<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 100.0%
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
Assisted Living -- 4.5%
- --------------------------------------------------------------------------------
$ 5,000 Chester IDA, (Senior Life Choice of
Kimberton), (AMT), 8.50%, 9/1/25 $ 5,567,750
2,680 Chester IDA, (Senior Life Choice of
Paoli, L.P.), (AMT), 8.05%, 1/1/24 2,921,816
5,000 Delaware IDA, (Glen Riddle), (AMT),
8.625%, 9/1/25 5,598,650
- --------------------------------------------------------------------------------
$ 14,088,216
- --------------------------------------------------------------------------------
Certificates of Participation -- 0.6%
- --------------------------------------------------------------------------------
$ 2,000 Cliff House Trust, (AMT), 6.625%, 6/1/27 $ 2,000,000
- --------------------------------------------------------------------------------
$ 2,000,000
- --------------------------------------------------------------------------------
Cogeneration -- 3.0%
- --------------------------------------------------------------------------------
$ 9,000 Pennsylvania EDA, (Northampton
Generating), (AMT), 6.50%, 1/1/13 $ 9,391,859
- --------------------------------------------------------------------------------
$ 9,391,859
- --------------------------------------------------------------------------------
Education -- 5.8%
- --------------------------------------------------------------------------------
$ 2,000 Lehigh County General Purpose Authority,
(Allentown College of St. Francis),
6.75%, 12/15/12 $ 2,139,720
1,100 Lehigh County General Purpose Authority,
(Cedar Crest College), 6.70%, 4/1/26 1,162,370
3,000 Pennsylvania HEFA, (Delaware Valley
College of Science and Agriculture),
5.35%, 4/15/28 2,707,410
3,000 Pennsylvania HEFA, (Gwynedd-Mercy
College), 5.60%, 11/1/22 2,877,480
3,000 Pennsylvania HEFA, (University of
Pennsylvania), 4.625%, 7/15/30 2,550,720
2,000 Pennsylvania HEFA, (Ursinns College),
5.90%, 1/1/27 2,025,100
4,225 Scranton-Lackawanna, (University of
Scranton), 6.40%, 3/1/07 4,482,303
- --------------------------------------------------------------------------------
$ 17,945,103
- --------------------------------------------------------------------------------
Electric Utilities -- 2.7%
- --------------------------------------------------------------------------------
$ 500 Beaver IDA, (Ohio Edison Co.), 7.75%,
9/1/24 $ 511,725
3,250 Delaware IDA, (Philadelphia Electric
Co.), 7.375%, 4/1/21 3,422,315
4,070 Montgomery IDA, (Philadelphia Electric
Co.), (AMT), 7.60%, 4/1/21 4,310,008
- --------------------------------------------------------------------------------
$ 8,244,048
- --------------------------------------------------------------------------------
Escrowed / Prerefunded -- 11.0%
- --------------------------------------------------------------------------------
$ 5,600 Berks County, (FGIC), Variable Rate,
Partially Prerefunded to 12/01/02,
11/10/20(1) $ 6,545,000
4,145 Hazelton Luzerne, (Saint Joseph Medical
Center), Prerefunded to 7/1/03, 8.375%,
7/1/12 4,720,326
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
Escrowed / Prerefunded (continued)
- --------------------------------------------------------------------------------
$ 7,500 Keystone Oaks School District, (AMBAC),
Variable Rate, Prerefunded to 9/1/02,
9/1/16(1) $ 8,409,375
5,000 Philadelphia Hospital and Higher
Education Authority, (FGIC), Prerefunded
to 2/15/04, Variable Rate, 3/6/12(1) 4,981,250
4,115 Somerset, (Community Hospital),
Prerefunded to 3/1/02, 6.75%, 3/1/11 4,367,126
4,845 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity, 0.00%,
8/15/19 1,601,660
5,400 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity, 0.00%,
8/15/20 1,682,316
5,780 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity, 0.00%,
8/15/20 1,800,701
- --------------------------------------------------------------------------------
$ 34,107,754
- --------------------------------------------------------------------------------
General Obligations -- 1.8%
- --------------------------------------------------------------------------------
$ 3,000 Dauphin County, 6.90%, 6/1/26 $ 3,168,090
2,500 Montgomery County, 5.00%, 7/15/24 2,336,150
- --------------------------------------------------------------------------------
$ 5,504,240
- --------------------------------------------------------------------------------
Hospital -- 10.4%
- --------------------------------------------------------------------------------
$ 5,330 Allegheny County HDA, (St. Francis
Medical Center), 5.75%, 5/15/27 $ 5,049,855
2,000 Allegheny County HDA, (Villa St.
Joseph), 6.00%, 8/15/28 1,882,480
2,240 Allegheny County, IDA, (Presbyterian
Medical Center), 6.75%, 2/1/26 2,410,083
2,000 Dauphin County Hospital Authority,
(Community General Osteopathic
Hospital), 7.375%, 6/1/16 2,195,880
1,150 Horizon Hospital Systems Authority,
(Horizon Hospital Systems, Inc.), 6.35%,
5/15/26 1,196,575
2,670 Indiana County Hospital Authority,
(Indiana Hospital), 7.125%, 7/1/23 2,859,757
2,550 Monroeville Hospital Authority, (Forbes
Health System), 6.25%, 10/1/15 2,524,500
1,375 Montgomery Hospital Authority,
(Montgomery Hospital Medical Center),
6.60%, 7/1/10 1,441,413
500 Pennsylvania HEFA, (Allegheny General
Hospital), 7.25%, 9/1/17 500,000
5,625 Philadelphia HEFA, (Graduate Health
System), 6.625%, 7/1/21 2,137,500
7,115 Philadelphia HEFA, (Graduate Health
System), 7.25%, 7/1/18 2,703,700
7,000 Washington County Hospital Authority,
(Monongahela Valley Hospital), 6.75%,
12/1/08 7,519,330
- --------------------------------------------------------------------------------
$ 32,421,073
- --------------------------------------------------------------------------------
Housing -- 5.4%
- --------------------------------------------------------------------------------
$ 2,815 Allegheny, SFMR, (Ladies Grand Army),
(FHA), 6.35%, 10/1/36 $ 2,996,708
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
47
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C>
Housing (continued)
- --------------------------------------------------------------------------------
$ 1,000 Pennsylvania HFA, (AMT), Variable Rate,
10/3/23(1) $ 1,103,750
2,000 Pennsylvania HFA, SFMR, (AMT), 6.15%,
10/1/27 2,075,040
2,250 Pennsylvania HFA, Single Family, (AMT),
5.50%, 4/1/29 2,214,225
2,300 Pennsylvania HFA, Single Family, (AMT),
5.85%, 10/1/27 2,347,449
1,000 Pittsburgh Urban Redevelopment
Authority, 7.125%, 4/1/15 1,036,760
265 Pittsburgh Urban Redevelopment
Authority, 7.45%, 4/1/10 275,831
3,295 Pittsburgh Urban Redevelopment
Authority, (AMT), 7.10%, 4/1/24 3,554,646
1,055 Pittsburgh Urban Redevelopment
Authority, (AMT), 7.40%, 4/1/24 1,096,272
- --------------------------------------------------------------------------------
$ 16,700,681
- --------------------------------------------------------------------------------
Industrial Development Revenue -- 18.3%
- --------------------------------------------------------------------------------
$ 6,450 Butler County IDA, (Witco Corp.), 5.85%,
12/1/23 $ 6,553,329
1,005 Clearfield County IDA, (Kmart Corp.),
6.80%, 5/15/07 1,050,969
4,000 Franklin County IDA, (Corning, Inc.),
6.25%, 8/1/05 4,354,800
11,000 New Morgan IDA, (New Morgan Landfill),
(AMT), 6.50%, 4/1/19 11,152,899
9,000 Pennsylvania EDA, (Colver), (AMT),
7.125%, 12/1/15 9,874,619
5,000 Pennsylvania EDA, (Colver), (AMT),
7.15%, 12/1/18 5,491,650
4,450 Pennsylvania IDA, (Sun Company), (AMT),
7.60%, 12/1/24 4,938,877
6,500 Philadelphia IDA, (Refrigerated
Enterprises), (AMT), 9.05%, 12/1/19 7,127,380
5,000 Puerto Rico Port Authority, (American
Airlines), (AMT), 6.25%, 6/1/26 5,252,050
$ 1,105 Shamokin IDA, (Kmart Corp.), 6.70%,
7/1/07 $ 1,151,697
- --------------------------------------------------------------------------------
$ 56,948,270
- --------------------------------------------------------------------------------
Insured-Education -- 2.4%
- --------------------------------------------------------------------------------
$ 3,000 Delaware County, (Villanova University),
(MBIA), 5.00%, 12/1/28 $ 2,776,410
1,805 Northeastern, HEFA, (Wyoming Seminary),
(MBIA), 4.75%, 10/1/28 1,591,469
625 Pennsylvania HEFA, (Bryn Mawr College),
(AMBAC), 5.125%, 12/1/29 587,494
1,590 Pennsylvania Manor, School District,
(FGIC), 5.20%, 6/1/16 1,561,030
1,000 State Public School Building Authority,
(Westmoreland Community College),
(MBIA), 5.25%, 10/15/15 995,060
- --------------------------------------------------------------------------------
$ 7,511,463
- --------------------------------------------------------------------------------
Insured-Electric Utilities -- 6.3%
- --------------------------------------------------------------------------------
$ 4,000 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.00%, 6/1/21 $ 4,248,760
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
Insured-Electric Utilities (continued)
- --------------------------------------------------------------------------------
$10,000 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.05%, 10/1/20 $ 11,221,599
3,800 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 4,080,250
- --------------------------------------------------------------------------------
19,550,609
- --------------------------------------------------------------------------------
Insured-General Obligations -- 6.2%
- --------------------------------------------------------------------------------
$ 2,500 Butler School District, (FGIC), 4.75%,
10/1/22 $ 2,242,325
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/20 668,859
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/21 629,170
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/22 593,799
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/23 560,337
2,500 Erie School District, (MBIA), 0.00%,
5/1/19 839,750
2,625 Erie School District, (MBIA), 0.00%,
5/1/20 830,996
2,625 Erie School District, (MBIA), 0.00%,
5/1/21 782,355
3,625 Erie School District, (MBIA), 0.00%,
5/1/22 1,020,111
2,365 Harrisburg, (AMBAC), 0.00%, 3/15/17 896,524
5,175 Hazelton School District, (FGIC), 0.00%,
3/1/21 1,544,375
1,000 Hopewell School District, (FSA), 0.00%,
9/1/22 273,640
2,000 Hopewell School District, (FSA), 0.00%,
9/1/26 432,740
1,430 Mars Area School District, (MBIA),
0.00%, 3/1/14 653,639
2,000 McGuffey School District, (AMBAC),
4.75%, 8/1/28 1,753,720
3,650 Philadelphia School District, (MBIA),
4.75%, 4/1/27 3,208,934
1,000 Ridley School District, (FGIC), 5.00%,
11/15/29 924,510
655 Rochester Area School District, (AMBAC),
0.00%, 5/1/10 381,321
1,000 Venango County, (AMBAC), 6.30%, 12/1/19 1,054,630
- --------------------------------------------------------------------------------
$ 19,291,735
- --------------------------------------------------------------------------------
Insured-Hospital -- 6.8%
- --------------------------------------------------------------------------------
$ 4,550 Allegheny County HDA, (University of
Pittsburg Hospital), (MBIA), 5.625%,
4/1/27 $ 4,549,591
3,750 Allegheny County Hospital Authority,
(Magee-Womens Hospital), (FGIC), 0.00%,
10/1/15 1,562,063
1,170 Allegheny County, (Children's Hospital
of Pittsburgh), (MBIA), 6.75%, 7/1/08 1,201,379
2,500 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.00%, 8/15/08 2,632,025
1,400 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.25%, 6/1/13 1,484,700
775 Carbon County Hospital Authority,
(Gnaden Memorial Hospital), (AMBAC),
7.00%, 11/15/14 816,928
1,700 Dauphin County Hospital Authority,
(Pinnacle Health System), (MBIA), 5.00%,
8/15/27 1,550,927
3,000 Delaware County Hospital Authority,
(Riddle Memorial Hospital), (FSA),
5.00%, 1/1/28 2,735,430
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
48
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
- --------------------------------------------------------------------------------
<C> <S> <C>
Insured-Hospital (continued)
- --------------------------------------------------------------------------------
$ 1,000 Montgomery County HEFA, (Abington
Memorial Hospital) (AMBAC), Variable
Rate, 7/5/11(1) $ 1,122,500
4,000 Montgomery County HEFA, (Abington
Memorial Hospital), (AMBAC), 5.00%,
6/1/28 3,645,000
- --------------------------------------------------------------------------------
$ 21,300,543
- --------------------------------------------------------------------------------
Insured-Industrial Development Revenue -- 0.3%
- --------------------------------------------------------------------------------
$ 1,000 Delaware County, (Philadelphia Water),
(AMT), (FGIC), 6.35%, 8/15/25 $ 1,067,660
- --------------------------------------------------------------------------------
$ 1,067,660
- --------------------------------------------------------------------------------
Insured-Solid Waste -- 1.3%
- --------------------------------------------------------------------------------
$ 4,205 Lancaster County, Solid Waste Management
Authority Resources Recovery System,
(AMBAC), 5.375%, 12/15/15 $ 4,168,585
- --------------------------------------------------------------------------------
$ 4,168,585
- --------------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.6%
- --------------------------------------------------------------------------------
$ 2,500 Pennsylvania Turnpike Commission Oil
Franchise, (AMBAC), Variable Rate,
12/1/27(1)(2) $ 1,928,500
- --------------------------------------------------------------------------------
$ 1,928,500
- --------------------------------------------------------------------------------
Insured-Transportation -- 1.1%
- --------------------------------------------------------------------------------
$ 2,000 Allegheny County Port Authority,
(Pittsburgh International Airport),
(MBIA), (AMT), 5.25%, 1/1/16 $ 1,947,340
2,000 Southeastern Pennsylvania Transit
Authority, (FGIC), Variable Rate,
3/1/29(1)(2) 1,503,360
- --------------------------------------------------------------------------------
$ 3,450,700
- --------------------------------------------------------------------------------
Insured-Water and Sewer -- 2.6%
- --------------------------------------------------------------------------------
$ 2,500 Philadelphia Water and Wastewater,
(FGIC), Variable Rate, 6/15/12(1) $ 2,621,875
2,490 Pittsburgh Water and Sewer Authority,
(FGIC), 4.75%, 9/1/16 2,288,584
3,575 West Mifflin Water and Sewer Authority,
(MBIA), 5.00%, 8/1/28 3,310,057
- --------------------------------------------------------------------------------
$ 8,220,516
- --------------------------------------------------------------------------------
Nursing Home -- 3.6%
- --------------------------------------------------------------------------------
$ 1,230 Chartiers Valley IDA, (Beverly
Enterprises, Inc.), 5.375%, 6/1/07 $ 1,208,340
250 Clarion County IDA, (Beverly Enterprises
Inc.), 5.50%, 5/1/03 246,053
1,510 Green County, IDA, (Beverly Enterprises,
Inc.), 5.75%, 3/1/13 1,450,793
2,000 Grove City, Area Hospital Health
Facilities Authority, (Grove Manor),
6.625%, 8/15/29 1,920,820
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
- --------------------------------------------------------------------------------
Nursing Home (continued)
- --------------------------------------------------------------------------------
$ 3,465 Montgomery IDA, (Advancement of
Geriatric Health Care Institute),
8.375%, 7/1/23 $ 3,672,900
1,100 Philadelphia HEFA, (The Philadelphia
Protestant Home), 6.50%, 7/1/27 1,132,109
1,425 Westmoreland County IDA, (Highland
Health Systems, Inc.), 9.25%, 6/1/22 1,571,604
- --------------------------------------------------------------------------------
$ 11,202,619
- --------------------------------------------------------------------------------
Pooled Loans -- 1.5%
- --------------------------------------------------------------------------------
$ 3,400 Pennsylvania Finance Authority, Beaver
County, 6.60%, 11/1/09 $ 3,675,842
870 Pennsylvania Infrastructure Investment
Authority, (Pennvest), 6.80%, 9/1/10 $ 939,296
- --------------------------------------------------------------------------------
4,615,138
- --------------------------------------------------------------------------------
Senior Living / Life Care -- 3.5%
- --------------------------------------------------------------------------------
$ 4,050 Delaware County, (White Horse Village),
7.50%, 7/1/18 $ 4,320,581
3,620 Delaware County, HFA, (Mercy Health
Corp.), 5.75%, 12/15/22 3,710,355
3,060 Hazleton HFA, (Hazelton General
Hospital), 5.50%, 7/1/27 2,853,787
- --------------------------------------------------------------------------------
$ 10,884,723
- --------------------------------------------------------------------------------
Transportation -- 0.3%
- --------------------------------------------------------------------------------
$ 1,000 Erie County Airport Revenue, (AMT),
5.875%, 7/1/16 $ 981,570
- --------------------------------------------------------------------------------
$ 981,570
- --------------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $304,569,208) $ 311,525,605
- --------------------------------------------------------------------------------
</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 Pennsylvania
municipalities. The ability of the issuers of the debt securities to meet their
obligations may be affected by the economic developments in a specific industry
or municipality. In order to reduce the risk associated with such economic
developments, at July 31, 1999, 35.8% 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 institution ranged from 2.4% to 15.2%.
(1) Security has been issued as an inverse floater bond.
(2) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
SEE NOTES TO FINANCIAL STATEMENTS
49
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 1999
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------------
Assets
- ------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $ 89,483,162 $ 36,443,369 $ 149,320,769 $ 103,767,276
Unrealized appreciation 4,166,923 1,007,476 5,589,410 4,197,066
- ------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 93,650,085 $ 37,450,845 $ 154,910,179 $ 107,964,342
- ------------------------------------------------------------------------------------------------------------------
Cash $ -- $ -- $ 1,258,243 $ 48,382
Receivable for investments sold -- 35,461 -- --
Interest receivable 915,084 446,783 1,741,604 1,460,547
- ------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 94,565,169 $ 37,933,089 $ 157,910,026 $ 109,473,271
- ------------------------------------------------------------------------------------------------------------------
Liabilities
- ------------------------------------------------------------------------------------------------------------------
Due to bank $ 25,115 $ 51,656 $ -- $ --
Demand note payable 200,000 -- -- --
Payable to affiliate for
Trustees' fees -- 6 190 --
Other accrued expenses 6,766 7,360 16,248 9,919
- ------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 231,881 $ 59,022 $ 16,438 $ 9,919
- ------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $ 94,333,288 $ 37,874,067 $ 157,893,588 $ 109,463,352
- ------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- ------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $ 90,166,365 $ 36,866,591 $ 152,304,178 $ 105,266,286
Net unrealized appreciation
(computed on the basis of
identified cost) 4,166,923 1,007,476 5,589,410 4,197,066
- ------------------------------------------------------------------------------------------------------------------
TOTAL $ 94,333,288 $ 37,874,067 $ 157,893,588 $ 109,463,352
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
52
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 1999
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------------------
Assets
- --------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $ 57,131,192 $ 292,825,477 $ 304,569,208 $ 14,830,737
Unrealized appreciation 2,728,875 13,752,493 6,956,397 609,656
- --------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $ 59,860,067 $ 306,577,970 $ 311,525,605 $ 15,440,393
- --------------------------------------------------------------------------------------------------------------------
Cash $ 1,296,947 $ -- $ -- $ 113,835
Receivable for investments sold 20,000 -- 30,000 --
Interest receivable 725,659 3,741,489 4,292,411 212,154
- --------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $ 61,902,673 $ 310,319,459 $ 315,848,016 $ 15,766,382
- --------------------------------------------------------------------------------------------------------------------
Liabilities
- --------------------------------------------------------------------------------------------------------------------
Payable for when-issued
securities $ 1,500,933 $ -- $ -- $ --
Demand note payable -- 900,000 900,000 --
Due to bank -- 57,990 63,017 --
Payable to affiliate for
Trustees' fees 495 198 -- --
Other accrued expenses 8,377 27,864 11,708 1,230
- --------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,509,805 $ 986,052 $ 974,725 $ 1,230
- --------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO
INVESTORS' INTEREST IN
PORTFOLIO $ 60,392,868 $ 309,333,407 $ 314,873,291 $ 15,765,152
- --------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
- --------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $ 57,663,993 $ 295,580,914 $ 307,916,894 $ 15,155,496
Net unrealized appreciation
(computed on the basis of
identified cost) 2,728,875 13,752,493 6,956,397 609,656
- --------------------------------------------------------------------------------------------------------------------
TOTAL $ 60,392,868 $ 309,333,407 $ 314,873,291 $ 15,765,152
- --------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
53
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
Investment Income
- -------------------------------------------------------------------------------------------------------------------------
Interest $ 5,809,056 $ 2,288,094 $ 9,315,502 $ 6,820,667
- -------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 5,809,056 $ 2,288,094 $ 9,315,502 $ 6,820,667
- -------------------------------------------------------------------------------------------------------------------------
Expenses
- -------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 386,713 $ 94,915 $ 681,988 $ 477,860
Trustees fees and expenses 11,416 2,252 16,589 11,416
Custodian fee 56,035 31,070 82,024 68,143
Legal and accounting services 25,516 19,943 26,242 26,017
Miscellaneous 20,925 8,701 9,320 22,608
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 500,605 $ 156,881 $ 816,163 $ 606,044
- -------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 10,309 $ 15,739 $ 26,891 $ 15,327
- -------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 10,309 $ 15,739 $ 26,891 $ 15,327
- -------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 490,296 $ 141,142 $ 789,272 $ 590,717
- -------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 5,318,760 $ 2,146,952 $ 8,526,230 $ 6,229,950
- -------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- -------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 1,691,721 $ 766,484 $ 1,248,465 $ 2,187,074
Financial futures contracts (69,065) 4,864 (12,636) 30,318
Options -- 39,791 199,446 --
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 1,622,656 $ 811,139 $ 1,435,275 $ 2,217,392
- -------------------------------------------------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
--
Investments (identified cost
basis) $ (4,991,842) $ (2,291,100) $ (5,186,083) $ (6,721,063)
Financial futures contracts 30,843 1,935 8,127 34,736
- -------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $ (4,960,999) $ (2,289,165) $ (5,177,956) $ (6,686,327)
- -------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (3,338,343) $ (1,478,026) $ (3,742,681) $ (4,468,935)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,980,417 $ 668,926 $ 4,783,549 $ 1,761,015
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
54
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------
Investment Income
- ---------------------------------------------------------------------------------------------------------------------------
Interest $ 3,776,714 $ 19,527,919 $ 20,690,242 $ 987,080
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 3,776,714 $ 19,527,919 $ 20,690,242 $ 987,080
- ---------------------------------------------------------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 217,205 $ 1,481,949 $ 1,558,973 $ 26,732
Trustees fees and expenses 9,395 25,838 25,379 452
Custodian fee 39,611 157,661 186,114 14,986
Legal and accounting services 23,746 38,343 38,117 17,817
Miscellaneous 13,942 44,230 49,633 5,478
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 303,899 $ 1,748,021 $ 1,858,216 $ 65,465
- ---------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 12,061 $ 34,765 $ 119,854 $ 5,457
- ---------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 12,061 $ 34,765 $ 119,854 $ 5,457
- ---------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 291,838 $ 1,713,256 $ 1,738,362 $ 60,008
- ---------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,484,876 $ 17,814,663 $ 18,951,880 $ 927,072
- ---------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
- ---------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ 753,339 $ 6,342,302 $ 5,782,186 $ 329,438
Financial futures contracts 95,090 740,361 85,296 --
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN $ 848,429 $ 7,082,663 $ 5,867,482 $ 329,438
- ---------------------------------------------------------------------------------------------------------------------------
Change in unrealized
appreciation (depreciation)
--
Investments (identified cost
basis) $ (3,114,319) $ (19,108,966) $ (18,419,989) $ (862,443)
Financial futures contracts 11,880 59,400 98,076 --
- ---------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $ (3,102,439) $ (19,049,566) $ (18,321,913) $ (862,443)
- ---------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (2,254,010) $ (11,966,903) $ (12,454,431) $ (533,005)
- ---------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 1,230,866 $ 5,847,760 $ 6,497,449 $ 394,067
- ---------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
55
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net
Assets ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,318,760 $ 2,146,952 $ 8,526,230 $ 6,229,950
Net realized gain 1,622,656 811,139 1,435,275 2,217,392
Net change in unrealized
appreciation
(depreciation) (4,960,999) (2,289,165) (5,177,956) (6,686,327)
- -----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 1,980,417 $ 668,926 $ 4,783,549 $ 1,761,015
- -----------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 13,039,976 $ 3,990,873 $ 15,311,591 $ 5,494,726
Withdrawals (23,779,211) (6,586,932) (27,156,440) (28,028,857)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $(10,739,235) $(2,596,059) $(11,844,849) $(22,534,131)
- -----------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (8,758,818) $(1,927,133) $ (7,061,300) $(20,773,116)
- -----------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------
At beginning of year $103,092,106 $39,801,200 $164,954,888 $130,236,468
- -----------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 94,333,288 $37,874,067 $157,893,588 $109,463,352
- -----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1999
<TABLE>
<CAPTION>
Increase (Decrease) in Net
Assets MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,484,876 $ 17,814,663 $ 18,951,880 $ 927,072
Net realized gain 848,429 7,082,663 5,867,482 329,438
Net change in unrealized
appreciation
(depreciation) (3,102,439) (19,049,566) (18,321,913) (862,443)
- -------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS
FROM OPERATIONS $ 1,230,866 $ 5,847,760 $ 6,497,449 $ 394,067
- -------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 6,142,642 $ 37,233,317 $ 25,746,805 $ 980,095
Withdrawals (13,964,317) (62,376,808) (76,902,838) (3,446,497)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS
FROM CAPITAL TRANSACTIONS $ (7,821,675) $(25,143,491) $(51,156,033) $(2,466,402)
- -------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (6,590,809) $(19,295,731) $(44,658,584) $(2,072,335)
- -------------------------------------------------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 66,983,677 $328,629,138 $359,531,875 $17,837,487
- -------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 60,392,868 $309,333,407 $314,873,291 $15,765,152
- -------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 5,610,913 $ 2,226,153 $ 8,810,104 $ 7,237,297
Net realized gain (loss) 2,209,801 468,233 (472,006) 2,386,197
Net change in unrealized appreciation
(depreciation) (945,220) (390,688) 1,757,677 (1,160,625)
- ---------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 6,875,494 $ 2,303,698 $ 10,095,775 $ 8,462,869
- ---------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 8,495,182 $ 4,707,220 $ 9,761,887 $ 5,251,473
Withdrawals (24,750,363) (9,834,162) (29,880,364) (33,701,520)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(16,255,181) $(5,126,942) $(20,118,477) $(28,450,047)
- ---------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (9,379,687) $(2,823,244) $(10,022,702) $(19,987,178)
- ---------------------------------------------------------------------------------------------------------------------------------
Net Assets
- ---------------------------------------------------------------------------------------------------------------------------------
At beginning of year $112,471,793 $42,624,444 $174,977,590 $150,223,646
- ---------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $103,092,106 $39,801,200 $164,954,888 $130,236,468
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 1998
<TABLE>
<CAPTION>
Increase (Decrease) in Net Assets MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,612,278 $ 18,732,197 $ 21,632,540 $ 1,099,441
Net realized gain 701,035 1,707,025 2,080,757 476,323
Net change in unrealized appreciation
(depreciation) (236,413) 983,456 (7,214,291) (276,213)
- -----------------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 4,076,900 $ 21,422,678 $ 16,499,006 $ 1,299,551
- -----------------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 4,912,748 $ 28,452,460 $ 23,151,071 $ 710,511
Withdrawals (12,679,645) (74,018,070) (82,338,942) (5,848,716)
- -----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $ (7,766,897) $(45,565,610) $(59,187,871) $(5,138,205)
- -----------------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $ (3,689,997) $(24,142,932) $(42,688,865) $(3,838,654)
- -----------------------------------------------------------------------------------------------------------------------------------
Net Assets
- -----------------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 70,673,674 $352,772,070 $402,220,740 $21,676,141
- -----------------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 66,983,677 $328,629,138 $359,531,875 $17,837,487
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
59
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
-----------------------------------------------------------------
YEAR ENDED JULY 31,
-----------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- ------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- ------------------------------------------------------------------------------------------------------------
Expenses(1) 0.49% 0.50% 0.50% 0.51% 0.52%
Expenses after custodian fee reduction 0.48% 0.48% 0.49% 0.50% --
Net investment income 5.21% 5.27% 5.56% 5.53% 5.81%
Portfolio Turnover 38% 23% 10% 18% 22%
- ------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 94,333 $ 103,092 $ 112,472 $ 129,862 $ 144,521
- ------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
60
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- --------------------------------------------------------------------------------------------------------
Net expenses(1) 0.39% 0.40% 0.40% 0.40% 0.25%
Net expenses after custodian fee
reduction 0.35% 0.37% 0.36% 0.36% --
Net investment income 5.36% 5.49% 5.86% 5.75% 6.05%
Portfolio Turnover 33% 18% 14% 53% 52%
- --------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 37,874 $ 39,801 $ 42,624 $ 45,416 $ 46,077
- --------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser, or both. Had such action not been taken, the ratios
would have been as follows:
Expenses(1) 0.42% 0.40%
Expenses after custodian fee reduction 0.38% --
Net investment income 5.73% 5.90%
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses(1) 0.50% 0.51% 0.53% 0.52% 0.53%
Expenses after custodian fee reduction 0.48% 0.50% 0.53% 0.50% --
Net investment income 5.15% 5.20% 5.50% 5.49% 5.77%
Portfolio Turnover 18% 7% 11% 23% 29%
- -------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 157,894 $ 164,955 $ 174,978 $ 187,617 $ 195,276
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses(1) 0.49% 0.50% 0.52% 0.54% 0.48%
Expenses after custodian fee reduction 0.48% 0.48% 0.50% 0.52% --
Net investment income 5.10% 5.19% 5.45% 5.50% 5.85%
Portfolio Turnover 31% 26% 16% 49% 54%
- -------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 109,463 $ 130,236 $ 150,224 $ 173,465 $ 191,263
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
-------------------------------------------------------------
YEAR ENDED JULY 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% 0.48% 0.47%
Expenses after custodian fee reduction 0.44% 0.45% 0.44% 0.46% --
Net investment income 5.28% 5.28% 5.71% 5.69% 5.83%
Portfolio Turnover 19% 23% 22% 45% 76%
- --------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 60,393 $ 66,984 $ 70,674 $ 76,090 $ 82,968
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses(1) 0.53% 0.54% 0.54% 0.53% 0.52%
Expenses after custodian fee reduction 0.52% 0.52% 0.52% 0.52% --
Net investment income 5.39% 5.52% 5.84% 5.82% 5.96%
Portfolio Turnover 32% 14% 24% 39% 54%
- -------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 309,333 $ 328,629 $ 352,772 $ 386,244 $ 411,038
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
------------------------------------------------------------------
YEAR ENDED JULY 31,
------------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- -------------------------------------------------------------------------------------------------------------
Ratios to average daily net assets
- -------------------------------------------------------------------------------------------------------------
Expenses(1) 0.54% 0.54% 0.55% 0.54% 0.49%
Expenses after custodian fee reduction 0.50% 0.50% 0.51% 0.50% --
Net investment income 5.49% 5.66% 5.96% 5.90% 6.02%
Portfolio Turnover 27% 13% 17% 30% 44%
- -------------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 314,873 $ 359,532 $ 402,221 $ 448,182 $ 502,250
- -------------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TEXAS PORTFOLIO
-------------------------------------------------------------
YEAR ENDED JULY 31,
-------------------------------------------------------------
1999 1998 1997 1996 1995
<S> <C> <C> <C> <C> <C>
- --------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- --------------------------------------------------------------------------------------------------------
Net expenses(1) 0.39% 0.38% 0.37% 0.32% 0.08%
Net expenses after custodian fee
reduction 0.36% 0.35% 0.35% 0.27% --
Net investment income 5.50% 5.58% 5.79% 5.81% 6.20%
Portfolio Turnover 55% 17% 17% 39% 49%
- --------------------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR (000'S OMITTED) $ 15,765 $ 17,837 $ 21,676 $ 24,367 $ 28,227
- --------------------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment adviser fee, an
allocation of expenses to the Investment Adviser, or both. Had such action not been taken, the ratios
would have been as follows:
Expenses(1) 0.42% 0.35%
Expenses after custodian fee reduction 0.37% --
Net investment income 5.71% 5.93%
- --------------------------------------------------------------------------------------------------------
</TABLE>
(1) The expense ratios for the year ended July 31, 1996 and periods thereafter
have been adjusted to reflect a change in reporting requirements. The new
reporting guidelines require the Portfolio to increase its expense ratio by
the effect of any expense offset arrangements with its service providers.
The expense ratio for the year ended July 31, 1995 has not been adjusted to
reflect this change.
SEE NOTES TO FINANCIAL STATEMENTS
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS
1 Significant Accounting Policies
- -------------------------------------------
Arizona Municipals Portfolio (Arizona Portfolio), Colorado Municipals
Portfolio (Colorado Portfolio), Connecticut Municipals Portfolio (Connecticut
Portfolio), Michigan Municipals Portfolio (Michigan Portfolio), Minnesota
Municipals Portfolio (Minnesota Portfolio), New Jersey Municipals Portfolio
(New Jersey Portfolio), Pennsylvania Municipals Portfolio (Pennsylvania
Portfolio) and Texas Municipals Portfolio (Texas Portfolio), collectively the
Portfolios, are registered under the Investment Company Act of 1940 as
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. Futures contracts and options on
futures contracts listed on commodity exchanges are valued at closing
settlement prices. Over-the-counter options on financial futures contracts
are normally valued at the mean between the latest bid and asked prices.
Short-term obligations, maturing in sixty days or less, are valued at
amortized cost, which approximates value. Investments for which valuations or
market quotations are unavailable are valued at fair value using methods
determined in good faith by or at the direction of the Trustees.
B Income -- Interest income is determined on the basis of interest accrued,
adjusted for amortization of premium or discount when required for federal
income tax purposes.
C Federal Income Taxes -- The Portfolios are treated as partnerships for
federal tax purposes. No provision is made by the Portfolios for federal or
state taxes on any taxable income of the Portfolios because each investor in
the Portfolios is ultimately responsible for the payment of any taxes. Since
some of the Portfolios' investors are regulated investment companies that
invest all or substantially all of their assets in the Portfolios, the
Portfolios normally must satisfy the applicable source of income and
diversification requirements (under the Internal Revenue Code) in order for
their respective investors to satisfy them. The Portfolios will allocate at
least annually among their respective investors each investor's distributive
share of the Portfolios' net taxable (if any) and tax-exempt investment
income, net realized capital gains, and any other items of income, gain,
loss, deduction or credit. Interest income received by the Portfolios on
investments in municipal bonds, which is excludable from gross income under
the Internal Revenue Code, will retain its status as income exempt from
federal income tax when allocated to each Portfolio's investors. The portion
of such interest, if any, earned on private activity bonds issued after
August 7, 1986, may be considered a tax preference item for investors.
D Financial Futures Contracts -- Upon the entering of a financial futures
contract, a Portfolio is required to deposit ("initial margin") either in
cash or securities an amount equal to a certain percentage of the purchase
price indicated in the financial futures contract. Subsequent payments are
made or received by a Portfolio ("margin maintenance") each day, dependent on
the daily fluctuations in the value of the underlying security, and are
recorded for book purposes as unrealized gains or losses by a Portfolio. A
Portfolio's investment in financial futures contracts is designed only to
hedge against anticipated future changes in interest rates. Should interest
rates move unexpectedly, a Portfolio may not achieve the anticipated benefits
of the financial futures contracts and may realize a loss.
E Options on Financial Futures Contracts -- Upon the purchase of a put option
on a financial futures contract by a Portfolio, the premium paid is recorded
as an investment, the value of which is marked-to-market daily. When a
purchased option expires, a Portfolio will realize a loss in the amount of
the cost of the option. When a Portfolio enters into a closing sale
transaction, the Portfolio will realize a gain or loss depending on whether
the sales proceeds from the closing sale transaction are greater or less than
the cost of the option. When a Portfolio exercises a put option, settlement
is made in cash. The risk associated with purchasing options is limited to
the premium originally paid.
F When-issued and Delayed Delivery
Transactions -- The Portfolios may engage in when-issued or delayed delivery
transactions. The Portfolios record when-issued securities on trade date and
maintain security positions such that sufficient liquid assets will be
available to make payments for the securities purchased. Securities purchased
on a when-issued or delayed delivery basis are marked-to-market daily and
begin earning interest on settlement date.
G Other -- Investment transactions are accounted for on a trade date basis.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the custodian agreements, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances each Portfolio maintains with
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
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.
I Use of Estimates -- The preparation of 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 July 31, 1999, each Portfolio paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
- -----------------------------------------------------------------------
Arizona $ 386,713 0.38%
Colorado 94,915 0.24%
Connecticut 681,988 0.41%
Michigan 477,860 0.39%
Minnesota 217,205 0.33%
New Jersey 1,481,949 0.45%
Pennsylvania 1,558,973 0.45%
Texas 26,732 0.16%
</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 July 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 July 31,
1999 were as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 37,865,471
Sales 43,011,588
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 12,878,234
Sales 13,562,553
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 29,185,192
Sales 32,911,750
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 37,953,141
Sales 56,397,404
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 12,489,907
Sales 16,434,221
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 103,679,221
Sales 110,582,448
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 91,876,726
Sales 121,543,776
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
- -------------------------------------------------------
Purchases $ 9,184,002
Sales 10,745,861
</TABLE>
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation (depreciation) in value of the
investments owned by each Portfolio at July 31, 1999, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 89,483,162
- -------------------------------------------------------
Gross unrealized appreciation $ 5,523,875
Gross unrealized depreciation $ (1,356,952)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,166,923
- -------------------------------------------------------
</TABLE>
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
- -------------------------------------------------------
<S> <C>
AGGREGATE COST $ 36,443,369
- -------------------------------------------------------
Gross unrealized appreciation $ 1,654,028
Gross unrealized depreciation (646,552)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,007,476
- -------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 149,320,769
- -------------------------------------------------------
Gross unrealized appreciation $ 7,043,939
Gross unrealized depreciation (1,454,529)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 5,589,410
- -------------------------------------------------------
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 103,767,276
- -------------------------------------------------------
Gross unrealized appreciation $ 5,729,431
Gross unrealized depreciation (1,532,365)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 4,197,066
- -------------------------------------------------------
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 57,131,192
- -------------------------------------------------------
Gross unrealized appreciation $ 3,121,710
Gross unrealized depreciation (392,835)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 2,728,875
- -------------------------------------------------------
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 292,856,660
- -------------------------------------------------------
Gross unrealized appreciation $ 18,735,537
Gross unrealized depreciation (5,014,227)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 13,721,310
- -------------------------------------------------------
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 304,569,208
- -------------------------------------------------------
Gross unrealized appreciation $ 17,886,078
Gross unrealized depreciation (10,929,681)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 6,956,397
- -------------------------------------------------------
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
- -------------------------------------------------------
AGGREGATE COST $ 14,830,737
- -------------------------------------------------------
Gross unrealized appreciation $ 824,688
Gross unrealized depreciation (215,032)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 609,656
- -------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and their affiliates in a committed $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 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 July 31, 1999, the
Arizona Portfolio, New Jersey Portfolio, and Pennsylvania Portfolio had
balances outstanding pursuant to this line of credit of $200,000, $900,000
and $900,000 respectively. The Portfolios did not have any significant
borrowings or allocated fees during the year ended July 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 July 31, 1999, there were no outstanding obligations under these financial
instruments.
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 1999
INDEPENDENT AUDITORS' REPORT
TO THE TRUSTEES AND INVESTORS OF ARIZONA MUNICIPALS PORTFOLIO, COLORADO
MUNICIPALS PORTFOLIO, CONNECTICUT MUNICIPALS PORTFOLIO, MICHIGAN MUNICIPALS
PORTFOLIO, MINNESOTA MUNICIPALS PORTFOLIO, NEW JERSEY MUNICIPALS PORTFOLIO,
PENNSYLVANIA MUNICIPALS PORTFOLIO AND TEXAS MUNICIPALS PORTFOLIO:
- ---------------------------------------------
We have audited the accompanying statements of assets and liabilities, including
the portfolios of investments, of Arizona Municipals Portfolio, Colorado
Municipals Portfolio, Connecticut Municipals Portfolio, Michigan Municipals
Portfolio, Minnesota Municipals Portfolio, New Jersey Municipals Portfolio,
Pennsylvania Municipals Portfolio and Texas Municipals Portfolio as of July 31,
1999, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended July 31, 1999 and 1998
and supplementary data for each of the years in the five year period ended July
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 July 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 Arizona Municipals
Portfolio, Colorado Municipals Portfolio, Connecticut Municipals Portfolio,
Michigan Municipals Portfolio, Minnesota Municipals Portfolio, New Jersey
Municipals Portfolio, Pennsylvania Municipals Portfolio and Texas Municipals
Portfolio at July 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
September 3, 1999
71
<PAGE>
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Colorado and
Connecticut Municipals Portfolios
Timothy T. Browse
Vice President and Portfolio
Manager of Michigan
and Pennsylvania
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Arizona
Municipals Portfolio
Robert B. MacIntosh
Vice President and Portfolio
Manager of Minnesota and New
Jersey Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio
Manager of Texas
Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking
Emeritus, Harvard University Graduate School of Business Administration
Norton H. Reamer
Chairman and Chief Executive Officer,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
72
