<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF AUGUST 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
Education -- 4.9%
- ---------------------------------------------------------------------------
$1,000 Metropolitan Government of Nashville and
Davidson County, (Belmont University),
6.40%, 12/1/19 $ 1,022,830
1,500 Metropolitan Government of Nashville and
Davidson County, (Vanderbilt
University), 5.00%, 10/1/28 1,340,925
- ---------------------------------------------------------------------------
$ 2,363,755
- ---------------------------------------------------------------------------
Escrowed / Prerefunded -- 6.1%
- ---------------------------------------------------------------------------
$1,000 Johnson, School District Sales Tax,
(AMBAC), Prerefunded to 5/1/06,
6.70%, 5/1/21 $ 1,115,970
300 Puerto Rico, "RIBS", (AMBAC),
Prerefunded to 7/1/02, Variable Rate,
7/1/15(1)(2) 336,054
1,500 Shelby County, (Lebonheur Children's
Hospital), (MBIA), Escrowed to Maturity,
5.50%, 8/15/12 1,522,290
- ---------------------------------------------------------------------------
$ 2,974,314
- ---------------------------------------------------------------------------
General Obligations -- 4.2%
- ---------------------------------------------------------------------------
$1,000 Metropolitan Government of Nashville and
Davidson County, 5.875%, 5/15/21 $ 1,015,550
1,000 Shelby County, 5.125%, 3/1/16 1,023,850
- ---------------------------------------------------------------------------
$ 2,039,400
- ---------------------------------------------------------------------------
Hospital -- 5.9%
- ---------------------------------------------------------------------------
$ 250 Knox County, (East Tennessee
Children's), 6.50%, 10/1/12 $ 258,093
750 Metropolitan Government of Nashville and
Davidson County, TN, (Charity Obligated
Group), 5.125%, 11/1/27 673,883
1,000 Montgomery County, (Clarksville Regional
Health System), 5.375%, 1/1/28 871,310
1,000 Sumner County, (Sumner Regional Health
Systems), 7.50%, 11/1/14 1,091,840
- ---------------------------------------------------------------------------
$ 2,895,126
- ---------------------------------------------------------------------------
Housing -- 15.8%
- ---------------------------------------------------------------------------
$ 750 Knoxville Community Development Corp.,
(Clinton Towers), 6.65%, 10/15/10 $ 776,835
500 Knoxville Community Development Corp.,
(Morningside Gardens), (GNMA),
6.10%, 7/20/20 511,095
1,500 Metropolitan Government of Nashville and
Davidson County, (The Park at
Hermitage), 5.90%, 2/1/19 1,493,055
1,000 Tennessee Housing Development Agency,
5.375%, 7/1/23 935,610
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
Housing (continued)
- ---------------------------------------------------------------------------
$ 985 Tennessee Housing Development Agency,
5.85%, 7/1/13 $ 999,470
1,970 Tennessee Housing Development Agency,
5.95%, 7/1/28 1,986,193
1,000 Tennessee Housing Development Agency,
(AMT), 5.75%, 7/1/24 981,760
- ---------------------------------------------------------------------------
$ 7,684,018
- ---------------------------------------------------------------------------
Industrial Development Revenue -- 26.3%
- ---------------------------------------------------------------------------
$1,000 Chattanooga, (E.I. du Pont de Nemours
and Co.), 6.35%, 7/1/22 $ 1,046,720
500 Hardeman County, (Correctional
Facilities Corp.), 7.75%, 8/1/17 538,680
1,000 Humphreys County, (E.I. du Pont de
Nemours and Co.), (AMT), 6.70%, 5/1/24 1,070,000
2,000 Loudon County, (Kimberly-Clark Corp.),
(AMT), 6.20%, 2/1/23 2,032,540
2,250 Maury County, (Saturn Corp.),
6.50%, 9/1/24 2,367,269
1,500 McMinn County, (Calhoun Newsprint Co. -
Bowater, Inc.), (AMT), 7.40%, 12/1/22 1,611,750
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), 6.75%, 9/1/12 1,062,270
1,000 Memphis-Shelby County Airport Authority,
(Federal Express Corp.), (AMT),
6.20%, 7/1/14 1,018,220
500 Metropolitan Government of Nashville and
Davidson County, (Osco Treatment
Systems), (AMT), 6.00%, 5/1/03 507,540
500 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 512,425
1,000 South Fulton County, (Tyson Foods Co.),
(AMT), 6.40%, 10/1/20 1,041,360
- ---------------------------------------------------------------------------
$12,808,774
- ---------------------------------------------------------------------------
Insured-Education -- 4.5%
- ---------------------------------------------------------------------------
$1,230 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 6.00%, 12/1/19 $ 1,292,841
1,000 Metropolitan Government of Nashville and
Davidson County, HEFA, (Meharry Medical
College), (AMBAC), 5.00%, 12/1/24 893,930
- ---------------------------------------------------------------------------
$ 2,186,771
- ---------------------------------------------------------------------------
Insured-Electric Utilities -- 6.5%
- ---------------------------------------------------------------------------
$1,000 Lawrenceburg, Electric Revenues, (MBIA),
6.625%, 7/1/18 $ 1,135,270
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
TENNESSEE MUNICIPALS PORTFOLIO AS OF AUGUST 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- ---------------------------------------------------------------------------
<C> <S> <C>
Insured-Electric Utilities (continued)
- ---------------------------------------------------------------------------
$1,750 Madison County Suburban Utility
District, (MBIA), 5.00%, 2/1/19 $ 1,617,805
400 Puerto Rico Electric Power Authority,
"STRIPES", (FSA), Variable Rate,
7/1/03(2) 433,500
- ---------------------------------------------------------------------------
$ 3,186,575
- ---------------------------------------------------------------------------
Insured-General Obligations -- 2.5%
- ---------------------------------------------------------------------------
$1,425 Franklin, Special School District,
(FSA), 0.00%, 6/1/19 $ 460,688
2,500 Franklin, Special School District,
(FSA), 0.00%, 6/1/20 758,700
- ---------------------------------------------------------------------------
$ 1,219,388
- ---------------------------------------------------------------------------
Insured-Hospital -- 4.5%
- ---------------------------------------------------------------------------
$ 500 Bristol, (Bristol Memorial Hospital),
(FGIC), 6.75%, 9/1/10 $ 568,580
250 Chattanooga, (Memorial Hospital),
(MBIA), 6.625%, 9/1/09 281,560
1,500 Chattanooga-Hamilton County, (Erlanger
Medical Center), (MBIA), 5.00%, 10/1/28 1,323,675
- ---------------------------------------------------------------------------
$ 2,173,815
- ---------------------------------------------------------------------------
Insured-Housing -- 2.2%
- ---------------------------------------------------------------------------
$1,000 Knox County, SCA Realty, MFMR, (FSA),
7.125%, 1/1/30 $ 1,084,590
- ---------------------------------------------------------------------------
$ 1,084,590
- ---------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.9%
- ---------------------------------------------------------------------------
$ 500 Puerto Rico Public Finance Corp.,
(AMBAC), Variable Rate, 6/1/26(1)(2) $ 419,170
- ---------------------------------------------------------------------------
$ 419,170
- ---------------------------------------------------------------------------
Insured-Transportation -- 2.3%
- ---------------------------------------------------------------------------
$1,000 Memphis-Shelby County Airport Authority,
(MBIA), (AMT), 6.50%, 2/15/08 $ 1,099,630
- ---------------------------------------------------------------------------
$ 1,099,630
- ---------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- ---------------------------------------------------------------------------
Insured-Water and Sewer -- 2.8%
- ---------------------------------------------------------------------------
$ 350 Metropolitan Government of Nashville and
Davidson County, Water System, (AMBAC),
Variable Rate, 1/1/22(2) $ 388,063
1,000 Metropolitan Government of Nashville and
Davidson County, Water System, (FGIC),
5.20%, 1/1/13 989,980
- ---------------------------------------------------------------------------
$ 1,378,043
- ---------------------------------------------------------------------------
Nursing Home -- 2.2%
- ---------------------------------------------------------------------------
$1,000 Tennessee State Veterans' Homes Board,
(Humboldt), 6.65%, 2/1/14 $ 1,073,000
- ---------------------------------------------------------------------------
$ 1,073,000
- ---------------------------------------------------------------------------
Pooled Loans -- 3.7%
- ---------------------------------------------------------------------------
$1,200 Tennessee Local Development Authority,
Community Provider, 6.55%, 10/1/23 $ 1,328,892
500 Tennessee Local Development Authority,
State Loan Program, 5.00%, 3/1/15 468,940
- ---------------------------------------------------------------------------
$ 1,797,832
- ---------------------------------------------------------------------------
Transportation -- 4.7%
- ---------------------------------------------------------------------------
$ 900 Memphis-Shelby County Airport Authority,
6.12%, 12/1/16 $ 882,540
1,575 Puerto Rico Highway and Transportation
Authority, 5.00%, 7/1/36 1,400,364
- ---------------------------------------------------------------------------
$ 2,282,904
- ---------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $47,368,457) $48,667,105
- ---------------------------------------------------------------------------
</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 Tennessee
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, 1999, 32.3% 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 by financial
institution ranged from 3.2% to 14.3% of total investments.
(1) 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.
(2) Security has been issued as an inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 1999
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Assets
- -------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $79,721,443 $49,436,920 $71,244,303 $92,608,640
Unrealized appreciation 982,046 759,438 93,196 3,049,952
- -------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $80,703,489 $50,196,358 $71,337,499 $95,658,592
- -------------------------------------------------------------------------------------------------------------------
Cash $ 293,797 $ -- $ -- $ 591,999
Receivable for investments
sold -- 582,625 235,992 25,310
Interest receivable 1,148,763 768,475 980,769 1,491,196
- -------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $82,146,049 $51,547,458 $72,554,260 $97,767,097
- -------------------------------------------------------------------------------------------------------------------
Liabilities
- -------------------------------------------------------------------------------------------------------------------
Payable for when-issued
securities $ -- $ 795,957 $ 958,690 $ --
Due to bank -- 56,160 73,346 --
Demand note payable -- 200,000 300,000 --
Accrued expenses 4,781 4,570 1,799 5,187
- -------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 4,781 $ 1,056,687 $ 1,333,835 $ 5,187
- -------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $82,141,268 $50,490,771 $71,220,425 $97,761,910
- -------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- -------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $81,159,222 $49,731,333 $71,127,229 $94,711,958
Net unrealized appreciation
(computed on the basis of
identified cost) 982,046 759,438 93,196 3,049,952
- -------------------------------------------------------------------------------------------------------------------
TOTAL $82,141,268 $50,490,771 $71,220,425 $97,761,910
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 1999
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
Assets
- ----------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $32,434,698 $96,301,744 $65,161,804 $121,147,010
Unrealized appreciation
(depreciation) (169,454) (2,325,448) 2,240,995 5,331,001
- ----------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $32,265,244 $93,976,296 $67,402,799 $126,478,011
- ----------------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ -- $ 813,177
Receivable for investments
sold 85,000 -- 30,000 80,000
Receivable for when-issued
securities sold -- 3,546,846 -- --
Interest receivable 489,036 1,429,789 889,304 1,970,105
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $32,839,280 $98,952,931 $68,322,103 $129,341,293
- ----------------------------------------------------------------------------------------------------------------------------
Liabilities
- ----------------------------------------------------------------------------------------------------------------------------
Payable for when-issued
securities $ -- $ 3,289,180 $ -- $ --
Due to bank 66,294 35,400 50,078 --
Demand note payable 100,000 400,000 -- --
Payable to affiliate for
Trustees' fees -- -- -- 35
Accrued expenses 5,486 5,127 7,738 11,128
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 171,780 $ 3,729,707 $ 57,816 $ 11,163
- ----------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $32,667,500 $95,223,224 $68,264,287 $129,330,130
- ----------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $32,836,954 $97,548,672 $66,023,292 $123,999,129
Net unrealized appreciation
(depreciation) (computed on
the basis of identified
cost) (169,454) (2,325,448) 2,240,995 5,331,001
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL $32,667,500 $95,223,224 $68,264,287 $129,330,130
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF AUGUST 31, 1999
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $90,127,046 $43,917,167 $47,368,457 $131,302,031
Unrealized appreciation 1,846,892 947,404 1,298,648 4,188,114
- --------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $91,973,938 $44,864,571 $48,667,105 $135,490,145
- --------------------------------------------------------------------------------------------------------------------------
Cash $ 57,923 $ -- $ -- $ --
Receivable for investments
sold 1,544,125 241,009 45,444 70,000
Interest receivable 1,211,140 625,354 710,246 2,189,324
- --------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $94,787,126 $45,730,934 $49,422,795 $137,749,469
- --------------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------------
Payable for investments
purchased $ 460,406 $ -- $ -- $ --
Payable for when-issued
securities -- 751,823 -- --
Demand note payable -- 100,000 -- 100,000
Due to bank -- 42,606 8,159 17,312
Accrued expenses 9,268 3,482 7,167 7,903
- --------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 469,674 $ 897,911 $ 15,326 $ 125,215
- --------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $94,317,452 $44,833,023 $49,407,469 $137,624,254
- --------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and
withdrawals $92,470,560 $43,885,619 $48,108,821 $133,436,140
Net unrealized appreciation
(computed on the basis of
identified cost) 1,846,892 947,404 1,298,648 4,188,114
- --------------------------------------------------------------------------------------------------------------------------
TOTAL $94,317,452 $44,833,023 $49,407,469 $137,624,254
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO ARKANSAS PORTFOLIO GEORGIA PORTFOLIO KENTUCKY PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------------
Interest $ 5,046,144 $ 3,081,097 $ 4,626,999 $ 6,295,606
- -------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 5,046,144 $ 3,081,097 $ 4,626,999 $ 6,295,606
- -------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 326,867 $ 161,041 $ 287,404 $ 418,048
Trustees fees and expenses 8,577 8,492 9,334 11,091
Custodian fee 52,018 41,357 42,708 61,323
Legal and accounting services 19,020 19,016 19,006 20,944
Amortization of organization
expenses -- 747 -- --
Miscellaneous 10,639 13,770 12,326 14,432
- -------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 417,121 $ 244,423 $ 370,778 $ 525,838
- -------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 16,583 $ 8,647 $ 31,843 $ 17,654
- -------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 16,583 $ 8,647 $ 31,843 $ 17,654
- -------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 400,538 $ 235,776 $ 338,935 $ 508,184
- -------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 4,645,606 $ 2,845,321 $ 4,288,064 $ 5,787,422
- -------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 1,799,872 $ 723,380 $ 1,231,094 $ 1,033,885
Financial futures contracts 22,763 42,385 (78,110) (46,738)
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,822,635 $ 765,765 $ 1,152,984 $ 987,147
- -------------------------------------------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
--
Investments (identified
cost basis) $(7,214,696) $(3,804,990) $(7,241,129) $(6,481,839)
Financial futures contracts 43,140 45,369 136,956 171,430
- -------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(7,171,556) $(3,759,621) $(7,104,173) $(6,310,409)
- -------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
LOSS $(5,348,921) $(2,993,856) $(5,951,189) $(5,323,262)
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ (703,315) $ (148,535) $(1,663,125) $ 464,160
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO MARYLAND PORTFOLIO MISSOURI PORTFOLIO NORTH CAROLINA PORTFOLIO
<S> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------------------------
Investment Income
- ----------------------------------------------------------------------------------------------------------------------------
Interest $ 1,963,315 $ 5,671,231 $ 4,205,494 $ 8,290,889
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 1,963,315 $ 5,671,231 $ 4,205,494 $ 8,290,889
- ----------------------------------------------------------------------------------------------------------------------------
Expenses
- ----------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 79,665 $ 386,101 $ 252,365 $ 588,407
Trustees fees and expenses 2,748 11,916 9,935 13,460
Custodian fee 28,263 68,270 44,238 85,475
Legal and accounting services 15,864 20,943 19,582 21,573
Amortization of organization
expenses 701 -- -- --
Miscellaneous 6,288 17,490 10,054 15,200
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 133,529 $ 504,720 $ 336,174 $ 724,115
- ----------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 12,309 $ 31,260 $ 13,201 $ 19,169
- ----------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 12,309 $ 31,260 $ 13,201 $ 19,169
- ----------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 121,220 $ 473,460 $ 322,973 $ 704,946
- ----------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 1,842,095 $ 5,197,771 $ 3,882,521 $ 7,585,943
- ----------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss) on Investments
- ----------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (192,585) $ 978,480 $ 588,947 $ 634,520
Financial futures contracts 60,502 78,716 (57,847) 417,752
- ----------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (132,083) $ 1,057,196 $ 531,100 $ 1,052,272
- ----------------------------------------------------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
--
Investments (identified
cost basis) $(2,567,350) $(9,489,950) $(5,404,532) $(10,001,534)
Financial futures contracts 33,128 84,256 114,183 --
- ----------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(2,534,222) $(9,405,694) $(5,290,349) $(10,001,534)
- ----------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
LOSS $(2,666,305) $(8,348,498) $(4,759,249) $ (8,949,262)
- ----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM OPERATIONS $ (824,210) $(3,150,727) $ (876,728) $ (1,363,319)
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED AUGUST 31, 1999
<TABLE>
<CAPTION>
OREGON PORTFOLIO SOUTH CAROLINA PORTFOLIO TENNESSEE PORTFOLIO VIRGINIA PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------------
Investment Income
- --------------------------------------------------------------------------------------------------------------------------
Interest $ 5,736,356 $ 2,857,240 $ 2,998,086 $ 8,447,011
- --------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 5,736,356 $ 2,857,240 $ 2,998,086 $ 8,447,011
- --------------------------------------------------------------------------------------------------------------------------
Expenses
- --------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 377,530 $ 140,934 $ 153,950 $ 600,595
Trustees fees and expenses 10,877 6,143 9,267 13,425
Custodian fee 57,670 36,222 35,451 80,765
Legal and accounting services 21,625 18,122 19,579 20,948
Amortization of organization
expenses -- 703 -- --
Miscellaneous 15,075 8,806 8,632 18,407
- --------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 482,777 $ 210,930 $ 226,879 $ 734,140
- --------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 12,712 $ 12,586 $ 7,736 $ 29,620
- --------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 12,712 $ 12,586 $ 7,736 $ 29,620
- --------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 470,065 $ 198,344 $ 219,143 $ 704,520
- --------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 5,266,291 $ 2,658,896 $ 2,778,943 $ 7,742,491
- --------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- --------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 957,713 $ (163,160) $ 152,219 $ 1,358,363
Financial futures contracts 86,092 (12,386) (40,480) 121,101
- --------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ 1,043,805 $ (175,546) $ 111,739 $ 1,479,464
- --------------------------------------------------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
--
Investments (identified
cost basis) $(6,028,925) $(3,664,758) $(2,956,901) $(10,075,412)
Financial futures contracts -- -- 80,022 129,625
- --------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(6,028,925) $(3,664,758) $(2,876,879) $ (9,945,787)
- --------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED
LOSS $(4,985,120) $(3,840,304) $(2,765,140) $ (8,466,323)
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS FROM OPERATIONS $ 281,171 $(1,181,408) $ 13,803 $ (723,832)
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
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
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
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
81
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
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
82
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998
<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 $ 5,095,243 $ 3,100,264 $ 4,801,322 $ 6,375,114
Net realized gain 286,744 521,968 1,210,267 1,448,862
Net change in unrealized
appreciation
(depreciation) 1,494,649 1,138,587 1,131,581 1,384,902
- -------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 6,876,636 $ 4,760,819 $ 7,143,170 $ 9,208,878
- -------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,971,850 $ 3,190,175 $ 5,270,754 $ 5,929,474
Withdrawals (20,427,780) (14,381,768) (20,324,717) (25,613,276)
- -------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(14,455,930) $(11,191,593) $(15,053,963) $(19,683,802)
- -------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (7,579,294) $ (6,430,774) $ (7,910,793) $(10,474,924)
- -------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------
At beginning of year $102,355,997 $ 62,685,818 $ 95,162,067 $123,110,204
- -------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,776,703 $ 56,255,044 $ 87,251,274 $112,635,280
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
83
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998
<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 $ 1,831,943 $ 5,400,842 $ 4,136,832 $ 8,388,082
Net realized gain 354,545 824,903 956,161 1,791,750
Net change in unrealized
appreciation
(depreciation) 679,062 1,975,688 1,572,339 2,930,375
- ----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 2,865,550 $ 8,201,433 $ 6,665,332 $ 13,110,207
- ----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,706,360 $ 8,581,280 $ 4,493,837 $ 9,214,460
Withdrawals (6,494,266) (19,031,547) (16,642,888) (36,965,507)
- ----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (787,906) $(10,450,267) $(12,149,051) $(27,751,047)
- ----------------------------------------------------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET
ASSETS $ 2,077,644 $ (2,248,834) $ (5,483,719) $(14,640,840)
- ----------------------------------------------------------------------------------------------------------------------------
Net Assets
- ----------------------------------------------------------------------------------------------------------------------------
At beginning of year $34,432,129 $107,401,087 $ 79,881,716 $167,570,964
- ----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $36,509,773 $105,152,253 $ 74,397,997 $152,930,124
- ----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
84
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED AUGUST 31, 1998
<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 $ 5,723,164 $ 2,819,111 $ 2,821,503 $ 8,239,066
Net realized gain 1,571,010 1,175,496 463,355 2,037,263
Net change in unrealized
appreciation
(depreciation) 1,436,080 554,107 897,702 2,473,102
- --------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 8,730,254 $ 4,548,714 $ 4,182,560 $ 12,749,431
- --------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,763,506 $ 2,733,381 $ 5,452,717 $ 7,893,877
Withdrawals (22,431,429) (11,134,947) (10,088,250) (31,043,370)
- --------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(18,667,923) $ (8,401,566) $ (4,635,533) $(23,149,493)
- --------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,937,669) $ (3,852,852) $ (452,973) $(10,400,062)
- --------------------------------------------------------------------------------------------------------------------------
Net Assets
- --------------------------------------------------------------------------------------------------------------------------
At beginning of year $113,692,766 $ 53,969,925 $ 54,161,680 $161,657,532
- --------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $103,755,097 $ 50,117,073 $ 53,708,707 $151,257,470
- --------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
85
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
-------------------------------------------------------
YEAR ENDED AUGUST 31,
-------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------
Ratios to average daily net assets
- ---------------------------------------------------------------------------------------
Expenses(1) 0.46% 0.49% 0.50% 0.49% 0.47%
Expenses after custodian fee
reduction 0.45% 0.47% 0.49% 0.45% --
Net investment income 5.18% 5.21% 5.47% 5.50% 5.77%
Portfolio Turnover 23% 23% 23% 52% 51%
- ---------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $82,141 $94,777 $102,356 $108,544 $118,486
- ---------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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
August 31, 1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
86
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARKANSAS PORTFOLIO
----------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------
Expenses(1) 0.45% 0.44% 0.49% 0.48% 0.46%
Expenses after custodian fee
reduction 0.43% 0.43% 0.48% 0.46% --
Net investment income 5.25% 5.22% 5.40% 5.40% 5.69%
Portfolio Turnover 24% 13% 17% 11% 23%
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $50,491 $56,255 $62,686 $74,103 $81,535
- ------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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
August 31, 1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
87
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
GEORGIA PORTFOLIO
------------------------------------------------------
YEAR ENDED AUGUST 31,
------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------
Ratios to average daily net assets
- --------------------------------------------------------------------------------------
Expenses(1) 0.46% 0.48% 0.49% 0.50% 0.46%
Expenses after custodian fee
reduction 0.42% 0.47% 0.47% 0.45% --
Net investment income 5.31% 5.29% 5.55% 5.59% 5.73%
Portfolio Turnover 38% 19% 13% 21% 48%
- --------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $71,220 $87,251 $95,162 $108,974 $122,949
- --------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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
August 31, 1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
88
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
KENTUCKY PORTFOLIO
--------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------
Expenses(1) 0.49% 0.49% 0.51% 0.53% 0.49%
Expenses after custodian fee
reduction 0.47% 0.48% 0.48% 0.50% --
Net investment income 5.36% 5.38% 5.56% 5.49% 5.75%
Portfolio Turnover 11% 15% 28% 28% 30%
- ----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $97,762 $112,635 $123,110 $133,017 $145,269
- ----------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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
August 31, 1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
89
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
LOUISIANA PORTFOLIO
----------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ------------------------------------------------------------------------------------
Net expenses(1) 0.37% 0.39% 0.40% 0.30% 0.22%
Net expenses after custodian
fee reduction 0.34% 0.34% 0.38% 0.23% --
Net investment income 5.16% 5.25% 5.85% 5.90% 6.06%
Portfolio Turnover 20% 43% 27% 99% 46%
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $32,668 $36,510 $34,432 $35,049 $34,309
- ------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both. Had
such action not been taken, the ratios would have been as follows:
Expenses(1) 0.41% 0.33%
Expenses after custodian fee
reduction 0.35% --
Net investment income 5.79% 5.95%
- ------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
90
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MARYLAND PORTFOLIO
--------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------
Expenses(1) 0.49% 0.48% 0.48% 0.51% 0.47%
Expenses after custodian fee
reduction 0.46% 0.44% 0.45% 0.48% --
Net investment income 5.05% 5.11% 5.38% 5.50% 5.79%
Portfolio Turnover 31% 30% 30% 33% 30%
- ----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $95,223 $105,152 $107,401 $110,588 $115,004
- ----------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
91
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MISSOURI PORTFOLIO
----------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------
Expenses(1) 0.46% 0.47% 0.47% 0.49% 0.48%
Expenses after custodian fee
reduction 0.44% 0.45% 0.46% 0.47% --
Net investment income 5.28% 5.31% 5.52% 5.52% 5.76%
Portfolio Turnover 21% 11% 5% 36% 24%
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $68,264 $74,398 $79,882 $85,162 $93,162
- ------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
92
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NORTH CAROLINA PORTFOLIO
---------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------
Expenses(1) 0.50% 0.51% 0.52% 0.52% 0.48%
Expenses after custodian fee
reduction 0.49% 0.48% 0.50% 0.48% --
Net investment income 5.24% 5.31% 5.53% 5.51% 5.78%
Portfolio Turnover 3% 26% 42% 54% 33%
- -----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $129,330 $152,930 $167,571 $187,044 $195,179
- -----------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
93
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
OREGON PORTFOLIO
--------------------------------------------------------
YEAR ENDED AUGUST 31,
--------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------
Ratios to average daily net assets
- ----------------------------------------------------------------------------------------
Expenses(1) 0.48% 0.48% 0.56% 0.50% 0.50%
Expenses after custodian fee
reduction 0.47% 0.48% 0.55% 0.47% --
Net investment income 5.27% 5.28% 5.46% 5.37% 5.60%
Portfolio Turnover 35% 9% 22% 28% 22%
- ----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $94,317 $103,755 $113,693 $129,759 $146,391
- ----------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
94
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SOUTH CAROLINA PORTFOLIO
----------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------
Expenses(1) 0.43% 0.44% 0.51% 0.53% 0.44%
Expenses after custodian fee
reduction 0.40% 0.43% 0.50% 0.51% --
Net investment income 5.33% 5.37% 5.59% 5.65% 5.81%
Portfolio Turnover 26% 21% 8% 36% 75%
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $44,833 $50,117 $53,970 $58,318 $61,412
- ------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
95
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TENNESSEE PORTFOLIO
----------------------------------------------------
YEAR ENDED AUGUST 31,
----------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------
Expenses(1) 0.42% 0.44% 0.43% 0.45% 0.41%
Expenses after custodian fee
reduction 0.41% 0.42% 0.42% 0.43% --
Net investment income 5.23% 5.20% 5.48% 5.52% 5.81%
Portfolio Turnover 13% 21% 3% 39% 20%
- ------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $49,407 $53,709 $54,162 $56,065 $58,673
- ------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
96
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
VIRGINIA PORTFOLIO
---------------------------------------------------------
YEAR ENDED AUGUST 31,
---------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------
Ratios to average daily net assets
- -----------------------------------------------------------------------------------------
Expenses(1) 0.50% 0.52% 0.52% 0.51% 0.48%
Expenses after custodian fee
reduction 0.48% 0.50% 0.49% 0.48% --
Net investment income 5.26% 5.27% 5.53% 5.55% 5.81%
Portfolio Turnover 17% 8% 25% 30% 38%
- -----------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S
OMITTED) $137,624 $151,257 $161,658 $177,644 $191,748
- -----------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended August 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 August 31,
1995 has not been adjusted to reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
97
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
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 non-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. 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 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 Deferred Organization Expenses -- Costs incurred by a Portfolio in connection
with its organization are being amortized on the straight-line basis over
five years.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, 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.
F Options on Financial Futures Contracts -- Upon 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.
G 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.
98
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
Securities purchased on a when-issued or delayed delivery basis are
marked-to-market daily and begin earning interest on settlement date.
H Other -- Investment transactions are accounted for on a trade date basis.
I Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the 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 each Portfolio's custodian fees are reported as a reduction of
expenses in the Statement of Operations.
J 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.
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, 1999, the Portfolios paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
- ---------------------------------------------------------------------
Alabama $326,867 0.36%
Arkansas 161,041 0.30%
Georgia 287,404 0.36%
Kentucky 418,048 0.39%
Louisiana 79,665 0.22%
Maryland 386,101 0.38%
Missouri 252,365 0.34%
North Carolina 588,407 0.41%
Oregon 377,530 0.38%
South Carolina 140,934 0.28%
Tennessee 153,950 0.29%
Virginia 600,595 0.41%
</TABLE>
* Advisory fees paid as a percentage of average daily net assets.
Except as to Trustees of the Portfolios who are not members of EVM's or BMR's
organization, officers and Trustees receive remuneration for their services
to the Portfolios out of such investment adviser fee.
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, 1999, 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,
1999, were as follows:
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $19,986,217
Sales 27,403,123
<CAPTION>
ARKANSAS PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $12,787,646
Sales 15,299,979
<CAPTION>
GEORGIA PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $30,287,404
Sales 39,306,062
<CAPTION>
KENTUCKY PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $11,210,125
Sales 20,097,121
<CAPTION>
LOUISIANA PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $ 7,113,612
Sales 8,118,675
<CAPTION>
MARYLAND PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $31,302,727
Sales 34,659,531
<CAPTION>
MISSOURI PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $14,824,775
Sales 15,422,381
</TABLE>
99
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
NORTH CAROLINA PORTFOLIO
- ------------------------------------------------------
<S> <C>
Purchases $ 4,065,484
Sales 21,525,341
<CAPTION>
OREGON PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $34,355,553
Sales 40,320,456
<CAPTION>
SOUTH CAROLINA PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $12,649,548
Sales 13,830,493
<CAPTION>
TENNESSEE PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $ 6,668,843
Sales 7,736,713
<CAPTION>
VIRGINIA PORTFOLIO
<S> <C>
- ------------------------------------------------------
Purchases $24,443,761
Sales 28,596,240
</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, 1999, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ALABAMA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 79,721,443
- -------------------------------------------------------
Gross unrealized appreciation $ 3,243,384
Gross unrealized depreciation (2,261,338)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 982,046
- -------------------------------------------------------
<CAPTION>
ARKANSAS PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 49,436,920
- -------------------------------------------------------
Gross unrealized appreciation $ 1,482,250
Gross unrealized depreciation (722,812)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 759,438
- -------------------------------------------------------
<CAPTION>
GEORGIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 71,244,303
- -------------------------------------------------------
Gross unrealized appreciation $ 2,888,455
Gross unrealized depreciation (2,795,259)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 93,196
- -------------------------------------------------------
<CAPTION>
KENTUCKY PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 92,608,640
- -------------------------------------------------------
Gross unrealized appreciation $ 4,445,032
Gross unrealized depreciation (1,395,080)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 3,049,952
- -------------------------------------------------------
<CAPTION>
LOUISIANA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 32,434,698
- -------------------------------------------------------
Gross unrealized appreciation $ 875,382
Gross unrealized depreciation (1,044,836)
- -------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (169,454)
- -------------------------------------------------------
<CAPTION>
MARYLAND PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 96,301,744
- -------------------------------------------------------
Gross unrealized appreciation $ 2,498,264
Gross unrealized depreciation (4,823,712)
- -------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (2,325,448)
- -------------------------------------------------------
<CAPTION>
MISSOURI PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 65,161,804
- -------------------------------------------------------
Gross unrealized appreciation $ 3,572,292
Gross unrealized depreciation (1,331,297)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,240,995
- -------------------------------------------------------
<CAPTION>
NORTH CAROLINA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $121,147,873
- -------------------------------------------------------
Gross unrealized appreciation $ 6,612,733
Gross unrealized depreciation (1,282,595)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,330,138
- -------------------------------------------------------
</TABLE>
100
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
OREGON PORTFOLIO
- -------------------------------------------------------
<S> <C>
AGGREGATE COST $ 90,127,046
- -------------------------------------------------------
Gross unrealized appreciation $ 3,493,586
Gross unrealized depreciation (1,646,694)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,846,892
- -------------------------------------------------------
<CAPTION>
SOUTH CAROLINA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 43,917,167
- -------------------------------------------------------
Gross unrealized appreciation $ 1,981,997
Gross unrealized depreciation (1,034,593)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 947,404
- -------------------------------------------------------
<CAPTION>
TENNESSEE PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 47,368,457
- -------------------------------------------------------
Gross unrealized appreciation $ 1,912,802
Gross unrealized depreciation (614,154)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,298,648
- -------------------------------------------------------
<CAPTION>
VIRGINIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $131,329,574
- -------------------------------------------------------
Gross unrealized appreciation $ 6,370,254
Gross unrealized depreciation (2,209,683)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,160,571
- -------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the portfolios or funds
solely to facilitate the handling of unusual and/or unanticipated short-term
cash requirements. Interest is charged to each portfolio or fund based on its
borrowings at an amount above either the Eurodollar rate or Federal Funds
effective rate. In addition, a fee computed at an annual rate of 0.10% on the
daily unused portion of the facility is allocated among the participating
portfolios and funds at the end of each quarter. At August 31, 1999, the
Arkansas Portfolio, Georgia Porfolio, Louisiana Portfolio, Maryland
Portfolio, South Carolina Portfolio and Virginia Portfolio had balances
outstanding pursuant to this line of credit of $200,000, $300,000, $100,000,
$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, 1999.
6 Financial Instruments
- -------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
At August 31, 1999, there were no outstanding obligations under these
financial instruments.
101
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF AUGUST 31, 1999
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,
1999, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended August 31, 1999 and 1998
and supplementary data for each of the years in the five year period ended
August 31, 1999. 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 generally accepted auditing
standards. Those standards require that we plan and perform the audit to obtain
reasonable assurance about whether the financial statements and supplementary
data are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial
statements. Our procedures included confirmation of securities owned at
August 31, 1999, by correspondence with the custodian and brokers; where replies
were not received from brokers, we performed other auditing procedures. An audit
also includes assessing the accounting principles used and significant estimates
made by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for our
opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of the aforementioned
Portfolios at August 31, 1999, the results of their operations, the changes in
their net assets and their supplementary data for the respective stated periods
in conformity with generally accepted accounting principles.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
October 1, 1999
102
<PAGE>
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 and Kentucky Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio Manager
of Louisiana, Maryland, Missouri and
North Carolina Municipals Portfolios
Timothy T. Browse
Vice President and Portfolio Manager
of Arkansas, Maryland 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
Oregon 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
103
