<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 97.4%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Education -- 2.5%
-------------------------------------------------------------------------
$2,000 Medical College of Hampton Roads,
6.875%, 11/15/11 $ 2,080,840
750 Virginia College Building Authority,
(Hampton University), 5.75%, 4/1/14 765,825
-------------------------------------------------------------------------
$ 2,846,665
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.6%
-------------------------------------------------------------------------
$1,665 Arlington County IDA, (AMBAC),
Prerefunded to 9/1/03, 5.00%, 9/1/21 $ 1,553,245
2,000 Loudoun County IDA, (Falcons Landing),
Prerefunded to 11/1/04, 8.75%, 11/1/24 2,378,200
3,500 Peninsula Ports Authority of Virginia,
(Riverside Health System), Prerefunded
to 7/1/02, 6.625%, 7/1/10 3,702,335
2,400 Prince William County IDA, (Potomac
Hospital), Prerefunded to 10/1/05,
6.85%, 10/1/25 2,693,184
900 Puerto Rico Telephone Authority, (MBIA),
Prerefunded to 1/1/03, Variable Rate,
1/16/15(1) 955,125
1,060 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/02, 7.00%, 7/1/22 1,128,010
1,000 Washington County IDA, (Johnston
Memorial Hospital), Prerefunded to
7/1/05, 6.00%, 7/1/14 1,076,260
-------------------------------------------------------------------------
$ 13,486,359
-------------------------------------------------------------------------
General Obligations -- 5.7%
-------------------------------------------------------------------------
$4,165 Arlington County, 5.25%, 6/1/18 $ 4,143,259
2,500 Fairfax County, 5.25%, 6/1/20 2,462,050
-------------------------------------------------------------------------
$ 6,605,309
-------------------------------------------------------------------------
Hospital -- 2.9%
-------------------------------------------------------------------------
$1,500 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/14 $ 1,469,730
2,000 Fairfax County IDA, (Inova Health
System), 5.00%, 8/15/15 1,945,560
-------------------------------------------------------------------------
$ 3,415,290
-------------------------------------------------------------------------
Housing -- 3.6%
-------------------------------------------------------------------------
$1,000 Alexandria Redevelopment and Housing
Authority, MFMR, (Buckingham Village
Apartments), (AMT), 5.45%, 7/1/18 $ 943,320
1,500 Prince William County IDA, (Melrose
Apartments), 5.40%, 1/1/29 1,346,130
1,900 Virginia HDA, SFMR, Variable Rate,
7/1/04(1) 1,923,750
-------------------------------------------------------------------------
$ 4,213,200
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Industrial Development Revenue -- 22.0%
-------------------------------------------------------------------------
$4,500 Bedford County, (Nekoosa Packaging),
(AMT), 5.60%, 12/1/25 $ 4,103,910
2,190 Chesapeake, (Cargill, Inc.),
5.875%, 3/1/13 2,262,620
60 Covington-Alleghany County IDA,
9.375%, 9/1/01 60,000
1,500 Giles, (Hoechst Celanese Corp.), (AMT),
5.95%, 12/1/25 1,399,890
2,000 Giles, (Hoechst Celanese Corp.), (AMT),
6.45%, 5/1/26 2,006,960
500 Giles, (Hoechst Celanese Corp.), (AMT),
6.625%, 12/1/22 503,325
2,000 Henrico County, (Browning Ferris, Inc.),
(AMT), 5.45%, 1/1/14(2) 1,713,700
1,500 Isle of Wright County IDA,
(International Paper Co.), (AMT),
6.60%, 5/1/24 1,539,615
4,000 Isle of Wright County IDA, (Union Camp
Co.), (AMT), 6.55%, 4/1/24 4,057,440
1,000 James City County IDA, (Anheuser Busch),
(AMT), 6.00%, 4/1/32 1,015,320
1,400 Peninsula Ports Authority, (Zeigler
Coal), 6.90%, 5/2/22 686,000
1,500 Pennisula Ports Authority Revenue (CSX
Transportation), 6.00%, 12/15/12 1,496,610
980 West Point, (Chesapeake Corp.),
6.25%, 3/1/19 930,647
3,850 West Point, (Chesapeake Corp.), (AMT),
6.375%, 3/1/19 3,648,260
-------------------------------------------------------------------------
$ 25,424,297
-------------------------------------------------------------------------
Insured-General Obligations -- 1.6%
-------------------------------------------------------------------------
$2,000 Richmond, (FGIC), 5.00%, 1/15/21 $ 1,874,760
-------------------------------------------------------------------------
$ 1,874,760
-------------------------------------------------------------------------
Insured-Hospital -- 7.6%
-------------------------------------------------------------------------
$1,500 Henrico County, (Bon Secour Health
Systems), (MBIA), 6.25%, 8/15/20 $ 1,653,555
5,000 Virginia Beach, (Virginia Beach Memorial
Hospital), (AMBAC), 5.125%, 2/15/18 4,853,950
2,000 Winchester IDA, (Winchester Medical
Center), (AMBAC), Variable Rate,
1/21/14(1) 2,300,000
-------------------------------------------------------------------------
$ 8,807,505
-------------------------------------------------------------------------
Insured-Housing -- 1.1%
-------------------------------------------------------------------------
$1,250 Fairfax County Redevelopment and Housing
Authority MFMR, (FHA), 7.00%, 5/1/26 $ 1,299,537
-------------------------------------------------------------------------
$ 1,299,537
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
81
<PAGE>
VIRGINIA MUNICIPALS PORTFOLIO AS OF AUGUST 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Transportation -- 5.2%
-------------------------------------------------------------------------
$3,500 Chesapeake Bay Bridge and Tunnel
Commission District Revenue, (General
Resolution), (MBIA), 5.50%, 7/1/25 $ 3,554,495
1,000 Metro Washington D.C., Airport
Authority, (FGIC), (AMT),
5.00%, 10/1/27 906,240
1,650 Norfolk, Parking System Revenue, (MBIA),
5.00%, 2/1/29 1,513,215
-------------------------------------------------------------------------
$ 5,973,950
-------------------------------------------------------------------------
Insured-Utilities -- 1.1%
-------------------------------------------------------------------------
$1,345 Richmond, Public Utility Revenue,
(FGIC), 5.125%, 1/15/28 $ 1,262,242
-------------------------------------------------------------------------
$ 1,262,242
-------------------------------------------------------------------------
Insured-Water and Sewer -- 15.6%
-------------------------------------------------------------------------
$3,950 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/30 $ 3,430,575
1,000 Loudoun County, Sanitation Authority,
Water and Sewer Revenue, (MBIA),
4.75%, 1/1/21 894,720
2,875 Prince William County Service Authority,
(FGIC), 4.75%, 7/1/29 2,499,525
1,375 Richmond, Public Utility Revenue,
(MBIA), 5.125%, 1/15/28 1,290,396
6,150 Upper Occoquan Sewage Authority, (MBIA),
4.75%, 7/1/29 5,346,810
1,250 Upper Occoquan Sewage Authority, (MBIA),
5.00%, 7/1/25 1,152,312
1,000 Upper Occoquan Sewage Authority, (MBIA),
5.15%, 7/1/20 974,590
2,500 Virginia Resource Authority, (MBIA),
5.50%, 5/1/26 2,484,475
-------------------------------------------------------------------------
$ 18,073,403
-------------------------------------------------------------------------
Lease Revenue / Certificates of Participation -- 1.1%
-------------------------------------------------------------------------
$1,250 King George County IDA, Lease,
7.00%, 12/15/12 $ 1,267,912
-------------------------------------------------------------------------
$ 1,267,912
-------------------------------------------------------------------------
Solid Waste -- 2.0%
-------------------------------------------------------------------------
$2,250 Southeastern Public Service Authority,
Solid Waste Systems, (AMT),
6.00%, 7/1/13 $ 2,260,058
-------------------------------------------------------------------------
$ 2,260,058
-------------------------------------------------------------------------
Special Tax Revenue -- 5.1%
-------------------------------------------------------------------------
$1,500 Dulles Community Development Authority,
(Dulles Town Center), 6.25%, 3/1/26 $ 1,441,890
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Special Tax Revenue (continued)
-------------------------------------------------------------------------
$2,000 Heritage Hunt Community Development
Authority, 6.85%, 3/1/19 $ 2,010,400
2,500 Virginia State Transportation Board
Revenue, Route 58, 5.125%, 5/15/19 2,415,200
-------------------------------------------------------------------------
$ 5,867,490
-------------------------------------------------------------------------
Transportation -- 3.4%
-------------------------------------------------------------------------
$1,750 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 $ 1,603,368
1,250 Virginia Port Authority, (AMT),
5.90%, 7/1/16 1,288,338
1,000 Virginia State Transportation Board
Revenue, Route 28, Variable Rate,
4/1/18(1) 1,074,920
-------------------------------------------------------------------------
$ 3,966,626
-------------------------------------------------------------------------
Water and Sewer -- 5.3%
-------------------------------------------------------------------------
$3,500 Fairfax County Water Authority,
5.00%, 4/1/21 $ 3,325,070
1,000 Fairfax County Water Authority,
Variable Rate, 4/1/29(1)(3) 1,020,920
1,750 Virginia Resource Authority, Clean Water
Revenue, (Revolving Fund),
5.625%, 10/1/22 1,775,463
-------------------------------------------------------------------------
$ 6,121,453
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 97.4%
(identified cost $110,960,904) $112,766,056
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 2.6% $ 3,010,002
-------------------------------------------------------------------------
Net Assets -- 100.0% $115,776,058
-------------------------------------------------------------------------
</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 Virginia
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 August 31, 2000, 35.3% 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 1.2% to 20.6% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) 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
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $64,496,000 $40,633,990 $61,719,666 $79,536,566
Unrealized appreciation 738,502 937,669 278,790 747,447
----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $65,234,502 $41,571,659 $61,998,456 $80,284,013
----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 76,735 $ 270,161 $ 149,451
Receivable for investments sold 1,050,777 -- -- --
Interest receivable 870,136 594,000 804,007 1,383,310
----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $67,155,415 $42,242,394 $63,072,624 $81,816,774
----------------------------------------------------------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------------------------------------------------------
Demand note payable $ 400,000 $ -- $ -- $ 100,000
Due to bank 94,543 -- -- --
Accrued expenses 7,488 9,171 5,693 8,952
----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 502,031 $ 9,171 $ 5,693 $ 108,952
----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $66,653,384 $42,233,223 $63,066,931 $81,707,822
----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $65,914,882 $41,295,554 $62,788,141 $80,960,375
Net unrealized appreciation (computed on
the basis of identified cost) 738,502 937,669 278,790 747,447
----------------------------------------------------------------------------------------------------------------------
TOTAL $66,653,384 $42,233,223 $63,066,931 $81,707,822
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
Assets
-------------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $27,786,850 $83,635,854 $56,833,666 $103,430,595
Unrealized appreciation
(depreciation) 120,348 (3,504,022) 984,617 5,112,205
-------------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $27,907,198 $80,131,832 $57,818,283 $108,542,800
-------------------------------------------------------------------------------------------------------------------------------
Cash $ 51,160 $ 1,268,996 $ 323,437 $ 347,800
Receivable for investments sold 70,079 -- 40,000 --
Interest receivable 411,412 1,228,259 756,270 1,625,874
Prepaid expenses 14,458 -- -- --
-------------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $28,454,307 $82,629,087 $58,937,990 $110,516,474
-------------------------------------------------------------------------------------------------------------------------------
Liabilities
-------------------------------------------------------------------------------------------------------------------------------
Payable for investments purchased $ -- $ 941,488 $ -- $ --
Payable for daily variation margin on
open financial futures contracts 7,810 -- -- 18,926
Accrued expenses 5,460 11,737 11,413 4,424
-------------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 13,270 $ 953,225 $ 11,413 $ 23,350
-------------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $28,441,037 $81,675,862 $58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-------------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $28,322,734 $85,179,884 $57,941,960 $105,386,257
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 118,303 (3,504,022) 984,617 5,106,867
-------------------------------------------------------------------------------------------------------------------------------
TOTAL $28,441,037 $81,675,862 $58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Assets
-----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $80,731,232 $34,105,563 $42,943,683 $110,960,904
Unrealized appreciation 1,654,047 218,818 1,238,202 1,805,152
-----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $82,385,279 $34,324,381 $44,181,885 $112,766,056
-----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 238,985 $ 173,078 $ --
Receivable for investments sold 345,000 -- -- 1,255,712
Interest receivable 1,101,808 512,376 669,878 1,822,029
-----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $83,832,087 $35,075,742 $45,024,841 $115,843,797
-----------------------------------------------------------------------------------------------------------------------------
Liabilities
-----------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin on
open financial futures contracts $ -- $ -- $ -- $ 33,836
Demand note payable 100,000 -- -- --
Due to bank 5,758 -- -- 17,959
Accrued expenses 13,896 6,013 9,664 15,944
-----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 119,654 $ 6,013 $ 9,664 $ 67,739
-----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $83,712,433 $35,069,729 $45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
-----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital contributions
and withdrawals $82,058,386 $34,850,911 $43,776,975 $113,980,449
Net unrealized appreciation (computed on
the basis of identified cost) 1,654,047 218,818 1,238,202 1,795,609
-----------------------------------------------------------------------------------------------------------------------------
TOTAL $83,712,433 $35,069,729 $45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Investment Income
----------------------------------------------------------------------------------------------------------------------
Interest $4,333,899 $2,750,197 $3,913,677 $ 5,395,781
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $4,333,899 $2,750,197 $3,913,677 $ 5,395,781
----------------------------------------------------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 248,461 $ 121,102 $ 210,871 $ 323,201
Trustees fees and expenses 8,847 2,501 8,849 9,306
Legal and accounting services 42,131 39,030 42,118 46,578
Custodian fee 43,740 29,529 40,415 52,787
Miscellaneous 12,444 16,060 12,613 14,743
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 355,623 $ 208,222 $ 314,866 $ 446,615
----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 9,155 $ 4,640 $ 14,707 $ 16,356
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 9,155 $ 4,640 $ 14,707 $ 16,356
----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 346,468 $ 203,582 $ 300,159 $ 430,259
----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $3,987,431 $2,546,615 $3,613,518 $ 4,965,522
----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (299,131) $ (328,997) $ (243,029) $ (116,631)
Financial futures contracts (12,185) 2,054 (29,176) (16,122)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (311,316) $ (326,943) $ (272,205) $ (132,753)
----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (243,544) $ 178,231 $ 185,594 $(2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (243,544) $ 178,231 $ 185,594 $(2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (554,860) $ (148,712) $ (86,611) $(2,435,258)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $3,432,571 $2,397,903 $3,526,907 $ 2,530,264
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
86
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
Investment Income
-------------------------------------------------------------------------------------------------------------------------------
Interest $1,772,277 $ 4,864,328 $ 3,828,721 $7,123,119
-------------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $1,772,277 $ 4,864,328 $ 3,828,721 $7,123,119
-------------------------------------------------------------------------------------------------------------------------------
Expenses
-------------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 62,768 $ 308,910 $ 200,152 $ 464,315
Trustees fees and expenses 2,526 8,869 8,912 11,488
Legal and accounting services 21,489 46,894 39,752 49,655
Custodian fee 21,829 53,692 40,711 58,102
Miscellaneous 6,479 14,580 12,653 16,872
-------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 115,091 $ 432,945 $ 302,180 $ 600,432
-------------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 11,761 $ 15,867 $ 9,045 $ 38,155
-------------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 11,761 $ 15,867 $ 9,045 $ 38,155
-------------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 103,330 $ 417,078 $ 293,135 $ 562,277
-------------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $1,668,947 $ 4,447,250 $ 3,535,586 $6,560,842
-------------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-------------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (387,649) $ 154,894 $ 286,889 $ (50,337)
Financial futures contracts (63,431) (8,578) (25,529) (149,516)
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (451,080) $ 146,316 $ 261,360 $ (199,853)
-------------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ 289,802 $(1,178,574) $(1,256,378) $ (218,796)
Financial futures contracts (2,045) -- -- (5,338)
-------------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ 287,757 $(1,178,574) $(1,256,378) $ (224,134)
-------------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (163,323) $(1,032,258) $ (995,018) $ (423,987)
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $1,505,624 $ 3,414,992 $ 2,540,568 $6,136,855
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
87
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
Investment Income
-----------------------------------------------------------------------------------------------------------------------------
Interest $5,242,949 $2,346,527 $2,759,987 $ 7,569,092
-----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $5,242,949 $2,346,527 $2,759,987 $ 7,569,092
-----------------------------------------------------------------------------------------------------------------------------
Expenses
-----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 316,846 $ 90,314 $ 123,712 $ 499,111
Trustees fees and expenses 8,869 2,501 2,526 11,488
Legal and accounting services 42,753 38,280 37,323 49,853
Custodian fee 51,578 23,936 31,068 74,383
Miscellaneous 17,334 11,360 8,980 24,180
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 437,380 $ 166,391 $ 203,609 $ 659,015
-----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 9,382 $ 6,786 $ 9,215 $ 8,974
-----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 9,382 $ 6,786 $ 9,215 $ 8,974
-----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 427,998 $ 159,605 $ 194,394 $ 650,041
-----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $4,814,951 $2,186,922 $2,565,593 $ 6,919,051
-----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
-----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified
cost basis) $ (181,612) $ 20,515 $ 22,997 $ 970,975
Financial futures contracts -- (25,568) (20,058) (261,449)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (181,612) $ (5,053) $ 2,939 $ 709,526
-----------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost basis) $ (192,845) $ (728,586) $ (60,446) $(2,382,962)
Financial futures contracts -- -- -- (9,543)
-----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION
(DEPRECIATION) $ (192,845) $ (728,586) $ (60,446) $(2,392,505)
-----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (374,457) $ (733,639) $ (57,507) $(1,682,979)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $4,440,494 $1,453,283 $2,508,086 $ 5,236,072
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
88
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,987,431 $ 2,546,615 $ 3,613,518 $ 4,965,522
Net realized loss (311,316) (326,943) (272,205) (132,753)
Net change in unrealized appreciation
(depreciation) (243,544) 178,231 185,594 (2,302,505)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 3,432,571 $ 2,397,903 $ 3,526,907 $ 2,530,264
----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,799,382 $ 2,877,148 $ 8,502,969 $ 6,340,470
Withdrawals (24,719,837) (13,532,599) (20,183,370) (24,924,822)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(18,920,455) $(10,655,451) $(11,680,401) $(18,584,352)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(15,487,884) $ (8,257,548) $ (8,153,494) $(16,054,088)
----------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 82,141,268 $ 50,490,771 $ 71,220,425 $ 97,761,910
----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 66,653,384 $ 42,233,223 $ 63,066,931 $ 81,707,822
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
89
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,668,947 $ 4,447,250 $ 3,535,586 $ 6,560,842
Net realized gain (loss) (451,080) 146,316 261,360 (199,853)
Net change in unrealized appreciation
(depreciation) 287,757 (1,178,574) (1,256,378) (224,134)
-------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,505,624 $ 3,414,992 $ 2,540,568 $ 6,136,855
-------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,902,687 $ 5,154,845 $ 3,114,514 $ 4,312,639
Withdrawals (9,634,774) (22,117,199) (14,992,792) (29,286,500)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(5,732,087) $(16,962,354) $(11,878,278) $(24,973,861)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(4,226,463) $(13,547,362) $ (9,337,710) $(18,837,006)
-------------------------------------------------------------------------------------------------------------------------------
Net Assets
-------------------------------------------------------------------------------------------------------------------------------
At beginning of year $32,667,500 $ 95,223,224 $ 68,264,287 $129,330,130
-------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $28,441,037 $ 81,675,862 $ 58,926,577 $110,493,124
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
90
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,814,951 $ 2,186,922 $ 2,565,593 $ 6,919,051
Net realized gain (loss) (181,612) (5,053) 2,939 709,526
Net change in unrealized appreciation
(depreciation) (192,845) (728,586) (60,446) (2,392,505)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,440,494 $ 1,453,283 $ 2,508,086 $ 5,236,072
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,303,142 $ 2,453,688 $ 3,532,766 $ 7,123,663
Withdrawals (22,348,655) (13,670,265) (10,433,144) (34,207,931)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(15,045,513) $(11,216,577) $ (6,900,378) $(27,084,268)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(10,605,019) $ (9,763,294) $ (4,392,292) $(21,848,196)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,317,452 $ 44,833,023 $ 49,407,469 $137,624,254
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 83,712,433 $ 35,069,729 $ 45,015,177 $115,776,058
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
91
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,645,606 $ 2,845,321 $ 4,288,064 $ 5,787,422
Net realized gain 1,822,635 765,765 1,152,984 987,147
Net change in unrealized appreciation
(depreciation) (7,171,556) (3,759,621) (7,104,173) (6,310,409)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (703,315) $ (148,535) $ (1,663,125) $ 464,160
----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 7,798,450 $ 5,682,021 $ 5,916,906 $ 6,215,330
Withdrawals (19,730,570) (11,297,759) (20,284,630) (21,552,860)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(11,932,120) $ (5,615,738) $(14,367,724) $(15,337,530)
----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(12,635,435) $ (5,764,273) $(16,030,849) $(14,873,370)
----------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,776,703 $ 56,255,044 $ 87,251,274 $112,635,280
----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 82,141,268 $ 50,490,771 $ 71,220,425 $ 97,761,910
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
92
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
-------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 1,842,095 $ 5,197,771 $ 3,882,521 $ 7,585,943
Net realized gain (loss) (132,083) 1,057,196 531,100 1,052,272
Net change in unrealized appreciation
(depreciation) (2,534,222) (9,405,694) (5,290,349) (10,001,534)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM
OPERATIONS $ (824,210) $ (3,150,727) $ (876,728) $ (1,363,319)
-------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,126,276 $ 11,497,954 $ 7,132,282 $ 7,046,445
Withdrawals (7,144,339) (18,276,256) (12,389,264) (29,283,120)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(3,018,063) $ (6,778,302) $ (5,256,982) $(22,236,675)
-------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(3,842,273) $ (9,929,029) $ (6,133,710) $(23,599,994)
-------------------------------------------------------------------------------------------------------------------------------
Net Assets
-------------------------------------------------------------------------------------------------------------------------------
At beginning of year $36,509,773 $105,152,253 $ 74,397,997 $152,930,124
-------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $32,667,500 $ 95,223,224 $ 68,264,287 $129,330,130
-------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
93
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,266,291 $ 2,658,896 $ 2,778,943 $ 7,742,491
Net realized gain (loss) 1,043,805 (175,546) 111,739 1,479,464
Net change in unrealized appreciation
(depreciation) (6,028,925) (3,664,758) (2,876,879) (9,945,787)
-----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ 281,171 $ (1,181,408) $ 13,803 $ (723,832)
-----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 10,547,640 $ 6,573,386 $ 5,309,074 $ 12,279,948
Withdrawals (20,266,456) (10,676,028) (9,624,115) (25,189,332)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (9,718,816) $ (4,102,642) $(4,315,041) $(12,909,384)
-----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,437,645) $ (5,284,050) $(4,301,238) $(13,633,216)
-----------------------------------------------------------------------------------------------------------------------------
Net Assets
-----------------------------------------------------------------------------------------------------------------------------
At beginning of year $103,755,097 $ 50,117,073 $53,708,707 $151,257,470
-----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,317,452 $ 44,833,023 $49,407,469 $137,624,254
-----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
94
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.49% 0.50% 0.49%
Expenses after custodian
fee reduction 0.48% 0.45% 0.47% 0.49% 0.45%
Net investment income 5.57% 5.18% 5.21% 5.47% 5.50%
Portfolio Turnover 8% 23% 23% 23% 52%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $66,653 $82,141 $94,777 $102,356 $108,544
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
95
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARKANSAS PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.46% 0.45% 0.44% 0.49% 0.48%
Expenses after custodian
fee reduction 0.45% 0.43% 0.43% 0.48% 0.46%
Net investment income 5.65% 5.25% 5.22% 5.40% 5.40%
Portfolio Turnover 14% 24% 13% 17% 11%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $42,233 $50,491 $56,255 $62,686 $74,103
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
96
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
GEORGIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.48% 0.49% 0.50%
Expenses after custodian
fee reduction 0.47% 0.42% 0.47% 0.47% 0.45%
Net investment income 5.69% 5.31% 5.29% 5.55% 5.59%
Portfolio Turnover 13% 38% 19% 13% 21%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $63,067 $71,220 $87,251 $95,162 $108,974
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
97
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
KENTUCKY PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.49% 0.51% 0.53%
Expenses after custodian
fee reduction 0.50% 0.47% 0.48% 0.48% 0.50%
Net investment income 5.75% 5.36% 5.38% 5.56% 5.49%
Portfolio Turnover 11% 11% 15% 28% 28%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $81,708 $97,762 $112,635 $123,110 $133,017
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
98
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
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 0.39% 0.37% 0.39% 0.40% 0.30%
Net expenses after
custodian fee reduction 0.35% 0.34% 0.34% 0.38% 0.23%
Net investment income 5.63% 5.16% 5.25% 5.85% 5.90%
Portfolio Turnover 14% 20% 43% 27% 99%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $28,441 $32,668 $36,510 $34,432 $35,049
-----------------------------------------------------------------------------------------------
+ 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 0.41%
Expenses after custodian
fee reduction 0.35%
Net investment income 5.79%
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
99
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MARYLAND PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.51% 0.49% 0.48% 0.48% 0.51%
Expenses after custodian
fee reduction 0.49% 0.46% 0.44% 0.45% 0.48%
Net investment income 5.18% 5.05% 5.11% 5.38% 5.50%
Portfolio Turnover 9% 31% 30% 30% 33%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $81,676 $95,223 $105,152 $107,401 $110,588
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
100
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSOURI PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.49% 0.46% 0.47% 0.47% 0.49%
Expenses after custodian
fee reduction 0.48% 0.44% 0.45% 0.46% 0.47%
Net investment income 5.80% 5.28% 5.31% 5.52% 5.52%
Portfolio Turnover 8% 21% 11% 5% 36%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $58,927 $68,264 $74,398 $79,882 $85,162
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
101
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NORTH CAROLINA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.50% 0.51% 0.52% 0.52%
Expenses after custodian
fee reduction 0.49% 0.49% 0.48% 0.50% 0.48%
Net investment income 5.66% 5.24% 5.31% 5.53% 5.51%
Portfolio Turnover 17% 3% 26% 42% 54%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $110,493 $129,330 $152,930 $167,571 $187,044
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
102
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OREGON PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.51% 0.48% 0.48% 0.56% 0.50%
Expenses after custodian
fee reduction 0.50% 0.47% 0.48% 0.55% 0.47%
Net investment income 5.63% 5.27% 5.28% 5.46% 5.37%
Portfolio Turnover 25% 35% 9% 22% 28%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $83,712 $94,317 $103,755 $113,693 $129,759
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
103
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SOUTH CAROLINA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.44% 0.43% 0.44% 0.51% 0.53%
Expenses after custodian
fee reduction 0.42% 0.40% 0.43% 0.50% 0.51%
Net investment income 5.77% 5.33% 5.37% 5.59% 5.65%
Portfolio Turnover 12% 26% 21% 8% 36%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $35,070 $44,833 $50,117 $53,970 $58,318
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
104
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TENNESSEE PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
-----------------------------------------------------------------------------------------------
Ratios/Supplemental Data
-----------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.44% 0.42% 0.44% 0.43% 0.45%
Expenses after custodian
fee reduction 0.42% 0.41% 0.42% 0.42% 0.43%
Net investment income 5.61% 5.23% 5.20% 5.48% 5.52%
Portfolio Turnover 9% 13% 21% 3% 39%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $45,015 $49,407 $53,709 $54,162 $56,065
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
105
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------------
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% 0.50% 0.52% 0.52% 0.51%
Expenses after custodian
fee reduction 0.53% 0.48% 0.50% 0.49% 0.48%
Net investment income 5.61% 5.26% 5.27% 5.53% 5.55%
Portfolio Turnover 23% 17% 8% 25% 30%
-----------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $115,776 $137,624 $151,257 $161,658 $177,644
-----------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
106
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
-------------------------------------------
Alabama Municipals Portfolio (Alabama Portfolio), Arkansas Municipals
Portfolio (Arkansas Portfolio), Georgia Municipals Portfolio (Georgia
Portfolio), Kentucky Municipals Portfolio (Kentucky Portfolio), Louisiana
Municipals Portfolio (Louisiana Portfolio), Maryland Municipals Portfolio
(Maryland Portfolio), Missouri Municipals Portfolio (Missouri Portfolio),
North Carolina Municipals Portfolio (North Carolina Portfolio), Oregon
Municipals Portfolio (Oregon Portfolio), South Carolina Municipals Portfolio
(South Carolina Portfolio), Tennessee Municipals Portfolio (Tennessee
Portfolio) and Virginia Municipals Portfolio (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, which were organized as trusts under the laws of the State of
New York on May 1, 1992, seek to achieve current income exempt from regular
federal income tax and from particular state or local income or other taxes.
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. Financial futures contracts and
options on financial 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 accretion of discount when required
for Federal income tax purposes.
C Federal 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 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.
107
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
G 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.
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 income and expense during the reporting period. Actual results could
differ from those estimates.
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 August 31, 2000, the Portfolios paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE(1)
<S> <C> <C>
-------------------------------------------------------------------------
Alabama $248,461 0.35%
Arkansas 121,102 0.27%
Georgia 210,871 0.33%
Kentucky 323,201 0.37%
Louisiana 62,768 0.21%
Maryland 308,910 0.36%
Missouri 200,152 0.33%
North Carolina 464,315 0.40%
Oregon 316,846 0.37%
South Carolina 90,314 0.24%
Tennessee 123,712 0.27%
Virginia 499,111 0.40%
</TABLE>
(1) 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.
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 August 31, 2000, no significant amounts have been
deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
3 Investments
-------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended August 31,
2000, were as follows:
<TABLE>
<CAPTION>
ALABAMA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 5,419,741
Sales 20,674,723
<CAPTION>
ARKANSAS MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 6,055,502
Sales 14,703,173
<CAPTION>
GEORGIA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 8,037,151
Sales 17,452,950
<CAPTION>
KENTUCKY MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 8,912,081
Sales 22,227,351
<CAPTION>
LOUISIANA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,996,820
Sales 8,540,788
<CAPTION>
MARYLAND MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 7,552,388
Sales 20,500,543
<CAPTION>
MISSOURI MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,691,760
Sales 14,944,234
</TABLE>
108
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
NORTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $19,107,340
Sales 37,518,514
<CAPTION>
OREGON MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $21,504,299
Sales 30,944,963
<CAPTION>
SOUTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 4,619,007
Sales 14,537,733
<CAPTION>
TENNESSEE MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $ 3,846,481
Sales 8,361,883
<CAPTION>
VIRGINIA MUNICIPALS PORTFOLIO
<S> <C>
-----------------------------------------------------
Purchases $27,521,394
Sales 48,927,802
</TABLE>
4 Federal Income Tax Basis of Investments
-------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at August 31, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ALABAMA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 64,496,000
------------------------------------------------------
Gross unrealized appreciation $ 2,373,345
Gross unrealized depreciation (1,634,843)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 738,502
------------------------------------------------------
<CAPTION>
ARKANSAS MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 40,633,990
------------------------------------------------------
Gross unrealized appreciation $ 1,563,435
Gross unrealized depreciation (625,766)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 937,669
------------------------------------------------------
<CAPTION>
GEORGIA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 61,719,666
------------------------------------------------------
Gross unrealized appreciation $ 2,733,486
Gross unrealized depreciation (2,454,696)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 278,790
------------------------------------------------------
<CAPTION>
KENTUCKY MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 79,627,148
------------------------------------------------------
Gross unrealized appreciation $ 3,611,019
Gross unrealized depreciation (2,999,154)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 611,865
------------------------------------------------------
<CAPTION>
LOUISIANA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 27,786,850
------------------------------------------------------
Gross unrealized appreciation $ 650,770
Gross unrealized depreciation (530,422)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 120,348
------------------------------------------------------
<CAPTION>
MARYLAND MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 83,635,854
------------------------------------------------------
Gross unrealized appreciation $ 2,021,763
Gross unrealized depreciation (5,525,785)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (3,504,022)
------------------------------------------------------
<CAPTION>
MISSOURI MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 56,833,666
------------------------------------------------------
Gross unrealized appreciation $ 2,817,559
Gross unrealized depreciation (1,832,942)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 984,617
------------------------------------------------------
<CAPTION>
NORTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $103,430,595
------------------------------------------------------
Gross unrealized appreciation $ 6,165,496
Gross unrealized depreciation (1,053,291)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,112,205
------------------------------------------------------
</TABLE>
109
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
OREGON MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 80,731,232
------------------------------------------------------
Gross unrealized appreciation $ 2,608,449
Gross unrealized depreciation (954,402)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,654,047
------------------------------------------------------
<CAPTION>
SOUTH CAROLINA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 34,105,563
------------------------------------------------------
Gross unrealized appreciation $ 1,351,533
Gross unrealized depreciation (1,132,715)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 218,818
------------------------------------------------------
<CAPTION>
TENNESSEE MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 42,943,683
------------------------------------------------------
Gross unrealized appreciation $ 1,889,209
Gross unrealized depreciation (651,007)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,238,202
------------------------------------------------------
<CAPTION>
VIRGINIA MUNICIPALS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $110,960,904
------------------------------------------------------
Gross unrealized appreciation $ 4,410,471
Gross unrealized depreciation (2,605,319)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,805,152
------------------------------------------------------
</TABLE>
5 Line of Credit
-------------------------------------------
The Portfolios participate 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 August 31,
2000, the Alabama Municipals Portfolio, Kentucky Municipals Portfolio, and
Oregon Municipals Portfolio had balances outstanding pursuant to this line of
credit of $400,000, $100,000 and $100,000 (respectively). The Portfolios did
not have any significant borrowings or allocated fees during the year ended
August 31, 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 August 31,
2000, is as follows:
<TABLE>
<CAPTION>
FUTURES CONTRACTS
--------------------------------------------------------------------------------------
EXPIRATION NET UNREALIZED
PORTFOLIO DATE CONTRACTS POSITION DEPRECIATION
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------
Louisiana 12/00 14 U.S. Treasury Bond Short $(2,045)
North
Carolina 12/00 33 U.S. Treasury Bond Short (5,338)
Virginia 12/00 59 U.S. Treasury Bond Short (9,543)
</TABLE>
At August 31, 2000, the Portfolios noted above had sufficient cash and/or
securities to cover margin requirements on open futures contracts.
110
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 2000
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF ALABAMA MUNICIPALS PORTFOLIO, ARKANSAS
MUNICIPALS PORTFOLIO, GEORGIA MUNICIPALS PORTFOLIO, KENTUCKY MUNICIPALS
PORTFOLIO, LOUISIANA MUNICIPALS PORTFOLIO, MARYLAND MUNICIPALS PORTFOLIO,
MISSOURI MUNICIPALS PORTFOLIO, NORTH CAROLINA MUNICIPALS PORTFOLIO, OREGON
MUNICIPALS PORTFOLIO, SOUTH CAROLINA MUNICIPALS PORTFOLIO, TENNESSEE MUNICIPALS
PORTFOLIO AND VIRGINIA MUNICIPALS PORTFOLIO:
---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Alabama Municipals Portfolio, Arkansas
Municipals Portfolio, Georgia Municipals Portfolio, Kentucky Municipals
Portfolio, Louisiana Municipals Portfolio, Maryland Municipals Portfolio,
Missouri Municipals Portfolio, North Carolina Municipals Portfolio, Oregon
Municipals Portfolio, South Carolina Municipals Portfolio, Tennessee Municipals
Portfolio and Virginia Municipals Portfolio (the Portfolios) as of August 31,
2000, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended August 31, 2000 and 1999
and supplementary data for each of the years in the five year period ended
August 31, 2000. These financial statements and supplementary data are the
responsibility of the Trusts' management. Our responsibility is to express an
opinion on the 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 owned at August 31, 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 August 31, 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
October 13, 2000
111
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF AUGUST 31, 2000
INVESTMENT MANAGEMENT
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President and Portfolio
Manager of South Carolina
Municipals Portfolio
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio Manager
of Alabama, Kentucky, and Maryland
Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio Manager
of Louisiana, North Carolina, and Virginia
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio Manager
of Georgia, Missouri, and Tennessee
Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio Manager
of Arkansas and Oregon
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 of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
112
