<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 101.3%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Assisted Living -- 1.6%
-------------------------------------------------------------------------
$ 3,830 Glen Cove IDA, (Regency at Glen Cove),
9.50%, 7/1/12 $ 4,038,314
2,935 North Syracuse Village Housing
Authority, (AJM Senior Housing, Inc.,
Janus Park), 8.00%, 6/1/24(1) 1,526,464
-------------------------------------------------------------------------
$ 5,564,778
-------------------------------------------------------------------------
Cogeneration -- 2.0%
-------------------------------------------------------------------------
$ 1,500 Port Authority of New York and New
Jersey, (KIAC), (AMT), 6.75%, 10/1/19 $ 1,516,875
4,250 Suffolk County IDA, (Nissequogue
Cogeneration Partners Facility), (AMT),
5.50%, 1/1/23 3,626,907
435 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 2/1/15 432,468
350 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 347,963
360 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 357,905
300 Suffolk County Industrial Development
Agency, Civic Facility Revenue,
(Alliance of LI), 7.50%, 9/1/15 298,254
-------------------------------------------------------------------------
$ 6,580,372
-------------------------------------------------------------------------
Education -- 27.6%
-------------------------------------------------------------------------
$ 5,580 Monroe County IDA, (Wilmur Assoc.),
7.25%, 12/1/16 $ 5,707,503
8,000 New York Dormitory Authority, (City
University), 5.625%, 7/1/16 8,154,480
8,500 New York Dormitory Authority, (City
University), 6.00%, 7/1/20 8,876,380
5,100 New York Dormitory Authority, (City
University), 7.00%, 7/1/09 5,588,631
4,325 New York Dormitory Authority, (City
University), 7.50%, 7/1/10 4,930,457
1,750 New York Dormitory Authority,
(Rockefeller University), 4.75%, 7/1/37 1,475,705
9,985 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/15 9,979,309
28,775 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/19(2) 28,154,323
14,680 New York Dormitory Authority, (State
University Educational Facilities),
5.25%, 5/15/21 14,220,810
2,000 New York Dormitory Authority, (State
University Educational Facilities),
5.50%, 5/15/19 2,007,980
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education (continued)
-------------------------------------------------------------------------
$ 2,670 Rensselaer County IDA, (Polytechnic
Institute Dormitory), 5.125%, 8/1/29 $ 2,399,929
1,000 Tompkins County IDA, (Cornell
University), 5.75%, 7/1/30 1,007,480
-------------------------------------------------------------------------
$ 92,502,987
-------------------------------------------------------------------------
Electric Utilities -- 5.0%
-------------------------------------------------------------------------
$ 7,200 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/23 $ 6,912,648
1,000 Long Island Power Authority, Electric
System Revenue, 5.50%, 12/1/29 945,210
2,450 New York Energy Research and Development
Authority, (AMT),
Variable Rate, 8/1/22(3) 2,715,751
2,500 New York Energy Research and Development
Authority, (Brooklyn Union Gas), (AMT),
Variable Rate, 7/1/26(3) 2,859,375
3,000 New York Energy Research and Development
Authority, (LILCO), (AMT),
6.90%, 8/1/22(3) 3,381,420
-------------------------------------------------------------------------
$ 16,814,404
-------------------------------------------------------------------------
General Obligations -- 5.2%
-------------------------------------------------------------------------
$ 2,000 New York, 5.00%, 8/15/22 $ 1,792,720
3,500 New York, 6.00%, 5/15/30 3,586,310
5,000 New York City, 5.00%, 3/15/21 4,504,900
5,200 New York City, 5.875%, 2/15/19 5,274,100
1,125 Puerto Rico, 0.00%, 7/1/17 453,240
5,075 Puerto Rico, 0.00%, 7/1/18 1,916,675
-------------------------------------------------------------------------
$ 17,527,945
-------------------------------------------------------------------------
Hospital -- 5.7%
-------------------------------------------------------------------------
$ 1,250 Chautauqua County IDA, (Womans Christian
Association), 6.35%, 11/15/17 $ 1,172,000
3,250 Chautauqua County IDA, (Womans Christian
Association), 6.40%, 11/15/29 2,793,570
2,750 Fulton County IDA, (Nathan Littauer
Hospital), 6.00%, 11/1/18 2,347,372
1,250 New York City, Health and Hospital
Corp., 5.25%, 2/15/17 1,172,200
5,050 New York Dormitory Authority, Mental
Health Facilities, 5.375%, 2/15/26 4,725,033
6,600 New York MCFFA, Hospital and Nursing
Insured Mortgage, (FHA), 7.25%, 2/15/31 6,879,774
-------------------------------------------------------------------------
$ 19,089,949
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Housing -- 1.8%
-------------------------------------------------------------------------
$ 4,268 New York City HDC, Allerville,
6.50%, 11/15/18 $ 4,270,975
1,872 New York City HDC, Dayton,
6.50%, 11/15/18 1,913,540
-------------------------------------------------------------------------
$ 6,184,515
-------------------------------------------------------------------------
Insured-Education -- 6.7%
-------------------------------------------------------------------------
$11,325 New York Dormitory Authority, (State
University Educational Facilities),
(FSA), 4.75%, 5/15/28 $ 9,642,785
12,500 New York State Dormitory Authority, (New
York University), (MBIA), 5.75%, 7/1/27 12,862,750
-------------------------------------------------------------------------
$ 22,505,535
-------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
-------------------------------------------------------------------------
$ 700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/08 $ 808,465
700 Bethlehem Central School District,
(AMBAC), 7.10%, 11/1/09 817,033
700 Jamestown, (AMBAC), 7.10%, 3/15/11 825,174
675 Jamestown, (AMBAC), 7.10%, 3/15/12 798,228
675 Jamestown, (AMBAC), 7.10%, 3/15/13 799,666
515 Jamestown, (AMBAC), 7.10%, 3/15/14 612,134
4,500 Puerto Rico, (FSA),
Variable Rate, 7/1/22(3)(4) 4,691,250
-------------------------------------------------------------------------
$ 9,351,950
-------------------------------------------------------------------------
Insured-Solid Waste -- 1.5%
-------------------------------------------------------------------------
$ 4,495 Islip Resource Recovery Agency, (MBIA),
6.50%, 7/1/09 $ 4,899,865
-------------------------------------------------------------------------
$ 4,899,865
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 1.8%
-------------------------------------------------------------------------
$ 5,045 New York City Trust Cultural Resources,
(AMBAC), Variable Rate, 7/1/29(3)(4) $ 5,100,091
1,225 Puerto Rico Infrastructure Financing
Authority, (AMBAC),
Variable Rate, 7/1/28(5) 936,782
-------------------------------------------------------------------------
$ 6,036,873
-------------------------------------------------------------------------
Insured-Transportation -- 7.4%
-------------------------------------------------------------------------
$10,700 Metropolitan Transportation Authority of
New York, (FGIC), 4.75%, 4/1/28 $ 9,116,721
1,750 Niagara Frontier Airport Authority,
(Buffalo Niagara International Airport),
(MBIA), (AMT),
Variable Rate, 4/1/29(3)(4) 1,662,710
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation (continued)
-------------------------------------------------------------------------
$ 4,000 Puerto Rico Highway and Transportation
Authority, (FSA), 4.75%, 7/1/38 $ 3,432,000
3,000 Triborough Bridge and Tunnel Authority,
RITES, (AMBAC),
Variable Rate, 1/1/12(3)(4) 3,220,200
7,000 VRDC-IVRC Trust, (New York MTA), (MBIA),
Variable Rate, 6/26/02(3)(4) 7,297,500
-------------------------------------------------------------------------
$ 24,729,131
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 10.0%
-------------------------------------------------------------------------
$ 5,000 New York Housing Finance Agency, New
York City Health Facilities,
Variable Rate, 5/1/06(3)(4) $ 5,459,550
27,940 New York UDC, 5.70%, 4/1/20 28,153,182
-------------------------------------------------------------------------
$ 33,612,732
-------------------------------------------------------------------------
Senior Living / Life Care -- 0.1%
-------------------------------------------------------------------------
$ 380 New York City IDA, (A Very Special
Place), 5.75%, 1/1/29 $ 302,913
-------------------------------------------------------------------------
$ 302,913
-------------------------------------------------------------------------
Special Tax Revenue -- 13.0%
-------------------------------------------------------------------------
$ 7,595 New York City Transitional Finance
Authority, 5.50%, 5/1/25 $ 7,399,884
5,700 New York City, Transitional Finance
Authority, 4.75%, 11/1/23 4,920,696
19,830 New York LGAC, 5.00%, 4/1/21 18,401,249
10,500 Puerto Rico Infrastructure Financing
Authority, 5.50%, 10/1/32(6) 10,451,385
2,950 Puerto Rico Infrastructure Financing
Authority, Variable Rate, 7/1/28(3)(4) 2,487,293
-------------------------------------------------------------------------
$ 43,660,507
-------------------------------------------------------------------------
Transportation -- 6.0%
-------------------------------------------------------------------------
$ 3,165 Monroe County Airport Authority, (AMT),
Variable Rate, 1/1/19(3)(4) $ 3,387,436
1,200 Port Authority of New York and New
Jersey, 5.375%, 3/1/28 1,162,824
12,080 Triborough Bridge and Tunnel Authority,
5.50%, 1/1/17 12,288,501
3,000 Triborough Bridge and Tunnel Authority,
6.125%, 1/1/21 3,236,580
-------------------------------------------------------------------------
$ 20,075,341
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
NEW YORK MUNICIPALS PORTFOLIO AS OF SEPTEMBER 30, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Water and Sewer -- 3.1%
-------------------------------------------------------------------------
$ 4,000 New York City Municipal Water Finance
Authority, 5.75%, 6/15/30 $ 4,001,080
6,500 New York City Municipal Water Finance
Authority, 5.75%, 6/15/29 6,505,395
-------------------------------------------------------------------------
$ 10,506,475
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 101.3%
(identified cost $328,670,526) $339,946,272
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- (1.3)% $ (4,458,161)
-------------------------------------------------------------------------
Net Assets -- 100.0% $335,488,111
-------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by New York
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, 2000, 19.9% 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 insured by financial institutions ranged from 2.7% to 7.9% of
total investments.
(1) Non-income producing security.
(2) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(3) Security has been issued as an inverse floater bond.
(4) 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.
(5) Security has been issued as a leveraged inverse floater bond.
(6) When-issued security.
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
Assets
---------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $221,516,722 $272,244,736 $178,168,610 $14,856,025
Unrealized appreciation
(depreciation) 13,341,040 (1,538,597) 469,114 335,843
---------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $234,857,762 $270,706,139 $178,637,724 $15,191,868
---------------------------------------------------------------------------------------------------------------------------------
Cash $ 245,296 $ -- $ 512,766 $ 375,955
Receivable for investments sold 671,080 1,960,999 -- --
Interest receivable 3,105,583 5,348,863 2,441,325 280,463
---------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $238,879,721 $278,016,001 $181,591,815 $15,848,286
---------------------------------------------------------------------------------------------------------------------------------
Liabilities
---------------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin on
open financial futures contracts $ -- $ -- $ 8,531 $ --
Demand note payable -- 100,000 -- --
Payable for when-issued securities -- -- 4,387,507 --
Due to bank -- 10,205 -- --
Payable to affiliate for Trustees' fees -- 296 -- --
Accrued expenses 59,551 48,577 35,503 21,355
---------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 59,551 $ 159,078 $ 4,431,541 $ 21,355
---------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $238,820,170 $277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
---------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $225,479,130 $279,395,520 $176,718,676 $15,491,088
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 13,341,040 (1,538,597) 441,598 335,843
---------------------------------------------------------------------------------------------------------------------------------
TOTAL $238,820,170 $277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Assets
-----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $328,670,526 $192,876,033 $37,979,663 $24,466,709
Unrealized appreciation
(depreciation) 11,275,746 (2,785,834) (32,068) (75,565)
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $339,946,272 $190,090,199 $37,947,595 $24,391,144
-----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 329,414 $ 170,700
Receivable for investments sold 1,625,342 -- 300,000 --
Interest receivable 6,047,287 2,928,427 731,409 389,960
-----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $347,618,901 $193,018,626 $39,308,418 $24,951,804
-----------------------------------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------------------------------
Demand note payable $ 1,700,000 $ 100,000 $ -- $ --
Payable for when-issued securities 10,390,590 8,906,220 1,528,901 --
Due to bank 3,278 948 -- --
Payable to affiliate for Trustees' fees -- 1,650 -- 21
Accrued expenses 36,922 42,084 24,898 21,401
-----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 12,130,790 $ 9,050,902 $ 1,553,799 $ 21,422
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $335,488,111 $183,967,724 $37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $324,212,365 $186,753,558 $37,786,687 $25,005,947
Net unrealized appreciation
(depreciation) (computed on the basis
of identified cost) 11,275,746 (2,785,834) (32,068) (75,565)
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $335,488,111 $183,967,724 $37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO FLORIDA PORTFOLIO MASSACHUSETTS PORTFOLIO MISSISSIPPI PORTFOLIO
<S> <C> <C> <C> <C>
---------------------------------------------------------------------------------------------------------------------------------
Investment Income
---------------------------------------------------------------------------------------------------------------------------------
Interest $15,260,541 $18,871,423 $11,835,303 $ 975,571
---------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $15,260,541 $18,871,423 $11,835,303 $ 975,571
---------------------------------------------------------------------------------------------------------------------------------
Expenses
---------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,190,867 $ 1,373,668 $ 819,748 $ 26,004
Trustees fees and expenses 19,061 20,953 16,407 544
Legal and accounting services 76,167 77,732 62,272 29,696
Custodian fee 119,602 150,620 104,530 15,834
Miscellaneous 17,026 76,564 16,351 4,798
---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,422,723 $ 1,699,537 $ 1,019,308 $ 76,876
---------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 28,226 $ 150,620 $ 43,242 $ 2,926
---------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 28,226 $ 150,620 $ 43,242 $ 2,926
---------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,394,497 $ 1,548,917 $ 976,066 $ 73,950
---------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $13,866,044 $17,322,506 $10,859,237 $ 901,621
---------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
---------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (433,700) $ (731,229) $ 806,621 $ 5,646
Financial futures contracts (109,410) (125,821) (412,303) (7,294)
---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (543,110) $ (857,050) $ 394,318 $ (1,648)
---------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (999,969) $(1,871,031) $(2,752,999) $(103,693)
Financial futures contracts -- -- (27,516) --
---------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (999,969) $(1,871,031) $(2,780,515) $(103,693)
---------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(1,543,079) $(2,728,081) $(2,386,197) $(105,341)
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $12,322,965 $14,594,425 $ 8,473,040 $ 796,280
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO OHIO PORTFOLIO RHODE ISLAND PORTFOLIO WEST VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------------------------
Interest $21,772,764 $12,765,252 $2,327,517 $1,487,139
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $21,772,764 $12,765,252 $2,327,517 $1,487,139
-----------------------------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 1,626,137 $ 865,332 $ 91,393 $ 48,279
Trustees fees and expenses 24,368 16,454 2,526 1,356
Legal and accounting services 56,957 62,158 35,611 35,529
Custodian fee 137,685 99,307 27,315 21,223
Miscellaneous 96,465 70,344 7,576 5,970
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 1,941,612 $ 1,113,595 $ 164,421 $ 112,357
-----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ -- $ -- $ 11,498 $ 5,240
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ -- $ -- $ 11,498 $ 5,240
-----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 1,941,612 $ 1,113,595 $ 152,923 $ 107,117
-----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $19,831,152 $11,651,657 $2,174,594 $1,380,022
-----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $(2,135,289) $ 146,567 $ (403,028) $ (79,061)
Financial futures contracts (187,750) (125,865) -- (1,471)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $(2,323,039) $ 20,702 $ (403,028) $ (80,532)
-----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 3,047,938 $(4,682,143) $ 474,390 $ 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 3,047,938 $(4,682,143) $ 474,390 $ 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED GAIN (LOSS) $ 724,899 $(4,661,441) $ 71,362 $ (8,201)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $20,556,051 $ 6,990,216 $2,245,956 $1,371,821
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<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 $ 13,866,044 $ 17,322,506 $ 10,859,237 $ 901,621
Net realized gain (loss) (543,110) (857,050) 394,318 (1,648)
Net change in unrealized appreciation
(depreciation) (999,969) (1,871,031) (2,780,515) (103,693)
---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 12,322,965 $ 14,594,425 $ 8,473,040 $ 796,280
---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 16,589,267 $ 19,982,661 $ 11,730,651 $ 713,894
Withdrawals (60,292,260) (103,592,435) (55,320,524) (3,620,082)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(43,702,993) $ (83,609,774) $(43,589,873) $(2,906,188)
---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(31,380,028) $ (69,015,349) $(35,116,833) $(2,109,908)
---------------------------------------------------------------------------------------------------------------------------------
Net Assets
---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $270,200,198 $ 346,872,272 $212,277,107 $17,936,839
---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $238,820,170 $ 277,856,923 $177,160,274 $15,826,931
---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED SEPTEMBER 30, 2000
<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 $ 19,831,152 $ 11,651,657 $ 2,174,594 $ 1,380,022
Net realized gain (loss) (2,323,039) 20,702 (403,028) (80,532)
Net change in unrealized appreciation
(depreciation) 3,047,938 (4,682,143) 474,390 72,331
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 20,556,051 $ 6,990,216 $ 2,245,956 $ 1,371,821
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 11,046,414 $ 9,285,921 $ 4,482,382 $ 1,421,464
Withdrawals (98,232,465) (48,772,440) (10,705,416) (4,823,779)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(87,186,051) $(39,486,519) $ (6,223,034) $(3,402,315)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(66,630,000) $(32,496,303) $ (3,977,078) $(2,030,494)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $402,118,111 $216,464,027 $ 41,731,697 $26,960,876
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $335,488,111 $183,967,724 $ 37,754,619 $24,930,382
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
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, 2000
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, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.58% 0.56% 0.55% 0.57% 0.57%
Expenses after custodian
fee reduction 0.57% 0.54% 0.53% 0.56% 0.56%
Net investment income 5.65% 5.30% 5.33% 5.76% 5.93%
Portfolio Turnover 13% 28% 16% 12% 14%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $238,820 $270,200 $312,009 $327,004 $370,590
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
FLORIDA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.56% 0.52% 0.51% 0.52% 0.52%
Expenses after custodian
fee reduction 0.51% 0.48% 0.47% 0.48% 0.49%
Net investment income 5.72% 5.26% 5.03% 5.53% 5.67%
Portfolio Turnover 12% 40% 25% 54% 51%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $277,857 $346,843 $456,020 $514,201 $624,374
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.52% 0.54% 0.53% 0.55%
Expenses after custodian
fee reduction 0.52% 0.50% 0.52% 0.52% 0.54%
Net investment income 5.79% 5.40% 5.36% 5.75% 5.77%
Portfolio Turnover 15% 24% 28% 35% 51%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $177,160 $212,277 $250,726 $253,675 $281,129
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSISSIPPI PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.47% 0.36% 0.37% 0.38% 0.29%
Net expenses after
custodian fee reduction 0.45% 0.34% 0.35% 0.37% 0.26%
Net investment income 5.55% 5.30% 5.21% 5.59% 5.77%
Portfolio Turnover 4% 16% 17% 6% 12%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $15,827 $17,937 $20,740 $22,127 $25,280
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment
Adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.40%
Expenses after custodian
fee reduction 0.37%
Net investment income 5.66%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW YORK PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.53% 0.53% 0.57% 0.52%
Expenses after custodian
fee reduction 0.54% 0.52% 0.51% 0.57% 0.49%
Net investment income 5.56% 5.30% 5.28% 5.60% 5.64%
Portfolio Turnover 27% 41% 55% 44% 47%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $335,488 $402,118 $486,064 $527,604 $604,530
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OHIO PORTFOLIO
-------------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.57% 0.55% 0.56% 0.56% 0.57%
Expenses after custodian
fee reduction 0.57% 0.54% 0.54% 0.55% 0.56%
Net investment income 6.00% 5.54% 5.50% 5.70% 5.69%
Portfolio Turnover 28% 59% 17% 30% 35%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $183,968 $216,464 $255,030 $271,269 $292,671
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
RHODE ISLAND PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.43% 0.39% 0.39% 0.27% 0.27%
Net expenses after
custodian fee reduction 0.40% 0.35% 0.36% 0.23% 0.24%
Net investment income 5.66% 5.24% 5.28% 5.54% 5.69%
Portfolio Turnover 15% 18% 24% 39% 25%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $37,755 $41,732 $42,071 $40,218 $42,167
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the Investment
Adviser fee, an allocation of expenses to the Investment Advisor, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.39% 0.40%
Expenses after custodian
fee reduction 0.35% 0.37%
Net investment income 5.42% 5.56%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
--------------------------------------------------------
YEAR ENDED SEPTEMBER 30,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.45% 0.40% 0.37% 0.38% 0.42%
Expenses after custodian
fee reduction 0.43% 0.38% 0.34% 0.36% 0.38%
Net investment income 5.48% 5.13% 5.34% 5.44% 5.41%
Portfolio Turnover 7% 32% 16% 24% 43%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $24,930 $26,961 $31,920 $33,503 $39,501
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
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 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 accretion of discount when required
for Federal income tax purposes.
C Income Taxes -- The Portfolios are treated as a partnership 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 Portfolios 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
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
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.
H Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
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 income 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 reported as a
reduction of total expenses in 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, 2000, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE
<S> <C> <C>
--------------------------------------------------------------------
California $1,190,867 0.49%
Florida 1,373,668 0.45%
Massachusetts 819,748 0.44%
Mississippi 26,004 0.16%
New York 1,626,137 0.46%
Ohio 865,332 0.45%
Rhode Island 91,393 0.24%
West Virginia 48,279 0.19%
</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, 2000, 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, 2000 were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 30,775,592
Sales 59,979,799
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 35,217,837
Sales 117,869,719
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 27,633,630
Sales 60,126,591
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 714,696
Sales 2,962,793
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 95,445,703
Sales 165,930,114
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 54,254,693
Sales 75,445,420
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 5,730,696
Sales 8,677,523
</TABLE>
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 1,840,205
Sales 4,082,763
</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, 2000, as computed on a federal income tax basis,
were as follows:
<TABLE>
<CAPTION>
CALIFORNIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $221,516,722
------------------------------------------------------
Gross unrealized appreciation $ 20,388,162
Gross unrealized depreciation (7,047,122)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,341,040
------------------------------------------------------
<CAPTION>
FLORIDA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $272,370,550
------------------------------------------------------
Gross unrealized appreciation $ 10,805,202
Gross unrealized depreciation (12,469,613)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,664,411)
------------------------------------------------------
<CAPTION>
MASSACHUSETTS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $178,168,610
------------------------------------------------------
Gross unrealized appreciation $ 6,767,917
Gross unrealized depreciation (6,298,803)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 469,114
------------------------------------------------------
<CAPTION>
MISSISSIPPI PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 14,856,025
------------------------------------------------------
Gross unrealized appreciation $ 595,986
Gross unrealized depreciation (260,143)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 335,843
------------------------------------------------------
<CAPTION>
NEW YORK PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $328,670,725
------------------------------------------------------
Gross unrealized appreciation $ 15,717,160
Gross unrealized depreciation (4,441,613)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 11,275,547
------------------------------------------------------
<CAPTION>
OHIO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $192,876,033
------------------------------------------------------
Gross unrealized appreciation $ 4,752,974
Gross unrealized depreciation (7,538,808)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,785,834)
------------------------------------------------------
<CAPTION>
RHODE ISLAND PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 37,979,663
------------------------------------------------------
Gross unrealized appreciation $ 973,039
Gross unrealized depreciation (1,005,107)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (32,068)
------------------------------------------------------
<CAPTION>
WEST VIRGINIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 24,482,934
------------------------------------------------------
Gross unrealized appreciation $ 571,515
Gross unrealized depreciation (663,305)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (91,790)
------------------------------------------------------
</TABLE>
5 Line of Credit -- Each Portfolio participates with other portfolios and funds
managed by BMR and EVM and its affiliates in a $150 million unsecured line of
credit agreement with a group of banks. Borrowings will be made by the
Portfolios solely to facilitate the handling of unusual and/or unanticipated
short-term cash requirements. Interest is charged to each participating
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, 2000, the Florida Portfolio, New York Portfolio and
Ohio Portfolio had a balance outstanding pursuant to this line of credit of
$100,000,
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
$1,700,000 and $100,000, respectively. The Portfolios did not have any
significant borrowings or allocated fees during the year ended September 30,
2000.
6 Financial Instruments -- The Portfolios regularly trade in financial
instruments with off-balance sheet risk in the normal course of their
investing activities to assist in managing exposure to various market risks.
These financial instruments include futures contracts and may involve, to a
varying degree, elements of risk in excess of the amounts recognized for
financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at September 30,
2000 is as follows:
<TABLE>
<CAPTION>
MASSACHUSETTS PORTFOLIO
----------------------------------------------------------------
FUTURES CONTRACTS
----------------------------------------------------------------
EXPIRATION NET UNREALIZED
DATE(S) CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C>
----------------------------------------------------------------
12/00 91 U.S. Treasury Bond Short (27,516)
</TABLE>
At September 30, 2000, the Portfolio had sufficient cash and/or
securities to cover margin requirements on open future contracts.
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF SEPTEMBER 30, 2000
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, 2000, the related statements of operations for
the year then ended, the statements of changes in net assets for the years ended
September 30, 2000 and 1999 and the supplementary data for each of years in the
five-year period ended September 30, 2000. 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 auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities held as of September 30, 2000 by correspondence with the custodian
and brokers; where replies were not received from brokers, we performed other
audit procedures. An audit also includes assessing the accounting principles
used and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at September 30, 2000, the results of their operations, the changes
in their net assets and their supplementary data for the respective stated
periods in conformity with accounting principles generally accepted in the
United States of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
November 3, 2000
84
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF SEPTEMBER 30, 2000
INVESTMENT MANAGEMENT
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of New York and
Ohio Municipals Portfolios
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President and Portfolio
Manager of Massachusetts,
Rhode Island, and 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 Operating Officer,
Hellman, Jordan Management Co.
President, Jordan Simmons Capital LLC
and Unicorn
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
85
