<PAGE>
[EATON VANCE LOGO] Investing
for the
21st
Century-Registered Trademark- [PICTURE OF STOCKS]
Semiannual Report July 31, 1999
[PICTURE OF PAUL REVERE] EATON VANCE
HIGH YIELD
MUNICIPALS
FUND
Global Management-Global Distribution
[PICTURE OF THE CITY]
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND as of July 31, 1999
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I N V E S T M E N T U P D A T E
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[PHOTO] INVESTMENT ENVIRONMENT
THE ECONOMY
THOMAS M. METZOLD o The nation's gross domestic product increased by 4.6%
PORTFOLIO MANAGER in the first quarter of 1999 before growing a more
moderate 1.8% in the second quarter, according to
adjusted figures. Weaker demand from Asia was offset by
continuing gains in productivity and strong consumer activity at home.
o At its Open Market Committee meeting in June, the Federal Reserve raised the
target rate for its Federal Funds rate - a key barometer of short-term
interest rates - by 25 basis points (.25%). The Fed raised the Fed Funds rate
another 25 basis points at its August meeting. These moves indicate that the
Fed remains intent on keeping inflation from gathering steam.
o Unlike 1998, supply and demand have been more in balance in 1999. Not
surprisingly, with their unusually high yields relative to taxable yields,
municipal bonds outperformed Treasuries in the first half of the year.
THE FUND
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MANAGEMENT DISCUSSION
o Management maintained a bullish posture at July 31, 1999. The Portfolio found
promising opportunities among multi-family housing bonds, which were
attractive on a relative-value basis. The assisted living sector also played a
major role, providing excellent yields and total return potential.
o The Portfolio's industrial development bond holdings benefited from a strong
economy. Management continued to search for undervalued opportunities in the
wake of rising interest rates.
o The Portfolio remained very selective with respect to its hospital
investments. Lower Medicare reimbursements and increasing pressure to reduce
costs have dramatically altered the hospital and health care landscape.
PERFORMANCE FOR THE PAST SIX MONTHS
o During the six months ended July 31, 1999, the Fund's Class A shares had a
total return of -1.7%.(1) This return resulted from a decline in net asset
value (NAV) to $10.87 per share on July 31, 1999 from $11.38 on January 31,
1999, and the reinvestment of $0.320 in tax-free income.(2) Based on the
Fund's most recent dividend, and a net asset value of $10.87 per share, the
Fund's distribution rate on July 31, 1999 was 5.93%.(3)
o The Fund's Class B shares had a total return of -2.1% during the same
period,(1) the result of a decline in NAV to $10.82 per share from $11.33
per share, and the reinvestment of $0.275 in tax-free income.(2) Based on the
Fund's most recent dividend, and a net asset value of $10.82, the Fund's
distribution rate on July 31, 1999 was 5.13%.(3)
o The Fund's Class C shares had a total return of -2.1% during the same
period,(1) the result of a decline in NAV to $10.02 per share from $10.49
per share, and the reinvestment of $0.250 in tax-free income.(2) Based on the
Fund's most recent dividend, and a net asset value of $10.02, the Fund's
distribution rate on July 31, 1999 was 5.04%.(3)
o The SEC 30-day yields at July 31, 1999 were 5.77%, 5.29% and 5.22% for
Class A, B, and C shares, respectively.(4)
Rating Distribution(5)
-------------------------------------------
By total investments
[PIE CHART]
-------------------------------------------
MUTUAL FUND SHARES ARE NOT INSURED BY THE FDIC AND ARE NOT DEPOSITS OR OTHER
OBLIGATIONS OF, OR GUARANTEED BY, ANY DEPOSITORY INSTITUTION. SHARES ARE
SUBJECT TO INVESTMENT RISKS, INCLUDING POSSIBLE LOSS OF PRINCIPAL INVESTED.
- -------------------------------------------------------------------------------
FUND INFORMATION
AS OF JULY 31, 1999
Performance(6) Class A Class B Class C
Average Annual Total Returns (at net asset value)
- --------------------------------------------------
One Year 0.4% -0.4% -0.5%
Life of Fund+ 8.7 7.7 5.3
SEC Average Annual Total Returns (including sales charge or applicable CDSC)
- --------------------------------------------------
One Year -4.4% -5.1% -1.5%
Life of Fund+ 7.3 7.1 5.3
+Inception Dates - Class A: 8/7/95; Class B: 8/7/95; Class C: 6/18/97
Fund Overview(5)
- ---------------------------------------
Number of Issues 153
Average Maturity 24.7 Yrs.
Effective Maturity 7.0 Yrs.
Average Rating BBB
Average Call 9.7 Yrs.
Average Dollar Price $97.28
(1) These returns do not include the 4.75% maximum sales charge for the
Fund's Class A shares or the applicable contingent deferred sales charges
(CDSC) for the Fund's Class B and Class C shares. (2) A portion of the Fund's
income could be subject to federal income tax and/or alternative minimum tax.
Income may be subject to state tax. (3) The Fund's distribution rate
represents actual distributions paid to shareholders and is calculated by
dividing the last distribution per share (annualized) by the net asset value.
(4) The Fund's SEC yield is calculated by dividing the net investment income
per share for the 30-day period by the offering price at the end of the
period and annualizing the result. (5) Ratings Distribution and Fund Overview
are subject to change. (6) Returns are historical and are calculated by
determining the percentage change in net asset value with all distributions
reinvested. SEC returns for Class A reflect the maximum 4.75% sales charge.
SEC returns for Class B reflect applicable CDSC based on the following
schedule: 5% - 1st and 2nd years; 4% -3rd year; 3% - 4th year; 2% - 5th year;
1% - 6th year. 1-year SEC return for Class C includes 1% CDSC.
Past performance is no guarantee of future results. Investment return and
principal value will fluctuate so that shares, when redeemed, may be worth
more or less than their original cost.
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JULY 31, 1999
<S> <C>
Assets
- ---------------------------------------------------------------------------
Investment in High Yield Municipals Portfolio,
at value (identified cost $407,036,716) $ 407,418,622
Receivable for Fund shares sold 586,659
Deferred organization expenses 37,763
- ---------------------------------------------------------------------------
TOTAL ASSETS $ 408,043,044
- ---------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------
Dividends payable $ 926,613
Payable for Fund shares redeemed 699,524
Other accrued expenses 168,103
- ---------------------------------------------------------------------------
TOTAL LIABILITIES $ 1,794,240
- ---------------------------------------------------------------------------
NET ASSETS $ 406,248,804
- ---------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------
Paid-in capital $ 407,665,879
Accumulated net realized loss from Portfolio (computed on
the basis of identified cost) (930,556)
Accumulated distributions in excess of net investment income (868,425)
Net unrealized appreciation from Portfolio (computed on
the basis of identified cost) 381,906
- ---------------------------------------------------------------------------
TOTAL $ 406,248,804
- ---------------------------------------------------------------------------
Class A Shares
- ---------------------------------------------------------------------------
NET ASSETS $ 137,880,689
SHARES OUTSTANDING 12,687,357
NET ASSET VALUE AND REDEMPTION PRICE PER SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 10.87
MAXIMUM OFFERING PRICE PER SHARE
(100 DIVIDED BY 95.25 of $10.87) $ 11.41
- ---------------------------------------------------------------------------
Class B Shares
- ---------------------------------------------------------------------------
NET ASSETS $ 242,005,173
SHARES OUTSTANDING 22,374,368
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 10.82
- ---------------------------------------------------------------------------
Class C Shares
- ---------------------------------------------------------------------------
NET ASSETS $ 26,362,942
SHARES OUTSTANDING 2,630,796
NET ASSET VALUE, OFFERING PRICE AND REDEMPTION PRICE PER
SHARE
(net assets DIVIDED BY shares of beneficial interest
outstanding) $ 10.02
- ---------------------------------------------------------------------------
</TABLE>
On sales of $25,000 or more, the offering price of Class A shares is reduced.
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JULY 31, 1999
<S> <C>
Investment Income
- ---------------------------------------------------------------------------
Interest allocated from Portfolio $ 13,596,355
Expenses allocated from Portfolio (1,324,836)
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME FROM PORTFOLIO $ 12,271,519
- ---------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------
Trustees fees and expenses $ 2,480
Distribution and service fees
Class A 115,329
Class B 1,113,201
Class C 130,867
Transfer and dividend disbursing agent fees 204,705
Registration fees 65,895
Printing and postage 19,043
Legal and accounting services 17,727
Custodian fee 15,059
Amortization of organization expenses 14,744
Miscellaneous 14,952
- ---------------------------------------------------------------------------
TOTAL EXPENSES $ 1,714,002
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME $ 10,557,517
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Realized and Unrealized
Gain (Loss) from Portfolio
- ---------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 794,545
Financial futures contracts (59,808)
- ---------------------------------------------------------------------------
NET REALIZED GAIN $ 734,737
- ---------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments $ (19,530,402)
- ---------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ (19,530,402)
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (18,795,665)
- ---------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (8,238,148)
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
3
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENTS OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) JULY 31, 1999 YEAR ENDED
in Net Assets (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------------
From operations --
Net investment income $ 10,557,517 $ 17,869,800
Net realized gain 734,737 2,026,308
Net change in unrealized
appreciation (depreciation) (19,530,402) (7,604,686)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (8,238,148) $ 12,291,422
- -------------------------------------------------------------------------------
Distributions to shareholders --
From net investment income
Class A $ (3,912,334) $ (6,551,562)
Class B (5,939,757) (10,527,829)
Class C (639,653) (790,409)
In excess of net investment income
Class A -- (143,542)
Class B -- (422,357)
Class C -- (32,682)
- -------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS TO SHAREHOLDERS $ (10,491,744) $ (18,468,381)
- -------------------------------------------------------------------------------
Transactions in shares of beneficial interest --
Proceeds from sale of shares
Class A $ 27,025,415 $ 48,904,668
Class B 33,070,621 70,941,243
Class C 8,359,434 18,783,566
Issued in reorganization of EV
Traditional and EV Classic High
Yield Municipals Funds
Class A -- 103,128,404
Class C -- 9,447,074
Net asset value of shares issued to
shareholders in payment of
distributions declared
Class A 1,713,127 2,724,257
Class B 2,127,547 3,952,176
Class C 421,145 495,975
Cost of shares redeemed
Class A (12,828,361) (24,448,279)
Class B (19,564,883) (25,227,540)
Class C (5,765,161) (3,811,012)
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM FUND
SHARE TRANSACTIONS $ 34,558,884 $ 204,890,532
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 15,828,992 $ 198,713,573
- -------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------
At beginning of period $ 390,419,812 $ 191,706,239
- -------------------------------------------------------------------------------
AT END OF PERIOD $ 406,248,804 $ 390,419,812
- -------------------------------------------------------------------------------
</TABLE>
<TABLE>
<CAPTION>
Accumulated
distributions in excess of SIX MONTHS ENDED
net investment income JULY 31, 1999 YEAR ENDED
included in net assets (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------------
At end of period $ (868,425) $ (934,198)
- -------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
4
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
FINANCIAL HIGHLIGHTS
<TABLE>
<CAPTION>
YEAR ENDED JANUARY 31,
SIX MONTHS ENDED --------------------------------------------------------------------
JULY 31, 1999
(UNAUDITED) 1999(1) 1998 1997 1996(2)
-------------------------------- -------------------------------- -------- -------- --------
CLASS A CLASS B CLASS C CLASS A CLASS B CLASS C CLASS B CLASS B CLASS B
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
Net asset value --
Beginning of period $11.380 $11.330 $10.490 $11.570 $11.520 $10.680 $10.620 $10.650 $10.000
- ---------------------------------------------------------------------------------------------------------------------------------
Income (loss) from operations
- ---------------------------------------------------------------------------------------------------------------------------------
Net investment income $ 0.323 $ 0.279 $ 0.255 $ 0.647 $ 0.554 $ 0.506 $ 0.594 $ 0.626 $ 0.299
Net realized and
unrealized gain
(loss) (0.513) (0.514) (0.475) (0.176) (0.167) (0.169) 0.916 (0.026) 0.657
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL INCOME (LOSS)
FROM OPERATIONS $(0.190) $(0.235) $(0.220) $ 0.471 $ 0.387 $ 0.337 $ 1.510 $ 0.600 $ 0.956
- ---------------------------------------------------------------------------------------------------------------------------------
Less distributions
- ---------------------------------------------------------------------------------------------------------------------------------
From net investment
income $(0.320) $(0.275) $(0.250) $(0.647) $(0.554) $(0.506) $(0.594) $(0.626) $(0.299)
In excess of net
investment income -- -- -- (0.014) (0.023) (0.021) (0.016) (0.003) (0.007)
From net realized gain -- -- -- -- -- -- -- (0.001) --
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL DISTRIBUTIONS $(0.320) $(0.275) $(0.250) $(0.661) $(0.577) $(0.527) $(0.610) $(0.630) $(0.306)
- ---------------------------------------------------------------------------------------------------------------------------------
NET ASSET VALUE -- END
OF PERIOD $10.870 $10.820 $10.020 $11.380 $11.330 $10.490 $11.520 $10.620 $10.650
- ---------------------------------------------------------------------------------------------------------------------------------
TOTAL RETURN(3) (1.70)% (2.11)% (2.13)% 4.16% 3.44% 3.22% 14.67% 5.90% 9.40%
- ---------------------------------------------------------------------------------------------------------------------------------
Ratios/Supplemental Data+
- ---------------------------------------------------------------------------------------------------------------------------------
Net assets, end of
period (000's
omitted) $137,881 $242,005 $26,363 $128,347 $237,497 $24,576 $191,706 $123,024 $43,520
Ratios (As a
percentage of
average daily net
assets):
Net expenses(4) 1.01%(5) 1.77%(5) 1.84%(5) 0.95% 1.72% 1.79% 1.76% 1.36% 0.88%(5)
Net expenses after
custodian fee
reduction(4) 1.00%(5) 1.76%(5) 1.83%(5) 0.94% 1.71% 1.78% 1.74% 1.32% 0.88%(5)
Net investment
income 5.75%(5) 4.99%(5) 4.92%(5) 5.60% 4.83% 4.73% 5.36% 5.91% 5.86%(5)
- ---------------------------------------------------------------------------------------------------------------------------------
+ The operating expenses of the Fund and the Portfolio may reflect a reduction of the investment adviser fee, an allocation of
expenses to the Administrator, or both. Had such actions not been taken, the ratios and net investment income per share would
have been as follows:
Ratios (As a
percentage of
average daily net
assets):
Expenses(4) 1.73% 1.77%(5)
Expenses after
custodian fee
reduction(4) 1.69% 1.77%(5)
Net investment
income 5.54% 4.97%(5)
Net investment income
per share $ 0.587 $ 0.254
- ---------------------------------------------------------------------------------------------------------------------------------
</TABLE>
(1) Net investment income per share was computed using average shares
outstanding.
(2) For the period from the start of business, August 7, 1995, to January 31,
1996.
(3) Total return is calculated assuming a purchase at the net asset value on
the first day and a sale at the net asset value on the last day of each
period reported. Dividends and distributions, if any, are assumed
reinvested at the net asset value on the reinvestment date. Total return is
not computed on an annualized basis.
(4) Includes the Fund's share of the Portfolio's allocated expenses.
(5) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
5
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
Eaton Vance High Yield Municipals Fund (the Fund) is a diversified series of
Eaton Vance Municipals Trust II (the Trust). The Trust is an entity of the
type commonly known as a Massachusetts business trust and is registered under
the Investment Company Act of 1940, as amended, as an open-end, management
investment company. The Fund offers three classes of shares. Class A shares
are generally sold subject to a sales charge imposed at time of purchase.
Class B and Class C shares are sold at net asset value and are subject to a
declining contingent deferred sales charge (see Note 6). Each class
represents a pro rata interest in the Fund, but votes separately on
class-specific matters and (as noted below) is subject to different expenses.
Realized and unrealized gains and losses are allocated daily to each class of
shares based on the relative net assets of each class to the total net assets
of the Fund. Net investment income, other than class specific expenses, is
allocated daily to each class of shares based upon the ratio of the value of
each class' paid shares to the total value of all paid shares. Each class of
shares differs in its distribution plan and certain other class specific
expenses. The Fund invests all of its investable assets in interests in High
Yield Municipals Portfolio (the Portfolio), a New York Trust, having the same
investment objective as the Fund. The value of the Fund's investment in the
Portfolio reflects the Fund's proportionate interest in the net assets of the
Portfolio (99.9% at July 31, 1999). The performance of the Fund is directly
affected by the performance of the Portfolio. The financial statements of the
Portfolio, including the portfolio of investments, are included elsewhere in
this report and should be read in conjunction with the Fund's financial
statements.
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
policies are in conformity with generally accepted accounting principles.
A Investment Valuations -- Valuation of securities by the Portfolio is
discussed in Note 1A of the Portfolio's Notes to Financial Statements which
are included elsewhere in this report.
B Income -- The Fund's net investment income consists of the Fund's pro rata
share of the net investment income of the Portfolio, less all actual and
accrued expenses of the Fund determined in accordance with generally accepted
accounting principles.
C Federal Taxes -- The Fund's policy is to comply with the provisions of the
Internal Revenue Code applicable to regulated investment companies and to
distribute to shareholders each year all of its taxable (if any) and
tax-exempt income, including any net realized gain on investments.
Accordingly, no provision for federal income or excise tax is necessary. At
January 31, 1999, the Fund, for federal income tax purposes, had a capital
loss carryover of $1,420,815, which will reduce the Fund's taxable income
arising from future net realized gain on investments, if any, to the extent
permitted by the Internal Revenue Code, and thus will reduce the amount of
distributions to shareholders which would otherwise be necessary to relieve
the Fund of any liability for federal income or excise tax. A portion of such
capital loss carryovers were acquired through the Fund Reorganization (see
Note 8) and may be subject to certain limitations. Such capital loss
carryover will expire January 31, 2006. Dividends paid by the Fund from net
tax-exempt interest on municipal bonds allocated from the Portfolio are not
includable by shareholders as gross income for federal income tax purposes
because the Fund and Portfolio intend to meet certain requirements of the
Internal Revenue Code applicable to regulated investment companies which will
enable the Fund to pay exempt-interest dividends. The portion of such
interest, if any, earned on private activity bonds issued after August 7,
1986, may be considered a tax preference item to shareholders.
D Deferred Organization Expenses -- Costs incurred by the Fund in connection
with its organization are being amortized on the straight-line basis over
five years.
E Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
to the Fund and the Portfolio. Pursuant to the respective custodian
agreements, IBT receives a fee reduced by credits which are determined based
on the average daily cash balances the Fund or the Portfolio maintain with
IBT. All significant credit balances used to reduce the Fund's custodian fees
are reported as a reduction of operating expenses in the Statement of
Operations.
F 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
G Other -- Investment transactions are accounted for on a trade date basis.
6
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
H Interim Financial Statements -- The interim financial statements relating to
July 31, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the Fund's
management, reflect all adjustments, necessary for the fair presentation of
the financial statements.
2 Distributions to Shareholders
- -------------------------------------------
The net income of the Fund is determined daily, and substantially all of the
net income so determined is declared as a dividend to shareholders of record
at the time of declaration. Distributions are paid monthly. Distributions of
allocated realized capital gains, if any, are made at least annually.
Shareholders may reinvest capital gain distributions in additional shares of
the Fund at the net asset value as of the ex-dividend date. Distributions are
paid in the form of additional shares or, at the election of the shareholder,
in cash. The Fund distinguishes between distributions on a tax basis and a
financial reporting basis. Generally accepted accounting principles require
that only distributions in excess of tax basis earnings and profits be
reported in the financial statements as a return of capital. Differences in
the recognition or classification of income between the financial statements
and tax earnings and profits which result in temporary over-distributions for
financial statement purposes are classified as distributions in excess of net
investment income or net realized gain on investments. Permanent differences
between book and tax accounting relating to distributions are reclassified to
paid-in capital.
3 Shares of Beneficial Interest
- -------------------------------------------
The Declaration of Trust permits the Trustees to issue an unlimited number of
full and fractional shares of beneficial interest (without par value). Such
shares may be issued in a number of different series (such as the Fund) and
classes. Transactions in Fund shares were as follows:
<TABLE>
<CAPTION>
SIX MONTHS ENDED
JULY 31, 1999 YEAR ENDED
CLASS A (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -----------------------------------------------------------------------------
Sales 2,403,845 4,249,799
Issued to shareholders electing to
receive payment of distributions in
Fund shares 153,991 236,663
Redemptions (1,148,587) (2,125,063)
Issued to EV Traditional High Yield
Municipals Fund shareholders -- 8,916,709
- -----------------------------------------------------------------------------
NET INCREASE 1,409,249 11,278,108
- -----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JULY 31, 1999 YEAR ENDED
CLASS B (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -----------------------------------------------------------------------------
Sales 2,976,034 6,184,460
Issued to shareholders electing to
receive payment of distributions in
Fund shares 191,323 344,632
Redemptions (1,762,740) (2,202,194)
- -----------------------------------------------------------------------------
NET INCREASE 1,404,617 4,326,898
- -----------------------------------------------------------------------------
<CAPTION>
SIX MONTHS ENDED
JULY 31, 1999 YEAR ENDED
CLASS C (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -----------------------------------------------------------------------------
Sales 808,968 1,770,160
Issued to shareholders electing to
receive payment of distributions in
Fund shares 40,926 46,821
Redemptions (560,822) (360,167)
Issued to EV Classic High Yield
Municipals Fund shareholders -- 884,910
- -----------------------------------------------------------------------------
NET INCREASE 289,072 2,341,724
- -----------------------------------------------------------------------------
</TABLE>
4 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
Eaton Vance Management (EVM) serves as the administrator of the Fund, but
receives no compensation. The Portfolio has engaged Boston Management and
Research (BMR), a subsidiary of EVM, to render investment advisory services
(See Note 2 of the Portfolio's Notes to Financial Statements which are
included elsewhere in this report). Except as to Trustees of the Fund and the
Portfolio who are not members of EVM's or BMR's organization, officers and
Trustees receive remuneration for their services to the Fund out of the
investment advisor fee earned by BMR. Certain officers and Trustees of the
Fund and of the Portfolio are officers of the above organizations. Eaton
Vance Distributors, Inc. (EVD), a subsidiary of EVM and the Fund's principal
underwriter, received $25,733 as its portion of the sales charge on sales of
Class A shares for the six months ended July 31, 1999.
5 Distribution and Service Plans
- -------------------------------------------
The Fund has adopted distribution plans (Class B Plan and Class C Plan)
pursuant to Rule 12b-1 under the Investment Company Act of 1940 and a service
plan (Class A Plan) (collectively, the Plans). The Plans require the Fund to
pay EVD amounts equal to 1/365 of 0.75% of the Fund's average daily net
assets attributable to Class B and Class C shares for providing ongoing
distribution services and
7
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
facilities to the Fund. The Fund will automatically discontinue payments to
EVD during any period in which there are no outstanding Uncovered
Distribution Charges, which are equivalent to the sum of (i) 5% and 6.25% of
the aggregate amount received by the Fund for the Class B and Class C shares
sold, respectively, plus (ii) interest calculated by applying the rate of 1%
over the prevailing prime rate to the outstanding balance of Uncovered
Distribution Charges of EVD, reduced by the aggregate amount of contingent
deferred sales charges (see Note 6) and daily amounts theretofore paid to EVD
by each respective class. The Fund paid or accrued $898,741 and $98,150 for
Class B and Class C shares, respectively, to EVD for the six months ended
July 31, 1999, representing 0.75% (annualized) and 0.75% (annualized) of the
average daily net assets for Class B and Class C shares, respectively. At
July 31, 1999, the amount of Uncovered Distribution Charges of EVD calculated
under the Plan was approximately $9,696,000 and $1,975,000 for Class B and
Class C shares, respectively.
In addition, the Plans authorize the Fund to make payments of service fees to
EVD, investment dealers and other persons in amounts not exceeding 0.25% of
the Fund's average daily net assets attributable to Class A, Class B, and
Class C shares for each fiscal year. The Trustees have initially implemented
the Plans by authorizing the Fund to make quarterly payments of service fees
to EVD and investment dealers in amounts not expected to exceed 0.25% per
annum of the Fund's average daily net assets attributable to Class A and
Class B shares based on the value of Fund shares sold by such persons and
remaining outstanding for at least one year. The Class C Plan permits the
Fund to make monthly payments of service fees in amounts not expected to
exceed 0.25% of the Fund's average daily net assets attributable to Class C
shares for any fiscal year. Service fee payments will be made for personal
services and/or the maintenance of shareholder accounts. Service fees are
separate and distinct from the sales commissions and distribution fees
payable by the Fund to EVD and, as such are not subject to automatic
discontinuance where there are no outstanding Uncovered Distribution Charges
of EVD. Service fee payments for the six months ended July 31, 1999 amounted
to $115,329, $214,460, and $32,717 for Class A, Class B, and Class C shares,
respectively.
6 Contingent Deferred Sales Charge
- -------------------------------------------
A contingent deferred sales charge (CDSC) generally is imposed on redemptions
of Class B shares made within six years of purchase and on redemptions of
Class C shares made within one year of purchase. Generally, the CDSC is based
upon the lower of the net asset value at date of redemption or date of
purchase. No charge is levied on shares acquired by reinvestment of dividends
or capital gain distributions. Class B CDSC is imposed at declining rates
that begin at 5% in the case of redemptions in the first and second year
after purchase, declining one percentage point each subsequent year. Class C
shares will be subject to a 1% CDSC if redeemed within one year of purchase.
No CDSC is levied on shares which have been sold to EVM or its affiliates or
to their respective employees or clients and may be waived under certain
other limited conditions. CDSC charges are paid to EVD to reduce the amount
of Uncovered Distribution Charges calculated under the Fund's Distribution
Plan (see Note 5). CDSC charges received when no Uncovered Distribution
Charges exist will be credited to the Fund. EVD received approximately
$370,000 and $10,000 of CDSC paid by shareholders for Class B shares and
Class C shares, respectively, for the six months ended July 31, 1999.
7 Investment Transactions
- -------------------------------------------
Increases and decreases in the Fund's investment in the Portfolio for the six
months ended July 31, 1999 aggregated $68,977,712 and $45,800,289,
respectively.
8 Transfer of Net Assets
- -------------------------------------------
On February 1, 1998, EV Marathon High Yield Municipals Fund acquired the net
assets of the EV Traditional High Yield Municipals Fund and EV Classic High
Yield Municipals Fund pursuant to an Agreement and Plan of Reorganization
dated June 23, 1997. In accordance with the agreement, EV Marathon High Yield
Municipals Fund, at the closing, issued 8,916,709 Class A shares and 884,910
Class C shares of the Fund having an aggregate value of $103,128,404 and
$9,447,074, respectively. As a result, the Fund issued one Class A share and
one Class C share for each share of EV Traditional High Yield Municipals Fund
and EV Classic High Yield Municipals Fund, respectively. The transaction was
structured for tax purposes to qualify as a tax free reorganization under the
Internal Revenue Code. The EV Traditional High Yield Municipals Fund's and EV
Classic High Yield Municipals Fund's net assets at February 1, 1998 were
$103,128,404 and $9,447,074, respectively, including $9,165,643 and $297,279
of unrealized appreciation. Directly after the merger, the combined net
assets of the Eaton Vance High Yield Municipals Fund (formerly "EV Marathon
High Yield Municipals Fund") were $304,281,717 with a net asset value of
$11.57, $11.52 and $10.68 for Class A, Class B and Class C shares,
respectively.
8
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED)
<TABLE>
<S> <C> <C>
TAX-EXEMPT INVESTMENTS -- 100.0%
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------------
Assisted Living -- 4.7%
- --------------------------------------------------------------------------
Arizona HFA, (Care Institute,
Inc.-Mesa), 7.625%, 1/1/26 $ 2,500 $ 2,540,650
Chester, PA, IDA, (Senior Life-Choice of
Kimberton), (AMT), 8.50%, 9/1/25 1,000 1,113,550
Chester, PA, IDA, (Senior Life-Choice of
Paoli L.P.), 8.05%, 1/1/24 2,000 2,180,460
Delaware, PA, IDA, (Glen Riddle), (AMT),
8.625%, 9/1/25 1,600 1,791,568
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/13 1,000 300,240
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/13 1,000 287,070
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/14 1,000 274,490
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/14 1,000 262,450
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/15 1,000 251,320
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/15 1,000 240,310
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/16 1,000 229,790
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/16 1,000 219,730
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/17 1,000 209,750
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/17 1,000 200,560
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/18 1,000 191,760
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/18 1,000 183,360
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 1/1/19 1,000 175,320
Glen Cove, NY, IDA, (The Regency at Glen
Cove), 0.00%, 7/1/19 1,000 167,630
Illinois Development Finance Authority,
(Care Institute, Inc.), 7.80%, 6/1/25 3,740 4,004,755
New Jersey EDA, (Chelsea at East
Brunswick), (AMT), 8.25%, 10/1/20 3,500 3,790,710
- --------------------------------------------------------------------------
$ 18,615,473
- --------------------------------------------------------------------------
Cogeneration -- 5.0%
- --------------------------------------------------------------------------
Maryland Energy Cogeneration, (AES
Warrior Run), (AMT), 7.40%, 9/1/19 $ 7,000 $ 7,487,060
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------------
Cogeneration (continued)
- --------------------------------------------------------------------------
Palm Beach County, FL, (Okeelanta
Power), (AMT), 6.85%, 2/15/21(1) $ 3,500 $ 2,362,500
Palm Beach County, FL, (Osceola Power),
(AMT), 6.95%, 1/1/22(1) 4,000 2,660,000
Pennsylvania EDA, (Northampton
Generating), (AMT), 6.60%, 1/1/19 3,500 3,660,475
Pennsylvania EDA, (Northampton
Generating), Junior Liens, (AMT),
6.875%, 1/1/11 1,000 1,032,410
Robbins, Cook County, IL, (Robbins
Resource Recovery Partners, L.P.),
8.375%, 10/15/10 1,500 810,000
Robbins, IL, Resource Recovery, (AMT),
8.375%, 10/15/16 3,500 1,890,000
- --------------------------------------------------------------------------
$ 19,902,445
- --------------------------------------------------------------------------
Education -- 0.5%
- --------------------------------------------------------------------------
New Hampshire HEFA, (Colby-Sawyer
College), 7.50%, 6/1/26 $ 2,000 $ 2,158,280
- --------------------------------------------------------------------------
$ 2,158,280
- --------------------------------------------------------------------------
Electric Utilities -- 5.1%
- --------------------------------------------------------------------------
Apache County, AZ, IDA, (Tuscon Electric
Power Co.), 5.85%, 3/1/28 $ 4,000 $ 3,790,360
Connecticut State Development Authority,
(Connecticut Light and Power), 5.85%,
9/1/28 2,500 2,421,825
Connecticut State Development Authority,
(Western Massachusetts Electric Co.),
5.85%, 9/1/28 5,000 4,805,500
Eugene, OR, (Trojan Nuclear Power),
5.90%, 9/1/09 1,000 1,022,000
Intermountain Power Agency, UT,
Variable Rate, 7/1/11(2) 3,500 3,635,625
Long Island, NY, Power Authority,
(RITES), Variable Rate, 12/1/29(2) 5,000 4,804,000
- --------------------------------------------------------------------------
$ 20,479,310
- --------------------------------------------------------------------------
Escrowed / Prerefunded -- 5.5%
- --------------------------------------------------------------------------
Colorado HFA, (Liberty Heights),
Escrowed to Maturity, 0.00%, 7/15/24 $14,115 $ 3,049,122
Colorado HFA, (Liberty Heights),
Escrowed to Maturity, 0.00%, 7/15/22 12,195 2,978,507
Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 10,000 2,208,900
Dawson Ridge, CO, Metropolitan District
#1, Escrowed to Maturity, 0.00%, 10/1/22 3,500 773,115
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
9
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
Escrowed / Prerefunded (continued)
- --------------------------------------------------------------------------
Illinois Development Finance Authority,
(Regency Park), Escrowed to Maturity,
0.00%, 7/15/25 $ 3,295 $ 611,453
Maricopa County, AZ, IDA, (Place Five
and The Greenery), Escrowed to Maturity,
6.625%, 1/1/27 2,500 2,870,375
Maricopa County, AZ, IDA, (Place Five
and The Greenery), Escrowed to Maturity,
8.625%, 1/1/27 1,725 2,212,606
San Bernadino, CA, (San Bernadino
Community Hospital), Prerefunded to
12/1/99, 7.875%, 12/1/08 1,000 1,034,680
San Bernadino, CA, (San Bernadino
Community Hospital), Prerefunded to
12/1/99, 7.875%, 12/1/19 1,325 1,370,951
San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/25 10,000 2,461,200
San Joaquin Hills Transportation
Corridor Agency, CA, Toll Road Bonds,
Escrowed to Maturity, 0.00%, 1/1/26 10,000 2,318,400
- --------------------------------------------------------------------------
$ 21,889,309
- --------------------------------------------------------------------------
Gas Utilities -- 0.5%
- --------------------------------------------------------------------------
Southern California Public Power
Authority, Variable Rate, 7/1/12(2) $ 2,000 $ 2,212,500
- --------------------------------------------------------------------------
$ 2,212,500
- --------------------------------------------------------------------------
General Obligations -- 0.6%
- --------------------------------------------------------------------------
Bell Mountain Ranch, CO, (Metropolitan
District), 6.625%, 11/15/25 $ 2,455 $ 2,374,992
- --------------------------------------------------------------------------
$ 2,374,992
- --------------------------------------------------------------------------
Health Care-Miscellaneous -- 0.9%
- --------------------------------------------------------------------------
Osceola County, FL, IDA, Community
Pooled Loan-93, 7.75%, 7/1/17 $ 3,500 $ 3,713,430
- --------------------------------------------------------------------------
$ 3,713,430
- --------------------------------------------------------------------------
Hospital -- 11.6%
- --------------------------------------------------------------------------
California Health Facilities Authority,
Residual Certificates, Variable Rate,
8/15/28(2)(3) $ 5,000 $ 4,733,400
Chautauqua County, NY, IDA, (Women's
Christian Association), 6.40%, 11/15/29 2,250 2,154,510
Colorado HFA, (Rocky Mountain Adventist
Healthcare), 6.625%, 2/1/22 10,000 9,639,499
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------------
Hospital (continued)
- --------------------------------------------------------------------------
Forsyth County, GA, Hospital Authority
Revenue, (Georgia Baptist Health Care
System), 6.25%, 10/1/18 $ 3,685 $ 3,514,679
Forsyth County, GA, Hospital Authority
Revenue, (Georgia Baptist Health Care
System), 6.375%, 10/1/28 3,700 3,510,153
Hidalgo County, TX, (Health Services
Corp., Mission Hospital, Inc.), 6.875%,
8/15/26 2,500 2,670,625
Illinois Health Facilities Authority,
(Proctor Community Hospital), 7.375%,
1/1/23 2,500 2,608,250
Louisiana Public Facilities Authority,
(General Health Systems), 6.80%, 11/1/16 2,915 3,139,047
Michigan State Hospital Finance
Authority, (Member Healthcare Center),
5.875%, 11/15/21 500 497,185
Monroeville, PA, Hospital Authority,
(Forbes Health System), 5.75%, 10/1/05 400 390,000
Monroeville, PA, Hospital Authority,
(Forbes Health System), 6.25%, 10/1/15 1,000 990,000
New Hampshire HEFA, (Littleton Hospital
Assn.), 6.00%, 5/1/28 2,000 1,905,260
Philadelphia, PA, HEFA, (Graduate Health
System), 6.625%, 7/1/21(1) 2,205 837,900
Philadelphia, PA, HEFA, (Graduate Health
System), 7.00%, 7/1/05(1) 3,170 1,204,600
Prince George's County, MD, (Greater
Southeast Healthcare System), 6.375%,
1/1/13(1) 875 393,750
Prince George's County, MD, (Greater
Southeast Healthcare System), 6.375%,
1/1/23(1) 5,900 2,655,000
San Gorgonio, CA, (Memorial Health Care
District), 5.75%, 5/1/20 1,785 1,671,974
Tomball Hospital Authority, (Tomball
Regional Hospital), 6.00%, 7/1/29 2,250 2,219,085
Wells County, IN, (Caylor-Nickel Medical
Center), 8.75%, 4/15/12 1,500 1,681,665
- --------------------------------------------------------------------------
$ 46,416,582
- --------------------------------------------------------------------------
Housing -- 8.7%
- --------------------------------------------------------------------------
Atlanta, GA, Urban Residential Finance
Authority, (John Hope), 7.25%, 6/1/07 $ 1,680 $ 1,669,886
Colorado HFA, Single Family Housing,
(AMT), 7.65%, 12/1/25 2,945 3,218,502
Cuyahoga County, OH, (Rolling Hills
Apartment), (AMT), 8.00%, 1/1/28 2,415 2,424,877
Florence, KY, Housing Facilities, (Blue
Grass Housing), 7.625%, 5/1/27 2,430 2,881,640
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
10
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
Housing (continued)
- --------------------------------------------------------------------------
Lake Creek, CO, Affordable Housing
Corp., Multifamily, 7.00%, 12/1/23 $ 1,000 $ 984,950
Lucas County, OH, (Country Creek),
(AMT), 8.00%, 7/1/26 3,715 3,650,210
Maricopa County, AZ, IDA, (National
Health Facilities II), 6.375%, 1/1/19 4,360 4,304,802
Maricopa County, AZ, IDA, (National
Health Facilities II), 6.625%, 7/1/33 1,500 1,476,990
Maricopa County, AZ, IDA, (National
Health Facilities), 8.00%, 1/1/34 2,400 2,351,736
Minneapolis, MN, Community Development
Agency, Multifamily Housing, (Lindsay
Brothers), 6.60%, 12/1/18 1,725 1,725,000
North Little Rock, AR, Residential
Housing Facilities, (Parkstone Place),
9.75%, 8/1/21 4,625 5,216,584
Oregon Health Authority, (Trillium
Affordable Housing), 6.75%, 8/15/29 3,400 3,310,818
Oregon Health Authority, (Trillium
Affordable Housing), (AMT), 6.75%,
2/15/29 1,500 1,460,655
- --------------------------------------------------------------------------
$ 34,676,650
- --------------------------------------------------------------------------
Industrial Development Revenue -- 17.9%
- --------------------------------------------------------------------------
ABIA Development Corp., (Austin
Cargoport Development, L.L.C.), (AMT),
9.25%, 10/1/21 $ 2,815 $ 3,128,507
Camden County, NJ, (Holt Hauling),
(AMT), 9.875%, 1/1/21 2,000 2,401,040
Carbon County, UT, (Laidlaw
Environmental Services, Inc.), (AMT),
7.45%, 7/1/17 3,900 4,178,967
Charleston County, SC, IDA, (Zeigler
Coal Holding), 6.95%, 8/10/28 4,000 3,996,880
Clark County, NV, (Nevada Power),
(RITES), (AMT), Variable Rate,
10/1/30(2) 5,000 4,897,900
Florence County, SC, (Stone Container
Co.), 7.375%, 2/1/07 1,570 1,648,767
Hancock County, KY, (Southwire Co.),
(AMT), 7.75%, 7/1/26 2,700 2,843,235
Iowa Finance Authority, (Southbridge
Mall), 6.375%, 12/1/13 3,715 3,695,645
Kansas City, MO, IDA, (Airline Cargo
Facilities), (AMT), 8.50%, 1/1/17 3,960 4,365,306
Kimball, NE, EDA, (Clean Harbors, Inc.),
10.75%, 9/1/26 3,000 3,216,930
Michigan Strategic Fund, (Crown Paper),
(AMT), 6.50%, 8/1/21 1,700 1,464,839
Michigan Strategic Fund, (S.D. Warren
Co.), (AMT), 7.375%, 1/15/22 3,500 3,785,495
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------------
Industrial Development Revenue (continued)
- --------------------------------------------------------------------------
Morgantown, KY, (IMCO Recycling, Inc).,
7.45%, 5/1/22 $ 3,400 $ 3,517,708
New Albany, IN, IDA, (K-Mart Co.),
7.40%, 6/1/06 1,095 1,152,838
New Hampshire Business Finance
Authority, (Crown Paper Co.), (AMT),
7.875%, 7/1/26 2,750 2,610,575
New Hampshire, IDA, (Public Service Co.
of NH), (AMT), 7.65%, 5/1/21 3,420 3,573,182
New Jersey EDA, (Holt Hauling), 8.95%,
12/15/18 500 542,240
New Jersey EDA, (Holt Hauling), (AMT),
7.90%, 3/1/27 4,000 4,406,520
Ohio Solid Waste Revenue, (Republic
Engineered Steels, Inc.), (AMT), 9.00%,
6/1/21 4,000 4,302,360
Perry County, KY, (TJ International,
Inc.), (AMT), 6.55%, 4/15/27 2,000 2,103,420
Philadelphia, PA, IDA, (Refrigerated
Enterprises), (AMT), 9.05%, 12/1/19 500 548,260
Riverdale Village, IL, (ACME Metals,
Inc.), (AMT), 7.95%, 4/1/25(4) 3,345 2,893,425
Riverdale Village, IL, (ACME Metals,
Inc.), (AMT), 7.90%, 4/1/24(4) 3,500 3,027,500
Skowhegan, ME, (S.D. Warren Co.), (AMT),
6.65%, 10/15/15 3,000 3,113,040
- --------------------------------------------------------------------------
$ 71,414,579
- --------------------------------------------------------------------------
Insured-Lease Revenue / Certificates of Participation -- 0.3%
- --------------------------------------------------------------------------
San Mateo County, CA, Joint Powers
Financing Authority, Residual
Certificates, (FSA), Variable Rate,
7/15/29(2)(3) $ 1,500 $ 1,295,430
- --------------------------------------------------------------------------
$ 1,295,430
- --------------------------------------------------------------------------
Insured-Senior Living / Life Care -- 0.5%
- --------------------------------------------------------------------------
Hancock, MI HFA, (Portage Health),
(MBIA), 5.45%, 8/1/47 $ 2,200 $ 2,202,310
- --------------------------------------------------------------------------
$ 2,202,310
- --------------------------------------------------------------------------
Insured-Special Tax Revenue -- 0.5%
- --------------------------------------------------------------------------
Pennsylvania Turnpike Commission Oil
Franchise, (AMBAC), Variable Rate,
12/1/27(2)(3) $ 2,500 $ 1,928,500
- --------------------------------------------------------------------------
$ 1,928,500
- --------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
11
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
Lease Revenue / Certificates of Participation -- 1.1%
- --------------------------------------------------------------------------
Hardeman County, TN, (Correctional
Facilities Corp.), 7.75%, 8/1/17 $ 4,000 $ 4,365,320
- --------------------------------------------------------------------------
$ 4,365,320
- --------------------------------------------------------------------------
Miscellaneous -- 8.2%
- --------------------------------------------------------------------------
Atlanta, GA, Downtown Development
Authority, (Central Atlanta Hospitality
Childcare, Inc.), 8.00%, 1/1/26 $ 3,760 $ 4,091,406
Colorado River Indian Tribe, 6.25%,
8/1/04 3,000 2,985,030
Pittsfield Township, MI, (Arbor
Hospice), 8.125%, 8/15/17 1,350 1,398,101
Santa Fe, NM, (1st Interstate Plaza),
8.00%, 7/1/13 3,201 3,405,513
Santa Fe, NM, (Crow Hobbs), 8.50%,
9/1/16 3,300 3,581,226
Tax Exempt Securities Trust, 8.50%,
12/1/36(3) 2,360 2,537,460
Tax Exempt Securities Trust, 8.81%,
12/1/36(3) 1,982 2,209,008
Tax Exempt Securities Trust, 7.00%,
12/1/36 1,318 1,430,547
Tax Exempt Securities Trust, 8.70%,
12/1/36 991 1,096,418
Tax Exempt Securities Trust, 7.00%,
12/1/36 1,090 1,183,159
Tax Exempt Securities Trust, 8.875%,
12/1/36 595 663,963
Tax Exempt Securities Trust, 6.75%,
12/1/36(3) 2,557 2,729,310
Tax Exempt Securities Trust, 8.375%,
12/1/36(3) 852 926,191
Tax Exempt Securities Trust, 7.75%,
12/1/36 2,378 2,454,112
Tax Exempt Securities Trust, 7.90%,
12/1/36 2,000 2,074,260
- --------------------------------------------------------------------------
$ 32,765,704
- --------------------------------------------------------------------------
Nursing Home -- 6.4%
- --------------------------------------------------------------------------
Clovis, NM, IDR, (Retirement Ranches,
Inc.), 7.75%, 4/1/19 $ 3,410 $ 3,643,619
Colorado HFA, Residential Care
Facilities, (Volunteers of America),
6.00%, 7/1/29 1,100 1,027,796
Kansas City, MO, IDA, (Beverly
Enterprises), 8.00%, 12/1/02 2,175 2,287,078
Massachusetts IFA, (Age Institute of
Massachusetts), 8.05%, 11/1/25 2,500 2,739,350
Minneapolis, MN, (Walker Methodist
Senior Services), 6.00%, 11/15/28 3,200 3,131,872
Mississippi Business Finance Corp.,
(Magnolia Healthcare), 7.99%, 7/1/25 1,200 1,263,504
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
<S> <C> <C>
- --------------------------------------------------------------------------
Nursing Home (continued)
- --------------------------------------------------------------------------
Tarrant County, TX, Health Facilities,
(3927 Foundation), 10.25%, 9/1/19 $ 7,500 $ 7,738,875
Westmoreland, PA, (Highland Health
Systems, Inc.), 9.25%, 6/1/22 3,415 3,766,335
- --------------------------------------------------------------------------
$ 25,598,429
- --------------------------------------------------------------------------
Pooled Loans -- 2.4%
- --------------------------------------------------------------------------
Charter Mac Tax Exempt Preferred Shares,
(AMT), 6.625%, 6/30/09 $ 4,000 $ 4,004,200
Muni Mae Tax Exempt Preferred Shares,
(AMT), Variable Rate, 6/30/09(3) 5,000 5,056,000
Tax Exempt Securities Trust, Community
Health Provider, Pooled Loan Program,
8.25%, 12/1/36 375 398,123
- --------------------------------------------------------------------------
$ 9,458,323
- --------------------------------------------------------------------------
Senior Living / Life Care -- 10.4%
- --------------------------------------------------------------------------
Albuquerque, NM, Retirement Facilities,
(La Vida Liena Retirement Center),
6.60%, 12/15/28 $ 8,000 $ 7,650,400
Colorado HFA, Revenue Refunding and
Improvement, (Volunteers of America),
5.75%, 7/1/20 2,300 2,176,904
Colorado HFA, Revenue Refunding and
Improvement, (Volunteers of America),
5.875%, 7/1/28 3,600 3,395,052
Delaware County, PA, (White Horse
Village), 7.30%, 7/1/14 3,500 3,687,005
Grove City, PA, Area Hospital Health
Facilities Authority, (Grove Manor),
6.625%, 8/15/29 2,000 1,920,820
Kansas City, MO, IDA, (Kingswood United
Methodist Manor), 5.875%, 11/15/29 7,500 6,965,775
Louisiana HFA, (HCC Assisted Living
Group 1), (AMT), 9.00%, 3/1/25 3,545 3,889,999
Massachusetts IFA, (Forge Hill), (AMT),
6.75%, 4/1/30 5,355 4,928,528
North Miami, FL, Health Care Facilities,
(Imperial Club), 8.00%, 1/1/33 5,240 5,080,914
Ohio HFA, Retirement Rental Housing,
(Encore Retirement Partners), 6.75%,
3/1/19 2,000 1,892,100
- --------------------------------------------------------------------------
$ 41,587,497
- --------------------------------------------------------------------------
Special Tax Revenue -- 4.1%
- --------------------------------------------------------------------------
Brentwood, CA, Infrastructure Financing
Authority, 5.60%, 9/2/19 $ 1,700 $ 1,623,024
Cottonwood, CO, Water and Sanitation
District, 7.75%, 12/1/20 3,800 4,007,860
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
12
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
PORTFOLIO OF INVESTMENTS (UNAUDITED) CONT'D
<TABLE>
<CAPTION>
PRINCIPAL
AMOUNT
SECURITY (000'S OMITTED) VALUE
- --------------------------------------------------------------------------
<S> <C> <C>
Special Tax Revenue (continued)
- --------------------------------------------------------------------------
Dulles, VA, Community Development
Authority, (Dulles Town Center), 6.25%,
3/1/26 $ 1,500 $ 1,506,810
Frederick County, MD, Urbana Community
Development Authority, 6.625%, 7/1/25 4,250 4,234,063
Lincoln, CA, Public Finance Authority,
(Twelve Bridges), 6.20%, 9/2/25 5,250 5,182,800
- --------------------------------------------------------------------------
$ 16,554,557
- --------------------------------------------------------------------------
Transportation -- 4.5%
- --------------------------------------------------------------------------
Eagle County, CO, (Airport Terminal),
(AMT), 7.50%, 5/1/21 $ 500 $ 531,755
New Jersey Transportation Authority,
Variable Rate, 6/15/17(2)(3) 5,000 4,683,700
Northwest Arkansas Regional Airport
Authority, (AMT), 7.625%, 2/1/27 5,250 5,892,075
Triborough Bridge and Tunnel Authority,
NY, 5.20%, 1/1/22 7,000 6,717,900
- --------------------------------------------------------------------------
$ 17,825,430
- --------------------------------------------------------------------------
Water and Sewer -- 0.6%
- --------------------------------------------------------------------------
Metropolitan Water District, Southern
California Waterworks, 0.00%, 7/1/27 $ 3,000 $ 2,373,420
- --------------------------------------------------------------------------
$ 2,373,420
- --------------------------------------------------------------------------
Total Tax-Exempt Investments -- 100.0%
(identified cost $399,417,902) $ 399,808,470
- --------------------------------------------------------------------------
</TABLE>
AMT - Interest earned from these securities may be considered a tax preference
item for purpose of the Federal Alternative Minimum Tax.
At July 31, 1999, the concentration of the Portfolio's investments in various
states determined as a percentage of total investments individually represent
less than 10% in each state.
(1) Non-income producing security.
(2) Security has been issued as an inverse floater bond.
(3) Security exempt from registration under Rule 144A of the Securities Act of
1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers.
(4) The Portfolio is accruing only partial interest on this security.
SEE NOTES TO FINANCIAL STATEMENTS
13
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
FINANCIAL STATEMENTS (UNAUDITED)
STATEMENT OF ASSETS AND LIABILITIES
<TABLE>
<CAPTION>
AS OF JULY 31, 1999
<S> <C>
Assets
- ---------------------------------------------------------------------------
Investments, at value (identified cost, $399,417,902) $ 399,808,470
Receivable for investments sold 465,142
Interest receivable 7,324,534
Deferred organization expenses 694
- ---------------------------------------------------------------------------
TOTAL ASSETS $ 407,598,840
- ---------------------------------------------------------------------------
Liabilities
- ---------------------------------------------------------------------------
Due to bank $ 18,254
Other accrued expenses 20,620
- ---------------------------------------------------------------------------
TOTAL LIABILITIES $ 38,874
- ---------------------------------------------------------------------------
NET ASSETS APPLICABLE TO INVESTORS' INTEREST IN PORTFOLIO $ 407,559,966
- ---------------------------------------------------------------------------
Sources of Net Assets
- ---------------------------------------------------------------------------
Net proceeds from capital contributions and withdrawals $ 407,169,398
Net unrealized appreciation (computed on the basis of
identified cost) 390,568
- ---------------------------------------------------------------------------
TOTAL $ 407,559,966
- ---------------------------------------------------------------------------
</TABLE>
STATEMENT OF OPERATIONS
<TABLE>
<CAPTION>
FOR THE SIX MONTHS ENDED
JULY 31, 1999
<S> <C>
Investment Income
- ---------------------------------------------------------------------------
Interest $ 13,601,142
- ---------------------------------------------------------------------------
TOTAL INVESTMENT INCOME $ 13,601,142
- ---------------------------------------------------------------------------
Expenses
- ---------------------------------------------------------------------------
Investment adviser fee $ 1,183,688
Trustees fees and expenses 15,363
Custodian fee 87,464
Legal and accounting services 37,562
Amortization of organization expenses 730
Miscellaneous 30,450
- ---------------------------------------------------------------------------
TOTAL EXPENSES $ 1,355,257
- ---------------------------------------------------------------------------
Deduct --
Reduction of custodian fee $ 29,954
- ---------------------------------------------------------------------------
TOTAL EXPENSE REDUCTIONS $ 29,954
- ---------------------------------------------------------------------------
NET EXPENSES $ 1,325,303
- ---------------------------------------------------------------------------
NET INVESTMENT INCOME $ 12,275,839
- ---------------------------------------------------------------------------
Realized and Unrealized
Gain (Loss)
- ---------------------------------------------------------------------------
Net realized gain (loss) --
Investment transactions (identified cost basis) $ 794,825
Financial futures contracts (59,828)
- ---------------------------------------------------------------------------
NET REALIZED GAIN $ 734,997
- ---------------------------------------------------------------------------
Change in unrealized appreciation (depreciation) --
Investments (identified cost basis) $ (19,537,257)
- ---------------------------------------------------------------------------
NET CHANGE IN UNREALIZED APPRECIATION (DEPRECIATION) $ (19,537,257)
- ---------------------------------------------------------------------------
NET REALIZED AND UNREALIZED LOSS $ (18,802,260)
- ---------------------------------------------------------------------------
NET DECREASE IN NET ASSETS FROM OPERATIONS $ (6,526,421)
- ---------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
14
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
STATEMENT OF CHANGES IN NET ASSETS
<TABLE>
<CAPTION>
SIX MONTHS ENDED
Increase (Decrease) JULY 31, 1999 YEAR ENDED
in Net Assets (UNAUDITED) JANUARY 31, 1999
<S> <C> <C>
- -------------------------------------------------------------------------------
From operations --
Net investment income $ 12,275,839 $ 20,697,182
Net realized gain 734,997 2,027,824
Net change in unrealized
appreciation (depreciation) (19,537,257) (7,608,338)
- -------------------------------------------------------------------------------
NET INCREASE (DECREASE) IN NET ASSETS
FROM OPERATIONS $ (6,526,421) $ 15,116,668
- -------------------------------------------------------------------------------
Capital transactions --
Contributions $ 68,977,712 $ 141,274,518
Withdrawals (45,800,289) (68,691,387)
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS FROM
CAPITAL TRANSACTIONS $ 23,177,423 $ 72,583,131
- -------------------------------------------------------------------------------
NET INCREASE IN NET ASSETS $ 16,651,002 $ 87,699,799
- -------------------------------------------------------------------------------
Net Assets
- -------------------------------------------------------------------------------
At beginning of period $ 390,908,964 $ 303,209,165
- -------------------------------------------------------------------------------
AT END OF PERIOD $ 407,559,966 $ 390,908,964
- -------------------------------------------------------------------------------
</TABLE>
SEE NOTES TO FINANCIAL STATEMENTS
15
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
FINANCIAL STATEMENTS CONT'D
SUPPLEMENTARY DATA
<TABLE>
<CAPTION>
SIX MONTHS ENDED YEAR ENDED JANUARY 31,
JULY 31, 1999 --------------------------------------------
(UNAUDITED) 1999 1998 1997 1996(1)
<S> <C> <C> <C> <C> <C>
- ----------------------------------------------------------------------------------------------------------
Ratios to average daily net assets+
- ----------------------------------------------------------------------------------------------------------
Net expenses 0.67%(2) 0.67% 0.68% 0.34% 0.06%(2)
Net expenses after custodian fee
reduction 0.66%(2) 0.66% 0.66% 0.30% 0.06%(2)
Net investment income 6.09%(2) 5.88% 6.43% 6.96% 6.95%(2)
Portfolio Turnover 20% 25% 8% 41% 32%
- ----------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD (000'S
OMITTED) $407,560 $390,909 $303,209 $180,700 $72,077
- ----------------------------------------------------------------------------------------------------------
+ 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 0.71% 0.71%(2)
Expenses after custodian fee reduction 0.67% 0.71%(2)
Net investment income 6.59% 6.30%(2)
- ----------------------------------------------------------------------------------------------------------
</TABLE>
(1) For the period from the start of business, August 7, 1995, to January 31,
1996.
(2) Annualized.
SEE NOTES TO FINANCIAL STATEMENTS
16
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
1 Significant Accounting Policies
- -------------------------------------------
High Yield Municipals Portfolio (the Portfolio) is registered under the
Investment Company Act of 1940, as a diversified open-end management
investment company. The Portfolio, which was organized as a trust under the
laws of the State of New York on May 1, 1995, seeks to provide high current
income exempt from regular federal income tax. The Declaration of Trust
permits the Trustees to issue interests in the Portfolio. The following is a
summary of significant accounting policies of the Portfolio. The policies are
in conformity with generally accepted accounting principles.
A Investment Valuation -- 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 listed on
commodity exchanges are valued at closing settlement 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 Income Taxes -- The Portfolio is treated as a partnership for federal tax
purposes. No provision is made by the Portfolio for federal or state taxes on
any taxable income of the Portfolio because each investor in the Portfolio is
ultimately responsible for the payment of any taxes. Since some of the
Portfolio's investors are regulated investment companies that invest all or
substantially all of their assets in the Portfolio, the Portfolio normally
must satisfy the applicable source of income and diversification requirements
(under the Internal Revenue Code) in order for its investors to satisfy them.
The Portfolio will allocate at least annually among its investors each
investor's distributive share of the Portfolio's 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
Portfolio 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 the Portfolio's investors.
The portion of such interest, if any, earned on private activity bonds issued
after August 7, 1986 may be considered a tax preference item for investors.
D Deferred Organization Expenses -- Costs incurred by the Portfolio in
connection with its organization are being amortized on the straight-line
basis over five years.
E Financial Futures Contracts -- Upon the entering of a financial futures
contract, the 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 the 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 the Portfolio.
The Portfolio's investment in financial futures contracts is designed for
both hedging against anticipated future changes in interest rates and
investment purposes. Should interest rates move unexpectedly, the Portfolio
may not achieve the anticipated benefits of the financial futures contracts
and may realize a loss.
F Legal Fees -- Legal fees and other related expenses incurred as part of
negotiations of the terms and requirements of capital infusions, or that are
expected to result in the restructuring of or a plan of reorganization for an
investment are recorded as realized losses. Ongoing expenditures to protect
or enhance an investment are treated as operating expenses.
G When-issued and Delayed Delivery Transactions -- The Portfolio may engage in
when-issued and delayed delivery transactions. The Portfolio records
when-issued securities on trade date and maintains security positions such
that sufficient liquid assets will be available to make payments for the
securities purchased. Securities purchased on when-issued or delayed delivery
basis are marked to market daily and begin accruing interest on settlement
date.
H Expense Reduction -- Investors Bank & Trust Company (IBT) serves as custodian
of the Portfolio. Pursuant to the custodian agreement, IBT receives a fee
reduced by credits which are determined based on the average daily cash
balances the Portfolio maintains with IBT. All significant credit balances
used to reduce the Portfolio's custodian fees are reported as a reduction of
operating expenses in the Statement of Operations.
17
<PAGE>
HIGH YIELD MUNICIPALS PORTFOLIO AS OF JULY 31, 1999
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) CONT'D
I Use of Estimates -- The preparation of the financial statements in conformity
with generally accepted accounting principles requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities at the date of the financial statements and the reported amounts
of revenue and expense during the reporting period. Actual results could
differ from those estimates.
J Other -- Investment transactions are accounted for on a trade date basis.
K Interim Financial Statements -- The interim financial statements relating to
July 31, 1999 and for the six months then ended have not been audited by
independent certified public accountants, but in the opinion of the
Portfolio's management, reflect all adjustments, necessary for the fair
presentation of the financial statements.
2 Investment Adviser Fee and Other Transactions with Affiliates
- -------------------------------------------
The investment adviser fee is earned by Boston Management and Research (BMR),
a wholly-owned subsidiary of Eaton Vance Management (EVM), as compensation
for management and investment advisory services rendered to the 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 sales of
securities). For the six months ended July 31, 1999, the fee was equivalent
to 0.59% (annualized) of the Portfolio's average net assets for such period
and amounted to $1,183,688. Except as to Trustees of the Portfolio who are
not members of EVM's or BMR's organization, officers and Trustees receive
remuneration for their services to the Portfolio out of such investment
adviser fee. Certain officers and Trustees of the Portfolio are officers of
the above organizations. Trustees of the Portfolio that are not affiliated
with the Investment Adviser may elect to defer receipt of all or a percentage
of their annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the six months ended July 31, 1999, no significant
amounts have been deferred.
3 Investments
- -------------------------------------------
Purchases and sales of investments, other than U.S. Government securities and
short-term obligations, aggregated $109,717,532 and $81,058,604,
respectively, for the six months ended July 31, 1999.
4 Federal Income Tax Basis of Investments
- -------------------------------------------
The cost and unrealized appreciation/depreciation in value of the investments
owned at July 31, 1999, as computed on a federal income tax basis, were as
follows:
<TABLE>
<S> <C>
AGGREGATE COST $ 399,417,902
- -------------------------------------------------------
Gross unrealized appreciation 16,835,293
Gross unrealized depreciation (16,444,725)
- -------------------------------------------------------
NET UNREALIZED APPRECIATION $ 390,568
- -------------------------------------------------------
</TABLE>
5 Line of Credit
- -------------------------------------------
The Portfolio participates with other portfolios and funds managed by BMR and
EVM and its affiliates in a $130 million unsecured line of credit agreement
with a group of banks. Borrowings will be made by the Portfolio solely to
facilitate the handling of unusual and/or unanticipated short-term cash
requirements. Interest is charged to each participating portfolio or fund
based on its borrowings at an amount above either the Eurodollar rate or
federal funds rate. In addition, a fee computed at an annual rate of 0.10% on
the daily unused portion of the line of credit is allocated among the
participating portfolios and funds at the end of each quarter. At July 31,
1999, the Portfolio had no balance outstanding pursuant to the line of
credit.
6 Financial Instruments
- -------------------------------------------
The Portfolio regularly trades in financial instruments with off-balance
sheet risk in the normal course of its 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 the Portfolio has in particular classes of financial instruments
and do 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, the Portfolio had no open futures contracts.
18
<PAGE>
EATON VANCE HIGH YIELD MUNICIPALS FUND AS OF JULY 31, 1999
MANAGEMENT
EATON VANCE HIGH YIELD MUNICIPALS FUND
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Robert B. MacIntosh
Vice President
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
HIGH YIELD MUNICIPALS PORTFOLIO
Officers
Thomas J. Fetter
President
James B. Hawkes
Vice President and Trustee
Thomas M. Metzold
Vice President and
Portfolio Manager
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
19
<PAGE>
INVESTMENT ADVISER OF
HIGH YIELD MUNICIPALS PORTFOLIO
BOSTON MANAGEMENT AND RESEARCH
The Eaton Vance Building
255 State Street
Boston, MA 02109
ADMINISTRATOR OF
EATON VANCE HIGH YIELD MUNICIPALS FUND
EATON VANCE MANAGEMENT
The Eaton Vance Building
255 State Street
Boston, MA 02109
PRINCIPAL UNDERWRITER
EATON VANCE DISTRIBUTORS, INC.
The Eaton Vance Building
255 State Street
Boston, MA 02109
(617) 482-8260
CUSTODIAN
INVESTORS BANK & TRUST COMPANY
200 Clarendon Street
Boston, MA 02116
TRANSFER AGENT
FIRST DATA INVESTOR SERVICES GROUP
Attention: Eaton Vance Funds
P.O. Box 5123
Westborough, MA 01581-5123
EATON VANCE HIGH YIELD MUNICIPALS FUND
THE EATON VANCE BUILDING
255 STATE STREET
BOSTON, MA 02109
- -------------------------------------------------------------------------------
This report must be preceded or accompanied by a current prospectus which
contains more complete information on the Fund, including its distribution
plan, sales charges and expenses. Please read the prospectus carefully
before you invest or send money.
- -------------------------------------------------------------------------------
4-2643-9/99 HYSRC-9/99
