<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS
TAX-EXEMPT INVESTMENTS -- 98.3%
<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 $ 5,331,200
2,645 Chester IDA, (Senior Life Choice of
Paoli, L.P.), (AMT), 8.05%, 1/1/24 2,726,730
2,565 Delaware IDA, (Glen Riddle), (AMT),
8.625%, 9/1/25 2,752,031
-------------------------------------------------------------------------
$ 10,809,961
-------------------------------------------------------------------------
Certificates of Participation -- 0.8%
-------------------------------------------------------------------------
$ 2,000 Cliff House Trust, (AMT),
6.625%, 6/21/27 $ 1,822,240
-------------------------------------------------------------------------
$ 1,822,240
-------------------------------------------------------------------------
Cogeneration -- 2.5%
-------------------------------------------------------------------------
$ 6,000 Pennsylvania EDA, (Northampton
Generating), (AMT), 6.50%, 1/1/13 $ 5,864,940
-------------------------------------------------------------------------
$ 5,864,940
-------------------------------------------------------------------------
Education -- 5.1%
-------------------------------------------------------------------------
$ 1,100 Lehigh County General Purpose Authority,
(Cedar Crest College), 6.70%, 4/1/26 $ 1,114,509
3,000 Pennsylvania Higher Education Facilities
Authority, (Delaware Valley College of
Science and Agriculture),
5.35%, 4/15/28 2,545,950
1,800 Pennsylvania Higher Education Facilities
Authority, (Geneva College),
5.375%, 4/1/23 1,564,254
3,000 Pennsylvania Higher Education Facilities
Authority, (University of Pennsylvania),
4.625%, 7/15/30 2,492,550
4,225 Scranton-Lackawanna Health & Welfare
Authority, (University of Scranton),
6.40%, 3/1/07 4,400,464
-------------------------------------------------------------------------
$ 12,117,727
-------------------------------------------------------------------------
Escrowed / Prerefunded -- 7.6%
-------------------------------------------------------------------------
$ 7,500 Keystone Oaks School District, (AMBAC),
Prerefunded to 9/1/02, Variable Rate,
9/1/16(1) $ 8,100,000
5,000 Philadelphia HEFA, (Pennsylvania
Hospital), (FGIC), Prerefunded to
2/15/04, Variable Rate, 3/6/12(1) 4,831,250
4,845 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/19 1,631,360
5,400 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20 1,710,504
5,780 Westmoreland Municipal Authority,
(FGIC), Escrowed to Maturity,
0.00%, 8/15/20 1,830,873
-------------------------------------------------------------------------
$ 18,103,987
-------------------------------------------------------------------------
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
General Obligations -- 4.3%
-------------------------------------------------------------------------
$ 5,600 Berks County, (FGIC), Partially
Prerefunded to 12/01/02, Variable Rate,
11/10/20(1)(2) $ 6,216,000
3,000 Dauphin County, 6.90%, 6/1/26 3,100,290
1,000 Puerto Rico, 4.75%, 7/1/23 881,000
-------------------------------------------------------------------------
$ 10,197,290
-------------------------------------------------------------------------
Health Care -- 0.2%
-------------------------------------------------------------------------
$ 500 Montgomery County Higher Education and
Health Authority Revenue, (Faulkeways at
Gwynedd), 6.75%, 11/15/24 $ 490,060
-------------------------------------------------------------------------
$ 490,060
-------------------------------------------------------------------------
Health Care-Miscellaneous -- 1.4%
-------------------------------------------------------------------------
$ 3,500 Chester County HEFA, (Devereux
Foundation), 6.00%, 11/1/29 $ 3,300,080
-------------------------------------------------------------------------
$ 3,300,080
-------------------------------------------------------------------------
Hospital -- 11.8%
-------------------------------------------------------------------------
$ 5,330 Allegheny County HDA, (St. Francis
Medical Center), 5.75%, 5/15/27 $ 3,897,083
2,000 Allegheny County HDA, (Villa
St. Joseph), 6.00%, 8/15/28 1,650,680
1,275 Allegheny County HDA, (West Penn
Allegheny Health), 9.25%, 11/15/15(3) 1,244,234
2,170 Allegheny County IDA, (Presbyterian
Medical Center), 6.75%, 2/1/26 2,292,865
1,150 Horizon Hospital Systems Authority,
(Horizon Hospital Systems, Inc.),
6.35%, 5/15/26 1,017,692
2,670 Indiana County Hospital Authority,
(Indiana Hospital), 7.125%, 7/1/23 2,804,595
2,550 Monroeville Hospital Authority, (Forbes
Health System), 6.25%, 10/1/15 2,040,000
1,375 Montgomery Hospital Authority,
(Montgomery Hospital Medical Center),
6.60%, 7/1/10 1,360,164
5,626 Philadelphia HEFA, (Graduate Health
System), 6.625%, 7/1/21(4) 1,954,969
7,116 Philadelphia HEFA, (Graduate Health
System), 7.25%, 7/1/18(4) 2,472,827
7,000 Washington County Hospital Authority,
(Monongahela Valley Hospital),
6.75%, 12/1/08 7,292,250
-------------------------------------------------------------------------
$ 28,027,359
-------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
56
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Housing -- 1.3%
-------------------------------------------------------------------------
$ 5 Pittsburgh Urban Redevelopment
Authority, 7.45%, 4/1/10 $ 5,126
3,000 Pittsburgh Urban Redevelopment
Authority, (AMT), 7.10%, 4/1/24 3,153,120
-------------------------------------------------------------------------
$ 3,158,246
-------------------------------------------------------------------------
Industrial Development Revenue -- 17.2%
-------------------------------------------------------------------------
$ 6,450 Butler County IDA, (Witco Corp.),
5.85%, 12/1/23 $ 5,949,351
2,000 Carbon County IDA, (Panther Creek
Partners), 6.65%, 5/1/10 2,019,280
1,005 Clearfield County IDA, (Kmart Corp.),
6.80%, 5/15/07 1,017,723
4,000 Franklin County IDA, (Corning, Inc.),
6.25%, 8/1/05 4,276,200
11,000 New Morgan IDA, (New Morgan Landfill),
(AMT), 6.50%, 4/1/19(5) 9,762,060
5,500 Pennsylvania EDA, (Colver), (AMT),
7.125%, 12/1/15 5,632,275
4,450 Pennsylvania IDA, (Sun Company), (AMT),
7.60%, 12/1/24(5) 4,667,382
6,500 Philadelphia IDA, (Refrigerated
Enterprises), (AMT), 9.05%, 12/1/19 6,356,740
1,105 Shamokin IDA, (Kmart Corp.),
6.70%, 7/1/07 1,111,597
-------------------------------------------------------------------------
$ 40,792,608
-------------------------------------------------------------------------
Insured-Education -- 1.8%
-------------------------------------------------------------------------
$ 3,000 Delaware County, (Villanova University),
(MBIA), 5.00%, 12/1/28 $ 2,689,290
1,805 Northeastern Pennsylvania HEFA, (Wyoming
Seminary), (MBIA), 4.75%, 10/1/28 1,549,177
-------------------------------------------------------------------------
$ 4,238,467
-------------------------------------------------------------------------
Insured-Electric Utilities -- 7.8%
-------------------------------------------------------------------------
$ 3,500 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.00%, 6/1/21 $ 3,630,935
10,000 Beaver IDA, (Ohio Edison Co.), (FGIC),
7.05%, 10/1/20 11,026,800
3,800 Puerto Rico Electric Power Authority,
STRIPES, (FSA), Variable Rate, 7/1/02(1) 3,942,500
-------------------------------------------------------------------------
$ 18,600,235
-------------------------------------------------------------------------
Insured-General Obligations -- 12.9%
-------------------------------------------------------------------------
$ 3,000 Butler School District, (FGIC),
4.75%, 10/1/22 $ 2,618,040
1,000 Butler School District, (FGIC),
5.00%, 10/1/26 902,200
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/20 682,942
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-General Obligations (continued)
-------------------------------------------------------------------------
$ 2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/21 $ 643,427
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/22 606,059
2,170 Elizabeth Forward School District,
(MBIA), 0.00%, 9/1/23 569,495
2,500 Erie School District, (MBIA),
0.00%, 5/1/19 855,775
2,625 Erie School District, (MBIA),
0.00%, 5/1/20 845,381
2,625 Erie School District, (MBIA),
0.00%, 5/1/21 795,034
3,625 Erie School District, (MBIA),
0.00%, 5/1/22 1,032,110
2,365 Harrisburg, (AMBAC), 0.00%, 3/15/17 921,711
5,175 Hazelton School District, (FGIC),
0.00%, 3/1/21 1,579,306
1,000 Hopewell School District, (FSA),
0.00%, 9/1/22 279,290
2,000 Hopewell School District, (FSA),
0.00%, 9/1/26 437,780
1,935 Lancaster, (FGIC), 4.50%, 5/1/28 1,591,731
1,430 Mars Area School District, (MBIA),
0.00%, 3/1/14 678,921
1,000 McGuffey School District, (AMBAC),
4.75%, 8/1/28 858,800
1,400 Penn Manor School District, (FGIC),
5.20%, 6/1/16 1,437,058
1,000 Philadelphia School District, (MBIA),
4.50%, 4/1/23 838,780
3,650 Philadelphia School District, (MBIA),
4.75%, 4/1/27 3,134,547
2,530 Philadelphia, (FSA), 5.00%, 3/15/28 2,260,125
1,000 Ridley School District, (FGIC),
5.00%, 11/15/29 897,520
655 Rochester Area School District, (AMBAC),
0.00%, 5/1/10 397,257
4,000 Spring Ford School District, (FGIC),
4.75%, 3/1/25 3,469,720
1,400 Upper Darby School District, (AMBAC),
5.00%, 5/1/19 1,300,824
1,000 Venango County, (AMBAC), 6.30%, 12/1/19 1,034,620
-------------------------------------------------------------------------
$ 30,668,453
-------------------------------------------------------------------------
Insured-Hospital -- 6.5%
-------------------------------------------------------------------------
$ 3,750 Allegheny County Hospital Authority,
(Magee-Womens Hospital), (FGIC),
0.00%, 10/1/15 $ 1,617,938
2,500 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.00%, 8/15/08 2,585,025
1,400 Armstrong County Hospital Authority,
(Saint Francis Health Care), (AMBAC),
6.25%, 6/1/13 1,461,376
1,700 Dauphin County Hospital Authority,
(Pinnacle Health System), (MBIA),
5.00%, 8/15/27 1,494,249
3,000 Delaware County Hospital Authority,
(Riddle Memorial Hospital), (FSA),
5.00%, 1/1/28 2,633,310
1,250 Montgomery County HEFA, (Pottstown
Healthcare Corp.), (FSA), 5.00%, 1/1/27 1,101,063
4,000 Pennsylvania HEFA, (UPMC Health System),
(FSA), 5.00%, 8/1/29 3,566,200
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
57
<PAGE>
PENNSYLVANIA MUNICIPALS PORTFOLIO AS OF JULY 31, 2000
PORTFOLIO OF INVESTMENTS CONT'D
<TABLE>
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Insured-Hospital (continued)
-------------------------------------------------------------------------
$ 1,250 Sharon Health System Authority, (Sharon
Regional Health System), (MBIA),
5.00%, 12/1/28 $ 1,093,763
-------------------------------------------------------------------------
$ 15,552,924
-------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.8%
-------------------------------------------------------------------------
$ 2,500 Pennsylvania Turnpike Commission Oil
Franchise, (AMBAC), Variable Rate,
12/1/27(1)(6) $ 1,802,450
-------------------------------------------------------------------------
$ 1,802,450
-------------------------------------------------------------------------
Insured-Transportation -- 0.6%
-------------------------------------------------------------------------
$ 2,000 Southeastern Pennsylvania Transit
Authority, (FGIC), Variable Rate,
3/1/29(1)(6) $ 1,429,340
-------------------------------------------------------------------------
$ 1,429,340
-------------------------------------------------------------------------
Insured-Water and Sewer -- 2.7%
-------------------------------------------------------------------------
$ 1,750 Lower Moreland Township Authority, Sewer
Revenue, (FSA), 5.00%, 8/1/29 $ 1,566,968
1,000 Philadelphia Water and Wastewater,
(FGIC), 7.63%, 6/15/12(1) 1,078,750
1,500 Philadelphia Water and Wastewater,
(FGIC), 7.63%, 6/15/12(1) 1,526,250
2,490 Pittsburgh Water and Sewer Authority,
(FGIC), 4.75%, 9/1/16 2,263,709
-------------------------------------------------------------------------
$ 6,435,677
-------------------------------------------------------------------------
Nursing Home -- 4.3%
-------------------------------------------------------------------------
$ 1,230 Chartiers Valley IDA, (Beverly
Enterprises, Inc.), 5.375%, 6/1/07 $ 1,161,366
190 Clarion County, IDA, (Beverly
Enterprises, Inc.), 5.50%, 5/1/03 184,629
1,700 Crawford County Hospital Authority,
(Wesbury United Methodist Community),
6.25%, 8/15/29 1,491,410
1,510 Green County, IDA, (Beverly Enterprises,
Inc.), 5.75%, 3/1/13 1,316,524
3,405 Montgomery IDA, (Advancement of
Geriatric Health Care Institute),
8.375%, 7/1/23 3,508,172
1,100 Philadelphia HEFA, (The Philadelphia
Protestant Home), 6.50%, 7/1/27 985,050
1,405 Westmoreland County IDA, (Highland
Health Systems, Inc.), 9.25%, 6/1/22 1,493,796
-------------------------------------------------------------------------
$ 10,140,947
-------------------------------------------------------------------------
Senior Living / Life Care -- 3.5%
-------------------------------------------------------------------------
$ 4,050 Delaware County, (White Horse Village),
7.50%, 7/1/18 $ 4,101,314
<CAPTION>
PRINCIPAL AMOUNT
(000'S OMITTED) SECURITY VALUE
<C> <S> <C>
-------------------------------------------------------------------------
Senior Living / Life Care (continued)
-------------------------------------------------------------------------
$ 2,000 Grove City, Area Hospital Authority,
(Grove Manor), 6.625%, 8/15/29 $ 1,773,800
3,060 Hazelton Health Service Authority,
(Hazelton General Hospital),
5.50%, 7/1/27 2,385,239
-------------------------------------------------------------------------
$ 8,260,353
-------------------------------------------------------------------------
Transportation -- 0.7%
-------------------------------------------------------------------------
$ 1,000 Erie Municipal Airport Authority, (AMT),
5.875%, 7/1/16 $ 919,930
865 Puerto Rico Highway and Transportation
Authority, Variable Rate, 7/1/26(6)(7) 841,861
-------------------------------------------------------------------------
$ 1,761,791
-------------------------------------------------------------------------
Total Tax-Exempt Investments -- 98.3%
(identified cost $242,334,742) $233,575,135
-------------------------------------------------------------------------
Other Assets, Less Liabilities -- 1.7% $ 4,117,028
-------------------------------------------------------------------------
Net Assets -- 100.0% $237,692,163
-------------------------------------------------------------------------
</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 economic developments in a specific
industry or municipality. In order to reduce the risk associated with such
economic developments, at July 31, 2000, 44.1% of the securities in the
portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate
percentage insured by financial institutions ranged from 6.8% to 22.0% of
total investments.
(1) Security has been issued as an inverse floater bond.
(2) Security (or a portion thereof) has been segregated to cover margin
requirements on open financial futures contracts.
(3) When-issued security.
(4) Non-income producing security.
(5) Security (or a portion thereof) has been segregated to cover when-
issued securities.
(6) 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.
(7) Security has been issued as a leveraged inverse floater bond.
SEE NOTES TO FINANCIAL STATEMENTS
58
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Assets
----------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $72,176,216 $30,680,138 $131,235,003 $82,790,253
Unrealized appreciation
(depreciation) 849,491 (661,965) 781,255 1,375,472
----------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $73,025,707 $30,018,173 $132,016,258 $84,165,725
----------------------------------------------------------------------------------------------------------------------
Cash $ -- $ 198,548 $ -- $ 240,392
Interest receivable 680,262 396,072 1,298,540 1,184,225
Receivable for daily variation
margin on open
financial futures contracts 2,250 1,000 4,250 1,500
Prepaid expenses -- 14,642 20,676 --
----------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $73,708,219 $30,628,435 $133,339,724 $85,591,842
----------------------------------------------------------------------------------------------------------------------
Liabilities
----------------------------------------------------------------------------------------------------------------------
Demand note payable $ -- $ -- $ 100,000 $ --
Due to bank 70,088 -- 84,673 --
Payable to affiliate for Trustees'
fees 100 -- -- --
Accrued expenses 14,028 8,758 18,396 15,374
----------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 84,216 $ 8,758 $ 203,069 $ 15,374
----------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $73,624,003 $30,619,677 $133,136,655 $85,576,468
----------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
----------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $72,776,299 $31,280,563 $132,350,814 $84,199,378
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 847,704 (660,886) 785,841 1,377,090
----------------------------------------------------------------------------------------------------------------------
TOTAL $73,624,003 $30,619,677 $133,136,655 $85,576,468
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
61
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF ASSETS AND LIABILITIES
AS OF JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Assets
------------------------------------------------------------------------------------------------------------------------
Investments --
Identified cost $47,429,619 $245,018,182 $242,334,742 $10,494,957
Unrealized appreciation
(depreciation) 763,796 405,221 (8,759,607) 235,268
------------------------------------------------------------------------------------------------------------------------
INVESTMENTS, AT VALUE $48,193,415 $245,423,403 $233,575,135 $10,730,225
------------------------------------------------------------------------------------------------------------------------
Cash $ 486,566 $ 28,950 $ 1,802,077 $ 110,717
Receivable for investments sold -- -- 337,163 --
Interest receivable 652,240 2,947,883 3,273,676 161,737
Receivable for daily variation
margin on open
financial futures contracts -- -- 7,500 --
Prepaid expenses 16,523 35,714 -- 15,053
------------------------------------------------------------------------------------------------------------------------
TOTAL ASSETS $49,348,744 $248,435,950 $238,995,551 $11,017,732
------------------------------------------------------------------------------------------------------------------------
Liabilities
------------------------------------------------------------------------------------------------------------------------
Payable for daily variation margin
on open
financial futures contracts $ 437 $ 3,750 $ -- $ --
Payable for when-issued securities 490,276 -- 1,269,517 --
Payable to affiliate for Trustees'
fees 78 -- -- --
Accrued expenses 10,065 32,683 33,871 7,312
------------------------------------------------------------------------------------------------------------------------
TOTAL LIABILITIES $ 500,856 $ 36,433 $ 1,303,388 $ 7,312
------------------------------------------------------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS'
INTEREST IN PORTFOLIO $48,847,888 $248,399,517 $237,692,163 $11,010,420
------------------------------------------------------------------------------------------------------------------------
Sources of Net Assets
------------------------------------------------------------------------------------------------------------------------
Net proceeds from capital
contributions and withdrawals $48,131,915 $248,404,207 $246,457,725 $10,775,152
Net unrealized appreciation
(depreciation) (computed on the
basis of identified cost) 715,973 (4,690) (8,765,562) 235,268
------------------------------------------------------------------------------------------------------------------------
TOTAL $48,847,888 $248,399,517 $237,692,163 $11,010,420
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
62
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------
Investment Income
----------------------------------------------------------------------------------------------------------------------
Interest $ 4,937,160 $ 2,062,167 $ 8,476,848 $ 5,768,485
----------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 4,937,160 $ 2,062,167 $ 8,476,848 $ 5,768,485
----------------------------------------------------------------------------------------------------------------------
Expenses
----------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 291,302 $ 75,588 $ 581,800 $ 355,554
Trustees fees and expenses 8,969 2,520 13,128 10,215
Legal and accounting services 51,512 20,684 26,874 50,542
Custodian fee 50,359 24,926 78,954 45,804
Miscellaneous 12,769 8,131 15,439 18,919
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 414,911 $ 131,849 $ 716,195 $ 481,034
----------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 8,590 $ 10,802 $ 33,055 $ --
----------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 8,590 $ 10,802 $ 33,055 $ --
----------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 406,321 $ 121,047 $ 683,140 $ 481,034
----------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 4,530,839 $ 1,941,120 $ 7,793,708 $ 5,287,451
----------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
----------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (527,758) $ (9,486) $ (388,620) $(1,675,035)
Financial futures contracts (1,488) 6,302 21,285 38,732
Written options -- (5,327) (22,830) --
----------------------------------------------------------------------------------------------------------------------
NET REALIZED LOSS $ (529,246) $ (8,511) $ (390,165) $(1,636,303)
----------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(3,317,432) $(1,669,441) $(4,808,155) $(2,821,594)
Financial futures contracts (1,787) 1,079 4,586 1,618
----------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(3,319,219) $(1,668,362) $(4,803,569) $(2,819,976)
----------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(3,848,465) $(1,676,873) $(5,193,734) $(4,456,279)
----------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 682,374 $ 264,247 $ 2,599,974 $ 831,172
----------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
63
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF OPERATIONS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------------------------------
Investment Income
------------------------------------------------------------------------------------------------------------------------
Interest $ 3,280,707 $ 17,202,166 $ 17,367,690 $ 818,649
------------------------------------------------------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 3,280,707 $ 17,202,166 $ 17,367,690 $ 818,649
------------------------------------------------------------------------------------------------------------------------
Expenses
------------------------------------------------------------------------------------------------------------------------
Investment adviser fee $ 158,394 $ 1,216,412 $ 1,223,892 $ 21,272
Trustees fees and expenses 8,789 20,170 20,368 536
Legal and accounting services 22,671 43,610 81,494 19,739
Custodian fee 34,419 114,342 146,348 15,936
Miscellaneous 10,648 50,981 77,417 4,669
------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSES $ 234,921 $ 1,445,515 $ 1,549,519 $ 62,152
------------------------------------------------------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 11,319 $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 11,319 $ -- $ -- $ --
------------------------------------------------------------------------------------------------------------------------
NET EXPENSES $ 223,602 $ 1,445,515 $ 1,549,519 $ 62,152
------------------------------------------------------------------------------------------------------------------------
NET INVESTMENT INCOME $ 3,057,105 $ 15,756,651 $ 15,818,171 $ 756,497
------------------------------------------------------------------------------------------------------------------------
Realized and Unrealized Gain (Loss)
------------------------------------------------------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions
(identified cost basis) $ (607,081) $ (11,015) $ 210,641 $ (291,804)
Financial futures contracts (1,277) (6,305) 11,827 --
------------------------------------------------------------------------------------------------------------------------
NET REALIZED GAIN (LOSS) $ (608,358) $ (17,320) $ 222,468 $ (291,804)
------------------------------------------------------------------------------------------------------------------------
Change in unrealized appreciation
(depreciation) --
Investments (identified cost
basis) $(1,965,079) $(13,347,272) $(15,716,004) $ (374,388)
Financial futures contracts (47,823) (409,911) (5,955) --
------------------------------------------------------------------------------------------------------------------------
NET CHANGE IN UNREALIZED
APPRECIATION (DEPRECIATION) $(2,012,902) $(13,757,183) $(15,721,959) $ (374,388)
------------------------------------------------------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $(2,621,260) $(13,774,503) $(15,499,491) $ (666,192)
------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 435,845 $ 1,982,148 $ 318,680 $ 90,305
------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
64
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS ARIZONA PORTFOLIO COLORADO PORTFOLIO CONNECTICUT PORTFOLIO MICHIGAN PORTFOLIO
<S> <C> <C> <C> <C>
--------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 4,530,839 $ 1,941,120 $ 7,793,708 $ 5,287,451
Net realized loss (529,246) (8,511) (390,165) (1,636,303)
Net change in unrealized appreciation
(depreciation) (3,319,219) (1,668,362) (4,803,569) (2,819,976)
--------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 682,374 $ 264,247 $ 2,599,974 $ 831,172
--------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 5,242,737 $ 2,519,178 $ 9,001,578 $ 4,120,260
Withdrawals (26,634,396) (10,037,815) (36,358,485) (28,838,316)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(21,391,659) $ (7,518,637) $(27,356,907) $(24,718,056)
--------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(20,709,285) $ (7,254,390) $(24,756,933) $(23,886,884)
--------------------------------------------------------------------------------------------------------------------------
Net Assets
--------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 94,333,288 $ 37,874,067 $157,893,588 $109,463,352
--------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 73,624,003 $ 30,619,677 $133,136,655 $ 85,576,468
--------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
65
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
FOR THE YEAR ENDED JULY 31, 2000
<TABLE>
<CAPTION>
INCREASE (DECREASE) IN NET ASSETS MINNESOTA PORTFOLIO NEW JERSEY PORTFOLIO PENNSYLVANIA PORTFOLIO TEXAS PORTFOLIO
<S> <C> <C> <C> <C>
----------------------------------------------------------------------------------------------------------------------------
From operations --
Net investment income $ 3,057,105 $ 15,756,651 $ 15,818,171 $ 756,497
Net realized gain (loss) (608,358) (17,320) 222,468 (291,804)
Net change in unrealized appreciation
(depreciation) (2,012,902) (13,757,183) (15,721,959) (374,388)
----------------------------------------------------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
OPERATIONS $ 435,845 $ 1,982,148 $ 318,680 $ 90,305
----------------------------------------------------------------------------------------------------------------------------
Capital transactions --
Contributions $ 3,948,681 $ 12,359,592 $ 9,874,314 $ 526,482
Withdrawals (15,929,506) (75,275,630) (87,374,122) (5,371,519)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM CAPITAL
TRANSACTIONS $(11,980,825) $(62,916,038) $(77,499,808) $(4,845,037)
----------------------------------------------------------------------------------------------------------------------------
NET DECREASE IN NET ASSETS $(11,544,980) $(60,933,890) $(77,181,128) $(4,754,732)
----------------------------------------------------------------------------------------------------------------------------
Net Assets
----------------------------------------------------------------------------------------------------------------------------
At beginning of year $ 60,392,868 $309,333,407 $314,873,291 $15,765,152
----------------------------------------------------------------------------------------------------------------------------
AT END OF YEAR $ 48,847,888 $248,399,517 $237,692,163 $11,010,420
----------------------------------------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
66
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
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
67
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
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
68
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.50% 0.50% 0.51%
Expenses after custodian
fee reduction 0.51% 0.48% 0.48% 0.49% 0.50%
Net investment income 5.67% 5.21% 5.27% 5.56% 5.53%
Portfolio Turnover 25% 38% 23% 10% 18%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $73,624 $94,333 $103,092 $112,472 $129,862
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
69
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
COLORADO PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.39% 0.39% 0.40% 0.40% 0.40%
Net expenses after
custodian fee reduction 0.36% 0.35% 0.37% 0.36% 0.36%
Net investment income 5.85% 5.36% 5.49% 5.86% 5.75%
Portfolio Turnover 14% 33% 18% 14% 53%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $30,620 $37,874 $39,801 $42,624 $45,416
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.42%
Expenses after custodian
fee reduction 0.38%
Net investment income 5.73%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
70
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
CONNECTICUT PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.50% 0.50% 0.51% 0.53% 0.52%
Expenses after custodian
fee reduction 0.48% 0.48% 0.50% 0.53% 0.50%
Net investment income 5.53% 5.15% 5.20% 5.50% 5.49%
Portfolio Turnover 20% 18% 7% 11% 23%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $133,137 $157,894 $164,955 $174,978 $187,617
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
71
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MICHIGAN PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.52% 0.49% 0.50% 0.52% 0.54%
Expenses after custodian
fee reduction 0.52% 0.48% 0.48% 0.50% 0.52%
Net investment income 5.67% 5.10% 5.19% 5.45% 5.50%
Portfolio Turnover 30% 31% 26% 16% 49%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $85,576 $109,463 $130,236 $150,224 $173,465
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
72
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
MINNESOTA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.45% 0.46% 0.47% 0.47% 0.48%
Expenses after custodian
fee reduction 0.43% 0.44% 0.45% 0.44% 0.46%
Net investment income 5.81% 5.28% 5.28% 5.71% 5.69%
Portfolio Turnover 12% 19% 23% 22% 45%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $48,848 $60,393 $66,984 $70,674 $76,090
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
73
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
NEW JERSEY PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.54% 0.53% 0.54% 0.54% 0.53%
Expenses after custodian
fee reduction 0.54% 0.52% 0.52% 0.52% 0.52%
Net investment income 5.91% 5.39% 5.52% 5.84% 5.82%
Portfolio Turnover 26% 32% 14% 24% 39%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $248,400 $309,333 $328,629 $352,772 $386,244
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
74
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Expenses 0.58% 0.54% 0.54% 0.55% 0.54%
Expenses after custodian
fee reduction 0.58% 0.50% 0.50% 0.51% 0.50%
Net investment income 5.92% 5.49% 5.66% 5.96% 5.90%
Portfolio Turnover 18% 27% 13% 17% 30%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $237,692 $314,873 $359,532 $402,221 $448,182
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
75
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
TEXAS PORTFOLIO
--------------------------------------------------------
YEAR ENDED JULY 31,
--------------------------------------------------------
2000 1999 1998 1997 1996
<S> <C> <C> <C> <C> <C>
------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
------------------------------------------------------------------------------------------
Ratios (As a percentage of
average daily net assets):
Net expenses 0.48% 0.39% 0.38% 0.37% 0.32%
Net expenses after
custodian fee reduction 0.48% 0.36% 0.35% 0.35% 0.27%
Net investment income 5.79% 5.50% 5.58% 5.79% 5.81%
Portfolio Turnover 35% 55% 17% 17% 39%
------------------------------------------------------------------------------------------
NET ASSETS, END OF YEAR
(000'S OMITTED) $11,010 $15,765 $17,837 $21,676 $24,367
------------------------------------------------------------------------------------------
+ The operating expenses of the Portfolio may reflect a reduction of the investment
adviser fee, an allocation of expenses to the Investment Adviser, or both. Had such
action not been taken, the ratios would have been as follows:
Ratios (As a percentage of
average daily net assets):
Expenses 0.42%
Expenses after custodian
fee reduction 0.37%
Net investment income 5.71%
------------------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
76
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
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
amended, as diversified open-end management investment companies which were
organized as trusts under the laws of the State of New York on May 1, 1992.
The Portfolios seek to achieve current income, exempt from regular federal
income tax and from particular state or local income or other taxes, by
investing primarily in investment grade municipal obligations. 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.
77
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
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.
G Other -- Investment transactions are accounted for on a trade date basis.
Realized gains and losses are computed based on the specific identification
of the securities sold.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolios. Pursuant to the respective custodian agreements, IBT
receives a fee reduced by credits which are determined based on the average
daily cash balances each Portfolio maintains with IBT. All significant credit
balances used to reduce the Portfolios' custodian fees are reported as a
reduction of total expenses in the Statement of Operations.
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of 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, 2000, each Portfolio paid advisory
fees as follows:
<TABLE>
<CAPTION>
PORTFOLIO AMOUNT EFFECTIVE RATE*
<S> <C> <C>
---------------------------------------------------------------------
Arizona $ 291,302 0.36%
Colorado 75,588 0.23%
Connecticut 581,800 0.41%
Michigan 355,554 0.38%
Minnesota 158,394 0.30%
New Jersey 1,216,412 0.46%
Pennsylvania 1,223,892 0.46%
Texas 21,272 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 who 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, 2000, no significant amounts have been deferred.
Certain officers and Trustees of the Portfolios are officers of the above
organizations.
3 Investments
-------------------------------------------
Purchases and sales of investments, other than U.S. Government securities,
purchased options and short-term obligations, for the year ended July 31,
2000 were as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 19,406,091
Sales 36,476,082
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 4,678,698
Sales 10,643,554
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 28,163,159
Sales 45,867,541
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 27,601,481
Sales 47,276,154
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 6,411,225
Sales 15,846,085
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 68,086,835
Sales 117,229,413
</TABLE>
78
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
<TABLE>
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 46,708,313
Sales 110,180,535
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
------------------------------------------------------
Purchases $ 4,559,456
Sales 8,691,272
</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, 2000, as computed on a
federal income tax basis, are as follows:
<TABLE>
<CAPTION>
ARIZONA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 72,176,216
------------------------------------------------------
Gross unrealized appreciation $ 3,769,467
Gross unrealized depreciation (2,919,976)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 849,491
------------------------------------------------------
<CAPTION>
COLORADO PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 30,680,138
------------------------------------------------------
Gross unrealized appreciation $ 702,956
Gross unrealized depreciation (1,364,921)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (661,965)
------------------------------------------------------
<CAPTION>
CONNECTICUT PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $131,235,003
------------------------------------------------------
Gross unrealized appreciation $ 4,046,435
Gross unrealized depreciation (3,265,180)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 781,255
------------------------------------------------------
<CAPTION>
MICHIGAN PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 82,790,253
------------------------------------------------------
Gross unrealized appreciation $ 4,020,687
Gross unrealized depreciation (2,645,215)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 1,375,472
------------------------------------------------------
<CAPTION>
MINNESOTA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 47,429,619
------------------------------------------------------
Gross unrealized appreciation $ 1,879,704
Gross unrealized depreciation (1,115,908)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 763,796
------------------------------------------------------
<CAPTION>
NEW JERSEY PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $245,027,029
------------------------------------------------------
Gross unrealized appreciation $ 10,432,424
Gross unrealized depreciation (10,036,050)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 396,374
------------------------------------------------------
<CAPTION>
PENNSYLVANIA PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $242,384,348
------------------------------------------------------
Gross unrealized appreciation $ 8,114,626
Gross unrealized depreciation (16,923,839)
------------------------------------------------------
NET UNREALIZED DEPRECIATION $ (8,809,213)
------------------------------------------------------
<CAPTION>
TEXAS PORTFOLIO
<S> <C>
------------------------------------------------------
AGGREGATE COST $ 10,494,957
------------------------------------------------------
Gross unrealized appreciation $ 520,291
Gross unrealized depreciation (285,023)
------------------------------------------------------
NET UNREALIZED APPRECIATION $ 235,268
------------------------------------------------------
</TABLE>
5 Line of Credit
-------------------------------------------
The Portfolios participate with other portfolios and funds managed by BMR and
EVM and their affiliates in a committed $150 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, 2000, the
Connecticut Portfolio had a balance outstanding pursuant to this line of
credit of $100,000. The Portfolios did not have any significant borrowings or
allocated fees during the year ended July 31, 2000.
79
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
NOTES TO FINANCIAL STATEMENTS CONT'D
6 Financial Instruments
-------------------------------------------
The Portfolios regularly trade in financial instruments with off-balance
sheet risk in the normal course of their investing activities to assist in
managing exposure to various market risks. These financial instruments
include futures contracts and may involve, to a varying degree, elements of
risk in excess of the amounts recognized for financial statement purposes.
The notional or contractual amounts of these instruments represent the
investment a Portfolio has in particular classes of financial instruments and
does not necessarily represent the amounts potentially subject to risk. The
measurement of the risks associated with these instruments is meaningful only
when all related and offsetting transactions are considered.
A summary of obligations under these financial instruments at July 31, 2000
is as follows:
<TABLE>
<CAPTION>
FUTURES
CONTRACTS NET UNREALIZED
EXPIRATION APPRECIATION
PORTFOLIO DATE CONTRACTS POSITION (DEPRECIATION)
<S> <C> <C> <C> <C>
------------------------------------------------------------------------------------------------
Arizona 9/00 18 U.S. Treasury Bond Short $ (1,787)
------------------------------------------------------------------------------------------------
Colorado 9/00 8 U.S. Treasury Bond Short $ 1,079
------------------------------------------------------------------------------------------------
Connecticut 9/00 34 U.S. Treasury Bond Short $ 4,586
------------------------------------------------------------------------------------------------
Michigan 9/00 6 U.S. Treasury Bond Short $ 1,618
------------------------------------------------------------------------------------------------
Minnesota 9/00 14 U.S. Treasury Bond Short $ (47,823)
------------------------------------------------------------------------------------------------
New Jersey 9/00 120 U.S. Treasury Bond Short $(409,911)
------------------------------------------------------------------------------------------------
Pennsylvania 9/00 60 U.S. Treasury Bond Short $ (5,955)
</TABLE>
At July 31, 2000, the Portfolio had sufficient cash and/or securities to
cover margin requirements on open futures contracts.
80
<PAGE>
EATON VANCE MUNICIPALS PORTFOLIOS AS OF JULY 31, 2000
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,
2000, the related statements of operations for the year then ended, the
statements of changes in net assets for the years ended July 31, 2000 and 1999
and supplementary data for each of the years in the five year period ended
July 31, 2000. These financial statements and supplementary data are the
responsibility of the Trusts' management. Our responsibility is to express an
opinion on the financial statements and supplementary data based on our audits.
We conducted our audits in accordance with auditing standards generally accepted
in the United States of America. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial
statements and supplementary data are free of material misstatement. An audit
includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. Our procedures included confirmation of
securities owned at July 31, 2000, by correspondence with the custodian and
brokers; where replies were not received from brokers, we performed other audit
procedures. An audit also includes assessing the accounting principles used and
significant estimates made by management, as well as evaluating the overall
financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, such financial statements and supplementary data present fairly,
in all material respects, the financial position of 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, 2000, the results of their operations, the changes in
their net assets and their supplementary data for the respective stated periods
in conformity with accounting principles generally accepted in the United States
of America.
DELOITTE & TOUCHE LLP
Boston, Massachusetts
September 8, 2000
81
<PAGE>
EATON VANCE MUNICIPALS FUNDS AS OF JULY 31, 2000
INVESTMENT MANAGEMENT
MUNICIPALS PORTFOLIOS
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
William H. Ahern, Jr.
Vice President and Portfolio
Manager of Colorado,
Connecticut and Michigan
Municipals Portfolios
Cynthia J. Clemson
Vice President and Portfolio
Manager of Arizona and
Pennsylvania Municipals Portfolios
Robert B. MacIntosh
Vice President and Portfolio
Manager of Minnesota and
New Jersey Municipals Portfolios
Thomas M. Metzold
Vice President and Portfolio
Manager of Texas
Municipals Portfolio
James L. O'Connor
Treasurer
Alan R. Dynner
Secretary
Trustees
Jessica M. Bibliowicz
President and Chief Executive Officer,
National Financial Partners
Donald R. Dwight
President, Dwight Partners, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment
Banking Emeritus, Harvard University
Graduate School of Business Administration
Norton H. Reamer
Chairman of the Board,
United Asset Management Corporation
Lynn A. Stout
Professor of Law,
Georgetown University Law Center
Jack L. Treynor
Investment Adviser and Consultant
82
