (Wyoming 1,416,943
Seminary), (MBIA), 4.75%, 10/1/28
500 Pennsylvania Higher Educational 396,310
Facilities, (Drexel University), (MBIA),
4.80%, 5/1/28
- -----------------------------------------------------------------------------
$ 4,278,653
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 7.1%
- -----------------------------------------------------------------------------
$ 3,500 Beaver IDA, (Ohio Edison Co.), (FGIC), $ 3,651,375
7.00%, 6/1/21
10,000 Beaver IDA, (Ohio Edison Co.), (FGIC), 10,705,900
7.05%, 10/1/20
3,800 Puerto Rico Electric Power Authority, 3,952,000
STRIPES, (FSA), Variable Rate, 7/1/02(1)
- -----------------------------------------------------------------------------
$ 18,309,275
- -----------------------------------------------------------------------------
Insured-General Obligations -- 10.3%
- -----------------------------------------------------------------------------
$ 3,000 Butler School District, (FGIC), $ 2,413,320
4.75%, 10/1/22
1,000 Butler School District, (FGIC), 828,010
5.00%, 10/1/26
2,170 Elizabeth Forward School District, 591,000
(MBIA), 0.00%, 9/1/20
2,170 Elizabeth Forward School District, 552,482
(MBIA), 0.00%, 9/1/21
2,170 Elizabeth Forward School District, 516,286
(MBIA), 0.00%, 9/1/22
2,170 Elizabeth Forward School District, 483,389
(MBIA), 0.00%, 9/1/23
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-General Obligations (continued)
- -----------------------------------------------------------------------------
$ 2,500 Erie School District, (MBIA), $ 750,450
0.00%, 5/1/19
2,625 Erie School District, (MBIA), 735,866
0.00%, 5/1/20
2,625 Erie School District, (MBIA), 686,831
0.00%, 5/1/21
3,625 Erie School District, (MBIA), 886,639
0.00%, 5/1/22
2,365 Harrisburg, (AMBAC), 0.00%, 3/15/17 814,979
5,175 Hazelton School District, (FGIC), 1,359,990
0.00%, 3/1/21
1,000 Hopewell School District, (FSA), 237,920
0.00%, 9/1/22
2,000 Hopewell School District, (FSA), 365,200
0.00%, 9/1/26
1,935 Lancaster, (FGIC), 4.50%, 5/1/28 1,448,173
1,430 Mars Area School District, (MBIA), 612,669
0.00%, 3/1/14
1,000 McGuffey, School District, (AMBAC), 785,540
4.75%, 8/1/28
1,400 Penn Manor School District, (FGIC), 1,408,526
5.20%, 6/1/16
190 Penn Manor School District, (FGIC), 173,411
5.20%, 6/1/16
1,000 Philadelphia School District, (MBIA), 767,560
4.50%, 4/1/23
3,650 Philadelphia School District, (MBIA), 2,880,580
4.75%, 4/1/27
2,530 Philadelphia, (FSA), 5.00%, 3/15/28 2,070,223
1,000 Ridley School District, (FGIC), 819,760
5.00%, 11/15/29
655 Rochester Area School District, (AMBAC), 369,093
0.00%, 5/1/10
4,000 Spring Ford School District, (FGIC), 3,183,000
4.75%, 3/1/25
1,000 Venango County, (AMBAC), 6.30%, 12/1/19 1,019,710
- -----------------------------------------------------------------------------
$ 26,760,607
- -----------------------------------------------------------------------------
Insured-Hospital -- 7.9%
- -----------------------------------------------------------------------------
$ 3,450 Allegheny County HDA, (University of $ 3,096,341
Pittsburgh Hospital), (MBIA),
5.625%, 4/1/27
3,750 Allegheny County Hospital Authority, 1,442,963
(Magee-Womens Hospital), (FGIC),
0.00%, 10/1/15
2,500 Armstrong County Hospital Authority, 2,579,525
(Saint Francis Health Care), (AMBAC),
6.00%, 8/15/08
1,400 Armstrong County Hospital Authority, 1,445,584
(Saint Francis Health Care), (AMBAC),
6.25%, 6/1/13
775 Carbon County Hospital Authority, 802,714
(Gnaden Memorial Hospital), (AMBAC),
7.00%, 11/15/14
1,700 Dauphin County Hospital Authority, 1,373,005
(Pinnacle Health System), (MBIA),
5.00%, 8/15/27
3,000 Delaware County Hospital Authority, 2,418,720
(Riddle Memorial Hospital), (FSA),
5.00%, 1/1/28
2,000 Montgomery County HEFA, (Mld-Abington 2,098,280
Memorial Hospital), (AMBAC),
6.522%, 7/5/11
1,250 Montgomery County HEFA, (Pottstown 1,012,363
Healthcare Corp.), (FSA), 5.00%, 1/1/27
4,000 Pennsylvania HEFA, (UPMC Health System), 3,250,200
(FSA), 5.00%, 8/1/29
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Hospital (continued)
- -----------------------------------------------------------------------------
$ 1,250 Sharon Health System Authority, (Sharon $ 1,003,750
Regional Health System), (MBIA),
5.00%, 12/1/28
- -----------------------------------------------------------------------------
$ 20,523,445
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.6%
- -----------------------------------------------------------------------------
$ 2,500 Pennsylvania Turnpike Commission Oil $ 1,441,850
Franchise, (AMBAC), Variable Rate,
12/1/27(1)(3)
- -----------------------------------------------------------------------------
$ 1,441,850
- -----------------------------------------------------------------------------
Insured-Transportation -- 0.8%
- -----------------------------------------------------------------------------
$ 1,000 Allegheny County Port Authority, $ 898,620
(Pittsburgh International Airport),
(MBIA), (AMT), 5.25%, 1/1/16
2,000 Southeastern Pennsylvania Transit 1,140,160
Authority, (FGIC), Variable Rate,
2/1/29(1)(3)
- -----------------------------------------------------------------------------
$ 2,038,780
- -----------------------------------------------------------------------------
Insured-Water and Sewer -- 2.4%
- -----------------------------------------------------------------------------
$ 1,750 Lower Moreland Township Authority, Sewer $ 1,435,805
Revenue, (FSA), 5.00%, 8/1/29
2,500 Philadelphia Water and Wastewater, 2,498,750
(FGIC), 7.63%, 6/15/12(1)
2,490 Pittsburgh Water and Sewer Authority, 2,097,402
(FGIC), 4.75%, 9/1/16
325 West Mifflin Water and Sewer Authority, 267,430
(MBIA), 5.00%, 8/1/28
- -----------------------------------------------------------------------------
$ 6,299,387
- -----------------------------------------------------------------------------
Nursing Home -- 4.6%
- -----------------------------------------------------------------------------
$ 1,230 Chartiers Valley IDA, (Beverly $ 1,142,449
Enterprises, Inc.), 5.375%, 6/1/07
250 Clarion County, IDA, (Beverly 240,523
Enterprises, Inc.), 5.50%, 5/1/03
1,700 Crawford County Hospital Authority, 1,464,822
(Wesbury United Methodist Community),
6.25%, 8/15/29
1,510 Green County, IDA, (Beverly Enterprises, 1,325,161
Inc.), 5.75%, 3/1/13
2,000 Grove City, Area Hospital Health 1,718,900
Facilities Authority, (Grove Manor),
6.625%, 8/15/29
3,465 Montgomery IDA, (Advancement of 3,601,694
Geriatric Health Care Institute),
8.375%, 7/1/23
1,100 Philadelphia HEFA, (The Philadelphia 966,988
Protestant Home), 6.50%, 7/1/27
1,425 Westmoreland County IDA, (Highland 1,524,152
Health Systems, Inc.), 9.25%, 6/1/22
- -----------------------------------------------------------------------------
$ 11,984,689
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Pooled Loans -- 0.8%
- -----------------------------------------------------------------------------
$ 2,000 Pennsylvania Finance Authority, Beaver $ 2,104,660
County, 6.60%, 11/1/09
- -----------------------------------------------------------------------------
$ 2,104,660
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 3.7%
- -----------------------------------------------------------------------------
$ 4,050 Delaware County, (White Horse Village), $ 4,075,920
7.50%, 7/1/18
3,320 Delaware, HFA, (Mercy Health Corp.), 3,155,859
5.75%, 12/15/22
3,060 Hazleton HFA, (Hazelton General 2,329,303
Hospital), 5.50%, 7/1/27
- -----------------------------------------------------------------------------
$ 9,561,082
- -----------------------------------------------------------------------------
Transportation -- 0.6%
- -----------------------------------------------------------------------------
$ 1,000 Erie County Airport Revenue, (AMT), $ 898,800
5.875%, 7/1/16
865 Puerto Rico Highway and Transportation 653,845
Authority, Variable Rate, 7/1/26(3)(4)
- -----------------------------------------------------------------------------
$ 1,552,645
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.7%
(identified cost $270,555,486) $255,390,588
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.3% $ 3,348,358
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $258,738,946
- -----------------------------------------------------------------------------
</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 January 31, 2000, 40.1% 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 5.7% to 18.8% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Non-income producing security.
(3) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
TEXAS MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 99.2%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Assisted Living -- 4.0%
- ----------------------------------------------------------------------------
$ 500 Bell County, Health Facilities, (Care
Institute, Inc.), 9.00%, 11/1/24 $ 542,285
- ----------------------------------------------------------------------------
$ 542,285
- ----------------------------------------------------------------------------
Electric Utilities -- 1.8%
- ----------------------------------------------------------------------------
$ 250 North Carolina Eastern Municipal Power
Agency, (Power System Revenue),
6.75%, 1/1/26 $ 244,597
- ----------------------------------------------------------------------------
$ 244,597
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 3.7%
- ----------------------------------------------------------------------------
$ 200 Bexar County, Health Facilities, (St.
Luke's Lutheran), Escrowed to Maturity,
7.00%, 5/1/21 $ 224,206
100 Harris County, Hospital District,
(Memorial), Prerefunded to 6/1/02,
7.125%, 6/1/15 106,252
150 Texas National Research Lab Super
Collider, Escrowed to Maturity,
6.95%, 12/1/12 165,823
- ----------------------------------------------------------------------------
$ 496,281
- ----------------------------------------------------------------------------
General Obligations -- 24.4%
- ----------------------------------------------------------------------------
$1,000 Bastrop, Independent School District,
(PSFG), 0.00%, 2/15/13 $ 462,040
1,500 Grapevine-Colleyville Independent School
District, (PSFG), 0.00%, 8/15/25 291,390
200 Katy Independent School District,
(PSFG), 4.75%, 2/15/27 157,906
500 Leander, 6.75%, 8/15/16 546,050
1,000 New Braunfels Independent School
District, (PSFG), 0.00%, 2/1/13 463,110
500 North East Independent School District,
(PSFG), 4.50%, 10/1/28 373,555
690 Texas Veterans' Housing Assistance
(Unlimited Tax), (AMT), 6.70%, 12/1/24 704,152
275 Texas Veterans' Housing Assistance
(Unlimited Tax), (AMT), 6.80%, 12/1/23 283,079
- ----------------------------------------------------------------------------
$ 3,281,282
- ----------------------------------------------------------------------------
Hospital -- 8.0%
- ----------------------------------------------------------------------------
$ 190 Bell County, (Heritage Oaks Healthcare),
6.70%, 6/1/29 $ 165,726
330 Denison Hospital Authority, (Texoma
Medical Center), 7.10%, 8/15/04 331,472
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Hospital (continued)
- ----------------------------------------------------------------------------
$ 500 Tarrant County, (Methodist Health
System), 6.00%, 9/1/24 $ 495,215
100 Tomball Hospital Authority, (Tomball
Regional Hospital), 6.00%, 7/1/29 82,386
- ----------------------------------------------------------------------------
$ 1,074,799
- ----------------------------------------------------------------------------
Housing -- 18.8%
- ----------------------------------------------------------------------------
$ 65 Bexar County, HFC, 8.10%, 3/1/24 $ 67,081
480 Texas Department of Housing and
Community Affairs, (AMT), 5.50%, 1/1/21 427,003
500 Texas Department of Housing and
Community Affairs, (Meadow Ridge
Apartments), (AMT), 5.55%, 8/1/30 467,650
500 Texas Department of Housing and
Community Affairs, (NHP
Foundation-Asmara), 6.40%, 1/1/27 504,355
500 Texas Department of Housing and
Community Affairs, (Pebble Brook
Apartments), (AMT), 5.50%, 12/1/18 465,050
585 Travis County, HFC, (GNMA) (FNMA),
7.05%, 12/1/25 600,280
- ----------------------------------------------------------------------------
$ 2,531,419
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 5.6%
- ----------------------------------------------------------------------------
$ 250 Abia Dev. Corp., (Austin Cargoport),
9.25%, 10/1/21 $ 262,747
500 Trinity River Authority, (Texas
Instruments), (AMT), 6.20%, 3/1/20 485,180
- ----------------------------------------------------------------------------
$ 747,927
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 9.0%
- ----------------------------------------------------------------------------
$ 500 Brazos River Authority, (Houston
Lighting and Power Co.), (AMBAC), (AMT),
5.05%, 11/1/18 $ 424,285
500 Lower Colorado River Authority Junior
Lien, (FGIC), 0.00%, 1/1/12 251,220
650 Puerto Rico Electric Power Authority,
(FSA), 4.75%, 7/1/24 530,426
- ----------------------------------------------------------------------------
$ 1,205,931
- ----------------------------------------------------------------------------
Insured-Hospital -- 9.6%
- ----------------------------------------------------------------------------
$ 500 Harris County, HFC, (Hermann Hospital),
(MBIA), 6.375%, 10/1/24 $ 532,980
500 Tyler County, HFC, (Mother Frances
Hospital), (FGIC), 6.50%, 7/1/22 506,165
295 Tyler Health Facility Development Corp.,
Hospital Revenue, (East Texas Medical
Center), (FSA), 5.375%, 11/1/27 253,134
- ----------------------------------------------------------------------------
$ 1,292,279
- ----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
TEXAS MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.3%
- ----------------------------------------------------------------------------
$ 350 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(1) $ 181,339
- ----------------------------------------------------------------------------
$ 181,339
- ----------------------------------------------------------------------------
Insured-Utilities -- 8.2%
- ----------------------------------------------------------------------------
$1,000 Austin, Combined Utility, (AMBAC),
6.75%, 11/15/12 $ 1,111,170
- ----------------------------------------------------------------------------
$ 1,111,170
- ----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 1.9%
- ----------------------------------------------------------------------------
$ 250 Rio Grande, Independent School District
Lease, 6.75%, 7/15/10 $ 258,993
- ----------------------------------------------------------------------------
$ 258,993
- ----------------------------------------------------------------------------
Utilities-Electrical and Gas -- 2.9%
- ----------------------------------------------------------------------------
$ 500 San Antonio, Electric and Natural Gas
Revenue, 4.50%, 2/1/21 $ 386,545
- ----------------------------------------------------------------------------
$ 386,545
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.2%
(identified cost $13,725,066) $13,354,847
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.8% $ 113,198
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $13,468,045
- ----------------------------------------------------------------------------
</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 January 31, 2000, 28.4% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 4.0% to 12.9% of
total investments.
(1) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $78,895,188 $33,037,926 $138,325,749 $93,699,376
Unrealized depreciation (2,692,223) (2,173,004) (4,836,087) (3,328,283)
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $76,202,965 $30,864,922 $133,489,662 $90,371,093
- ----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ -- $ 34,830
Receivable for investments sold -- 1,072,712 1,058,092 --
Interest receivable 896,158 432,680 1,421,564 1,376,198
- ----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $77,099,123 $32,370,314 $135,969,318 $91,782,121
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 5,327 $ 22,830 $ --
Demand note payable 100,000 300,000 100,000 --
Due to bank 17,062 45,248 19,585 --
Payable to affiliate for Trustees'
fees 800 -- -- --
Accrued expenses 10,232 6,697 16,916 8,438
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 128,094 $ 357,272 $ 159,331 $ 8,438
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $76,971,029 $32,013,042 $135,809,987 $91,773,683
- ----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $79,663,252 $34,186,046 $140,646,074 $95,101,966
Net unrealized depreciation
(computed on the basis of
identified cost) (2,692,223) (2,173,004) (4,836,087) (3,328,283)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL $76,971,029 $32,013,042 $135,809,987 $91,773,683
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $50,620,354 $267,620,665 $270,555,486 $13,725,066
Unrealized depreciation (1,295,302) (11,694,074) (15,164,898) (370,219)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $49,325,052 $255,926,591 $255,390,588 $13,354,847
- ------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold $ 675,295 $ 15,000 $ 1,584,242 $ --
Interest receivable 675,137 3,392,037 3,720,842 195,621
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $50,675,484 $259,333,628 $260,695,672 $13,550,468
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Demand note payable $ 100,000 $ 3,000,000 $ 1,900,000 $ --
Due to bank 48,464 10,778 35,974 80,703
Payable to affiliate for Trustees'
fees -- -- 88 --
Accrued expenses 5,175 23,216 20,664 1,720
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 153,639 $ 3,033,994 $ 1,956,726 $ 82,423
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $51,817,147 $267,993,708 $273,903,844 $13,838,264
Net unrealized depreciation
(computed on the basis of
identified cost) (1,295,302) (11,694,074) (15,164,898) (370,219)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
- ----------------------------------------------------------------------------------------------------------------------
Interest $ 2,629,389 $ 1,083,316 $ 4,419,907 $ 3,037,246
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,629,389 $ 1,083,316 $ 4,419,907 $ 3,037,246
- ----------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 158,494 $ 40,890 $ 306,313 $ 191,938
Trustees fees and expenses 5,300 1,275 7,451 5,846
Legal and accounting services 31,405 19,432 25,860 26,459
Custodian fee 25,959 18,938 45,887 25,715
Miscellaneous 6,599 3,438 11,001 9,393
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 227,757 $ 83,973 $ 396,512 $ 259,351
- ----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 5,705 $ 8,755 $ 31,118 $ --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 5,705 $ 8,755 $ 31,118 $ --
- ----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 222,052 $ 75,218 $ 365,394 $ 259,351
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,407,337 $ 1,008,098 $ 4,054,513 $ 2,777,895
- ----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (506,893) $ 119,013 $ 39,517 $(1,394,672)
Financial futures contracts (1,488) (1,545) (10,360) 4,188
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (508,381) $ 117,468 $ 29,157 $(1,390,484)
- ----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(6,859,146) $(3,180,480) $(10,425,497) $(7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(6,859,146) $(3,180,480) $(10,425,497) $(7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(7,367,527) $(3,063,012) $(10,396,340) $(8,915,833)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(4,960,190) $(2,054,914) $ (6,341,827) $(6,137,938)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------
Interest $ 1,726,420 $ 9,029,127 $ 9,284,011 $ 451,671
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,726,420 $ 9,029,127 $ 9,284,011 $ 451,671
- ------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 87,162 $ 647,337 $ 659,115 $ 11,728
Trustees fees and expenses 4,342 10,137 10,423 1,997
Legal and accounting services 21,340 40,711 40,355 17,279
Custodian fee 19,677 51,945 83,271 8,010
Miscellaneous 4,058 30,666 38,603 2,693
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 136,579 $ 780,796 $ 831,767 $ 41,707
- ------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 8,280 $ -- $ -- $ 1,751
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 8,280 $ -- $ -- $ 1,751
- ------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 128,299 $ 780,796 $ 831,767 $ 39,956
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,598,121 $ 8,248,331 $ 8,452,244 $ 411,715
- ------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (615,615) $ 320,180 $ 233,001 $ (196,312)
Financial futures contracts (1,277) (6,384) 11,827 --
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (616,892) $ 313,796 $ 244,828 $ (196,312)
- ------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(4,024,177) $(25,446,567) $(22,121,295) $ (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(4,024,177) $(25,446,567) $(22,121,295) $ (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(4,641,069) $(25,132,771) $(21,876,467) $(1,176,187)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,042,948) $(16,884,440) $(13,424,223) $ (764,472)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 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 $ 2,407,337 $ 1,008,098 $ 4,054,513 $ 2,777,895
Net realized gain (loss) (508,381) 117,468 29,157 (1,390,484)
Net change in unrealized
appreciation (depreciation) (6,859,146) (3,180,480) (10,425,497) (7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (4,960,190) $(2,054,914) $ (6,341,827) $ (6,137,938)
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,664,067 $ 1,503,412 $ 5,714,375 $ 3,433,800
Withdrawals (15,066,136) (5,309,523) (21,456,149) (14,985,531)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(12,402,069) $(3,806,111) $(15,741,774) $(11,551,731)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(17,362,259) $(5,861,025) $(22,083,601) $(17,689,669)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of period $ 94,333,288 $37,874,067 $157,893,588 $109,463,352
- ----------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 76,971,029 $32,013,042 $135,809,987 $ 91,773,683
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 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 $ 1,598,121 $ 8,248,331 $ 8,452,244 $ 411,715
Net realized gain (loss) (616,892) 313,796 244,828 (196,312)
Net change in unrealized
appreciation (depreciation) (4,024,177) (25,446,567) (22,121,295) (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,042,948) $(16,884,440) $(13,424,223) $ (764,472)
- ------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,725,460 $ 8,171,301 $ 6,563,586 $ 431,542
Withdrawals (9,553,535) (44,320,634) (49,273,708) (1,964,177)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(6,828,075) $(36,149,333) $(42,710,122) $(1,532,635)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(9,871,023) $(53,033,773) $(56,134,345) $(2,297,107)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of period $60,392,868 $309,333,407 $314,873,291 $15,765,152
- ------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) 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
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) 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
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.49% 0.50% 0.50% 0.51% 0.52%
Expenses after custodian fee
reduction 0.52%(2) 0.48% 0.48% 0.49% 0.50% --
Net investment income 5.61%(2) 5.21% 5.27% 5.56% 5.53% 5.81%
Portfolio Turnover 19% 38% 23% 10% 18% 22%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 76,971 $94,333 $103,092 $112,472 $129,862 $144,521
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- -------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.48%(2) 0.39% 0.40% 0.40% 0.40% 0.25%
Net expenses after custodian
fee reduction 0.43%(2) 0.35% 0.37% 0.36% 0.36% --
Net investment income 5.72%(2) 5.36% 5.49% 5.86% 5.75% 6.05%
Portfolio Turnover 3% 33% 18% 14% 53% 52%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $32,013 $37,874 $39,801 $42,624 $45,416 $46,077
- -------------------------------------------------------------------------------------------------------------------
+ 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(1) 0.42% 0.40%
Expenses after custodian
fee reduction 0.38% --
Net investment income 5.73% 5.90%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for the year
ended July 31, 1995 have not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.50% 0.51% 0.53% 0.52% 0.53%
Expenses after custodian fee
reduction 0.49%(2) 0.48% 0.50% 0.53% 0.50% --
Net investment income 5.45%(2) 5.15% 5.20% 5.50% 5.49% 5.77%
Portfolio Turnover 12% 18% 7% 11% 23% 29%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $135,810 $157,894 $164,955 $174,978 $187,617 $195,276
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.52%(2) 0.49% 0.50% 0.52% 0.54% 0.48%
Expenses after custodian fee
reduction 0.52%(2) 0.48% 0.48% 0.50% 0.52% --
Net investment income 5.55%(2) 5.10% 5.19% 5.45% 5.50% 5.85%
Portfolio Turnover 25% 31% 26% 16% 49% 54%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $91,774 $109,463 $130,236 $150,224 $173,465 $191,263
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.49%(2) 0.46% 0.47% 0.47% 0.48% 0.47%
Expenses after custodian fee
reduction 0.46%(2) 0.44% 0.45% 0.44% 0.46% --
Net investment income 5.72%(2) 5.28% 5.28% 5.71% 5.69% 5.83%
Portfolio Turnover 7% 19% 23% 22% 45% 76%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 50,522 $60,393 $66,984 $70,674 $76,090 $82,968
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.55%(2) 0.53% 0.54% 0.54% 0.53% 0.52%
Expenses after custodian fee
reduction 0.55%(2) 0.52% 0.52% 0.52% 0.52% --
Net investment income 5.79%(2) 5.39% 5.52% 5.84% 5.82% 5.96%
Portfolio Turnover 17% 32% 14% 24% 39% 54%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 256,300 $309,333 $328,629 $352,772 $386,244 $411,038
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------------
Expenses(1) 0.58%(2) 0.54% 0.54% 0.55% 0.54% 0.49%
Expenses after custodian fee
reduction 0.58%(2) 0.50% 0.50% 0.51% 0.50% --
Net investment income 5.86%(2) 5.49% 5.66% 5.96% 5.90% 6.02%
Portfolio Turnover 14% 27% 13% 17% 30% 44%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 258,739 $314,873 $359,532 $402,221 $448,182 $502,250
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TEXAS PORTFOLIO
---------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- -------------------------------------------------------------------------------------------------------------------
Net expenses(1) 0.57%(2) 0.39% 0.38% 0.37% 0.32% 0.08%
Net expenses after custodian
fee reduction 0.55%(2) 0.36% 0.35% 0.35% 0.27% --
Net investment income 5.67%(2) 5.50% 5.58% 5.79% 5.81% 6.20%
Portfolio Turnover 29% 55% 17% 17% 39% 49%
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $13,468 $15,765 $17,837 $21,676 $24,367 $28,227
- -------------------------------------------------------------------------------------------------------------------
+ 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(1) 0.42% 0.35%
Expenses after custodian
fee reduction 0.37% --
Net investment income 5.71% 5.93%
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for the year
ended July 31, 1995 have not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
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
diversified open-end management investment companies which were organized as
trusts under the laws of the State of New York on May 1, 1992. The
Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. 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. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
G Other -- Investment transactions are accounted for on a trade date basis.
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.
J Interim Financial Statements -- The interim financial statements relating to
January 31, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolios management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended January 31, 2000, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
-------------------------------------------------------------------
Arizona $158,494 0.37%
Colorado 40,890 0.23%
Connecticut 306,313 0.41%
Michigan 191,938 0.38%
Minnesota 87,162 0.32%
New Jersey 647,337 0.45%
Pennsylvania 659,115 0.46%
Texas 11,728 0.16%
</TABLE>
* Advisory fees paid as a percentage of average daily net
assets (annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation Plan.
For the six months ended January 31, 2000, no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the six months ended
January 31, 2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $16,200,100
Sales 26,426,750
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 1,050,563
Sales 4,676,840
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $17,827,315
Sales 28,845,316
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $24,978,222
Sales 33,824,575
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,949,085
Sales 10,028,600
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $47,054,063
Sales 73,215,661
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $38,785,009
Sales 73,539,568
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,163,706
Sales 5,115,581
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at January 31, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 78,895,188
------------------------------------------------------
Gross unrealized appreciation $ 2,477,032
Gross unrealized depreciation (5,169,255)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,692,223)
------------------------------------------------------
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 33,037,926
------------------------------------------------------
Gross unrealized appreciation $ 502,326
Gross unrealized depreciation (2,675,330)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,173,004)
------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $138,325,749
------------------------------------------------------
Gross unrealized appreciation $ 2,595,743
Gross unrealized depreciation (7,431,830)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (4,836,087)
------------------------------------------------------
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 93,699,376
------------------------------------------------------
Gross unrealized appreciation $ 2,041,109
Gross unrealized depreciation (5,369,392)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (3,328,283)
------------------------------------------------------
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 50,620,354
------------------------------------------------------
Gross unrealized appreciation $ 1,031,307
Gross unrealized depreciation (2,326,609)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,295,302)
------------------------------------------------------
</TABLE>
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $267,620,665
------------------------------------------------------
Gross unrealized appreciation $ 5,354,793
Gross unrealized depreciation (17,048,867)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $(11,694,074)
------------------------------------------------------
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $270,555,486
------------------------------------------------------
Gross unrealized appreciation $ 6,749,309
Gross unrealized depreciation (21,914,207)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $(15,164,898)
------------------------------------------------------
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 13,725,066
------------------------------------------------------
Gross unrealized appreciation $ 431,046
Gross unrealized depreciation (801,265)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (370,219)
------------------------------------------------------
</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 January 31, 2000, the
Arizona Portfolio, Colorado Portfolio, Connecticut Portfolio, Minnesota
Portfolio, New Jersey Portfolio and Pennsylvania Portfolio had balances
outstanding pursuant to this line of credit of $100,000, $300,000, $100,000,
$100,000, $3,000,000 and $1,900,000, respectively. The Portfolios did not
have any significant borrowings or allocated fees during the six months ended
January 31, 2000.
6 Financial Instruments
- -------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
At January 31, 2000, there were no outstanding obligations under these
financial instruments.
79
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
INVESTMENT MANAGEMENT
EATON VANCE MUNICIPALS FUNDS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
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 and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
80
<PAGE>
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 Global Fund Services
Attention: Eaton Vance Funds
P.O. Box 9653
Providence, RI 02904-9653
EATON VANCE MUNICIPALS TRUST
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
- -------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution
plan, sales charges and expenses. Please read the prospectus carefully
before you invest or send money.
- -------------------------------------------------------------------------------
313-3/00 8CSRC-3/00
