<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 99.7%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Education -- 1.2%
- -----------------------------------------------------------------------------
$ 550 Ohio Higher Educational Facilities,
(Case Western University),
6.50%, 10/1/20 $ 610,538
2,625 Ohio Higher Educational Facilities,
(Oberlin College), Variable Rate,
10/1/29(1)(2) 1,980,720
- -----------------------------------------------------------------------------
$ 2,591,258
- -----------------------------------------------------------------------------
Electric Utilities -- 4.3%
- -----------------------------------------------------------------------------
$ 2,000 Clyde, Electric System Revenue, (AMT),
6.00%, 11/15/14 $ 1,907,220
1,185 Ohio Air Quality Development Authority,
(Dayton Power), 6.10%, 9/1/30 1,203,865
2,330 Ohio Air Quality Development Authority,
RITES, Variable Rate, 5/1/26(1)(2) 1,666,020
4,750 Ohio Water Development Authority,
Pollution Control Facilities, (Cleveland
Electric), (AMT), 6.10%, 8/1/20 4,584,130
- -----------------------------------------------------------------------------
$ 9,361,235
- -----------------------------------------------------------------------------
Escrowed / Prerefunded -- 2.6%
- -----------------------------------------------------------------------------
$ 1,000 Clermont County, (Mercy Health System),
(AMBAC), Prerefunded to 9/25/01,
Variable Rate, 10/5/21(1) $ 1,125,000
1,750 Lorain County, (Lakeland County
Hospital), Escrowed to Maturity,
6.50%, 11/15/12 1,906,100
1,700 Puerto Rico, RIBS, (AMBAC), Prerefunded
to 7/1/02, Variable Rate, 7/1/15 1,911,140
600 Warren County, (Otterbein Homes),
Prerefunded to 7/1/01, 7.20%, 7/1/11 641,688
- -----------------------------------------------------------------------------
$ 5,583,928
- -----------------------------------------------------------------------------
General Obligations -- 8.7%
- -----------------------------------------------------------------------------
$ 3,035 Belmont County, 7.30%, 12/1/12 $ 3,332,825
7,000 Hamilton City School District,
5.50%, 12/1/24 6,745,620
1,000 Tuscarawas County Public Library
Improvement, 6.90%, 12/1/11 1,042,530
6,855 Youngstown, 7.35%, 7/1/05 7,608,022
- -----------------------------------------------------------------------------
$ 18,728,997
- -----------------------------------------------------------------------------
Hospital -- 15.6%
- -----------------------------------------------------------------------------
$ 1,000 Allen County LIMA, (Convalescent Home
Foundation), (GNMA), 6.40%, 1/1/21 $ 1,024,250
1,000 Butler County, (Hamilton-Hughe
Hospital), 7.50%, 1/1/10 1,047,140
2,100 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/28 1,824,270
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Hospital (continued)
- -----------------------------------------------------------------------------
$ 2,100 Cuyahoga County, (Fairview General
Hospital), 6.25%, 8/15/10 $ 2,229,486
1,000 East Liverpool, (City Hospital),
8.00%, 10/1/21 1,053,450
4,000 Erie County, (Firelands Community
Hospital), 6.75%, 1/1/08 4,236,160
3,000 Franklin County, (Children's Hospital),
6.60%, 5/1/13 3,219,630
1,015 Garfield Heights, (Marymount Hospital),
6.65%, 11/15/11 1,101,082
1,000 Garfield Heights, (Marymount Hospital),
6.70%, 11/15/15 1,086,250
5,115 Hamilton County, (Bethesda Hospital,
Inc.), 6.25%, 1/1/12 5,350,239
1,000 Hamilton County, (Wesley Hall),
6.50%, 3/1/15 1,051,190
2,200 Highland County, (Township Hospital),
6.75%, 12/1/29 2,115,014
3,800 Miami, (Upper Valley Medical Center),
6.375%, 5/15/26 3,723,848
1,000 Parma, (Parma Community General Hospital
Association), 5.35%, 11/1/18 908,190
4,250 Parma, (Parma Community General Hospital
Association), 5.375%, 11/1/29 3,735,197
- -----------------------------------------------------------------------------
$ 33,705,396
- -----------------------------------------------------------------------------
Housing -- 12.7%
- -----------------------------------------------------------------------------
$ 1,300 Clermont County, (SEM Laurels), (FHA),
6.00%, 9/1/20 $ 1,318,356
2,970 Cuyahoga County, (Rolling Hills Apts.),
(AMT), 8.00%, 1/1/28 2,910,838
2,500 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.50%, 3/1/26 2,617,125
5,985 Franklin County MFMR, (Tuttle Park),
(FHA), (AMT), 6.60%, 3/1/36 6,263,841
3,645 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT),
5.55%, 7/1/24 3,443,504
1,000 Franklin County, (Hamilton Creek
Apartments), (FHA), (AMT),
5.80%, 7/1/14 1,000,550
2,500 Kent MFMR, (Silver Meadows), (GNMA),
(AMT), 7.30%, 12/20/36 2,758,350
2,935 Lucas County, (Country Creek), (AMT),
8.00%, 7/1/26 2,810,086
585 Ohio HFA SFMR, (GNMA), (AMT), Variable
Rate, 3/31/31(1) 628,144
1,000 Ohio HFA, (Aristocrat), (FHA), (AMT),
7.30%, 8/1/31 1,033,870
3,000 Ohio HFA, (GNMA), (AMT), 5.40%, 9/1/29 2,790,240
- -----------------------------------------------------------------------------
$ 27,574,904
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Industrial Development Revenue -- 19.3%
- -----------------------------------------------------------------------------
$ 4,500 Cleveland Airport, (Continental
Airlines), (AMT), 5.70%, 12/1/19 $ 4,143,105
2,000 Cuyahoga IDR, (Chippewa Place),
6.60%, 8/1/15 2,088,080
2,950 Dayton, Special Facilities Revenue,
(Emery Airline Freight), 5.625%, 2/1/18 2,738,013
515 Ohio Economic Development Commission,
(Burrows Paper Corp.), (AMT),
7.625%, 6/1/11 543,315
195 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.50%, 12/1/04 199,772
530 Ohio Economic Development Commission,
(Cheryl & Co.), (AMT), 5.90%, 12/1/09 548,237
1,470 Ohio Economic Development Commission,
(Consolidated Biscuit), (AMT),
7.00%, 12/1/09 1,584,939
3,060 Ohio Economic Development Commission, (J
J & W LP), (AMT), 6.70%, 12/1/14 3,242,988
1,020 Ohio Economic Development Commission,
(Kmart Corp.), 6.75%, 5/15/07 1,048,917
750 Ohio Economic Development Commission,
(Luigino's, Inc.), (AMT), 6.85%, 6/1/01 751,695
1,525 Ohio Economic Development Commission,
(Progress Plastic Products), (AMT),
7.80%, 12/1/09 1,707,863
425 Ohio Economic Development Commission,
(Progress Plastics Products), (AMT),
6.80%, 12/1/01 431,728
1,000 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 1,061,100
680 Ohio Economic Development Commission,
(Royal Appliance Manufacturing Co.),
(AMT), 7.625%, 12/1/11 721,548
880 Ohio Economic Development Commission,
(VSM Corp.), (AMT), 7.375%, 12/1/11 929,324
5,000 Ohio Environmental Facilities, (Ford
Motor Co.), (AMT), 5.95%, 9/1/29 4,982,400
2,200 Ohio Environmental Improvement, (USX
Corp.), 5.625%, 5/1/29 2,006,950
1,000 Ohio Pollution Control, (Standard Oil
Co.), 6.75%, 12/1/15 1,127,470
4,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 5.65%, 3/1/33 3,610,880
1,000 Ohio Solid Waste Disposal, (USG Corp.),
(AMT), 6.05%, 8/1/34 968,210
3,000 Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT),
9.00%, 6/1/21 3,161,070
4,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 4,075,600
- -----------------------------------------------------------------------------
$ 41,673,204
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Education -- 1.4%
- -----------------------------------------------------------------------------
$ 1,000 Ohio HEFA, (University of Dayton),
(FGIC), 5.80%, 12/1/14 $ 1,015,660
2,000 University of Akron, (FGIC), Variable
Rate, 1/1/29(1)(2) 1,980,000
- -----------------------------------------------------------------------------
$ 2,995,660
- -----------------------------------------------------------------------------
Insured-Electric Utilities -- 2.9%
- -----------------------------------------------------------------------------
$ 1,650 Cleveland Public Power System, (MBIA),
7.00%, 11/15/17 $ 1,761,606
2,000 Cuyahoga County Utility Systems,
(Medical Center Co.), (MBIA), (AMT),
6.10%, 8/15/15 2,046,080
10 Ohio Air Quality Development Authority,
(Ohio Power), (AMBAC), 5.15%, 5/1/26 9,050
2,300 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 2,438,000
- -----------------------------------------------------------------------------
$ 6,254,736
- -----------------------------------------------------------------------------
Insured-General Obligations -- 4.6%
- -----------------------------------------------------------------------------
$ 3,700 Avon Lake City School District, (FGIC),
5.50%, 12/1/26 $ 3,570,833
2,110 Hudson Local School District, (FGIC),
0.00%, 12/15/09 1,251,863
2,600 Norwalk City School District, (AMBAC),
4.75%, 12/1/26 2,180,516
3,000 Puerto Rico, (FSA), Variable Rate,
7/1/22(1)(2) 3,127,500
- -----------------------------------------------------------------------------
$ 10,130,712
- -----------------------------------------------------------------------------
Insured-Hospital -- 10.5%
- -----------------------------------------------------------------------------
$ 5,245 Cuyahoga County, (Cleveland Clinic),
(MBIA), 5.125%, 1/1/29 $ 4,658,032
3,000 Hamilton County, (Childrens Hospital
Medical Center), (MBIA), 4.75%, 5/15/28 2,484,540
2,750 Mansfield, (Mansfield General Hospital),
(AMBAC), 6.70%, 12/1/09 2,922,370
5,000 Middleburg Heights, (Southwestern
General), (FSA), 5.75%, 8/15/21 4,971,900
1,000 Montgomery County, (Miami Valley
Hospital), (AMBAC), 6.25%, 11/15/16 1,029,210
6,565 Portage County, (Robinson Memorial
Hospital), (MBIA), 5.80%, 11/15/15 6,630,059
- -----------------------------------------------------------------------------
$ 22,696,111
- -----------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
OHIO MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Insured-Housing -- 0.5%
- -----------------------------------------------------------------------------
$ 1,100 Ohio Capital Corp., (Horizon
Apartments), (FHA), (MBIA),
6.50%, 1/1/23 $ 1,128,523
- -----------------------------------------------------------------------------
$ 1,128,523
- -----------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.1%
- -----------------------------------------------------------------------------
$ 1,500 Hamilton County Sales Tax, (MBIA),
4.75%, 12/1/27 $ 1,249,155
1,575 Puerto Rico Infrastructure Financing
Authority, (AMBAC), Variable Rate,
7/1/28(1) 1,082,088
- -----------------------------------------------------------------------------
$ 2,331,243
- -----------------------------------------------------------------------------
Insured-Transportation -- 2.0%
- -----------------------------------------------------------------------------
$ 1,600 Ohio Turnpike Commission, (FGIC),
4.50%, 2/15/24 $ 1,291,968
650 Ohio Turnpike Commission, (FGIC),
4.75%, 2/15/28 541,768
3,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 2,521,890
- -----------------------------------------------------------------------------
$ 4,355,626
- -----------------------------------------------------------------------------
Nursing Home -- 6.0%
- -----------------------------------------------------------------------------
$ 2,000 Cuyahoga County Health Care Facilities,
(Benjamin Rose Institute),
5.50%, 12/1/17 $ 1,806,100
1,305 Cuyahoga County, (Maple Care Center),
(GNMA), (AMT), 8.00%, 8/20/16 1,510,968
1,205 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
6.10%, 9/20/16 1,244,235
6,455 North Canton Health Care Facilities,
(St. Luke Lutheran), (GNMA),
9.55%, 3/20/32 8,341,990
- -----------------------------------------------------------------------------
$ 12,903,293
- -----------------------------------------------------------------------------
Senior Living / Life Care -- 4.2%
- -----------------------------------------------------------------------------
$ 1,990 Franklin County, (Kensington Place),
6.75%, 1/1/34 $ 2,083,470
1,000 Hamilton County Hospital Facilities,
(Episcopal Retirement Home),
6.80%, 1/1/08 1,052,210
1,800 Marion, Health Care, (United Church
Home), 6.30%, 11/15/15 1,798,038
2,400 Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners),
6.75%, 3/1/19 2,203,512
2,250 Summit County Healthcare Facilities,
(Village at Saint Edward),
5.75%, 12/1/25 2,018,093
- -----------------------------------------------------------------------------
$ 9,155,323
- -----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- -----------------------------------------------------------------------------
Solid Waste -- 1.0%
- -----------------------------------------------------------------------------
$ 2,400 Ohio Water Development Authority, Solid
Waste Disposal Revenue, (Bay Shore
Power), (AMT), 5.875%, 9/1/20 $ 2,268,864
- -----------------------------------------------------------------------------
$ 2,268,864
- -----------------------------------------------------------------------------
Special Tax Revenue -- 0.5%
- -----------------------------------------------------------------------------
$ 1,350 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(1)(2) $ 1,068,336
- -----------------------------------------------------------------------------
$ 1,068,336
- -----------------------------------------------------------------------------
Transportation -- 0.1%
- -----------------------------------------------------------------------------
$ 250 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 217,848
- -----------------------------------------------------------------------------
$ 217,848
- -----------------------------------------------------------------------------
Water and Sewer -- 0.5%
- -----------------------------------------------------------------------------
$ 1,000 Vermilion Water, 7.25%, 8/15/15 $ 1,034,190
- -----------------------------------------------------------------------------
$ 1,034,190
- -----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 99.7%
(identified cost $213,863,078) $215,759,387
- -----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 0.3% $ 704,640
- -----------------------------------------------------------------------------
Net Assets -- 100.0% $216,464,027
- -----------------------------------------------------------------------------
</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 Ohio
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, 1999, 24.5% 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 4.5% to 9.3% of total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $249,159,445 $354,418,699 $207,184,612 $17,055,906
Unrealized appreciation 14,341,009 332,434 3,222,113 439,536
- ---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $263,500,454 $354,751,133 $210,406,725 $17,495,442
- ---------------------------------------------------------------------------------------------------------------------------------
Cash $ 888,118 $ -- $ -- $ --
Receivable for investments sold 3,120,000 135,000 128,071 838,086
Interest receivable 3,715,263 7,042,312 3,214,012 340,169
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $271,223,835 $361,928,445 $213,748,808 $18,673,697
- ---------------------------------------------------------------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 3,494,505 $ -- $ 474,730
Payable for when-issued securities 1,003,150 3,892,080 -- --
Demand note payable -- 7,600,000 1,400,000 200,000
Due to bank -- 59,429 55,791 56,818
Payable to affiliate for Trustees' fees -- 2,364 -- --
Accrued expenses 20,487 7,795 15,910 5,310
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,023,637 $ 15,056,173 $ 1,471,701 $ 736,858
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $270,200,198 $346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $255,859,189 $346,539,838 $209,054,994 $17,497,303
Net unrealized appreciation (computed on
the
basis of identified cost) 14,341,009 332,434 3,222,113 439,536
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL $270,200,198 $346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Assets
- -----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $401,043,782 $213,863,078 $41,277,750 $26,667,588
Unrealized appreciation
(depreciation) 8,227,808 1,896,309 (506,458) (147,896)
- -----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $409,271,590 $215,759,387 $40,771,292 $26,519,692
- -----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 411,282 $ --
Receivable for investments sold 10,210,636 12,945,663 624,910 433,777
Interest receivable 6,715,802 3,339,496 849,721 443,645
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $426,198,028 $232,044,546 $42,657,205 $27,397,114
- -----------------------------------------------------------------------------------------------------------------------------
Liabilities
- -----------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ 17,073,721 $ 9,611,117 $ 431,572 $ --
Payable for when-issued securities 6,459,684 -- 489,044 --
Demand note payable 500,000 5,900,000 -- 400,000
Due to bank 22,638 53,923 -- 33,138
Payable to affiliate for Trustees' fees -- 1,603 -- 211
Accrued expenses 23,874 13,876 4,892 2,889
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 24,079,917 $ 15,580,519 $ 925,508 $ 436,238
- -----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $393,890,303 $214,567,718 $42,238,155 $27,108,772
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 8,227,808 1,896,309 (506,458) (147,896)
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------------
Interest $ 17,309,148 $ 23,427,863 $ 13,963,691 $ 1,130,481
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 17,309,148 $ 23,427,863 $ 13,963,691 $ 1,130,481
- ---------------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,408,907 $ 1,827,598 $ 1,029,634 $ 31,879
Trustees fees and expenses 26,047 29,327 21,114 257
Legal and accounting services 38,864 41,270 34,959 17,304
Custodian fee 152,205 185,030 114,536 17,873
Miscellaneous 23,655 55,994 19,428 5,263
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,649,678 $ 2,139,219 $ 1,219,671 $ 72,576
- ---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 56,891 $ 185,030 $ 38,928 $ 4,020
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 56,891 $ 185,030 $ 38,928 $ 4,020
- ---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,592,787 $ 1,954,189 $ 1,180,743 $ 68,556
- ---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
- ---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 2,827,671 $ 8,811,395 $ 2,172,182 $ 208,014
Financial futures contracts 218,663 (74,128) 676,780 14,376
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 3,046,334 $ 8,737,267 $ 2,848,962 $ 222,390
- ---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(30,348,569) $(44,899,518) $(23,254,394) $(1,697,757)
Financial futures contracts 376,199 398,880 -- 22,941
- ---------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(29,972,370) $(44,500,638) $(23,254,394) $(1,674,816)
- ---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(26,926,036) $(35,763,371) $(20,405,432) $(1,452,426)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $(14,289,697) $ (7,622,484) $ (390,501)
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
Investment Income
- -----------------------------------------------------------------------------------------------------------------------------
Interest $ 26,318,419 $ 14,525,315 $ 2,412,221 $ 1,670,867
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 26,318,419 $ 14,525,315 $ 2,412,221 $ 1,670,867
- -----------------------------------------------------------------------------------------------------------------------------
Expenses
- -----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 2,052,610 $ 1,056,733 $ 108,206 $ 63,145
Trustees fees and expenses 28,764 21,487 2,572 2,642
Legal and accounting services 48,964 33,704 19,472 19,068
Custodian fee 194,113 124,932 30,584 26,890
Miscellaneous 58,634 66,783 5,550 9,790
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 2,383,085 $ 1,303,639 $ 166,384 $ 121,535
- -----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 32,559 $ 21,444 $ 13,858 $ 6,258
- -----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 32,559 $ 21,444 $ 13,858 $ 6,258
- -----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 2,350,526 $ 1,282,195 $ 152,526 $ 115,277
- -----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
- -----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ 224,797 $ (140,216) $ (176,858) $ 209,894
Financial futures contracts (291,627) (6,744) 135,208 58,720
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (66,830) $ (146,960) $ (41,650) $ 268,614
- -----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $(39,003,854) $(17,738,121) $(3,927,649) $(2,808,929)
Financial futures contracts 633,222 129,636 -- 45,458
- -----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $(38,370,632) $(17,608,485) $(3,927,649) $(2,763,471)
- -----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(38,437,462) $(17,755,445) $(3,969,299) $(2,494,857)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 15,716,361 $ 21,473,674 $ 12,782,948 $ 1,061,925
Net realized gain 3,046,334 8,737,267 2,848,962 222,390
Net change in unrealized appreciation
(depreciation) (29,972,370) (44,500,638) (23,254,394) (1,674,816)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(11,209,675) $ (14,289,697) $ (7,622,484) $ (390,501)
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 26,307,078 $ 22,428,860 $ 22,537,239 $ 1,934,210
Withdrawals (56,905,888) (117,286,711) (53,364,100) (4,346,534)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(30,598,810) $ (94,857,851) $(30,826,861) $(2,412,324)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(41,808,485) $(109,147,548) $(38,449,345) $(2,802,825)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 23,967,893 $ 13,243,120 $ 2,259,695 $ 1,555,590
Net realized gain (loss) (66,830) (146,960) (41,650) 268,614
Net change in unrealized appreciation
(depreciation) (38,370,632) (17,608,485) (3,927,649) (2,763,471)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(14,469,569) $ (4,512,325) $(1,709,604) $ (939,267)
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 31,675,644 $ 15,132,326 $ 7,437,315 $ 1,765,713
Withdrawals (101,151,980) (49,186,424) (6,067,386) (5,785,114)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(69,476,336) $(34,054,098) $ 1,369,929 $(4,019,401)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(83,945,905) $(38,566,423) $ (339,675) $(4,958,668)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $486,064,016 $255,030,450 $42,071,372 $31,919,544
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $402,118,111 $216,464,027 $41,731,697 $26,960,876
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 16,749,988 $ 24,411,408 $ 13,279,143 $ 1,095,413
Net realized gain 5,489,144 10,921,955 5,581,339 573,326
Net change in unrealized appreciation
(depreciation) 7,467,292 12,878,283 3,418,130 114,281
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 29,706,424 $ 48,211,646 $ 22,278,612 $ 1,783,020
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 22,739,308 $ 23,116,173 $ 23,126,655 $ 1,791,601
Withdrawals (67,441,064) (129,509,414) (48,353,576) (4,961,704)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(44,701,756) $(106,393,241) $(25,226,921) $(3,170,103)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(14,995,332) $ (58,181,595) $ (2,948,309) $(1,387,083)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $327,004,015 $ 514,201,415 $253,674,761 $22,126,747
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $312,008,683 $ 456,019,820 $250,726,452 $20,739,664
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 1998
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 26,577,893 $ 14,511,143 $ 2,164,155 $ 1,733,679
Net realized gain (loss) 16,834,383 3,940,354 (61,270) 410,963
Net change in unrealized appreciation
(depreciation) 3,990,623 2,570,827 1,425,915 669,508
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 47,402,899 $ 21,022,324 $ 3,528,800 $ 2,814,150
- -----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 21,974,717 $ 12,482,905 45,483,365 $ 1,913,546
Withdrawals (110,917,114) (49,743,364) (7,158,442) (6,311,147)
- -----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(88,942,397) $(37,260,459) $(1,675,077) $(4,397,601)
- -----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS $(41,539,498) $(16,238,135) $ 1,853,723 $(1,583,451)
- -----------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------
At beginning of year $527,603,514 $271,268,585 $40,217,649 $33,502,995
- -----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $486,064,016 $255,030,450 $42,071,372 $31,919,544
- -----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.56% 0.55% 0.57% 0.57% 0.59%
Expenses after custodian fee
reduction 0.54% 0.53% 0.56% 0.56% 0.58%
Net investment income 5.30% 5.33% 5.76% 5.93% 6.22%
Portfolio Turnover 28% 16% 12% 14% 58%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $270,200 $312,009 $327,004 $370,590 $410,763
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.52% 0.51% 0.52% 0.52% 0.55%
Expenses after custodian fee
reduction 0.48% 0.47% 0.48% 0.49% 0.52%
Net investment income 5.26% 5.03% 5.53% 5.67% 5.94%
Portfolio Turnover 40% 25% 54% 51% 61%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $346,843 $456,020 $514,201 $624,374 $712,203
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.52% 0.54% 0.53% 0.55% 0.56%
Expenses after custodian fee
reduction 0.50% 0.52% 0.52% 0.54% 0.53%
Net investment income 5.40% 5.36% 5.75% 5.77% 6.00%
Portfolio Turnover 24% 28% 35% 51% 87%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $212,277 $250,726 $253,675 $281,129 $302,170
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.36% 0.37% 0.38% 0.29% 0.27%
Net expenses after custodian
fee reduction 0.34% 0.35% 0.37% 0.26% 0.23%
Net investment income 5.30% 5.21% 5.59% 5.77% 5.97%
Portfolio Turnover 16% 17% 6% 12% 52%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $17,937 $20,740 $22,127 $25,280 $28,993
- ---------------------------------------------------------------------------
+ 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:
Expenses 0.40% 0.39%
Expenses after custodian fee
reduction 0.37% 0.35%
Net investment income 5.66% 5.85%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.53% 0.53% 0.57% 0.52% 0.54%
Expenses after custodian fee
reduction 0.52% 0.51% 0.57% 0.49% 0.51%
Net investment income 5.30% 5.28% 5.60% 5.64% 5.97%
Portfolio Turnover 41% 55% 44% 47% 55%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $402,118 $486,064 $527,604 $604,530 $652,736
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------
YEAR ENDED SEPTEMBER 30,
------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------
Expenses 0.55% 0.56% 0.56% 0.57% 0.57%
Expenses after custodian fee
reduction 0.54% 0.54% 0.55% 0.56% 0.55%
Net investment income 5.54% 5.50% 5.70% 5.69% 5.80%
Portfolio Turnover 59% 17% 30% 35% 51%
- --------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $216,464 $255,030 $271,269 $292,671 $319,017
- --------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.39% 0.39% 0.27% 0.27% 0.29%
Net expenses after custodian
fee reduction 0.35% 0.36% 0.23% 0.24% 0.25%
Net investment income 5.24% 5.28% 5.54% 5.69% 5.96%
Portfolio Turnover 18% 24% 39% 25% 42%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $41,732 $42,071 $40,218 $42,167 $42,906
- ---------------------------------------------------------------------------
+ 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:
Expenses 0.39% 0.40% 0.41%
Expenses after custodian fee
reduction 0.35% 0.37% 0.37%
Net investment income 5.42% 5.56% 5.84%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
-------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------
Net expenses 0.40% 0.37% 0.38% 0.42% 0.31%
Net expenses after custodian
fee reduction 0.38% 0.34% 0.36% 0.38% 0.29%
Net investment income 5.13% 5.34% 5.44% 5.41% 5.81%
Portfolio Turnover 32% 16% 24% 43% 19%
- ---------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $26,961 $31,920 $33,503 $39,501 $40,835
- ---------------------------------------------------------------------------
+ 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:
Expenses 0.39%
Expenses after custodian fee
reduction 0.37%
Net investment income 5.73%
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
California Municipals Portfolio (California Portfolio), Florida Municipals
Portfolio (Florida Portfolio), Massachusetts Municipals Portfolio
(Massachusetts Portfolio), Mississippi Municipals Portfolio (Mississippi
Portfolio), New York Municipals Portfolio (New York Portfolio), Ohio
Municipals Portfolio (Ohio Portfolio), Rhode Island Municipals Portfolio
(Rhode Island Portfolio) and West Virginia Municipals Portfolio (West
Virginia Portfolio), collectively, the Portfolios, are registered under the
Investment Company Act of 1940, as amended, as non-diversified, open-end
management investment companies. The Portfolios 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 consistently followed by the
Portfolios in the preparation of their financial statements. 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 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 not readily available 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 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 its investors to
satisfy them. The Portfolios will allocate at least annually among their
respective investors, each investor's distributive share of the Portfolios'
net taxable (if any) and tax-exempt investment income, net realized capital
gains, and any other items of income, gain, loss, deduction or credit.
Interest income received by the Portfolios on investments in municipal bonds,
which is excludable from gross income under the Internal Revenue Code, will
retain its status as income exempt from federal income tax when allocated to
each Portfolio's investors. The portion of such interest, if any, earned on
private activity bonds issued after August 7, 1986 may be considered a tax
preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed for both
hedging against anticipated future changes in interest rates and investment
purposes. Should interest rates move unexpectedly, a Portfolio may not
achieve the anticipated benefits of the financial futures contracts and may
realize a loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, a Portfolio will realize a gain or loss depending on whether the
sales proceeds from the closing sale transaction are greater or less than the
cost of the option. When a Portfolio exercises a put option, settlement is
made in cash. The risk associated with purchasing put options is limited to
the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued and delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
G 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
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
an investment are recorded as realized losses. Ongoing expenditures to
protect or enhance an investment are treated as operating expenses.
H Other -- Investment transactions are accounted for on a trade date basis.
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 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 reflected as a
reduction of operating expenses on the Statement of Operations.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the year ended September 30, 1999, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
---------------------------------------------------------------------
California $1,408,907 0.48%
Florida 1,827,598 0.45%
Massachusetts 1,029,634 0.44%
Mississippi 31,879 0.16%
New York 2,052,610 0.45%
Ohio 1,056,733 0.44%
Rhode Island 108,206 0.25%
West Virginia 63,145 0.21%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Certain officers and Trustees of the Portfolios are officers of the above
organizations. 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 year ended September 30, 1999, no significant
amounts have been deferred.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased option transactions and short-term obligations, for the year ended
September 30, 1999 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 81,972,602
Sales 101,383,004
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $159,988,168
Sales 214,567,688
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 56,924,629
Sales 73,252,378
<CAPTION>
MISSISSIPPI PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 3,085,362
Sales 4,561,931
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $182,436,319
Sales 218,164,200
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $140,272,618
Sales 156,522,546
</TABLE>
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 11,081,928
Sales 7,518,444
<CAPTION>
WEST VIRGINIA PORTFOLIO
------------------------------------------------------
<S> <C>
Purchases $ 9,538,990
Sales 12,045,005
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in the value of the
investments owned by each Portfolio at September 30, 1999, as computed on a
federal income tax basis, were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $249,159,445
------------------------------------------------------
Gross unrealized appreciation $ 19,953,401
Gross unrealized depreciation (5,612,392)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 14,341,009
------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $354,418,699
------------------------------------------------------
Gross unrealized appreciation $ 13,515,155
Gross unrealized depreciation (13,182,721)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 332,434
------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $207,184,612
------------------------------------------------------
Gross unrealized appreciation $ 9,347,932
Gross unrealized depreciation (6,125,819)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,222,113
------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 17,055,906
------------------------------------------------------
Gross unrealized appreciation $ 719,116
Gross unrealized depreciation (279,580)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 439,536
------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $401,051,530
------------------------------------------------------
Gross unrealized appreciation $ 14,843,312
Gross unrealized depreciation (6,623,252)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 8,220,060
------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $213,863,078
------------------------------------------------------
Gross unrealized appreciation $ 6,590,158
Gross unrealized depreciation (4,693,849)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,896,309
------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 41,277,750
------------------------------------------------------
Gross unrealized appreciation $ 797,592
Gross unrealized depreciation (1,304,050)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (506,458)
------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
------------------------------------------------------
<S> <C>
AGGREGATE COST $ 26,765,403
------------------------------------------------------
Gross unrealized appreciation $ 482,409
Gross unrealized depreciation (728,120)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (245,711)
------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million ($120 million effective October 12,
1999) unsecured line of credit agreement with a group of banks. The
Portfolios may temporarily borrow from the line of credit to satisfy
redemption requests or settle investment transactions. 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 line of credit is
allocated among the participating portfolios and funds at the end of each
quarter. At September 30, 1999, the Florida Portfolio, Massachusetts
Portfolio, Mississippi Portfolio, New York Portfolio, Ohio Portfolio and West
Virginia Portfolio had a balance outstanding pursuant to this line of credit
of
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
$7,600,000, $1,400,000, $200,000, $500,000, $5,900,000 and $400,000,
respectively. The Portfolios did not have any significant borrowings or
allocated fees during the year ended September 30, 1999.
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 September 30, 1999, there were no such financial instruments outstanding.
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF THE CALIFORNIA MUNICIPALS PORTFOLIO, FLORIDA
MUNICIPALS PORTFOLIO, MASSACHUSETTS MUNICIPALS PORTFOLIO, MISSISSIPPI MUNICIPALS
PORTFOLIO, NEW YORK MUNICIPALS PORTFOLIO, OHIO MUNICIPALS PORTFOLIO, RHODE
ISLAND MUNICIPALS PORTFOLIO, AND WEST VIRGINIA MUNICIPALS PORTFOLIO
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolio of investments, of the California Municipals Portfolio, Florida
Municipals Portfolio, Massachusetts Municipals Portfolio, Mississippi Municipals
Portfolio, New York Municipals Portfolio, Ohio Municipals Portfolio, Rhode
Island Municipals Portfolio, and West Virginia Municipals Portfolio (the
Portfolios) as of September 30, 1999, the related statements of operations for
the year then ended, the statements of changes in net assets for the years ended
September 30, 1999 and 1998 and the supplementary data for each of the years in
the five-year period ended September 30, 1999. These financial statements and
supplementary data are the responsibility of the Portfolios 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 held as of
September 30, 1999 by correspondence with the custodian and brokers; where
replies were not received from brokers, we performed other audit procedures. An
audit also includes assessing the accounting principles used and significant
estimates made by management, as well as evaluating the overall financial
statement presentation. We believe that our audits provide a reasonable basis
for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at September 30, 1999, the results of their operations, the changes
in their net assets and their supplementary data for the respective stated
periods in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 29, 1999
86
<PAGE>
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolio
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts and
Rhode Island Municipals Portfolios
Timothy T. Browse
Vice President and Portfolio
Manager of West Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of California, Florida,
and Mississippi Municipals
Portfolios
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate 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
87
