<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED)
TAX-EXEMPT INVESTMENTS -- 97.6%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Assisted Living -- 0.8%
- ----------------------------------------------------------------------------
$ 990 St. Paul, Housing and Redevelopment, $ 407,914
(Care Institute, Inc.-Highland),
8.75%, 11/1/24
- ----------------------------------------------------------------------------
$ 407,914
- ----------------------------------------------------------------------------
Education -- 5.9%
- ----------------------------------------------------------------------------
$ 1,000 Hopkins, (Blake School), 5.50%, 9/1/24 $ 913,970
1,250 Minnesota Higher Education Facilities 1,168,900
Authority, (Hamline University),
6.00%, 10/1/29
500 Minnesota Higher Education Facilities 440,075
Authority, (St. John's University),
5.40%, 10/1/22
500 Minnesota Higher Education Facilities 479,820
Authority, (St. Mary's College),
6.15%, 10/1/23
- ----------------------------------------------------------------------------
$ 3,002,765
- ----------------------------------------------------------------------------
Escrowed / Prerefunded -- 9.5%
- ----------------------------------------------------------------------------
$ 1,700 Minnesota State, Prerefunded to 8/1/02, $ 1,823,233
Variable Rate, 8/1/11(1)
3,000 St. Paul, Housing and Redevelopment 2,974,830
Authority, (Civic Center), (MBIA),
Escrowed to Maturity, 5.45%, 11/1/13
- ----------------------------------------------------------------------------
$ 4,798,063
- ----------------------------------------------------------------------------
General Obligations -- 2.4%
- ----------------------------------------------------------------------------
$ 1,000 Minnesota State, (Duluth Airport), $ 1,026,840
(AMT), 6.25%, 8/1/14
200 St. Cloud, Water and Sewer, Variable 204,000
Rate, 8/1/13(1)
- ----------------------------------------------------------------------------
$ 1,230,840
- ----------------------------------------------------------------------------
Hospital -- 16.7%
- ----------------------------------------------------------------------------
$ 700 Martin County, (Fairmont Community $ 632,009
Hospital Association), 6.625%, 9/1/22
1,250 Minneapolis and St. Paul, Housing and 1,232,312
Redevelopment Authority, (Group Health
Plan, Inc.), 6.75%, 12/1/13
250 Minneapolis and St. Paul, Housing and 242,722
Redevelopment Authority, (Group Health
Plan, Inc.), 6.90%, 10/15/22
2,120 Red Wing Health Care Facilities, (River 1,975,501
Region Obligation Group), 6.50%, 9/1/22
500 Rochester Health Care Facilities, (Mayo 392,690
Clinic), Variable Rate, 11/15/27(1)(2)
2,200 Rochester Health Care Facilities, (Mayo 2,227,500
Clinic), (AMT), Variable Rate,
11/15/15(1)
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Hospital (continued)
- ----------------------------------------------------------------------------
$ 1,945 St. Paul, Housing and Redevelopment $ 1,739,005
Authority, (Healtheast), 6.625%, 11/1/17
- ----------------------------------------------------------------------------
$ 8,441,739
- ----------------------------------------------------------------------------
Housing -- 16.8%
- ----------------------------------------------------------------------------
$ 300 Coon Rapids, Multifamily Housing, $ 307,134
(Browns Meadow), (FHA), (AMT),
6.85%, 8/1/33
50 Minneapolis and St. Paul, Housing 51,078
Finance Board, SFMR, (GNMA), (AMT),
7.30%, 8/1/31
3,775 Minnesota HFA, SFMR, (AMT), 3,782,588
6.50%, 1/1/26
1,650 Minnetonka, Multifamily, (Archer Heights 1,472,955
Apartments), 6.00%, 1/20/27
1,250 St. Louis Park, (Knollwood Apartments), 1,246,550
(FHA), 6.25%, 12/1/28
1,685 St. Paul, Housing and Redevelopment 1,629,783
Authority, (Cliffe Apartments), (GNMA),
6.00%, 1/1/31
- ----------------------------------------------------------------------------
$ 8,490,088
- ----------------------------------------------------------------------------
Industrial Development Revenue -- 10.3%
- ----------------------------------------------------------------------------
$ 1,205 Cloquet PCR, (Potlach Corp.), $ 1,066,823
5.90%, 10/1/26
750 Minneapolis, Community Development 743,250
Agency, 6.00%, 6/1/11
100 Minneapolis, Community Development 104,913
Agency, 7.35%, 12/1/09
1,250 Minneapolis, Community Development 1,320,737
Agency, 7.40%, 12/1/21
1,605 Minneapolis, Community Development 1,637,614
Agency, (AMT), 6.80%, 12/1/24
300 Minneapolis, Community Development 303,078
Agency, (Firemans Ins.), 6.40%, 12/1/04
- ----------------------------------------------------------------------------
$ 5,176,415
- ----------------------------------------------------------------------------
Insured-Electric Utilities -- 15.1%
- ----------------------------------------------------------------------------
$ 1,000 Northern Minnesota Municipal Power $ 818,090
Agency, (AMBAC), 4.75%, 1/1/20
400 Puerto Rico Electric Power Authority, 328,028
(MBIA), 4.50%, 7/1/18
3,000 Southern Minnesota Municipal Power 814,740
Agency, (MBIA), 0.00%, 10/1/21
10,000 Southern Minnesota Municipal Power 2,091,200
Agency, (MBIA), 0.00%, 1/1/25
9,880 Southern Minnesota Municipal Power 1,935,492
Agency, (MBIA), 0.00%, 1/1/26
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
1
<PAGE>
MINNESOTA MUNICIPALS PORTFOLIO AS OF JANUARY 31, 2000
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- ----------------------------------------------------------------------------
$ 4,800 Southern Minnesota Municipal Power $ 882,960
Agency, (MBIA), 0.00%, 1/1/27
300 Southern Minnesota Municipal Power 276,000
Agency, (MBIA), (AMT), Variable Rate,
1/1/18(1)(2)
510 Western Minnesota Municipal Power 490,651
Agency, (MBIA), 5.50%, 1/1/15
- ----------------------------------------------------------------------------
$ 7,637,161
- ----------------------------------------------------------------------------
Insured-General Obligations -- 2.8%
- ----------------------------------------------------------------------------
$ 1,330 St. Francis, Independent School District $ 1,413,245
No. 15, (FGIC), 6.35%, 2/1/12
- ----------------------------------------------------------------------------
$ 1,413,245
- ----------------------------------------------------------------------------
Insured-Hospital -- 3.1%
- ----------------------------------------------------------------------------
$ 250 Minneapolis, (Fairview Hospital), $ 261,260
(MBIA), 6.50%, 1/1/11
450 Plymouth, (Westhealth), (FSA), 455,220
6.25%, 6/1/16
1,000 St. Louis Park, (Care Institute), 852,500
(AMBAC), Variable Rate, 7/1/13(1)
- ----------------------------------------------------------------------------
$ 1,568,980
- ----------------------------------------------------------------------------
Insured-Housing -- 3.2%
- ----------------------------------------------------------------------------
$ 1,500 SCA MFMR Receipts, Burnsville, (FSA), $ 1,589,115
7.10%, 1/1/30
- ----------------------------------------------------------------------------
$ 1,589,115
- ----------------------------------------------------------------------------
Insured-Transportation -- 1.5%
- ----------------------------------------------------------------------------
$ 1,000 Puerto Rico Highway and Transportation $ 776,040
Authority, (FSA), 4.75%, 7/1/38
- ----------------------------------------------------------------------------
$ 776,040
- ----------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 0.7%
- ----------------------------------------------------------------------------
$ 350 Cambridge EDA, Public Lease, $ 360,139
6.25%, 2/1/14
- ----------------------------------------------------------------------------
$ 360,139
- ----------------------------------------------------------------------------
Miscellaneous -- 1.8%
- ----------------------------------------------------------------------------
$ 1,000 Red Lake Band of Chippewa Indians, $ 924,270
6.25%, 8/1/13
- ----------------------------------------------------------------------------
$ 924,270
- ----------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ----------------------------------------------------------------------------
Nursing Home -- 2.9%
- ----------------------------------------------------------------------------
$ 1,000 Columbia Heights, Multifamily, $ 810,280
(Crestview Corp.), 6.00%, 3/1/33
800 Minneapolis, (Walker Methodist Senior 643,328
Services), 6.00%, 11/15/28
- ----------------------------------------------------------------------------
$ 1,453,608
- ----------------------------------------------------------------------------
Solid Waste -- 0.9%
- ----------------------------------------------------------------------------
$ 450 Anoka County, Solid Waste Disposal, $ 462,609
National Rural Utility, (AMT),
6.95%, 12/1/08
- ----------------------------------------------------------------------------
$ 462,609
- ----------------------------------------------------------------------------
Transportation -- 3.2%
- ----------------------------------------------------------------------------
$ 1,500 Minneapolis and St. Paul, Metropolitan $ 1,238,085
Airport Commission, (AMT), 4.50%, 1/1/15
400 Puerto Rico Highway and Transportation 353,976
Authority, 5.50%, 7/1/36
- ----------------------------------------------------------------------------
$ 1,592,061
- ----------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.6%
(identified cost $50,620,354) $49,325,052
- ----------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.4% $ 1,196,793
- ----------------------------------------------------------------------------
Net Assets -- 100.0% $50,521,845
- ----------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax
preference item for purposes of the Federal Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Minnesota
municipalities. The ability of the issuers of the debt securities to meet
their obligations may be affected by economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at January 31, 2000, 32.4% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 2.9% to 20.4% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act
of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
2
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $78,895,188 $33,037,926 $138,325,749 $93,699,376
Unrealized depreciation (2,692,223) (2,173,004) (4,836,087) (3,328,283)
- ----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $76,202,965 $30,864,922 $133,489,662 $90,371,093
- ----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ -- $ 34,830
Receivable for investments sold -- 1,072,712 1,058,092 --
Interest receivable 896,158 432,680 1,421,564 1,376,198
- ----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $77,099,123 $32,370,314 $135,969,318 $91,782,121
- ----------------------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 5,327 $ 22,830 $ --
Demand note payable 100,000 300,000 100,000 --
Due to bank 17,062 45,248 19,585 --
Payable to affiliate for Trustees'
fees 800 -- -- --
Accrued expenses 10,232 6,697 16,916 8,438
- ----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 128,094 $ 357,272 $ 159,331 $ 8,438
- ----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $76,971,029 $32,013,042 $135,809,987 $91,773,683
- ----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $79,663,252 $34,186,046 $140,646,074 $95,101,966
Net unrealized depreciation
(computed on the basis of
identified cost) (2,692,223) (2,173,004) (4,836,087) (3,328,283)
- ----------------------------------------------------------------------------------------------------------------------
TOTAL $76,971,029 $32,013,042 $135,809,987 $91,773,683
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JANUARY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $50,620,354 $267,620,665 $270,555,486 $13,725,066
Unrealized depreciation (1,295,302) (11,694,074) (15,164,898) (370,219)
- ------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $49,325,052 $255,926,591 $255,390,588 $13,354,847
- ------------------------------------------------------------------------------------------------------------------------
Receivable for investments sold $ 675,295 $ 15,000 $ 1,584,242 $ --
Interest receivable 675,137 3,392,037 3,720,842 195,621
- ------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $50,675,484 $259,333,628 $260,695,672 $13,550,468
- ------------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------------
Demand note payable $ 100,000 $ 3,000,000 $ 1,900,000 $ --
Due to bank 48,464 10,778 35,974 80,703
Payable to affiliate for Trustees'
fees -- -- 88 --
Accrued expenses 5,175 23,216 20,664 1,720
- ------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 153,639 $ 3,033,994 $ 1,956,726 $ 82,423
- ------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $51,817,147 $267,993,708 $273,903,844 $13,838,264
Net unrealized depreciation
(computed on the basis of
identified cost) (1,295,302) (11,694,074) (15,164,898) (370,219)
- ------------------------------------------------------------------------------------------------------------------------
TOTAL $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
Investment Income
- ----------------------------------------------------------------------------------------------------------------------
Interest $ 2,629,389 $ 1,083,316 $ 4,419,907 $ 3,037,246
- ----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 2,629,389 $ 1,083,316 $ 4,419,907 $ 3,037,246
- ----------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 158,494 $ 40,890 $ 306,313 $ 191,938
Trustees fees and expenses 5,300 1,275 7,451 5,846
Legal and accounting services 31,405 19,432 25,860 26,459
Custodian fee 25,959 18,938 45,887 25,715
Miscellaneous 6,599 3,438 11,001 9,393
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 227,757 $ 83,973 $ 396,512 $ 259,351
- ----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 5,705 $ 8,755 $ 31,118 $ --
- ----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 5,705 $ 8,755 $ 31,118 $ --
- ----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 222,052 $ 75,218 $ 365,394 $ 259,351
- ----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 2,407,337 $ 1,008,098 $ 4,054,513 $ 2,777,895
- ----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (506,893) $ 119,013 $ 39,517 $(1,394,672)
Financial futures contracts (1,488) (1,545) (10,360) 4,188
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (508,381) $ 117,468 $ 29,157 $(1,390,484)
- ----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(6,859,146) $(3,180,480) $(10,425,497) $(7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(6,859,146) $(3,180,480) $(10,425,497) $(7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(7,367,527) $(3,063,012) $(10,396,340) $(8,915,833)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(4,960,190) $(2,054,914) $ (6,341,827) $(6,137,938)
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF OPERATIONS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
Investment Income
- ------------------------------------------------------------------------------------------------------------------------
Interest $ 1,726,420 $ 9,029,127 $ 9,284,011 $ 451,671
- ------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,726,420 $ 9,029,127 $ 9,284,011 $ 451,671
- ------------------------------------------------------------------------------------------------------------------------
Expenses
- ------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 87,162 $ 647,337 $ 659,115 $ 11,728
Trustees fees and expenses 4,342 10,137 10,423 1,997
Legal and accounting services 21,340 40,711 40,355 17,279
Custodian fee 19,677 51,945 83,271 8,010
Miscellaneous 4,058 30,666 38,603 2,693
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 136,579 $ 780,796 $ 831,767 $ 41,707
- ------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 8,280 $ -- $ -- $ 1,751
- ------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 8,280 $ -- $ -- $ 1,751
- ------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 128,299 $ 780,796 $ 831,767 $ 39,956
- ------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,598,121 $ 8,248,331 $ 8,452,244 $ 411,715
- ------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (615,615) $ 320,180 $ 233,001 $ (196,312)
Financial futures contracts (1,277) (6,384) 11,827 --
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (616,892) $ 313,796 $ 244,828 $ (196,312)
- ------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(4,024,177) $(25,446,567) $(22,121,295) $ (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(4,024,177) $(25,446,567) $(22,121,295) $ (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(4,641,069) $(25,132,771) $(21,876,467) $(1,176,187)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,042,948) $(16,884,440) $(13,424,223) $ (764,472)
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
6
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 2,407,337 $ 1,008,098 $ 4,054,513 $ 2,777,895
Net realized gain (loss) (508,381) 117,468 29,157 (1,390,484)
Net change in unrealized
appreciation (depreciation) (6,859,146) (3,180,480) (10,425,497) (7,525,349)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (4,960,190) $(2,054,914) $ (6,341,827) $ (6,137,938)
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,664,067 $ 1,503,412 $ 5,714,375 $ 3,433,800
Withdrawals (15,066,136) (5,309,523) (21,456,149) (14,985,531)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(12,402,069) $(3,806,111) $(15,741,774) $(11,551,731)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(17,362,259) $(5,861,025) $(22,083,601) $(17,689,669)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of period $ 94,333,288 $37,874,067 $157,893,588 $109,463,352
- ----------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $ 76,971,029 $32,013,042 $135,809,987 $ 91,773,683
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
7
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE SIX MONTHS ENDED JANUARY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,598,121 $ 8,248,331 $ 8,452,244 $ 411,715
Net realized gain (loss) (616,892) 313,796 244,828 (196,312)
Net change in unrealized
appreciation (depreciation) (4,024,177) (25,446,567) (22,121,295) (979,875)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $(3,042,948) $(16,884,440) $(13,424,223) $ (764,472)
- ------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 2,725,460 $ 8,171,301 $ 6,563,586 $ 431,542
Withdrawals (9,553,535) (44,320,634) (49,273,708) (1,964,177)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(6,828,075) $(36,149,333) $(42,710,122) $(1,532,635)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(9,871,023) $(53,033,773) $(56,134,345) $(2,297,107)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of period $60,392,868 $309,333,407 $314,873,291 $15,765,152
- ------------------------------------------------------------------------------------------------------------------------
AT END OF PERIOD $50,521,845 $256,299,634 $258,738,946 $13,468,045
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
8
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,318,760 $ 2,146,952 $ 8,526,230 $ 6,229,950
Net realized gain 1,622,656 811,139 1,435,275 2,217,392
Net change in unrealized
appreciation (depreciation) (4,960,999) (2,289,165) (5,177,956) (6,686,327)
- ----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,980,417 $ 668,926 $ 4,783,549 $ 1,761,015
- ----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 13,039,976 $ 3,990,873 $ 15,311,591 $ 5,494,726
Withdrawals (23,779,211) (6,586,932) (27,156,440) (28,028,857)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $(10,739,235) $(2,596,059) $(11,844,849) $(22,534,131)
- ----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (8,758,818) $(1,927,133) $ (7,061,300) $(20,773,116)
- ----------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------
At beginning of year $103,092,106 $39,801,200 $164,954,888 $130,236,468
- ----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,333,288 $37,874,067 $157,893,588 $109,463,352
- ----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS (UNAUDITED) CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,484,876 $ 17,814,663 $ 18,951,880 $ 927,072
Net realized gain 848,429 7,082,663 5,867,482 329,438
Net change in unrealized
appreciation (depreciation) (3,102,439) (19,049,566) (18,321,913) (862,443)
- ------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,230,866 $ 5,847,760 $ 6,497,449 $ 394,067
- ------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 6,142,642 $ 37,233,317 $ 25,746,805 $ 980,095
Withdrawals (13,964,317) (62,376,808) (76,902,838) (3,446,497)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ (7,821,675) $(25,143,491) $(51,156,033) $(2,466,402)
- ------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (6,590,809) $(19,295,731) $(44,658,584) $(2,072,335)
- ------------------------------------------------------------------------------------------------------------------------
Net Assets
- ------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 66,983,677 $328,629,138 $359,531,875 $17,837,487
- ------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 60,392,868 $309,333,407 $314,873,291 $15,765,152
- ------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
-----------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -----------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.49% 0.50% 0.50% 0.51% 0.52%
Expenses after custodian fee
reduction 0.52%(2) 0.48% 0.48% 0.49% 0.50% --
Net investment income 5.61%(2) 5.21% 5.27% 5.56% 5.53% 5.81%
Portfolio Turnover 19% 38% 23% 10% 18% 22%
- -------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 76,971 $94,333 $103,092 $112,472 $129,862 $144,521
- -------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
-------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------------------------
Net expenses(1) 0.48%(2) 0.39% 0.40% 0.40% 0.40% 0.25%
Net expenses after custodian
fee reduction 0.43%(2) 0.35% 0.37% 0.36% 0.36% --
Net investment income 5.72%(2) 5.36% 5.49% 5.86% 5.75% 6.05%
Portfolio Turnover 3% 33% 18% 14% 53% 52%
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $32,013 $37,874 $39,801 $42,624 $45,416 $46,077
- ---------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser
fee, an allocation of expenses to the Investment Adviser, or both. Had such actions not
been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(1) 0.42% 0.40%
Expenses after custodian
fee reduction 0.38% --
Net investment income 5.73% 5.90%
- ---------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for the year
ended July 31, 1995 have not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------
Expenses(1) 0.53%(2) 0.50% 0.51% 0.53% 0.52% 0.53%
Expenses after custodian fee
reduction 0.49%(2) 0.48% 0.50% 0.53% 0.50% --
Net investment income 5.45%(2) 5.15% 5.20% 5.50% 5.49% 5.77%
Portfolio Turnover 12% 18% 7% 11% 23% 29%
- --------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $135,810 $157,894 $164,955 $174,978 $187,617 $195,276
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------
Expenses(1) 0.52%(2) 0.49% 0.50% 0.52% 0.54% 0.48%
Expenses after custodian fee
reduction 0.52%(2) 0.48% 0.48% 0.50% 0.52% --
Net investment income 5.55%(2) 5.10% 5.19% 5.45% 5.50% 5.85%
Portfolio Turnover 25% 31% 26% 16% 49% 54%
- --------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $91,774 $109,463 $130,236 $150,224 $173,465 $191,263
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
-------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------------
Expenses(1) 0.49%(2) 0.46% 0.47% 0.47% 0.48% 0.47%
Expenses after custodian fee
reduction 0.46%(2) 0.44% 0.45% 0.44% 0.46% --
Net investment income 5.72%(2) 5.28% 5.28% 5.71% 5.69% 5.83%
Portfolio Turnover 7% 19% 23% 22% 45% 76%
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 50,522 $60,393 $66,984 $70,674 $76,090 $82,968
- ---------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------
Expenses(1) 0.55%(2) 0.53% 0.54% 0.54% 0.53% 0.52%
Expenses after custodian fee
reduction 0.55%(2) 0.52% 0.52% 0.52% 0.52% --
Net investment income 5.79%(2) 5.39% 5.52% 5.84% 5.82% 5.96%
Portfolio Turnover 17% 32% 14% 24% 39% 54%
- --------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 256,300 $309,333 $328,629 $352,772 $386,244 $411,038
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
------------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 ------------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------------------
Expenses(1) 0.58%(2) 0.54% 0.54% 0.55% 0.54% 0.49%
Expenses after custodian fee
reduction 0.58%(2) 0.50% 0.50% 0.51% 0.50% --
Net investment income 5.86%(2) 5.49% 5.66% 5.96% 5.90% 6.02%
Portfolio Turnover 14% 27% 13% 17% 30% 44%
- --------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $ 258,739 $314,873 $359,532 $402,221 $448,182 $502,250
- --------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratio for the year
ended July 31, 1995 has not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
17
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TEXAS PORTFOLIO
-------------------------------------------------------------
SIX MONTHS ENDED YEAR ENDED JULY 31,
JANUARY 31, 2000 -------------------------------------------
(UNAUDITED) 1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ---------------------------------------------------------------------------------------------
Net expenses(1) 0.57%(2) 0.39% 0.38% 0.37% 0.32% 0.08%
Net expenses after custodian
fee reduction 0.55%(2) 0.36% 0.35% 0.35% 0.27% --
Net investment income 5.67%(2) 5.50% 5.58% 5.79% 5.81% 6.20%
Portfolio Turnover 29% 55% 17% 17% 39% 49%
- ---------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(000'S OMITTED) $13,468 $15,765 $17,837 $21,676 $24,367 $28,227
- ---------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser
fee, an allocation of expenses to the Investment Adviser, or both. Had such action not
been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses(1) 0.42% 0.35%
Expenses after custodian
fee reduction 0.37% --
Net investment income 5.71% 5.93%
- ---------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods
thereafter have been adjusted to reflect a change in reporting
requirements. The new reporting guidelines require the Portfolio to
increase its expense ratio by the effect of any expense offset
arrangements with its service providers. The expense ratios for the year
ended July 31, 1995 have not been adjusted to reflect this change.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
18
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Arizona Municipals Portfolio (Arizona Portfolio), Colorado Municipals
Portfolio (Colorado Portfolio), Connecticut Municipals Portfolio (Connecticut
Portfolio), Michigan Municipals Portfolio (Michigan Portfolio), Minnesota
Municipals Portfolio (Minnesota Portfolio), New Jersey Municipals Portfolio
(New Jersey Portfolio), Pennsylvania Municipals Portfolio (Pennsylvania
Portfolio) and Texas Municipals Portfolio (Texas Portfolio), collectively the
Portfolios, are registered under the Investment Company Act of 1940 as
diversified open-end management investment companies which were organized as
trusts under the laws of the State of New York on May 1, 1992. The
Declarations of Trust permit the Trustees to issue interests in the
Portfolios. The following is a summary of significant accounting policies of
the Portfolios. The policies are in conformity with generally accepted
accounting principles.
A Investment Valuations -- Municipal bonds are normally valued on the basis of
valuations furnished by a pricing service. Taxable obligations, if any, for
which price quotations are readily available are normally valued at the mean
between the latest bid and asked prices. Futures contracts and options on
futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on financial futures contracts
are normally valued at the mean between the latest bid and asked prices.
Short-term obligations, maturing in sixty days or less, are valued at
amortized cost, which approximates value. Investments for which valuations or
market quotations are unavailable are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Income Taxes -- The Portfolios are treated as partnerships for
federal tax purposes. No provision is made by the Portfolios for federal or
state taxes on any taxable income of the Portfolios because each investor in
the Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income under
the Internal Revenue Code, will retain its status as income exempt from
federal income tax when allocated to each Portfolio's investors. The portion
of such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit (initial margin) either in cash
or securities an amount equal to a certain percentage of the purchase price
indicated in the financial futures contract. Subsequent payments are made or
received by a Portfolio (margin maintenance) each day, dependent on the daily
fluctuations in the value of the underlying security, and are recorded for
book purposes as unrealized gains or losses by a Portfolio. A Portfolio's
investment in financial futures contracts is designed only to hedge against
anticipated future changes in interest rates. Should interest rates move
unexpectedly, a Portfolio may not achieve the anticipated benefits of the
financial futures contracts and may realize a loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When a Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing options is limited to
the premium originally paid.
F When-issued and Delayed Delivery Transactions -- The Portfolios may engage in
when-issued or delayed delivery transactions. The Portfolios record
when-issued securities on trade date and maintain security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on a when-issued or delayed
delivery basis are marked-to-market daily and begin earning interest on
settlement date.
19
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
G Other -- Investment transactions are accounted for on a trade date basis.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statement of Operations.
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
J Interim Financial Statements -- The interim financial statements relating to
January 31, 2000 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolios management reflect all adjustments, consisting only of normal
recurring adjustments, necessary for the fair presentation of the financial
statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to each Portfolio.
The fee is based upon a percentage of average daily net assets plus a
percentage of gross income (i.e., income other than gains from the sale of
securities). For the six months ended January 31, 2000, each Portfolio paid
advisory fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
-------------------------------------------------------------------
Arizona $158,494 0.37%
Colorado 40,890 0.23%
Connecticut 306,313 0.41%
Michigan 191,938 0.38%
Minnesota 87,162 0.32%
New Jersey 647,337 0.45%
Pennsylvania 659,115 0.46%
Texas 11,728 0.16%
</TABLE>
* Advisory fees paid as a percentage of average daily net
assets (annualized).
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their annual
fees in accordance with the terms of the Trustees Deferred Compensation Plan.
For the six months ended January 31, 2000, no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
20
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JANUARY 31, 2000
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the six months ended
January 31, 2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $16,200,100
Sales 26,426,750
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 1,050,563
Sales 4,676,840
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $17,827,315
Sales 28,845,316
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $24,978,222
Sales 33,824,575
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,949,085
Sales 10,028,600
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $47,054,063
Sales 73,215,661
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $38,785,009
Sales 73,539,568
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,163,706
Sales 5,115,581
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at January 31, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 78,895,188
------------------------------------------------------
Gross unrealized appreciation $ 2,477,032
Gross unrealized depreciation (5,169,255)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,692,223)
------------------------------------------------------
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 33,037,926
------------------------------------------------------
Gross unrealized appreciation $ 502,326
Gross unrealized depreciation (2,675,330)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,173,004)
------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $138,325,749
------------------------------------------------------
Gross unrealized appreciation $ 2,595,743
Gross unrealized depreciation (7,431,830)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (4,836,087)
------------------------------------------------------
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 93,699,376
------------------------------------------------------
Gross unrealized appreciation $ 2,041,109
Gross unrealized depreciation (5,369,392)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (3,328,283)
------------------------------------------------------
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 50,620,354
------------------------------------------------------
Gross unrealized appreciation $ 1,031,307
Gross unrealized depreciation (2,326,609)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (1,295,302)
------------------------------------------------------
</TABLE>
21
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JANUARY 31, 2000
INVESTMENT MANAGEMENT
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Colorado,
Connecticut and Michigan
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Arizona and
Pennsylvania Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio
Manager of Minnesota and
New Jersey Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio
Manager of Texas
Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
22
