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Previous: VANGUARD ADMIRAL FUNDS INC, 497, 1995-11-20 |
Next: NEW YORK TAX FREE PORTFOLIO, NSAR-B, 1995-11-20 |
<PAGE>
The Eaton Vance Municipals Trust
For the National Municipals Portfolio
[LOGO]
Annual Shareholder Report
September 30, 1995
Investment Adviser of National Municipals Portfolio
Boston Management and Research
24 Federal Street
Boston, MA 02110
Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
(617) 482-8260
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
24 Federal Street
Boston, MA 02110
Transfer Agent
The Shareholder Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Independent Auditors
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
<PAGE>
NATIONAL MUNICIPALS PORTFOLIO
PORTFOLIO OF INVESTMENTS
SEPTEMBER 30, 1995
<TABLE>
<CAPTION>
- --------------------------------------------------------------------------------------------------------
TAX-EXEMPT INVESTMENTS - 100%
- --------------------------------------------------------------------------------------------------------
RATINGS (UNAUDITED)
- ------------------
PRINCIPAL
STANDARD AMOUNT
MOODY'S & POOR'S (000 OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------------------------------
<C> <C> <C> <S> <C>
UTILITY REVENUE BONDS - 4.0%
Baa2 BBB $ 10,000 Brazos River Authority, Texas,
PCR, Texas Utilities Electric
Company, 9.25%, 3/1/18 $ 11,183,800
Aa AA 22,600 Lewis County, Washington, Cowlitz
Falls Hydroelectric Project,
5.5%, 10/1/22 21,415,308
Aa AA 10,000 Los Angeles, California,
Department of Water & Power,
5%, 10/15/33 8,347,900
Aa AA 29,700 Washington Public Power Supply
System, Project 2, 4.8%, 7/1/04 28,487,052
Aaa AAA 16,340 Washington Public Power Supply
System, Project 2, 5%, 7/1/09 15,111,232
NR NR 5,000 West Feliciana, Louisiana, PCR,
Gulf States Utilities Company
Project, (AMT), 9%, 5/1/15 5,619,600
--------------
$ 90,164,892
--------------
HEALTH CARE - 2.5%
NR NR $ 17,070 Bell County, Texas, Health
Facilities, Care Institute Inc.,
9%, 11/1/24 $ 18,102,223
NR NR 5,000 Delaware County, Pennsylvania,
Glen Riddle Project,
8.625%, 9/1/25 5,007,700
NR NR 5,460 Hillsborough County, Florida, IDA,
Center for Independent Living,
Tampa Projects, 11%, 3/1/19<F4> 4,368,000
NR NR 4,650 Hillsborough County, Florida, IDA,
Center for Independent Living,
Tampa Projects, 10.25%, 3/1/09<F4> 3,720,000
NR NR 18,740 Illinois Development Finance
Authority, Care Institute Inc.,
7.8%, 6/1/25 17,846,851
NR NR 7,915 Roseville, Minnesota, Elder Care
Facility, Care Institute Inc.,
7.75%, 11/1/23 7,960,828
--------------
$ 57,005,602
--------------
HOSPITALS - 11.2%
NR BBB $ 7,000 Arizona Health Facilities, Phoenix
Memorial, 8.2%, 6/1/21 $ 7,473,760
NR NR 2,450 Berlin, Maryland, Atlantic
General, 8.375%, 6/1/22 2,590,703
Baa1 BBB+ 12,700 Butler County, Pennsylvania,
Butler Memorial, 8%, 7/1/16 13,372,719
Baa NR 10,180 Chaves County, New Mexico, Eastern
New Mexico Medical Center,
7.25%, 12/1/22 10,376,270
NR BBB+ 8,405 Christian County, Kentucky, Jennie
Stuart Medical Center,
7.625%, 4/1/10 8,768,012
Baa BBB 35,000 Colorado Health Facilities, Rocky
Mountain Adventist Healthcare,
6.625%, 2/1/22 34,082,650
NR BBB- 3,000 Colorado Health Facilities,
National Jewish Center For
Immunology and Respiratory
Medicine, 6.875%, 2/15/12 2,943,420
NR BBB- 5,015 Colorado Health Facilities,
National Jewish Center For
Immunology and Respiratory
Medicine, 7.1%, 2/15/22 4,869,213
Baa1 NR 4,000 Crossville, Tennessee, HEFA,
Cumberland Medical Center,
6.75%, 11/1/12 4,051,080
Baa1 BBB 6,000 District of Columbia, Washington
Hospital Center Issue --
Medlantic Healthcare Group,
Inc., 7.125%, 8/15/19 5,982,240
NR A- 5,000 Dubuque, Iowa, Finley Hospital
Project, 6.875%, 1/1/12 5,234,550
NR NR 1,325 Grant County, New Mexico, Gila
Regional Medical Center,
10%, 2/1/12 1,404,897
NR BBB- 5,720 Grove City Area Hospital
Authority, Pennsylvania, United
Community Hospital, 8.125%, 7/01/12 5,920,886
NR BBB- 4,000 Hawaii Department of Budget and
Finance, Special Purpose
Mortgage Revenue, Wahiawa General
Hospital, 7.5%, 7/1/12 4,118,080
NR NR 4,760 Health Services Authority of
Hazleton, Luzerne County,
Pennsylvania, Hazleton-Saint Joseph
Medical Center, 8.375%, 7/1/12 4,921,078
NR BBB+ 4,650 Illinois, Chicago Osteopathic
Health Systems, 7.125%, 5/15/11 4,795,778
NR BBB+ 4,500 Illinois, Chicago Osteopathic
Health Systems, 7.25%, 5/15/22 4,615,245
Baa1 NR 1,000 Illinois HFA, Holy Cross Hospital,
6.7%, 3/1/14 1,000,660
Baa1 NR 2,650 Illinois HFA, Holy Cross Hospital,
6.75%, 3/1/24 2,623,341
Baa NR 4,500 Indiana Health Facility Financing
Authority, Memorial Hospital and
Health Care Center, 7.4%, 3/1/22 4,618,440
Baa1 BBB+ 3,750 Louisiana Public Facilities
Authority, Woman's Hospital
Foundation, 7.25%, 10/1/22 3,824,325
Baa BB+ 10,000 Maricopa County, Arizona, Sun
Health Corporation, 8.125%, 4/1/12 10,701,300
Baa NR 2,000 Marshall County, Alabama,
Guntersville-Arab Medical
Center, 7%, 10/1/09 2,048,160
Baa NR 2,000 Marshall County, Alabama,
Guntersville-Arab Medical
Center, 7%, 10/1/13 2,029,360
NR BBB 6,000 Midland County Hospital District,
Memorial Hospital and Medical
Center, 0%, 6/1/07 2,972,040
NR BBB 6,500 Midland County Hospital District,
Memorial Hospital and Medical
Center, 0%, 6/1/11 2,360,020
Ba NR 5,000 Mississippi Hospital Equipment and
Facilities Authority, Magnolia
Hospital, 7.375%, 10/1/21 4,962,800
NR BBB 5,340 Montgomery County, Ohio, Dayton
Osteopathic Hospital, 6%, 12/1/12 4,956,268
Ba1 NR 3,090 Montgomery County, Pennsylvania,
United Hospitals, Inc.,
7.5%, 11/1/13 3,112,279
Ba1 NR 2,000 Montgomery County, Pennsylvania,
United Hospitals, Inc.,
7.5%, 11/1/14 2,011,620
Ba1 NR 3,465 Montgomery County, Pennsylvania,
United Hospitals, Inc.,
7.5%, 11/1/15 3,482,706
Baa NR 8,405 New Hampshire HEFA, Frisbie
Memorial Hospital, 6.125%, 10/1/13 7,928,857
A BBB+ 10,000 Philadelphia, Pennsylvania, Albert
Einstein Medical Center, 7%, 10/1/21 10,402,900
Baa1 BBB+ 9,000 Philadelphia, Pennsylvania,
Graduate Health System Obligated
Group, 6.625%, 7/1/21 8,829,900
Baa1 A- 9,250 Philadelphia, Pennsylvania, Temple
University Hospital, 6.625%,
11/15/23 9,173,318
Baa NR 6,000 Prince George's County, Maryland,
Greater Southeast Healthcare
System, 6.375% 1/1/23 5,444,700
Baa1 BBB+ 10,000 Randolph County Building
Commission, West Virginia, Davis
Memorial Hospital, 7.65%, 11/1/21 10,495,900
NR BB+ 8,000 Scranton-Lackawanna Health and
Welfare Authority, Pennsylvania,
Moses Taylor Hospital, 8.25%, 7/1/09 8,384,720
Baa BBB 8,000 South Dakota HEFA, Prairie Lakes
Health Care System Issue,
7.25%, 4/1/22 8,148,160
NR NR 5,220 Vermont Educational and Health
Buildings Financing Agency,
Northwestern Medical Center
Project, 9.75%, 9/1/18 5,682,440
NR NR 4,950 Winslow, Arizona, IDA, Winslow
Memorial Hospital, 9.5%, 6/1/22 5,444,407
--------------
$ 256,159,202
--------------
LIFE CARE - 8.4%
NR NR $ 8,616 Albuquerque, New Mexico, First
Mortgage IDR, La Vida Llena
Retirement Center 8.625%, 2/1/20 $ 9,075,061
NR NR 7,000 Albuquerque, New Mexico, First
Mortgage IDR, La Vida Llena
Retirement Center 8.85%, 2/1/23 7,451,150
NR NR 5,744 Albuquerque, New Mexico, First
Mortgage IDR, La Vida Llena
Retirement Center 2.25%, 2/1/23 1,872,659
NR NR 10,000 Atlantic Beach, Florida, Fixed
Rate Improvement, Fleet Landing
Project, 8%, 10/1/24 10,455,200
NR NR 3,060 Chester County, Pennsylvania,
Kimberton Project, (AMT),
8.5%, 9/1/25 3,066,946
NR NR 5,185 Collier County, IDA, Florida,
Retirement Rental, Beverly
Enterprises, Florida, Inc.,
10.75%, 3/1/03 6,088,590
NR NR 12,555 Dekalb Private Hospital, Georgia
GF/Atlanta, 8.5%, 3/1/25 12,327,378
NR NR 4,320 Florence, Kentucky, Housing
Facilities, Bluegrass RHF
Housing, Inc., 9.5%, 7/1/17 4,582,440
NR NR 6,690 Fulton County Residential Care
Facilities for the Elderly
Authority, Georgia, Lenbrook Square
Foundation, Inc., 9.75%, 1/1/17 7,066,112
Baa1 NR 10,000 Indianapolis, Indiana, National
Benevolent Association-Robin Run
Village, 7.625%, 10/1/22 10,466,600
NR NR 4,500 Kansas City, Missouri, IDA,
Kingswood United Methodist
Manor, 9%, 11/15/13 4,843,755
NR NR 2,100 Loudon County, Virginia, IDA,
Residential Care, Falcons Landing,
9.25%, 7/1/04 2,252,964
NR NR 20,400 Loudon County, Virginia, IDA,
Residential Care, Falcons Landing,
8.75%, 11/1/24 20,793,312
NR NR 18,545 Lousiana HFA - HCC Assisted Living
Group 1, 9%, 3/1/25 18,912,747
NR NR 1,950 New Hampshire Higher Educational &
Health Facilities, Riverwoods at
Exeter, 8%, 3/1/01 2,000,427
NR NR 10,000 New Hampshire Higher Educational &
Health Facilities, Riverwoods at
Exeter, 9%, 3/1/23 10,696,100
NR NR 3,500 New Jersey EDA, Cadbury
Corporation-1991 Project,
7.5%, 7/1/21 3,432,975
NR NR 20,000 New Jersey EDA, Keswick Pines
Project, 8.75%, 1/1/24 20,137,200
NR NR 10,000 New Jersey EDA, Forsgate Project,
8.625%, 6/1/25 9,763,200
NR NR 13,955 St. Tammany Public Finance,
Christwood Project, 9%, 11/15/25 13,739,116
NR NR 7,500 Vermont IDA, Wake Robin
Corporation, 8.75%, 4/1/23 7,842,825
NR NR 4,500 Vermont IDA, Wake Robin
Corporation, 8.75%, 3/1/23 4,840,605
--------------
$ 191,707,362
--------------
NURSING HOMES - 6.7%
NR NR $ 13,680 Bell County, Texas, Riverside
Healthcare, Inc.-Normandy Terrace,
9%, 4/1/23 $ 14,700,391
NR NR 5,500 Dauphin County IDA, Pennsylvania,
Susquehanna Center Nursing
Facility, 10%, 6/1/21<F4> 3,575,000
NR NR 5,000 Delaware County, Pennsylvania,
Mainline-Haverford Nursing and
Rehabilitation Centers, 9%, 8/1/22 5,442,150
NR NR 930 Jefferson County IDA, Missouri,
Cedar Hills Retirement Village,
12%, 12/1/15 968,716
NR NR 3,750 Lackawanna County, Pennsylvania
IDA, Edella Street Associates,
8.875%, 9/1/14 4,084,012
NR NR 3,445 Luzerne County, Pennsylvania, IDA,
River Street Associates,
8.75%, 6/15/07 3,708,301
NR NR 6,455 Massachusetts HEFA, Fairview
Extended Care Services, Inc.,
10.125%, 1/1/11 7,041,437
NR NR 11,790 Mississippi Finance Corp, Magnolia
Healthcare, 7.99%, 7/1/25 11,139,546
NR NR 6,750 Missouri HEFA, Bethesda Health
Group of St. Louis, Inc.,
6.625%, 8/15/05 6,761,340
NR NR 14,000 Missouri HEFA, Bethesda Health
Group of St. Louis, Inc.,
7.5%, 8/15/12 14,417,200
NR NR 12,500 Montgomery County, Pennsylvania,
IDA, Advancement of Geriatric
Health Care Institute, 8.375%, 7/1/23 12,967,875
NR NR 5,000 New Jersey EDA, Claremont Health
System, Inc., 9.1%, 9/1/22 5,280,600
NR NR 5,915 New Jersey EDA, Victoria Health
Corporation, 7.75%, 1/1/24 5,927,067
NR NR 3,305 Okaloosa County, Florida, Beverly
Enterprises-Florida, Inc.,
10.75%, 10/1/03 3,612,927
NR NR 3,500 Philadelphia, Pennsylvania, The
Philadelphia Protestant Home Project,
8.625%, 7/1/21 3,559,255
Baa1 BBB 4,630 Racine County, Wisconsin, Health
Center, 8.125%, 8/1/21 4,836,915
NR NR 5,000 Rhode Island Health and Education
Building, Steere House, 8.25%, 7/1/15 5,276,050
NR NR 12,430 St. Paul, Minnesota, Housing and
Redevelopment, Care Institute,
Inc. - Highland, 8.75%, 11/1/24 12,528,570
NR NR 5,000 Sussex County, Delaware, Delaware
Health Corporation, 7.6%, 1/1/24 5,002,600
NR NR 5,000 Sussex County, Delaware, Delaware
Health Corporation, 7.5%, 1/1/14 5,088,500
NR NR 4,500 Tarrant County Health Facilities,
Texas, 3927 Foundation, Inc.,
10.25%, 9/1/19 4,747,950
NR NR 1,805 Upshur County, West Virginia
County Commission, Holbrook
Nursing Home, Inc., 10.25%, 4/1/12 1,878,120
NR NR 6,000 Westmoreland County, Pennsylvania,
IDA, Highland Health System,
Inc., 9.25%, 6/1/22 6,291,180
NR NR 3,605 Wood County, West Virginia, West
Virginia Rehabilitation
Services, Inc., (AMT), 9.5%, 12/1/15 3,857,206
--------------
$ 152,692,908
--------------
SINGLE & MULTI-FAMILY HOUSING - 3.1%
Aa AA- 9,850 California Housing Finance Agency,
(AMT), "RIBS", Variable Rate,
8/1/23<F1> $ 9,997,750
NR NR 7,000 Chester County, Pennsylvania, IDB,
Senior Life Choice of Paoli, L.P.,
8.05%, 1/1/24 7,094,570
NR NR 9,500 Lake Creek Affordable Housing
Corporation, Multifamily Housing,
8%, 12/1/23 9,624,165
NR NR 8,000 Los Angeles County Housing
Authority, California,
Multifamily Housing, Corporate
Fund for Housing Projects,
10.5%, 12/1/29 8,246,800
NR BBB+ 2,000 Massachusetts Housing Finance
Authority, Multifamily, Harbor Point
Revenue, (AMT), 8%, 12/1/15 2,075,680
NR NR 3,345 Minneapolis Community Development,
Multifamily, Lindsay Brothers,
9.5%, 12/1/07 3,466,892
NR NR 2,185 Minneapolis Community Development,
Multifamily, Lindsay Brothers,
1.5%, 12/1/07 823,985
NR NR 4,770 North Little Rock Residential
Housing Facilities, Arkansas,
Parkstone Place, 9.75%, 8/1/21 4,994,238
NR NR 4,000 North Miami, Florida, Health Care
Facilities, The Imperial Club,
8%, 1/1/13 3,651,160
NR NR 8,925 North Miami, Florida, Health Care
Facilities, The Imperial Club,
9.25%, 1/1/13 9,533,863
NR NR 5,000 Village of North Syracuse Housing
Authority, AJM Senior Housing,
Inc., Janus Park, 8%, 6/1/24 4,878,600
NR NR 5,800 Ridgeland, Mississippi, Urban
Renewal, The Orchard Limited Project,
7.75%, 12/1/15 5,740,782
--------------
$ 70,128,485
--------------
HOTELS - 0.6%
NR NR $ 3,885 Chandler, Arizona, IDA, SMP II
Limited Partner, Resort/Convention
Center, 7.5%, 12/1/15 $ 3,864,409
NR NR 1,929 Illinois Development Finance
Authority, Comfort Inn-O'Hare,
10%, 5/1/16 2,107,681
NR NR 1,068 Illinois Development Finance
Authority, Comfort Inn-O'Hare,
2.5%, 5/1/16 373,194
NR NR 1,025 Kirksville, Missouri, IDA, Holiday
Inn, 10.5%, 7/1/03<F4> 563,750
NR NR 3,615 Kirksville, Missouri, IDA, Holiday
Inn, 11%, 7/1/16<F4> 1,988,250
NR NR 4,205 Niagara County, New York, IDA,
Wintergarden Inn Associate,
9.75%, 6/1/11<F4> 2,312,750
NR NR 1,795 Orange Beach, Alabama, Romar
Hotels, Inc., 10.5%, 4/1/16 1,901,156
--------------
$ 13,111,190
--------------
GENERAL OBLIGATIONS - 0.5%
A1 A $ 14,500 California, 4.75%, 9/1/23 $ 11,848,095
--------------
LEASE/COP - 1.0%
A A $ 16,500 Indiana Transportation Finance,
Airport Facilities, 6.25%, 11/1/16 $ 16,422,450
NR A- 3,500 Plymouth County, Massachusetts,
COP, Plymouth County Correctional
Facility, 7%, 4/1/22 3,753,015
NR NR 2,500 St. Louis, Missouri, Convention
and Sports Facility, 7.9%, 8/15/21 2,741,875
--------------
$ 22,917,340
--------------
TRANSPORTATION - 14.4%
Baa2 BB+ $ 28,000 Chicago, Illinois, O'Hare
International, American Airlines,
(AMT), 7.875%, 11/1/25 $ 30,009,560
Baa2 BB+ 20,275 Chicago, Illinois, O'Hare International,
American Airlines, 8.2%, 12/1/24 23,277,322
Baa2 BB+ 41,000 Dallas-Fort Worth, Texas,
International Airport Facility,
American Airlines, (AMT),
7.25%, 11/1/30 42,995,880
Baa BB 8,000 Denver, Colorado, Airport System
Revenue, (AMT), 7%, 11/15/25 8,086,160
Baa BB 7,800 Denver, Colorado, Airport System
Revenue, (AMT), 8%, 11/15/17 8,391,708
Baa BB 5,725 Denver, Colorado, Airport System
Revenue, (AMT), 7.5%, 11/15/23 6,111,724
Baa3 BB 95,500 Denver, Colorado, United Airlines,
(AMT), 6.875%, 10/1/32 96,293,605
A A- 5,000 Hawaii Airports, (AMT), 7%, 7/1/18 5,255,200
NR NR 2,200 Los Angeles International Airport,
Continental Airlines, (AMT),
9%, 8/1/08 2,420,154
NR NR 4,425 Los Angeles International Airport,
Continental Airlines, (AMT),
9%, 8/1/17 4,740,237
NR BBB 900 New York State Thruway Authority,
Cross-Westchester Expressway,
0%, 1/1/02 633,987
NR BBB 4,000 New York State Thruway Authority,
Cross-Westchester Expressway,
0%, 1/1/03 2,702,240
NR BBB 2,940 New York State Thruway Authority,
Cross-Westchester Expressway,
0%, 1/1/04 1,838,235
NR BBB 2,905 New York State Thruway Authority,
Cross-Westchester Expressway,
0%, 1/1/06 1,596,965
A1 AA- 15,000 Port Authority of New York and New
Jersey, (AMT), Variable Rate,
1/15/27<F1> 15,537,300
B2 NR 11,000 Port Authority of New York and New
Jersey, La Guardia Airport,
Continental and Eastern
Airlines, (AMT), 9.125%, 12/1/15 12,412,620
A1 AA- 5,000 Port of Seattle, Washington,
(AMT), 6%, 12/1/14 5,001,650
NR NR 35,100 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/17 8,098,272
NR NR 25,000 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/18 5,383,250
NR NR 46,210 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/20 8,668,072
NR NR 72,685 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/21 12,724,963
NR NR 29,225 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/22 4,775,365
NR NR 45,045 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/23 6,869,363
NR NR 108,260 San Joaquin Hills, California,
Toll Roads, 0%, 1/1/24 15,409,728
--------------
$ 329,233,560
--------------
WATER & SEWER - 0.6%
A A- $ 10,000 New York City Municipal Water
Finance Authority, 6.25%, 6/15/21 $ 10,065,500
Baa BBB 4,000 Philadelphia, Pennsylvania,
Municipal Water Finance
Authority, 7%, 8/1/18 4,473,320
--------------
$ 14,538,820
--------------
SOLID WASTE - 2.7%
Baa2 BBB+ $ 6,050 Carbon County, Utah, Laidlaw,
(AMT), 7.5%, 2/1/10 $ 6,466,603
NR A- 2,625 Eastern Connecticut, Resource
Recovery, Wheelabrator, 5.5%, 1/1/14 2,382,923
NR A- 11,495 Eastern Connecticut, Resource
Recovery, Wheelabrator, 5.5%, 1/1/20 10,306,187
Ba NR 2,000 Mercer County, New Jersey, Improvement
Authority, (AMT), 0%, 4/1/14 533,040
Ba NR 5,000 Mercer County, New Jersey, Improvement
Authority, (AMT), 0%, 4/1/15 1,240,650
Ba NR 10,000 Mercer County, New Jersey, Improvement
Authority, (AMT), 0%, 4/1/16 2,310,100
NR NR 35,000 Village of Robbins, Cook County,
Illinois, Robbins Resource
Recovery Partners, L.P.,
9.25%, 10/15/16 38,525,200
--------------
$ 61,764,703
--------------
COGENERATION FACILITIES - 3.3%
NR NR $ 14,000 Maryland Energy, AES Warrior Run
Project, (AMT), 7.4%, 9/1/19 $ 14,411,740
NR BB+ 22,150 New Jersey EDA, Vineland
Cogeneration Limited Partnership
Project, (AMT), 7.875%, 6/1/19 23,738,155
NR NR 2,300 Palm Beach County, Florida, Solid
Waste IDR, Osceola Power Limited
Partnership Project, (AMT),
6.95%, 1/1/22 2,294,135
NR NR 7,000 Pennsylvania EDA, Northampton
Generating Project, Junior
Liens, (AMT), 6.875%, 1/1/11 6,777,750
NR NR 13,450 Pennsylvania EDA, Northampton
Generating Project, (AMT),
6.6%, 1/1/19 12,760,822
NR NR 5,100 Pennsylvania EDA, Northampton
Generating Project, (AMT),
6.5%, 1/1/13 4,955,364
NR NR 10,000 Pennsylvania EDA, Colver Project,
(AMT), 8.05%, 12/1/15 10,371,200
--------------
$ 75,309,166
--------------
INDUSTRIALS - 10.4%
Baa2 NR $ 3,000 Camden, Alabama, IDB, MacMillan
Bloedel Project, 7.75%, 5/1/09 $ 3,191,250
NR NR 4,325 College Park, Georgia, Airport
Parking Venture, 10%, 5/15/16 3,892,500
Baa1 BBB 24,000 Courtland, Alabama, IDB, Champion
International Corporation,
(AMT), 7%, 6/1/22 24,943,920
Baa1 BBB 20,245 Courtland, Alabama, IDB, Champion
International Corporation,
(AMT), 6.375%, 3/1/29 19,792,119
NR NR 8,040 East Chicago, Indiana, PCR, Inland
Steel Company Project #9, (AMT),
10%, 11/1/11 8,679,743
Baa1 BBB 19,000 Gulf Coast Waste Disposal, Texas,
Champion International
Corporation, (AMT), 6.875%, 12/1/28 19,621,680
NR NR 6,000 Gwinnett County, Georgia, IDR,
Plastics/Packaging, Inc., (AMT),
9%, 5/1/13 6,000,000
Baa1 BBB- 10,000 Maine Finance Authority, Great
Northern Paper, Inc., Project-
Bowater Incorporated, (AMT),
7.75%, 10/1/22 10,687,400
NR BB+ 5,000 Maine Solid Waste Disposal, Boise
Cascade Corporation, (AMT),
7.9%, 6/1/15 5,295,600
NR NR 1,765 Massachusetts Industrial Finance
Agency, IDR, Boston Beer
Company, (AMT), 11.5%, 7/15/07 2,015,348
Baa1 BBB- 5,000 McMinn County, Tennessee, IDB,
Calhoun Newsprint Company
Project-Bowater Incorporated,
(AMT), 7.4%, 12/1/22 5,302,750
NR NR 10,000 Michigan Strategic, S.D. Warren
Co., Series 87A, (AMT),
7.375%, 1/15/22 10,235,500
NR NR 15,000 Michigan Strategic, S.D. Warren
Co., Series 87B, (AMT),
7.375%, 1/15/22 15,353,250
NR NR 2,500 Michigan Strategic, S.D. Warren
Co., Series 87C, (AMT),
7.375%, 1/15/22 2,559,425
NR NR 4,370 Middleboro, Massachusetts, IDR,
Read Corporation, 9.5%, 10/1/10 3,714,500
Baa2 BBB- 7,500 Pennsylvania, EDA, MacMillan
Bloedel Project, (AMT),
7.6%, 12/1/20 8,177,925
Baa1 BBB+ 10,000 Pennsylvania, EDA, Sun Company,
Inc. (R&M), (AMT), 7.6%, 12/1/24 10,911,100
Baa3 BBB- 12,000 Port of Corpus Christi, Texas,
Valero Refining & Marketing
Company, 10.25%, 6/1/17 13,492,920
NR NR 2,695 Savannah, Georgia, IDR, Intercat-
Savannah, Inc., (AMT), 9.75%, 7/1/10 2,896,936
NR NR 4,000 Savannah, Georgia, IDR, Intercat-
Savannah, Inc., (AMT), 9%, 1/1/15 4,278,600
A1 AA- 61,120 Valdez, Alaska, Marine Terminal,
BP Pipelines, Inc., 5.5%, 10/1/28<F3> 55,694,378
--------------
$ 236,736,844
--------------
INSURED UTILITY REVENUE BONDS - 5.2%
Aaa AAA $ 20,000 Intermountain Power Agency, Utah,
(MBIA) 6%, 7/1/16<F2> $ 19,224,000
Aaa AAA 10,000 Puerto Rico Telephone Authority,
(MBIA), Variable Rate, 1/25/07<F1> 9,962,500
Aaa AAA 16,500 Sacramento, California, Municipal
Utility District, (MBIA),
Variable Rate, 11/15/15<F1> 14,870,625
Aaa AAA 21,000 Sacramento, California, Municipal
Utility District, (MBIA),
4.75%, 9/1/21<F3> 17,617,320
Aaa AAA 49,245 South Carolina Public Services,
Forwards, Series 96A, (MBIA),
5.75%, 1/1/22<F2> 46,506,486
Aaa AAA 15,350 South Carolina Public Services,
"RIBS" (FGIC), Variable Rate,
1/1/25<F1> 10,572,312
--------------
$ 118,753,243
--------------
INSURED TRANSPORTATION - 1.8%
Aaa AAA $ 14,400 Metropolitan Washington Airports
Authority, (MBIA), Variable
Rate, 4/1/21<F1> $ 12,510,000
Aaa AAA 18,200 Mobile, Alabama, Airport
Authority, (MBIA),
6.375%, 10/1/14<F3> 19,056,128
Aaa AAA 10,000 Triborough Bridge and Tunnel
Authority, "Rites", (MBIA),
Variable Rate, 1/1/19<F1> 10,110,100
--------------
$ 41,676,228
--------------
INSURED HOSPITAL - 0.8%
Aaa AAA $ 10,000 Louisville, Kentucky, Alliant
Health System, Inc., (MBIA),
Variable Rate, 10/1/14<F1> $ 11,000,000
Aaa AAA 7,000 Montgomery County, Pennsylvania,
Abington Memorial Hospital,
(AMBAC), Variable Rate, 6/1/11<F1> 7,931,980
--------------
$ 18,931,980
--------------
INSURED SPECIAL TAX REVENUE - 5.6%
Aaa AAA $ 20,000 Los Angeles County (California),
Metropolitan Transportation,
(AMBAC), 4.75%, 7/1/18 $ 16,960,600
Aaa AAA 92,995 Metropolitan Pier and Exposition
Authority, Illinois, McCormick
Place Expansion Project, (MBIA),
0%, 6/15/28 12,225,123
Aaa AAA 92,995 Metropolitan Pier and Exposition
Authority, Illinois, McCormick
Place Expansion Project, (FGIC),
0%, 6/15/29 11,489,532
Aaa AAA 9,800 Metropolitan Pier and Exposition
Authority, Illinois, McCormick
Place Expansion Project, (MBIA),
"RIBS" Variable Rate, 6/15/27<F1> 9,114,000
Aaa AAA 3,415 New Orleans Regional Transit
Authority, Louisiana, Sales Tax,
(FGIC), 0%, 12/1/12 1,227,078
Aaa AAA 10,935 New Orleans Regional Transit
Authority, Louisiana, Sales Tax,
(FGIC), 0%, 12/1/15 3,190,833
Aaa AAA 10,000 New Orleans Regional Transit
Authority, Louisiana, Sales Tax,
(FGIC), 0%, 12/1/21 1,982,200
Aaa AAA 21,655 Rancho Mirage, California, Water
District Financing, (AMBAC),
4.75%, 8/15/21 18,168,978
Aaa AAA 13,350 Rancho Mirage, California,
Whitewater Redevelopment
Project, (MBIA), 5%, 4/1/24 11,635,459
Aaa AAA 40,000 South Orange, California, Public
Financing, Foothill Area, (FGIC),
5.5%, 8/15/15<F3> 36,909,200
Aaa AAA 7,000 Utah Municipal Finance
Corporation, Local Government
Revenue, (FSA), 0%, 3/1/10 2,975,700
Aaa AAA 6,000 Utah Municipal Finance
Corporation, Local Government
Revenue, (FSA), 0%, 3/1/11 2,385,840
--------------
$ 128,264,543
--------------
INSURED INDUSTRIALS - 0.4%
Aaa AAA $ 11,950 Chicago, Illinois, The Peoples Gas
Light and Coke Company, (AMBAC),
"RIBS" (AMT), Variable Rate,
12/1/23<F1> $ 10,217,250
--------------
INSURED HOUSING - 0.4%
Aaa AAA $ 7,525 SCA Multifamily Mortgage, IDB,
Hamilton County, Tennessee,
(FSA) (AMT), 7.35%, 1/1/30 $ 8,057,845
--------------
INSURED GENERAL OBLIGATION STATE &
SCHOOL DISTRICT - 0.9%
Aaa AAA $ 10,000 California General Obligation,
(FSA), 4.75%, 9/1/18 $ 8,475,500
Aaa AAA 15,000 California General Obligation,
(FGIC), 4.75%, 9/1/23 12,509,250
--------------
$ 20,984,750
--------------
INSURED WATER & SEWER - 0.9%
Aaa AAA $ 10,300 Harrisburg, Pennsylvania, Water
Revenue Bonds, (FGIC)
Variable, 8/11/16<F1> $ 9,447,572
Aaa AAA 10,000 New York City Municipal Water
Finance Authority, (FSA),
Variable Rate, 6/15/21<F1> 10,075,000
--------------
$ 19,522,572
--------------
REFUNDED & ESCROWED - 9.7%
NR AAA $ 65,000 Bakersfield, California,
Bakersfield Assisted Living
Center, 0%, 4/15/21 $ 11,924,250
NR NR 2,200 Bexar County, Texas, Health
Facilities, St. Luke's Lutheran,
7%, 5/1/21 2,501,422
NR AAA 177,055 Colorado HFA, Retirement Housing,
Liberty Heights Project,
0%, 7/15/24 24,484,936
NR AAA 27,870 Colorado HFA, Retirement Housing,
Liberty Heights Project,
0%, 7/15/20 5,159,016
Aaa NR 29,600 Colorado HFA, Retirement Housing,
Liberty Heights Project,
0%, 7/15/22 4,745,176
Ba1 BBB 10,000 Detroit, Michigan, Unlimited Tax,
8.7%, 4/1/10 11,823,200
Ba1 BBB 3,500 Detroit, Michigan, Unlimited Tax,
Series 1991, 8%, 4/1/11 4,111,275
NR NR 7,000 Florida, Mid-Bay Bridge Authority
Revenue Bonds, 6.875%, 10/1/22 7,864,570
NR NR 1,820 Hyland Hills Park and Recreation
District, Adams County, Colorado,
9.75%, 7/1/01 1,856,400
NR NR 2,430 Hyland Hills Park and Recreation
District, Adams County, Colorado,
9.9%, 7/1/04 2,573,297
NR NR 1,615 Hyland Hills Park and Recreation
District, Adams County, Colorado,
10%, 7/1/06 1,711,690
NR AAA 30,360 Illinois Development Finance
Authority, Regency Park at
Lincolnwood, 0%, 7/15/25 3,897,313
NR AAA 186,555 Illinois Development Finance
Authority, Regency Park at
Lincolnwood, 0%, 7/15/23 27,781,770
NR AAA 4,000 Jackson County, Oklahoma, Jackson
County Memorial Hospital,
9%, 8/1/15 4,420,640
NR AAA 12,750 Louisiana Public Facilities
Authority, Southern Baptist
Hospitals, Inc., 8%, 5/15/12 15,393,075
Aaa NR 138,000 Mississippi Housing Finance
Corporation, Single Family
Mortgage, 0%, 6/1/15 41,157,120
Aaa NR 6,130 North Salt Lake Municipal Building
Authority, Davis County, Utah,
8.625%, 12/1/17 7,617,690
NR NR 8,885 Scottsdale IDA, Arizona,
Westminster Village, Inc.,
10%, 6/1/07 9,982,831
Aaa AAA 19,165 Texas Turnpike Authority, Houston
Ship Channel Bridge, 0%, 1/1/20 26,769,672
Aaa AAA 2,675 Washington Public Power Supply
System, Nuclear Project No. 1,
14.375%, 7/1/01 3,927,167
NR BBB- 1,000 West Virginia HFA, Logan General
Hospital, 8.625%, 4/1/01 1,042,720
NR BBB- 1,750 West Virginia HFA, Logan General
Hospital, 8.75%, 4/1/13 1,825,845
--------------
$ 222,571,075
--------------
COLLEGES & UNIVERSITIES - 0.4%
NR BBB- $ 3,300 Massachusetts Health and
Educational Facilities, Nichols
College, 7%, 10/1/20 $ 3,381,048
NR NR 4,415 New Hampshire Higher Educational
and Health, Franklin Pierce Law
Center, 7.5%, 7/1/22 4,690,452
--------------
$ 8,071,500
--------------
TAX ALLOCATION - 0.2%
Baa BBB $ 3,870 Inglewood, California Public
Financing Authority, In-Town,
Manchester-Prairie and North
Inglewood Industrial Park
Redevelopment Projects-
Redevelopment Loans 7%, 5/1/22 $ 3,959,745
--------------
SPECIAL ASSESSMENT - 0.8%
A BBB $ 8,000 Hoffman Estates, Illinois,
Economic Development Project
Area, 0%, 5/15/05 $ 4,630,720
A BBB 11,000 Hoffman Estates, Illinois,
Economic Development Project
Area, 0%, 5/15/06 5,929,330
A BBB 17,460 Hoffman Estates, Illinois,
Economic Development Project
Area, 0%, 5/15/07 8,740,651
---------------
$ 19,300,701
---------------
MISCELLANEOUS - 3.5%
NR NR $ 6,805 American Samoa Economic
Development, Executive Office
Building, 10.125%, 9/1/08 $ 7,677,129
NR NR 11,500 Harris County, Texas, Space Center
Houston Project, 9.25%, 8/15/15<F5> 3,450,000
NR A- 16,500 Los Angeles Regional Airports
Improvement Corporation,
LAXFuel, (AMT), 6.5%, 1/1/32 16,204,650
NR NR 4,710 Mille Lacs Capital Improvements,
Mille Lacs Band of Chippewa
Indians, 9.25%, 11/1/12 5,198,898
NR NR 22,500 New Jersey, Sports & Exhibition
Authority, Monmouth Park
Project, 8%, 1/1/25 24,552,675
NR NR 10,200 Orange County Community Activity
Center Revenue Bonds, 8%, 3/1/24 10,374,420
NR NR 19,500 Retama, Texas, Special Facilities
Revenue, Retama Race Track,
8.75%, 12/15/18<F5> 11,700,000
---------------
$ 79,157,772
---------------
<PAGE>
TOTAL TAX-EXEMPT INVESTMENTS
(identified cost, $2,147,410,455) $ 2,282,787,373
---------------
TAXABLE INVESTMENT -- 0.0%
NR NR $ 935 Ridgeland, Mississippi, Urban Renewal,
The Orchard Limited Project,
9%,12/1/00 (identified cost,
$935,000) $ 932,663
---------------
TOTAL INVESTMENTS
(identified cost, $2,148,345,455) $ 2,283,720,036
===============
<FN>
<F1> The above designated securities have been issued as inverse floater bonds.
<F2> When-issued security.
<F3> Security has been segregated to cover when-issued securities.
<F4> Non-income producing security.
<F5> The Portfolio is accruing only partial interest on this security.
</TABLE>
At September 30, 1995, the concentration of the Portfolio's investments in the
various states, determined as a percentage of total investments is as follows:
California -- 12.1%
The Portfolio invests primarily in debt securities issued by 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 September 30, 1995, 16.0% of the securities in the portfolio
of investments are backed by bond insurance of various financial guaranty
assurance agencies. The aggregate percentage by financial institution ranges
from 1.4% to 9.1% of total investments.
Note: The classification of securities by industry sector set forth above is
unaudited.
See notes to financial statements
<PAGE>
FINANCIAL STATEMENTS
STATEMENT OF ASSETS AND LIABILITIES
- -------------------------------------------------------------------------------
September 30, 1995
- -------------------------------------------------------------------------------
ASSETS:
Investments, at value (Note 1A) (identified cost,
$2,148,345,455) $2,283,720,036
Cash 3,616,689
Receivable for investments sold 32,684,771
Interest receivable 43,138,659
Deferred organization expenses (Note 1D) 46,641
--------------
Total assets $2,363,206,796
LIABILITIES:
Payable for investments purchased $ 5,033,541
Payable for when-issued securities (Note 1G) 97,457,676
Payable to affiliate --
Trustees' fees 7,368
Accrued expenses 61,848
-----------
Total liabilities 102,560,433
--------------
NET ASSETS applicable to investors' interest in Portfolio $2,260,646,363
==============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and
withdrawals $2,125,271,782
Unrealized appreciation of investments
(computed on the basis of identified cost) 135,374,581
--------------
Total $2,260,646,363
==============
See notes to financial statements
<PAGE>
STATEMENT OF OPERATIONS
- --------------------------------------------------------------------------------
For the Year Ended September 30, 1995
- --------------------------------------------------------------------------------
<TABLE>
<S> <C> <C>
INVESTMENT INCOME:
Interest income (Note 1B) $166,061,913
Expenses --
Investment adviser fee (Note 2) $ 9,944,026
Compensation of Trustees not members of the Investment Adviser's organization 29,082
Custodian fee (Note 2) 374,289
Legal and accounting services 117,108
Amortization of organization expenses (Note 1D) 19,459
Miscellaneous 609,017
-----------
Total expenses $ 11,092,981
Deduct reduction of custodian fee (Note 2) 317,043
-----------
Net expenses $ 10,775,938
-----------
Net investment income $155,285,975
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized loss --
Investment transactions (identified cost basis) $(60,263,375)
Financial futures contracts (26,703,060)
-----------
Net realized loss on investments $(86,966,435)
Change in unrealized appreciation of
investments (identified cost basis) 177,320,778
-----------
Net realized and unrealized gain on investments $ 90,354,343
-----------
Net increase in net assets from operations $245,640,318
============
</TABLE>
See notes to financial statements
<PAGE>
STATEMENTS OF CHANGES IN NET ASSETS
- ------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------
1995 1994
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 155,285,975 $ 144,467,768
Net realized loss on investment
transactions (86,966,435) (8,642,077)
Change in unrealized appreciation
(depreciation) of investments 177,320,778 (224,012,810)
-------------- --------------
Net increase (decrease) in net assets
from operations $ 245,640,318 $ (88,187,119)
-------------- --------------
Capital transactions --
Contributions $ 443,671,368 $ 760,864,297
Withdrawals (639,601,609) (545,063,348)
-------------- --------------
Increase (decrease) in net assets
resulting from capital transactions $ (195,930,241) $ 215,800,949
-------------- --------------
Net increase in net assets $ 49,710,077 $ 127,613,830
NET ASSETS:
At beginning of year 2,210,936,286 2,083,322,456
-------------- --------------
At end of year $2,260,646,363 $2,210,936,286
============== ==============
- ------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------
1995 1994 1993<F2>
-------- --------- ---------
RATIOS (As a percentage of average
net assets):
Expenses 0.50% 0.50% 0.47%<F1>
Net investment income 7.00% 6.55% 6.58%<F1>
PORTFOLIO TURNOVER 54% 40% 13%
NET ASSETS, at end of
period (000 omitted) $2,260,646 $2,210,936 $2,083,322
<F1> Computed on an annualized basis.
<F2> For the period from the start of business, February 1, 1993 to
September 30, 1993.
See notes to financial statements
<PAGE>
-----------------------------
NOTES TO FINANCIAL STATEMENTS
- -------------------------------------------------------------------------------
(1) SIGNIFICANT ACCOUNTING POLICIES
National Municipals Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940 as a diversified open-end management investment
company which was organized as a trust under the laws of the State of New York
on May 1, 1992. The Declaration of Trust permits the Trustees to issue
interests in the Portfolio. The following is a summary of significant
accounting policies of the Portfolio. 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 listed on commodity
exchanges are valued at closing settlement 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. INCOME TAXES -- The Portfolio is treated as a partnership for Federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investors' distributive share of the Portfolio's 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
Portfolio 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 the 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. DEFERRED ORGANIZATION EXPENSES -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E. FINANCIAL FUTURES CONTRACTS -- Upon the entering of a financial futures
contract, the 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 the 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 the Portfolio. The
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, the Portfolio may not achieve the anticipated
benefits of the financial futures contracts and may realize a loss.
F. LEGAL FEES -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect or
enhance an investment are treated as operating expenses.
G. WHEN-ISSUED AND DELAYED DELIVERY TRANSACTIONS -- The Portfolio may engage
in when-issued and delayed delivery transactions. The Portfolio records when-
issued securities on trade date and maintains security positions such that
sufficient liquid assets will be available to make payment for the securities
purchased. Securities purchased on a when-issued or delayed delivery basis are
marked to market daily and begin accruing interest on settlement date.
H. OTHER -- Investment transactions are accounted for on a trade date basis.
- ------------------------------------------------------------------------------
(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 the Portfolio. The fee
is based upon a percentage of average daily net assets plus a percentage of
gross income, (i.e., income other than gains from the sale of securities). For
the year ended September 30, 1995, the fee was equivalent to 0.45% of the
Portfolio's average net assets for such period and amounted to $9,944,026.
Except as to Trustees of the Portfolio who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services to
the Portfolio out of such investment adviser fee. Investors Bank & Trust
Company (IBT), an affiliate of EVM and BMR, serves as custodian of the
Portfolio. Pursuant to the custodian agreement, IBT receives a fee reduced by
credits which are determined based on the average daily cash balances the
Portfolio maintains with IBT. For the year ended September 30, 1995, credits
used to reduce the custodian fee amounted to $317,043. Certain of the officers
and Trustees of the Portfolio are officers and directors/trustees of the above
organizations.
Trustees of the Portfolio that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual fees
in accordance with the terms of the Trustees Deferred Compensation Plan. For
the year ended September 30, 1995, no significant amounts have been deferred.
- ------------------------------------------------------------------------------
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short term obligations, aggregated $1,192,305,188 and $1,201,905,002,
respectively.
- ------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at September 30, 1995, as computed on a federal income tax basis, were
as follows:
Aggregate cost $2,148,345,455
==============
Gross unrealized appreciation $ 165,148,448
Gross unrealized depreciation 29,773,867
--------------
Net unrealized appreciation $ 135,374,581
==============
- ------------------------------------------------------------------------------
(5) LINE OF CREDIT
The Portfolio participates with other portfolios and funds managed by BMR and
EVM in a $120 million unsecured line of credit agreement with a bank. The line
of credit consists of a $20 million committed facility and a $100 million
discretionary facility. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each Portfolio based on its borrowings at
an amount above either the bank's adjusted certificate of deposit rate, a
variable adjusted certificate of deposit rate, or a federal funds effective
rate. In addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100 million
discretionary facility is allocated among the participating funds and portfolios
at the end of each quarter. For the year ended September 30, 1995, the Portfolio
did not have any significant borrowings.
- ------------------------------------------------------------------------------
(6) FINANCIAL INSTRUMENTS
The Portfolio regularly trades in financial instruments with off-balance sheet
risk in the normal course of its investing activities to assist in managing
exposure to various market risks. These financial instruments include written
options and 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 the 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.
The Portfolio did not have any open obligations under these financial
instruments at September 30, 1995.
<PAGE>
INDEPENDENT AUDITORS' REPORT
- ------------------------------------------------------------------------------
TO THE TRUSTEES AND INVESTORS OF
NATIONAL MUNICIPALS PORTFOLIO:
We have audited the accompanying statement of assets and liabilities,
including the portfolio of investments, of National Municipals Portfolio as of
September 30, 1995, the related statement of operations for the year then
ended, the statements of changes in net assets for the years ended September
30, 1995 and 1994 and the supplementary data for the years ended September 30,
1995 and 1994, and for the period from the start of business, February 1,
1993, to September 30, 1993. These financial statements and supplementary data
are the responsibility of the Trust's management. Our responsibility is to
express an opinion on these financial statements and supplementary data based
on our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
supplementary data are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. Our procedures included confirmation of securities
owned at September 30, 1995 by correspondence with the custodian and brokers;
where replies were not received from brokers, we performed other auditing
procedures. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present
fairly, in all material respects, the financial position of National
Municipals Portfolio at September 30, 1995, the results of its operations, the
changes in its net assets, and its supplementary data for the respective
stated periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
BOSTON, MASSACHUSETTS
OCTOBER 27, 1995
<PAGE>
INVESTMENT MANAGEMENT FOR NATIONAL MUNICIPALS PORTFOLIO
OFFICERS INDEPENDENT TRUSTEES
M. DOZIER GARDNER DONALD R. DWIGHT
President, Trustee President, Dwight Partners, Inc.
Chairman, Newspapers of
JAMES B. HAWKES New England, Inc.
Vice President, Trustee
SAMUEL L. HAYES, III
HOOKER TALCOTT, JR. Jacob H. Schiff Professor of
Vice President and Investment Banking, Harvard
Portfolio Manager University Graduate School of
Business Administration
JAMES L. O'CONNOR
Treasurer NORTON H. REAMER
President and Director,
THOMAS OTIS United Asset Management
Secretary Corporation
JOHN L. THORNDIKE
Vice President and Director,
Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
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