<PAGE>
The Eaton Vance Municipals Trust
For the National Municipals Portfolio
[LOGO]
Semi-Annual Shareholder Report
March 31, 1996
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
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investor 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
MARCH 31, 1996
[/R]
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TAX-EXEMPT INVESTMENTS - 99.96%
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PRINCIPAL
AMOUNT
(000
OMITTED) SECURITY VALUE
- ------------------------------------------------------------------------------
ASSISTED LIVING FACILITIES - 5.5%
$ 6,035 Arizona Health Facilities Authority, Mesa
Project, 7.625%, 1/1/26 $ 5,534,336
17,070 Bell County, Texas, Health Facilities, Care
Institute Inc., 9%, 11/1/24 18,341,203
7,000 Chester County, Pennsylvania, IDB, Senior Life
Choice of Paoli, L.P., 8.05%, 1/1/24 7,024,500
3,060 Chester County, Pennsylvania, Kimberton Project,
(AMT), 8.5%, 9/1/25 3,056,297
12,555 Dekalb Private Hospital, Georgia GF/Atlanta,
8.5%, 3/1/25 12,693,733
5,000 Delaware County, Pennsylvania, Glen Riddle
Project, (AMT), 8.625%, 9/1/25 5,042,850
18,740 Illinois Development Finance Authority, Care
Institute Inc., 7.8%, 6/1/25 18,050,368
18,545 Louisiana HFA - HCC Assisted Living Group 1, 9%,
3/1/25 19,180,167
10,000 New Jersey EDA, Forsgate Project, (AMT), 8.625%,
6/1/25 10,084,100
7,915 Roseville, Minnesota, Elder Care Facility, Care
Institute Inc., 7.75%, 11/1/23 8,033,962
12,430 St. Paul, Minnesota, Housing and Redevelopment,
Care Institute, Inc., Highland Park,
8.75%, 11/1/24 13,170,952
5,000 Village of North Syracuse Housing Authority, AJM
Senior Housing, Inc., Janus Park, 8%, 6/1/24 4,977,500
--------------
$ 125,189,968
--------------
COGENERATION FACILITIES - 3.9%
$ 21,250 Maryland Energy, AES Warrior Run Project, (AMT),
7.4%, 9/1/19 $ 21,857,963
22,150 New Jersey EDA, Vineland Cogeneration Limited
Partnership Project, (AMT), 7.875%, 6/1/19 23,796,410
2,300 Palm Beach County, Florida, Solid Waste IDR,
Osceola Power Limited Partnership Project,
(AMT), 6.95%, 1/1/22 2,332,660
5,000 Pennsylvania EDA, Northampton Generating Project,
(AMT), 6.95%, 1/1/21 4,847,350
7,000 Pennsylvania EDA, Northampton Generating Project,
(AMT), 6.875%, 1/1/11 6,797,350
13,450 Pennsylvania EDA, Northampton Generating Project,
(AMT), 6.6%, 1/1/19 13,040,716
6,100 Pennsylvania EDA, Northampton Generating Project,
(AMT), 6.5%, 1/1/13 5,894,247
10,000 Pennsylvania EDA, Colver Project, (AMT), 8.05%,
12/1/15 10,446,000
--------------
$ 89,012,696
--------------
COLLEGES & UNIVERSITIES - 0.4%
$ 3,300 Massachusetts Health and Educational Facilities,
Nichols College, 7%, 10/1/20 $ 3,407,613
4,415 New Hampshire Higher Educational and Health,
Franklin Pierce Law Center, 7.5%, 7/1/22 4,708,951
--------------
$ 8,116,564
--------------
ESCROWED - 11.9%
$ 65,000 Bakersfield, California, Bakersfield Assisted
Living Center, 0%, 4/15/21 $ 11,887,200
2,200 Bexar County, Texas, Health Facilities, St.
Luke's Lutheran, 7%, 5/1/21 2,546,500
177,055 Colorado HFA, Retirement Housing, Liberty Heights
Project, 0%, 7/15/24 25,272,831
27,870 Colorado HFA, Retirement Housing, Liberty Heights
Project, 0%, 7/15/20 5,238,445
29,600 Colorado HFA, Retirement Housing, Liberty Heights
Project, 0%, 7/15/22 4,848,480
225,500 Dawson Ridge Metropolitan District No. 1, Douglas
County, Colorado, 0%, 10/1/22 38,344,020
10,000 Detroit, Michigan, Unlimited Tax, 8.7%, 4/1/10 11,663,000
3,500 Detroit, Michigan, Unlimited Tax, Series 1991,
8%, 4/1/11 4,072,845
7,000 Florida, Mid-Bay Bridge Authority Revenue Bonds,
6.875%, 10/1/22 8,012,130
1,820 Hyland Hills Park and Recreation District, Adams
County, Colorado, 9.75%, 7/1/01 1,862,770
2,430 Hyland Hills Park and Recreation District, Adams
County, Colorado, 9.9%, 7/1/04 2,490,167
1,615 Hyland Hills Park and Recreation District, Adams
County, Colorado, 10%, 7/1/06 1,655,407
30,360 Illinois Development Finance Authority, Regency
Park at Lincolnwood, 0%, 7/15/25 3,932,531
186,555 Illinois Development Finance Authority, Regency
Park at Lincolnwood, 0%, 7/15/23 27,783,636
4,000 Jackson County, Oklahoma, Jackson County Memorial
Hospital, 9%, 8/1/15 4,355,240
12,750 Louisiana Public Facilities Authority, Southern
Baptist Hospitals, Inc., 8%, 5/15/12 15,032,760
138,000 Mississippi Housing Finance Corporation, Single
Family Mortgage, 0%, 6/1/15 44,455,320
6,130 North Salt Lake Municipal Building Authority,
Davis County, Utah, 8.625%, 12/1/17 7,446,356
4,000 Philadelphia, Pennsylvania, Municipal Water
Finance Authority, 7%, 8/1/18 4,463,560
8,885 Scottsdale, Arizona, IDA, Westminster Village,
Inc., 10%, 6/1/07 9,675,676
19,165 Texas Turnpike Authority, Houston Ship Channel
Bridge, 12.625%, 1/1/20(3) 27,453,671
5,220 Vermont Educational and Health Buildings
Financing Agency, Northwestern Medical Center
Project, 9.75%, 9/1/18 5,952,314
2,675 Washington Public Power Supply System, Nuclear
Project No. 1, 14.375%, 7/1/01 3,622,619
--------------
$ 272,067,478
--------------
GENERAL OBLIGATION - 0.8%
$ 20,000 New York City, 5.75%, 2/1/10 $ 19,170,000
--------------
HOSPITALS - 11.4%
$ 7,000 Arizona Health Facilities, Phoenix Memorial,
8.2%, 6/1/21 $ 7,583,240
2,450 Berlin, Maryland, Atlantic General, 8.375%,
6/1/22 2,601,680
12,700 Butler County, Pennsylvania, Butler Memorial, 8%,
7/1/16 13,079,730
10,180 Chaves County, New Mexico, Eastern New Mexico
Medical Center, 7.25%, 12/1/22 10,515,431
8,405 Christian County, Kentucky, Jennie Stuart Medical
Center, 7.625%, 4/1/10 8,714,724
32,000 Colorado Health Facilities, Rocky Mountain
Adventist Healthcare, 6.625%, 2/1/22 32,432,960
3,000 Colorado Health Facilities, National Jewish
Center For Immunology and Respiratory Medicine,
6.875%, 2/15/12 2,933,190
5,015 Colorado Health Facilities, National Jewish
Center For Immunology and Respiratory Medicine,
7.1%, 2/15/22 4,927,087
4,000 Crossville, Tennessee, HEFA, Cumberland Medical
Center, 6.75%, 11/1/12 4,075,240
6,000 District of Columbia, Washington Hospital Center
Issue - Medlantic Healthcare Group, Inc.,
7.125%, 8/15/19 6,219,120
5,000 Dubuque, Iowa, Finley Hospital Project, 6.875%,
1/1/12 5,237,550
1,325 Grant County, New Mexico, Gila Regional Medical
Center, 10%, 2/1/12 1,391,926
5,720 Grove City Area Hospital Authority, Pennsylvania,
United Community Hospital,
8.125%, 07/01/12 5,866,089
4,000 Hawaii Department of Budget and Finance, Special
Purpose Mortgage Revenue, Wahiawa General
Hospital, 7.5%, 7/1/12 4,138,360
4,760 Health Services Authority of Hazleton, Luzerne
County, Pennsylvania, Hazleton - Saint Joseph
Medical Center, 8.375%, 7/1/12 4,887,806
4,650 Illinois, Chicago Osteopathic Health Systems,
7.125%, 5/15/11 5,317,833
4,500 Illinois, Chicago Osteopathic Health Systems,
7.25%, 5/15/22 5,249,430
1,000 Illinois HFA, Holy Cross Hospital, 6.7%, 3/1/14 1,002,080
2,650 Illinois HFA, Holy Cross Hospital, 6.75%, 3/1/24 2,636,618
4,500 Indiana Health Facility Financing Authority,
Memorial Hospital and Health Care Center, 7.4%,
3/1/22 4,599,450
3,750 Louisiana Public Facilities Authority, Woman's
Hospital Foundation, 7.25%, 10/1/22 3,884,513
19,855 Lufkin Health Facilities Development Corporation,
Memorial Health System of East Texas, 6.875%,
2/15/26 19,064,771
10,000 Maricopa County, Arizona, Sun Health Corporation,
8.125%, 4/1/12 11,032,000
2,000 Marshall County, Alabama, Guntersville-Arab
Medical Center, 7%, 10/1/09 2,059,140
2,000 Marshall County, Alabama, Guntersville-Arab
Medical Center, 7%, 10/1/13 2,050,380
6,000 Midland County, Texas Hospital District, Memorial
Hospital and Medical Center, 0%, 6/1/07 3,039,720
6,500 Midland County, Texas Hospital District, Memorial
Hospital and Medical Center, 0%, 6/1/11 2,416,180
5,000 Mississippi Hospital Equipment and Facilities
Authority, Magnolia Hospital, 7.375%, 10/1/21 5,009,950
3,090 Montgomery County, Pennsylvania, United
Hospitals, Inc., 7.5%, 11/1/13 3,126,308
2,000 Montgomery County, Pennsylvania, United
Hospitals, Inc., 7.5%, 11/1/14 2,022,880
3,465 Montgomery County, Pennsylvania, United
Hospitals, Inc., 7.5%, 11/1/15 3,498,125
7,405 New Hampshire HEFA, Frisbie Memorial Hospital,
6.125%, 10/1/13 7,013,644
10,000 Philadelphia, Pennsylvania, Albert Einstein
Medical Center, 7%, 10/1/21 10,398,400
9,000 Philadelphia, Pennsylvania, Graduate Health
System Obligated Group, 6.625%, 7/1/21 8,809,920
6,000 Prince George's County, Maryland, Greater
Southeast Healthcare System, 6.375%, 1/1/23 5,481,300
10,000 Randolph County Building Commission, West
Virginia, Davis Memorial Hospital,
7.65%, 11/1/21 10,690,200
8,000 Scranton-Lackawanna Health and Welfare Authority,
Pennsylvania, Moses Taylor Hospital, 8.25%,
7/1/09 8,565,360
4,500 Scranton-Lackawanna Health and Welfare Authority,
Pennsylvania, Moses Taylor Hospital, 8.5%,
7/1/20 4,846,230
8,000 South Dakota HEFA, Prairie Lakes Health Care
System Issue, 7.25%, 4/1/22 8,343,280
4,950 Winslow, Arizona, IDA, Winslow Memorial Hospital,
9.5%, 6/1/22 5,401,341
--------------
$ 260,163,186
--------------
HOTELS - 0.4%
$ 1,929 Illinois Development Finance Authority, Comfort
Inn - O'Hare, 10%, 5/1/16 $ 2,063,574
1,068 Illinois Development Finance Authority, Comfort
Inn - O'Hare, 2.5%, 5/1/16 377,113
1,025 Kirksville, Missouri, IDA, Holiday Inn, 10.5%,
7/1/03(4) 563,750
3,615 Kirksville, Missouri, IDA, Holiday Inn, 11%,
7/1/16(4) 1,988,250
4,205 Niagara County, New York, IDA, Wintergarden Inn
Associates, 9.75%, 6/1/11(4) 2,312,750
1,775 Orange Beach, Alabama, Romar Hotels, Inc., 10.5%,
4/1/16 1,840,622
--------------
$ 9,146,059
--------------
HOUSING - 2.3%
$ 9,700 California Housing Finance Agency, (AMT),
Residual Interest Bonds, Variable Rate,
8/1/23(1) $ 10,015,250
9,500 Lake Creek Affordable Housing Corporation,
Multifamily Housing, 8%, 12/1/23 9,744,720
8,000 Los Angeles County Housing Authority, California,
Multifamily Housing, Corporate Fund for Housing
Projects, 10.5%, 12/1/29 8,177,600
2,000 Massachusetts Housing Finance Authority,
Multifamily, Harbor Point Revenue, (AMT),
8%, 12/1/15 2,057,320
3,305 Minneapolis Community Development, Multifamily,
Lindsay Brothers, 9.5%, 12/1/07 3,472,299
2,185 Minneapolis Community Development, Multifamily,
Lindsay Brothers, 1.5%, 12/1/07 837,117
4,770 North Little Rock, Arkansas, Residential Housing
Facilities, Parkstone Place, 9.75%, 8/1/21 4,981,931
4,000 North Miami, Florida, Health Care Facilities, The
Imperial Club, 10%, 1/1/13 3,737,880
8,840 North Miami, Florida, Health Care Facilities, The
Imperial Club, 9.25%, 1/1/13 9,632,064
--------------
$ 52,656,181
--------------
INDUSTRIALS - 8.0%
$ 3,000 Camden, Alabama, IDB, MacMillan Bloedel Project,
7.75%, 5/1/09 $ 3,225,240
2,000 Camden County, New Jersey, Holt Hauling and
Warehousing System, Inc. Project, (AMT),
9.875%, 1/1/21 1,992,260
4,260 College Park, Georgia, Airport Parking Venture,
10%, 5/15/16 3,840,220
24,000 Courtland, Alabama, IDB, Champion International
Corporation, (AMT), 7%, 6/1/22 24,963,360
8,040 East Chicago, Indiana, PCR, Inland Steel Company
Project #9, (AMT), 10%, 11/1/11 8,502,300
3,145 East Chicago, Indiana, PCR, Inland Steel Company
Project , (AMT), 6.8%, 6/1/13 3,183,715
19,000 Gulf Coast Waste Disposal, Texas, Champion
International Corporation, (AMT),
6.875%, 12/1/28 19,815,100
6,000 Gwinnett County, Georgia, IDR, Plastics/
Packaging, Inc., (AMT), 9%, 5/1/13 5,997,000
1,595 Kansas City, Missouri, IDA, AFCO CARGO MCI
Limited Partnership Project, (AMT),
8.5%, 1/1/17 1,570,246
10,000 Maine Finance Authority, Great Northern Paper,
Inc., Project - Bowater Incorporated, (AMT),
7.75%, 10/1/22 10,855,900
5,000 Maine Finance Authority, Boise Cascade
Corporation, (AMT), 7.9%, 6/1/15 5,378,450
1,765 Massachusetts Industrial Finance Agency, IDR,
Boston Beer Company, (AMT), 11.5%, 7/15/07 1,956,573
5,000 McMinn County, Tennessee, IDB, Calhoun Newsprint
Company Project - Bowater Incorporated, (AMT),
7.4%, 12/1/22 5,304,000
10,000 Michigan Strategic, S.D. Warren Co., Series 87A,
(AMT), 7.375%, 1/15/22 10,225,600
15,000 Michigan Strategic, S.D. Warren Co., Series 87B,
(AMT), 7.375%, 1/15/22 15,338,400
2,500 Michigan Strategic, S.D. Warren Co., Series 87C,
(AMT), 7.375%, 1/15/22 2,555,875
4,200 Middleboro, Massachusetts, IDR, Read Corporation,
9.5%, 10/1/10 3,570,000
4,000 New Jersey, EDA, Holt Hauling and Warehousing
System, Inc. Project, 10.25%, 9/15/14 4,177,840
12,000 State of Oregon, EDA, Georgia Pacific
Corporation, (AMT), 6.35%, 8/1/25 11,779,440
7,500 Pennsylvania, EDA, MacMillan Bloedel Project,
(AMT), 7.6%, 12/1/20 8,221,725
10,000 Pennsylvania, EDA, Sun Company, Inc. (R&M),
(AMT), 7.6%, 12/1/24 10,903,000
12,000 Port of Corpus Christi, Texas, Valero Refining &
Marketing Company, 10.25%, 6/1/17 13,043,160
2,695 Savannah, Georgia, IDR, Intercat - Savannah,
Inc., (AMT), 9.75%, 7/1/10 2,885,751
4,000 Savannah, Georgia, IDR, Intercat - Savannah,
Inc., (AMT), 9%, 1/1/15 4,253,000
--------------
$ 183,538,155
--------------
INSURED GENERAL OBLIGATIONS - 1.5%
$ 10,000 California General Obligation, (FSA), 4.75%,
9/1/18 $ 8,497,000
29,500 California General Obligation, (FGIC), 4.75%,
9/1/23 24,828,085
--------------
$ 33,325,085
--------------
INSURED HOSPITAL - 0.8%
$ 10,000 Louisville, Kentucky, Alliant Health System,
Inc., (MBIA), Variable Rate, 10/1/14(1) $ 11,262,500
7,000 Montgomery County, Pennsylvania, Abington
Memorial Hospital, (AMBAC), Variable
Rate, 6/1/11(1) 7,927,500
--------------
$ 19,190,000
--------------
INSURED HOUSING - 0.4%
$ 7,525 SCA Multifamily Mortgage, IDB, Hamilton County,
Tennessee, (FSA), (AMT), 7.35%, 1/1/30 $ 8,041,667
--------------
INSURED INDUSTRIALS - 0.5%
$ 11,950 Chicago, Illinois, The Peoples Gas Light and Coke
Company, (AMBAC), (AMT), Residual Interest
Bonds, Variable Rate, 12/1/23(1) $ 10,530,938
--------------
INSURED SPECIAL TAX REVENUE - 5.4%
$ 20,000 Los Angeles County, California, Metropolitan
Transportation, (AMBAC), 4.75%, 7/1/18 $ 17,135,600
92,995 Metropolitan Pier and Exposition Authority,
Illinois, McCormick Place Expansion Project,
(MBIA), 0%, 6/15/28 13,051,848
92,995 Metropolitan Pier and Exposition Authority,
Illinois, McCormick Place Expansion Project,
(FGIC), 0%, 6/15/29 12,279,990
9,800 Metropolitan Pier and Exposition Authority,
Illinois, McCormick Place Expansion Project,
Residual Interest Bonds, (MBIA), Variable Rate,
6/15/27(1) 9,628,500
3,415 New Orleans Regional Transit Authority,
Louisiana, Sales Tax, (FGIC), 0%, 12/1/12 1,286,943
10,935 New Orleans Regional Transit Authority,
Louisiana, Sales Tax, (FGIC), 0%, 12/1/15 3,424,295
10,000 New Orleans Regional Transit Authority,
Louisiana, Sales Tax, (FGIC), 0%, 12/1/21 2,014,200
10,655 Rancho Mirage, California, Water District
Financing, (AMBAC), 4.75%, 8/15/21 9,033,735
13,350 Rancho Mirage, California, Whitewater
Redevelopment Project, (MBIA), 5%, 4/1/24(3) 11,737,988
40,000 South Orange, California, Public Financing,
Foothill Area, (FGIC), 5.5%, 8/15/15(3) 37,768,000
7,000 Utah Municipal Finance Corporation, Local
Government Revenue, (FSA), 0%, 3/1/10 3,119,690
6,000 Utah Municipal Finance Corporation, Local
Government Revenue, (FSA), 0%, 3/1/11 2,505,000
--------------
$ 122,985,789
--------------
INSURED TRANSPORTATION - 2.7%
$ 20,000 City of Austin, Texas, Airport, (MBIA), 6.125%,
11/15/25(3) $ 20,147,200
14,400 Metropolitan Washington Airports Authority,
Residual Interest Bonds, (MBIA), Variable
Rate, 4/1/21(1) 13,068,000
18,200 Mobile, Alabama, Airport Authority, (MBIA),
6.375%, 10/1/14(3) 19,194,448
10,000 Triborough Bridge and Tunnel Authority, (MBIA),
Variable Rate, 1/1/19(1) 10,100,000
--------------
$ 62,509,648
--------------
INSURED UTILITY REVENUE BONDS - 4.9%
$ 20,000 Intermountain Power Agency, Utah, (MBIA), 6%,
7/1/16(2) $ 20,215,800
16,500 Sacramento, California, Municipal Utility
District, (MBIA), Variable Rate, 11/15/15(1) 14,994,375
21,000 Sacramento, California, Municipal Utility
District, (MBIA), 4.75%, 9/1/21(3) 17,778,390
49,245 South Carolina Public Services, Fowards, Series
96A, (MBIA), 5.75%, 1/1/22(2) 48,396,016
15,350 South Carolina Public Services, Residual Interest
Bonds, (FGIC), Variable Rate, 1/1/25(1) 11,147,938
--------------
$ 112,532,519
--------------
INSURED WATER & SEWER - 0.7%
$ 7,150 Harrisburg, Pennsylvania, Water Revenue Bonds,
(FGIC), Variable Rate, 8/11/16(1) $ 6,211,563
10,000 New York City Municipal Water Finance Authority,
(FSA), Variable Rate, 6/15/21(1) 10,262,500
--------------
$ 16,474,063
--------------
LEASE/COP - 1.0%
$ 16,500 Indiana Transportation Finance, Airport
Facilities, 6.25%, 11/1/16 $ 16,542,240
3,500 Plymouth County, Massachusetts, COP, Plymouth
County Correctional, 7%, 4/1/22 3,755,150
2,500 St. Louis, Missouri, Convention and Sports
Facility, 7.9%, 8/15/21 2,758,875
--------------
$ 23,056,265
--------------
LIFE CARE - 6.0%
$ 8,616 Albuquerque, New Mexico, First Mortgage IDR, La
Vida Llena Retirement Center, 8.625%, 2/1/20 $ 9,139,077
7,000 Albuquerque, New Mexico, First Mortgage IDR, La
Vida Llena Retirement Center, 8.85%, 2/1/23 7,492,520
5,744 Albuquerque, New Mexico, First Mortgage IDR, La
Vida Llena Retirement Center, 2.25%, 2/1/23 1,945,263
10,000 Atlantic Beach, Florida, Fixed Rate Improvement,
Fleet Landing Project, 8%, 10/1/24 10,318,400
4,320 Florence, Kentucky, Housing Facilities, Bluegrass
RHF Housing, Inc., 9.5%, 7/1/17 4,474,094
6,595 Fulton County Residential Care Facilities for the
Elderly Authority, Georgia, Lenbrook Square
Foundation, Inc., 9.75%, 1/1/17 6,881,948
4,300 Kansas City, Missouri, IDA, Kingswood United
Methodist Manor, 9%, 11/15/13 4,650,579
2,100 Loudon County, Virginia, IDA, Residential Care,
Falcons Landing, 9.25%, 11/1/04 2,259,222
20,400 Loudon County, Virginia, IDA, Residential Care,
Falcons Landing, 8.75%, 11/1/24 20,753,532
1,950 New Hampshire Higher Educational & Health
Facilities, Riverwoods at Exeter, 8%, 3/1/01 2,003,703
10,000 New Hampshire Higher Educational & Health
Facilities, Riverwoods at Exeter, 9%, 3/1/23 10,835,300
3,500 New Jersey EDA, Cadbury Corporation-1991 Project,
7.5%, 7/1/21 3,548,685
20,000 New Jersey EDA, Keswick Pines Project, 8.75%,
1/1/24 20,975,200
5,800 Ridgeland, Mississippi, Urban Renewal, The
Orchard Limited, 7.75%, 12/1/15 5,799,014
13,955 St. Tammany Public Finance, Christwood Project,
9%, 11/15/25 13,628,733
7,500 Vermont IDA, Wake Robin Corporation, 8.75%,
4/1/23 8,120,175
4,500 Vermont IDA, Wake Robin Corporation, 8.75%,
3/1/23 4,867,380
--------------
$ 137,692,825
--------------
MISCELLANEOUS - 3.0%
$ 6,805 American Samoa Economic Development, Executive
Office Building, 10.125%, 9/1/08 $ 7,580,022
16,500 Los Angeles Regional Airports Improvement
Corporation, LAXFuel, (AMT), 6.5%, 1/1/32 16,425,090
4,710 Mille Lacs Capital Improvements, Mille Lacs Band
of Chippewa Indians, 9.25%, 11/1/12 5,291,779
22,500 New Jersey, Sports & Exhibition Authority,
Monmouth Park Project, 8%, 1/1/25 24,582,825
10,200 Orange County Community Activity Center Revenue
Bonds, 8%, 3/1/24 10,455,306
18,863 Retama, Texas, Special Facilities Revenue, Retama
Race Track, 8.75%, 12/15/18(5) 4,715,696
--------------
$ 69,050,718
--------------
NURSING HOME - 7.5%
$ 13,550 Bell County, Texas, Riverside Healthcare, Inc. -
Normandy Terrace, 9%, 4/1/23 $ 14,691,181
4,910 Collier County, Florida, IDA, Retirement Rental,
Beverly Enterprises - Florida, Inc.,
10.75%, 3/1/03 5,626,222
5,000 Delaware County, Pensylvania, Mainline -
Haverford Nursing and Rehabilitation Centers,
9%, 8/1/22 5,487,200
5,460 Hillsborough County, Florida, IDA, Center for
Independent Living, Tampa Projects,
11%, 3/1/19(5) 4,368,000
4,650 Hillsborough County, Florida, IDA, Center for
Independent Living, Tampa Projects,
10.25%, 3/1/09(5) 3,720,000
10,000 Indianapolis, Indiana, National Benevolent
Association - Robin Run Village,
7.625%, 10/1/22 10,737,600
3,750 Lackawanna County, Pennsylvania, IDA, Edella
Street Associates, 8.875%, 9/1/14 4,097,513
3,445 Luzerne County, Pennsylvania, IDA, River Street
Associates, 8.75%, 6/15/07 3,721,840
6,250 Massachusetts HEFA, Fairview Extended Care
Services, Inc., 10.125%, 1/1/11 7,092,938
13,250 Massachusetts IFA, AGE Institute of Massachusetts
Project, 8.05%, 11/1/25 13,233,703
11,790 Mississippi Finance Corp, Magnolia Healthcare,
7.99%, 7/1/25 11,501,735
6,750 Missouri HEFA, Bethesda Health Group of St.
Louis, Inc., 6.625%, 8/15/05 6,719,085
14,000 Missouri HEFA, Bethesda Health Group of St.
Louis, Inc., 7.5%, 8/15/12 14,311,500
12,500 Montgomery County, Pennsylvania, IDA, Advancement
of Geriatric Health Care Institute, 8.375%,
7/1/23 13,051,875
5,000 New Jersey EDA, Claremont Health System, Inc.,
9.1%, 9/1/22 5,291,450
5,915 New Jersey EDA, Victoria Health Corporation,
7.75%, 1/1/24 5,982,668
3,305 Okaloosa County, Florida, Beverly Enterprises-
Florida, Inc., 10.75%, 10/1/03 3,565,930
3,500 Philadelphia, Pennsylvania, The Philadelphia
Protestant Home Project, 8.625%, 7/1/21 3,575,460
4,630 Racine County, Wisconsin, Health Center, 8.125%,
8/1/21 4,763,622
5,000 Rhode Island Health and Education Building,
Steere House, 8.25%, 7/1/15 5,281,450
5,000 Sussex County, Delaware, Delaware Health
Corporation, 7.6%, 1/1/24 4,937,050
5,000 Sussex County, Delaware, Delaware Health
Corporation, 7.5%, 1/1/14 4,946,500
4,500 Tarrant County Health Facilities, Texas, 3927
Foundation, Inc., 10.25%, 9/1/19 4,546,890
6,000 Westmoreland County, Pennsylvania, IDA, Highland
Health System, Inc., 9.25%, 6/1/22 6,324,060
3,555 Wood County, West Virginia, West Virginia
Rehabilitation Services, Inc., (AMT),
9.5%, 12/1/15 3,730,685
--------------
$ 171,306,157
--------------
SOLID WASTE - 1.7%
$ 6,050 Carbon County, Utah, Laidlaw, (AMT), 7.5%, 2/1/10 $ 6,497,640
2,500 Mercer County, New Jersey, Improvement Authority,
(AMT), 0%, 4/1/14 641,925
5,000 Mercer County, New Jersey, Improvement Authority,
(AMT), 0%, 4/1/15 1,190,400
10,690 Mercer County, New Jersey, Improvement Authority,
(AMT), 0%, 4/1/16 2,359,924
35,000 Robbins, Cook County, Illinois, Robbins Resource
Recovery Partners, L.P.,
9.25%, 10/15/16 28,000,000
--------------
$ 38,689,889
--------------
SPECIAL ASSESSMENT - 0.9%
$ 8,000 Hoffman Estates, Illinois, Economic Development
Project Area, 0%, 5/15/05 $ 4,705,280
11,000 Hoffman Estates, Illinois, Economic Development
Project Area, 0%, 5/15/06 6,026,790
17,460 Hoffman Estates, Illinois, Economic Development
Project Area, 0%, 5/15/07 8,869,505
--------------
$ 19,601,575
--------------
TAX ALLOCATION - 0.2%
$ 3,870 Inglewood, California Public Financing Authority,
In-Town, Manchester - Prairie and North
Inglewood Industrial Park Redevelopment
Projects - Redevelopment Loans, 7%, 5/1/22 $ 4,083,198
--------------
TRANSPORTATION - 15.3%
$ 28,000 Chicago, Illinois, O'Hare International, American
Airlines, (AMT), 7.875%, 11/1/25 $ 30,234,120
20,275 Chicago, Illinois, O'Hare International, American
Airlines, 8.2%, 12/1/24 23,422,288
41,000 Dallas-Fort Worth, Texas, International Airport
Facility, American Airlines, (AMT),
7.25%, 11/1/30 43,690,010
8,000 Denver, Colorado, Airport System Revenue, (AMT),
7%, 11/15/25 8,285,920
7,800 Denver, Colorado, Airport System Revenue, (AMT),
8%, 11/15/17 8,328,216
5,725 Denver, Colorado, Airport System Revenue, (AMT),
7.5%, 11/15/23 6,413,889
95,500 Denver, Colorado, United Airlines, (AMT), 6.875%,
10/1/32 96,445,450
5,000 Hawaii Airports, (AMT), 7%, 7/1/18 5,345,450
2,200 Los Angeles International Airport, Continental
Airlines, (AMT), 9%, 8/1/08 2,393,402
4,425 Los Angeles International Airport, Continental
Airlines, (AMT), 9%, 8/1/17 4,707,713
4,000 New York State Thruway Authority, Cross-
Westchester Expressway, 0%, 1/1/03 2,739,800
2,940 New York State Thruway Authority, Cross-
Westchester Expressway, 0%, 1/1/04 1,899,857
2,905 New York State Thruway Authority, Cross-
Westchester Expressway, 0%, 1/1/06 1,645,799
15,000 Port Authority of New York and New Jersey, (AMT),
Variable Rate, 1/15/27(1) 15,607,500
11,000 Port Authority of New York and New Jersey, La
Guardia Airport, Continental and Eastern
Airlines, (AMT), 9.125%, 12/1/15 12,212,640
5,000 Port of Seattle, Washington, (AMT), 6%, 12/1/14 4,930,550
35,100 San Joaquin Hills, California, Toll Roads, 0%,
1/1/17 9,138,285
54,400 San Joaquin Hills, California, Toll Roads, 0%,
1/1/18 13,273,600
20,000 San Joaquin Hills, California, Toll Roads, 0%,
1/1/19 4,573,600
46,210 San Joaquin Hills, California, Toll Roads, 0%,
1/1/20 9,790,975
72,685 San Joaquin Hills, California, Toll Roads, 0%,
1/1/21 14,426,519
29,225 San Joaquin Hills, California, Toll Roads, 0%,
1/1/22 5,393,182
45,045 San Joaquin Hills, California, Toll Roads, 0%,
1/1/23 7,784,677
108,260 San Joaquin Hills, California, Toll Roads, 0%,
1/1/24 17,521,881
--------------
$ 350,205,323
--------------
UTILITY REVENUE BONDS - 2.4%
$ 10,000 Brazos River Authority, Texas, PCR, Texas
Utilities Electric Company, 9.25%, 3/1/18 $ 10,924,800
10,000 Los Angeles, California, Department of Water &
Power, 5%, 10/15/33 8,507,600
29,700 Washington Public Power Supply System, Project 2,
4.8%, 7/1/04 28,734,451
5,000 West Feliciana, Louisiana, PCR, Gulf States
Utilities Company Project, (AMT), 9%, 5/1/15 5,631,750
--------------
$ 53,798,601
--------------
WATER & SEWER - 0.4%
$ 10,000 New York City Municipal Water Finance Authority,
6.25%, 6/15/21 $ 10,169,600
--------------
TOTAL TAX-EXEMPT INVESTMENTS (identified cost,
$2,144,487,157) $2,282,304,147
--------------
TAXABLE INVESTMENTS - 0.04%
$ 870 Ridgeland, Mississippi, Urban Renewal, The
Orchard Limited Project, 9%, 12/1/00
(identified cost, $870,000) $ 870,000
--------------
TOTAL INVESTMENTS (identified cost,
$2,145,357,157) $2,283,174,147
==============
(1) The above designated securities have been issued as inverse floater bonds.
(2) When-issued security.
(3) Security has been segregated to cover when-issued securities.
(4) Non-income producing security.
(5) The Portfolio is not accruing interest on this security but has received
partial payments which are recorded as income when received.
At March 31, 1996, the concentration of the Portfolio's investments in the
various states, determined as a percentage of total investments is as follows:
California 12.7%
Colorado 10.9%
Other, representing less than 10% individually 76.4%
The Portfolio invests primarily in debt securities issued by municipalities. The
ability of the issuers of the debt securities to meet their debt obligations may
be affected by economic developments in a specific industry or municipality. In
order to reduce the risk associated with such economic developments, at March
31, 1996, 16.9% of the securities in the portfolio of investments are backed by
bond insurance of various financial institutions and financial guaranty
assurance agencies. The aggregate percentage by financial institution ranged
from 1.4% to 9.2% of total investments.
Note: The classification of securities by sector set forth above is unaudited.
See notes to financial statements
<PAGE>
----------------------------
FINANCIAL STATEMENTS
<TABLE>
<CAPTION>
STATEMENT OF ASSETS AND LIABILITIES
- ------------------------------------------------------------------------------------------------
March 31, 1996
- ------------------------------------------------------------------------------------------------
<S> <C> <C>
ASSETS:
Investments, at value (Note 1A) (identified cost, $2,145,357,157) $2,283,174,147
Cash 311
Receivable for investments sold 37,179,971
Interest receivable 42,678,679
Deferred organization expenses (Note 1D) 36,857
--------------
Total assets $2,363,069,965
LIABILITIES:
Payable for when-issued securities (Note 1G) $97,457,676
Demand note payable 14,083,000
Payable to affiliate --
Trustees' fees 7,474
Accrued expenses 27,487
-----------
Total liabilities 111,575,637
--------------
NET ASSETS applicable to investors' interest in Portfolio $2,251,494,328
==============
SOURCES OF NET ASSETS:
Net proceeds from capital contributions and withdrawals $2,113,677,338
Unrealized appreciation of investments (computed on the
basis of identified cost) 137,816,990
--------------
Total $2,251,494,328
==============
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF OPERATIONS
- ----------------------------------------------------------------------------------------------------------------------------
For the six months ended March 31, 1996
- ----------------------------------------------------------------------------------------------------------------------------
<S> <C> <C>
INVESTMENT INCOME:
Interest income (Note 1B) $81,171,360
Expenses --
Investment adviser fee (Note 2) $ 5,037,145
Compensation of Trustees not members of the Investment Adviser's organization 14,384
Custodian fee (Note 2) 195,049
Legal and accounting services 67,746
Interest expense 142,012
Amortization of organization expense (Note 1D) 9,784
Miscellaneous 40,570
-----------
Total expenses $ 5,506,690
Deduct reduction of custodian fee (Note 2) 195,049
-----------
Net expenses 5,311,641
-----------
Net investment income $75,859,719
-----------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS:
Net realized gain (loss) (identified cost basis) --
Investment transactions (identified cost basis) $ 5,341,009
Financial futures contracts (1,550,260)
-----------
Net realized gain on investments $ 3,790,749
Change in unrealized appreciation of investments (identified cost basis) 2,442,409
-----------
Net realized and unrealized gain on investments $ 6,233,158
-----------
Net increase in net assets from operations $82,092,877
===========
</TABLE>
See notes to financial statements
<PAGE>
<TABLE>
<CAPTION>
STATEMENT OF CHANGES IN NET ASSETS
- ----------------------------------------------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED
MARCH 31, 1996 SEPTEMBER 30, 1995
------------------ -------------------
<S> <C> <C>
INCREASE (DECREASE) IN NET ASSETS:
From operations --
Net investment income $ 75,859,719 $ 155,285,975
Net realized gain (loss) on investments 3,790,749 (86,966,435)
Change in unrealized appreciation of investments 2,442,409 177,320,778
-------------- --------------
Net increase in net assets from operations $ 82,092,877 $ 245,640,318
-------------- --------------
Capital transactions --
Contributions $ 252,121,526 $ 443,671,368
Withdrawals (343,366,438) (639,601,609)
-------------- --------------
Decrease in net assets resulting from capital transactions $ (91,244,912) $ (195,930,241)
-------------- --------------
Total increase (decrease) in net assets $ (9,152,035) $ 49,710,077
NET ASSETS:
At beginning of period 2,260,646,363 2,210,936,286
-------------- --------------
At end of period $2,251,494,328 $2,260,646,363
============== ==============
<CAPTION>
- ------------------------------------------------------------------------------------------------------------
SUPPLEMENTARY DATA
- ------------------------------------------------------------------------------------------------------------
SIX MONTHS YEAR ENDED SEPTEMBER 30,
ENDED ----------------------------------
MARCH 31, 1996 1995 1994 1993*
-------- -------- -------- --------
<S> <C> <C> <C> <C>
RATIOS (as a percentage of average daily net assets):
Expenses(1) 0.47%+ 0.50% 0.50% 0.47%+
Expenses after custodian fee reduction(1) 0.46%+ 0.49% -- --
Net investment income 6.52%+ 7.00% 6.55% 6.58%+
PORTFOLIO TURNOVER 12% 54% 40% 13%
Net Assets, end of period (000 omitted) $2,251,494 $2,260,646 $2,210,936 $2,083,322
<FN>
+ Computed on an annualized basis.
* For the period from the start of business, February 1, 1993 to September 30, 1993.
(1) The expense ratios for the six months ended March 31, 1996 and for the year ended September 30, 1995,
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 each of the periods ended on or before September 30, 1994 have
not been adjusted to reflect this change.
</TABLE>
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 or 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. USE OF ESTIMATES -- The preparation of 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.
I. 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 six months ended March 31, 1996, the fee was equivalent to 0.43%,
annualized, of the Portfolio's average net assets for such period and amounted
to $5,037,145. 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), serves as custodian of the Portfolio. Prior to
November 10, 1995, IBT was an affiliate of EVM and BMR. 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 six months ended March 31, 1996, credits used to reduce the custodian fee
amounted to $195,049. 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
six months ended March 31, 1996, no significant amounts have been deferred.
- ------------------------------------------------------------------------------
(3) INVESTMENTS
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $269,054,650 and $287,638,344, respectively.
- ------------------------------------------------------------------------------
(4) FEDERAL INCOME TAX BASIS OF INVESTMENTS
The cost and unrealized appreciation/depreciation in value of the investments
owned at March 31, 1996, as computed on a federal income tax basis, were as
follows:
Aggregate cost $2,145,357,157
==============
Gross unrealized appreciation $ 172,555,222
Gross unrealized depreciation 34,738,232
--------------
Net unrealized appreciation $ 137,816,990
==============
- ------------------------------------------------------------------------------
(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 or fund 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 portfolios
and funds at the end of each quarter. At March 31, 1996, the Portfolio had a
balance outstanding pursuant to this line of credit amounting to $14,083,000.
For the six months ended March 31, 1996, the Portfolio did not have any
significant borrowings or allocated fees.
- ------------------------------------------------------------------------------
(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 March 31, 1996.
<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 March 31,
1996, the related statement of operations for the six months then ended, the
statement of changes in net assets for the six months ended March 31, 1996 and
for the year ended September 30, 1995 and the supplementary data for the six
months ended March 31, 1996, for the years ended September 30, 1995, 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 March
31, 1996 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 March 31, 1996, 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
April 26, 1996
<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
Director, Fiduciary Company Incorporated
JACK L. TREYNOR
Investment Adviser and Consultant
