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Previous: FLORIDA INSURED MUNICIPALS PORTFOLIO, N-30D, 1996-04-03 |
Next: RENAISSANCE CAPITAL GROWTH & INCOME FUND III INC, DEF 14A, 1996-04-03 |
The Eaton Vance Municipals Trust II
For the Florida Insured Municials Portfolio
Hawaii Municipals Portfolio
Kansas Municipals Portfolio
[LOGO]
Annual Report
January 31, 1996
Portfolio Investment Adviser
Boston Management and Research
24 Federal Street
Boston, MA 02110
Fund Administrator
Eaton Vance Management
24 Federal Street
Boston, MA 02110
Principal Underwriter
Eaton Vance Distributors, Inc.
24 Federal Street
Boston, MA 02110
(617) 482-8260
Custodian
Investors Bank & Trust Company
89 South Street
P.O. Box 1537
Boston, MA 02205-1537
Transfer Agent
First Data Investor Services Group, Inc.
BOS725
P.O. Box 1559
Boston, MA 02104
Independent Accountants
Deloitte & Touche LLP
125 Summer Street
Boston, MA 02110
<TABLE>
<CAPTION>
Florida Insured Municipals Portfolio
Portfolio of Investments - January 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ------------------ Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Escrowed - 3.3%
Aaa AAA $ 500 Gainesville Florida
Utility System, 8.125%,
10/1/14 $ 662,430
---------------
Housing - 11.7%
Aaa AAA $ 500 Duval County Florida
HFA SFMR (GNMA),
6.70%, 10/1/26 (AMT) $ 528,420
Aaa NR 750 Escambia Florida HFA
SFMR (GNMA),
7.00%, 4/1/28 (AMT) 781,755
NR AAA 1,000 Pinellas County Florida
HFA SFMR (GNMA),
6.70%, 2/1/28 (AMT) 1,054,900
---------------
$ 2,365,075
---------------
Insured Education - 2.0%
Aaa AAA $ 400 University of Florida
(MBIA), 5.50%, 7/1/23 $ 402,648
---------------
Insured General
Obligations - 5.0%
Aaa AAA $1,000 Florida Board of Education
Cap Outlay (MBIA),
5.60%, 6/1/25 $ 1,015,580
---------------
Insured Hospitals - 3.5%
Aaa AAA $ 200 Dade Florida Public
Facilities, Jackson
Memorial Hospital,
(MBIA), 4.875%,
6/1/15 $ 188,630
Aaa AAA 450 Dade Florida Public
Facilities, Jackson
Memorial Hospital,
(MBIA), 5.625%,
6/1/18 457,299
Aaa AAA 50 Hillsborough County
Florida, Tampa General
Hospital (FSA), 6.375%,
10/1/13 53,683
---------------
$ 699,612
---------------
Insured Housing - 2.6%
Aaa AAA $ 500 FL HFA Maitland Club
Apartments Project
(AMBAC), 6.875%,
8/1/26 (AMT) $ 531,930
---------------
Insured Pollution
Control Revenue - 6.1%
Aaa AAA $ 445 Citrus County PCR-
Florida Power & Light
(MBIA), 6.35%, 2/1/22 $ 480,275
Aaa AAA 750 Escambia County
Florida - Gulf
Power (MBIA), 5.80%,
6/1/23 762,803
---------------
$ 1,243,078
---------------
Insured Solid Waste - 0.5%
Aaa AAA $ 100 Broward County Florida
Solid Waste System
(MBIA), 6.00%,
7/1/13 (AMT) $ 104,749
---------------
Insured Special Tax
Revenues - 25.4%
Aaa AAA $1,500 Bradenton Florida Special
Revenue (FGIC),
5.00%, 10/1/15 $ 1,448,895
Aaa AAA 450 Escambia County Florida
(FGIC), 5.80%, 1/1/15 465,782
Aaa AAA 150 Florida State Department
of Natural Resources
(FSA), 5.80%, 7/1/13 155,025
Aaa AAA 1,225 Florida State Department
of Environmental
Preservation (MBIA),
4.75%, 7/1/09 1,188,299
Aaa AAA 745 Jacksonville Florida Sales
Tax, River City Project
(FGIC), 5.375%, 10/1/18 746,438
Aaa AAA 250 Orange County Florida
Tourist Development
(MBIA), 6.00%, 10/1/24 263,048
Aaa AAA 795 St. Petersburg Florida
Excise Tax (FGIC),
5.00%, 10/1/16 765,211
Aaa AAA 340 Sunrise Florida Public
Facilities (MBIA), 0%,
10/1/15 117,035
---------------
$ 5,149,732
---------------
Insured Transportation - 11.1%
Aaa AAA $1,200 Florida State Turnpike
Authority (FGIC),
5.00%, 7/1/19 $1,144,248
Aaa AAA 1,000 Florida State Turnpike
Authority (FGIC),
5.50%, 7/1/21 1,007,820
Aaa AAA 50 Greater Orlando Florida
Aviation Authority
(FGIC), 6.375%,
10/1/21 (AMT) 53,474
Aaa AAA 50 Orlando & Orange
County Florida Expressway
Authority Junior Lien
(FGIC), 5.125%,
7/1/20 48,474
---------------
$ 2,254,016
---------------
Insured Utilities - 5.8%
Aaa AAA $ 895 FL Municipal Power
Authority, Stanton II
Project (AMBAC),
4.50%, 10/1/27 $ 773,387
Aaa AAA 50 Key West Florida Utility
(AMBAC), 6.75%,
10/1/13 55,461
Aaa AAA 305 New Smyrna Beach
Florida Utility System
(FGIC), 5.00%, 10/1/19 290,747
Aaa AAA 50 Puerto Rico Electric
Power Authority Revenue
Bonds-Stripes, (FSA),
Variable, 7/1/02 (1) 57,596
---------------
$ 1,177,191
---------------
Insured Water & Sewer - 23.0%
Aaa AAA $ 50 Broward County Florida
Water & Sewer Utility
(AMBAC), 5.00%,
10/1/18 $ 48,032
Aaa AAA 75 Cocoa Florida Water &
Sewer System (AMBAC),
5.00%, 10/1/23 71,226
Aaa AAA 500 Dade County Florida
Water & Sewer System
(FGIC), 5.50%, 10/1/25 501,240
Aaa AAA 735 Enterprise Florida
Community Water &
Sewer (MBIA), 6.125%,
5/1/24 776,020
Aaa AAA 1,000 Jacksonville Florida Water
& Sewer (AMBAC),
6.35%, 8/1/25, (AMT) 1,076,090
Aaa AAA 75 Key West Florida Sewer
(FGIC), 5.70%, 10/1/26 76,500
Aaa AAA 70 North Port Florida
Utility System (FGIC),
6.25%, 10/1/17 75,065
Aaa AAA 500 North Port Florida
Utility System (FGIC),
6.25%, 10/1/22 534,380
Aaa AAA 155 Sanford Florida Water
& Sewer (AMBAC),
4.50%, 10/1/21 136,718
Aaa AAA 400 Titusville Florida Water
& Sewer (MBIA),
6.00%, 10/1/24 422,540
Aaa AAA 1,000 Vero Beach Florida
Water & Sewer (FGIC),
5.00%, 12/1/21 951,230
---------------
$ 4,669,041
---------------
Total tax-exempt investments
(identified cost $18,599,568) $20,275,081
===============
(1) The above designated securities have been issued as inverse floater bonds.
(AMT) Interest earned from these securities maybe consolidated a tax preference item for purposes of the Federal
Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Florida 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 January 31, 1996,
85.0% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. At January 31, 1996 The Portfolio's insured investments
by financial institution, as a percentage of total tax-exempt investments, were as follows:
American Municipal Bond Assurance Corp. (AMBAC) 13.3%
Financial Guaranty Insurance Corp. (FGIC) 40.0%
Financial Security Insurance Inc. (FSA) 1.2%
Municipal Bond Investors Assurance Corp. (MBIA) 30.5%
-------------
85.0%
=============
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Hawaii Municipals Portfolio
Portfolio of Investments - January 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ------------------ Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Education - 3.4%
NR BBB- $ 500 Puerto Rico Industrial, Tourist,
Educational, Medical and
Environmental Control
Authority, Polytechnic
University, 6.50%,
8/1/24 $ 519,640
---------------
Escrowed/Prefunded - 0.7%
Baa1 A $ 100 Commonwealth of Puerto
Rico Aqueduct and Sewer
Authority, 7.00%,
Prerefunded to 7/1/98,
7/1/19 $ 109,355
---------------
General Obligations - 21.1%
Aa AA $ 140 State of Hawaii, 5.75%,
1/1/11 $149,413
Aa AA 1,000 State of Hawaii, 5.25%,
6/1/13 994,290
Aa AA 750 City and County of
Honolulu, Hawaii,
4.75%, 9/1/17 701,895
NR BBB 590 Government of Guam,
5.375%, 11/15/13 557,975
Baa1 A 250 Commonwealth of
Puerto Rico, 5.40%,
7/1/25 243,168
Baa1 A 500 Puerto Rico Public
Buildings Authority,
Public Education and
Health Facilities,
5.50%, 7/1/21 492,570
NR NR 100 Virgin Islands Public
Finance Authority,
7.25%, 10/1/18 107,542
---------------
$ 3,246,853
---------------
Hospitals - 8.5%
Aa3 AA $ 400 State of Hawaii Department
of Budget and Finance,
Kaiser Permanente,
6.25%, 3/1/21 $ 419,744
A A 625 State of Hawaii Department
of Budget and Finance
Kapiolani Health System,
6.00%, 7/1/19 632,112
NR AAA 250 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Control
Authority, Doctor Pila
Hospital Project, (FHA),
6.25%, 8/1/32 262,118
---------------
$ 1,313,974
---------------
Housing - 7.8%
Aa A $1,000 State of Hawaii Housing
Finance and Development
Single Family Mortgage
Bonds, 5.90%,
7/1/27 $ 1,026,520
Aa A 175 State of Hawaii Housing
Finance and Development
Single Family Mortgage
Bonds, (AMT), 6.00%,
7/1/26 176,064
---------------
$ 1,202,584
---------------
Industrial Development/
Pollution Control - 8.0%
A1 AA- $ 550 Puerto Rico Industrial,
Tourist, Educational, Medical
and Environmental Control
Authority, Upjohn Company Project, 7.50%, 12/1/23 $ 606,221
Aa3 AA- 400 Puerto Rico Industrial, Tourist,
Educational, Medical and Environmental Control
Authority, Motorola Inc.
Project, 6.75%, 1/1/14 436,156
Baa3 BB+ 180 Puerto Rico Port Authority, American Airlines, (AM
6.30%, 6/1/23 184,308
---------------
$ 1,226,685
---------------
Insured Education - 6.6%
Aaa AAA $500 University of Hawaii Board
of Regents, University
System, (AMBAC),
5.65%, 10/1/12 $ 511,980
Aaa AAA 500 Hawaii State Housing
Development Corporation, University of Hawaii,
(AMBAC), 5.70%,
10/1/25 512,805
---------------
$1,024,785
---------------
Insured General
Obligations - 13.3%
Aaa AAA $700 County of Hawaii,
Hawaii, (FGIC), 5.55%,
5/1/10 $ 741,020
Aaa AAA 305 County of Kauai, Hawaii,
(MBIA), 5.90%, 2/1/14 320,497
Aaa AAA 250 County of Maui, Hawaii,
(FGIC), 5.75%, 1/1/13 257,440
Aaa AAA 250 County of Maui, Hawaii,
(FGIC), 5.125%,
12/15/13 247,245
Aaa AAA 500 Commonwealth of Puerto
Rico, (MBIA), 5.00%,
7/1/21 485,275
---------------
$2,051,477
---------------
Insured Hospitals - 1.4%
Aaa AAA $100 State of Hawaii Department
of Budget and Finance
Queen's Medical Center,
(FGIC), 6.50%, 7/1/12 $ 103,928
Aaa AAA 100 State of Hawaii Department
of Budget and Finance
St. Francis Medical Centers, (CGIC), 6.50%, 7/1/22 108,724
---------------
$ 212,652
---------------
Insured Housing - 3.6%
Aaa AAA $500 Honolulu Hawaii City &
County Mortgage Revenue
Bonds, Smith Beretania
Project, (MBIA), 7.80%,
7/1/24 $ 548,465
---------------
Insured
Transportation - 12.5%
Aaa AAA $500 State of Hawaii Airports
System, (AMT), (FGIC),
7.50%, 7/1/20 $ 562,180
Aaa AAA 100 State of Hawaii Airports
System, (AMT), (MBIA),
6.90%, 7/1/12 116,780
Aaa AAA 250 State of Hawaii Harbor
Revenue, (AMT), (MBIA),
7.00%, 7/1/17 275,122
Aaa AAA 245 State of Hawaii Airports
System, (AMT), (MBIA),
7.00%, 7/1/18 273,550
Aaa AAA 650 State of Hawaii Harbor
Revenue, (AMT), (FGIC),
6.375%, 7/1/24 702,592
---------------
$ 1,930,224
---------------
Insured Utilities - 4.3%
Aaa AAA $500 State of Hawaii Department
of Budget and Finance,
Electric Company, Inc.,
(AMT), (MBIA), 6.60%,
1/1/25 $ 550,645
Aaa AAA 100 Puerto Rico Electric Power Authority "Stripes", (F
Variable, 7/1/03 (1) 117,165
---------------
$ 667,810
---------------
Special Tax - 1.4%
Baa1 A $200 Commonwealth of Puerto
Rico Highway and
Transportation Authority,
6.625%, 7/1/18 $ 221,076
---------------
Transportation - 7.4%
Aa AA $965 State of Hawaii Highway
Revenue, 5.00%, 7/1/12 $935,539
NR BBB 200 Guam Airport Authority,
(AMT), 6.70%, 10/1/23 206,136
---------------
$ 1,141,675
---------------
Total tax-exempt investments
(identified cost $14,061,760) $15,417,255
===============
(1) The above designated securities have been issued as inverse floater bonds
(AMT) - Interest earned from these securities maybe considered a tax preference item for purposes of the Federal
Alternative Minimum Tax.
The Portfolio invests primarily in debt securities issued by Hawaii 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 January 31, 1996,
41.8% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution ranged
from 0.7% to 17.2% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Kansas Municipals Portfolio
Portfolio of Investments - January 31, 1996
- ----------------------------------------------------------------------------------------------------------------
Tax-Exempt Investments - 100%
- ----------------------------------------------------------------------------------------------------------------
Ratings (Unaudited) Principal
- ------------------ Amount
Standard (000
Moody's & Poor's Omitted) Security Value
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
General Obligations
Local - 2.7%
Aa NR $150 Shawnee County, 5.75%,
9/1/13 $ 155,011
Aa AA 170 City of Witchita, 4.00%,
9/1/09 153,077
---------------
$ 308,088
---------------
General Obligation
School District - 8.1%
Aa NR $400 Douglas County, (Lawrence),
USD No. 497, 6.00%,
9/1/15 $ 420,564
Aa NR 500 Johnson/Miami Cos.
USD 229, 5.00%,
10/1/14 492,810
---------------
$ 913,374
---------------
Hospitals - 8.1%
A NR $250 City of Lawrence,
(Lawrence Memorial),
Hospital Revenue
Bonds, 6.20%, 7/1/19 $260,270
Aa NR 705 Shawnee County, (Sisters
of Charity), Revenue
Bonds, 5.00%, 12/1/23 647,507
---------------
$ 907,777
---------------
Housing - 24.9%
Aaa AAA $230 City of Kansas City,
Multifamily Housing
Revenue Bonds (MFHRB)
(FHA Insured-Rainbow
Towers), 6.70%, 7/1/23 $ 239,039
Aaa NR 85 City of Kansas City,
Single Family Housing
(SFH) (GNMA) 5.30%,
5/1/07 85,064
Aaa NR 85 City of Kansas City,
(SFH) (GNMA) 5.30%,
11/1/07 85,065
Aaa NR 200 City of Kansas City,
(SFH) (GNMA) 5.90%,
11/1/27 200,150
NR AAA 250 City of Olathe, Kansas,
MFHRB (FNMA Program Deerfield Apartments),
6.45%, 6/1/19 258,730
Aaa NR 215 Cities of Olathe and of
Labette, Collateralized
Single Family Mortgage
Revenue Bonds (CSFMRB) (GNMA), 8.10%, 8/1/23 240,660
Aa NR 100 Kansas Development
Auth. (SFH) (FHA)
(Martin Creek), 6.60%,
8/31/34 103,489
Aaa NR 45 Sedgwick County
(SFH) (GNMA)
Ser 94 B 8.20%, 5/1/14 49,908
Aaa AAA 190 Sedgwick and Shawnee
Counties, CSFMRB
(GNMA), 7.50%,
12/1/09 199,696
Aaa AAA 130 Sedgwick and Shawnee
Counties, CSFMRB
(GNMA), 7.50%,
12/1/10 136,634
Aaa NR 235 Sedgwick and Shawnee
Counties, CSFMRB
(GNMA), 7.75%,
11/1/24 (2) 271,260
Aaa NR 475 Sedgwick and Shawnee
Counties, CSFMRB
(GNMA), 8.00%,
5/1/25 549,770
NR AA 250 Puerto Rico Housing
Finance Corporation,
MFMRB 7.50%,
4/1/22 265,690
NR AA 100 Puerto Rico Housing
Finance Corporation,
(Sec. AMBAC) 7.50%,
10/1/11 104,760
---------------
$ 2,789,915
---------------
Industrial Development
Revenue - 2.7%
A2 NR $100 Puerto Rico I.M.E.
(American Home Products),
5.10%, 12/1/18 $ 94,952
Baa3 BB+ 200 Puerto Rico Port Authority,
(American Airlines),
6.30%, 6/1/23 204,788
---------------
$ 299,740
---------------
Insured College and
University - 4.4%
Aaa AAA $500 University of Puerto Rico
(MBIA), 5.25%, 6/1/25 $ 497,735
---------------
Insured Utilities - 4.5%
Aaa AAA $345 City of Burlington, PCR
(Kansas Gas & Electric Co.) (MBIA), 7.00%,
6/1/31 (2) $ 389,953
Aaa AAA 100 Puerto Rico Electric
Power Authority,
Power Revenue Bonds
(FSA), Residual Interest
Bonds, Variable Rate,
7/1/02 (1) 115,191
---------------
$ 505,144
---------------
Insured General
Obligations - 6.6%
Aaa AAA $200 City of Emporia, Water
Revenue Bonds
(AMBAC) 5.875%,
12/1/14 $207,420
Aaa AAA 150 City of Garnett, Combined
Utility Revenue Bonds
(MBIA), 6.00%,
10/1/17 156,251
Aaa AAA 200 City of Kansas City,
Utility System Revenue
Bonds (FGIC), 6.375%,
9/1/23 220,116
Aaa AAA 150 Kansas Development
Finance Authority, Revenue
Bonds (MBIA), 5.90%,
10/1/09 159,488
---------------
$ 743,275
---------------
Insured General
Obligations School
District - 13.5%
Aaa AAA $150 Atchison County, USD
No. 409, (CGIC),
5.375%, 9/1/15 $ 152,100
Aaa AAA 350 Johnson County, (Olathe),
USD No. 233 (AMBAC),
5.625%, 9/1/11 364,094
Aaa AAA 235 McPherson County,
(McPherson), USD
No. 418, (CGIC), 6.00%,
9/1/11 249,192
Aaa AAA 250 Sedgwick County, USD
No. 267, (AMBAC),
6.15%, 11/1/09 273,543
Aaa AAA 230 Sedgwick County, USD
No. 267, (AMBAC),
6.15%, 11/1/10 250,730
Aaa AAA 165 Shawnee County, (Seaman),
USD No. 345, (MBIA),
5.75%, 9/1/11 172,364
Aaa AAA 50 Shawnee County, USD
No. 345, (MBIA),
5.50%, 9/1/13 51,059
---------------
$ 1,513,082
---------------
Insured General
Obligations
Territory - 2.2%
Aaa AAA $250 Puerto Rico Public
Building Auth. (AMBAC),
5.50%, 7/1/25 $ 251,670
---------------
Insured Hospitals - 8.0%
Aaa AAA $200 City of Olathe, Health
Facilities Revenue Bonds,
(Olathe Medical Ctr)
(AMBAC), 6.00%,
9/1/11 $ 204,948
Aaa AAA 200 City of Olathe, Health
Facilities Revenue Bonds, (Evangelical Lutheran
Good Samaritan Society) (AMBAC), 6.00%,
5/1/19 211,420
Insured Hospitals - (continued)
Aaa AAA 500 Shawnee County, Health
Facilities Revenue
Bonds, (Menninger
Foundation) (CGIC),
5.00%, 8/15/16 481,360
---------------
$ 897,728
---------------
Insured Water and
Sewer - 2.4%
Aaa AAA $270 Junction City Kansas
Water & Sewer (MBIA)
5.20%, 9/1/10 $ 271,296
---------------
Tranportation - 7.8%
NR BBB $100 Guam Airport Authority
General Revenue Bonds,
6.50%, 10/1/23 $102,363
Aa AA 480 State of Kansas Department
of Transportation Highway
Revenue Bonds, 5.375%,
3/1/13 483,576
Baa1 A 250 Puerto Rico Highway
and Transportation Authority, Highway Revenue Bonds,
5.25%, 7/1/20 239,380
Baa1 A 50 Puero Rico Highway and Transportation Authority,
Highway Revenue Bonds,
5.25%, 7/1/21 47,836
---------------
$ 873,155
---------------
Utility - 2.2%
NR BBB $100 Guam Power Authority
Revenue Bonds, 5.25%,
10/1/13 $ 92,405
NR BBB 150 Guam Power Authority
Revenue Bonds, 6.625%,
10/1/14 157,285
---------------
$ 249,690
---------------
Water and Sewer - 1.9%
Aa AA+ $200 Water District No. 1 of
Johnson County, Water
Revenue Bonds, 5.75%,
12/1/19 $ 208,404
---------------
Total tax-exempt investments
(identified cost $10,590,910) $11,230,072
===============
(1) The above designated securities have been issued as inverse floater bonds.
(2) Security has been segregated to cover margin requirements on open financial futures contracts.
(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 Kansas 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 assiciated with such economic developments, at January 31, 1996,
41.6% of the securities in the portfolio of investments are backed by bond insurance of various financial
institutions and financial guaranty assurance agencies. The aggregate percentage by financial institution
ranged from 1.0% to 32.9% of total investments.
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Municipals Portfolios
Financial Statements
Statements of Assets and Liabilities
January 31, 1996
- -------------------------------------------------------------------------------------------------------------
Florida Insured Hawaii Kansas
Portfolio Portfolio Portfolio
----------- ----------- -----------
<S> <C> <C> <C>
Assets:
Investments -
Identified cost $18,599,568 $14,061,760 $10,590,910
Unrealized appreciation 1,675,513 1,355,495 639,163
----------- ----------- -----------
Total investments, at value (Note 1A) $20,275,081 $15,417,255 $11,230,073
Cash 1,759,142 209,784 905,260
Receivable from the Investment Adviser (Note 2) 28,813 29,013 25,353
Interest receivable 323,987 158,694 200,620
Deferred organization expenses (Note 1D) 7,478 6,840 6,760
----------- ----------- -----------
Total assets $22,394,501 $15,821,586 $12,368,066
----------- ----------- -----------
Liabilities:
Payable for investments purchased $976,030 $240,473 $756,308
Payable for daily variation margin on open
financial futures contracts (Note 1E) -- -- 250
Payable to affiliate -
Trustee fees 38 38 38
Accrued expenses 2,633 2,998 2,829
----------- ----------- -----------
Total liabilities $978,701 $243,509 $759,425
----------- ----------- -----------
Net Assets applicable to investors' interest in Portfolio $21,415,800 $15,578,077 $11,608,641
=========== =========== ===========
Sources of Net Assets:
Net proceeds from capital contributions and withdrawals $19,740,287 $14,222,582 $10,970,304
Unrealized appreciation of investments and financial
futures contracts (computed on the basis of identified cost) 1,675,513 1,355,495 638,337
----------- ----------- -----------
Total $21,415,800 $15,578,077 $11,608,641
=========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Statement of Operations
For the Year Ended January 31, 1996
- -------------------------------------------------------------------------------------------------------
Florida Insured Hawaii Kansas
Portfolio Portfolio Portfolio
---------- ---------- ----------
<S> <C> <C> <C>
Investment Income:
Interest income $1,016,847 $890,336 $590,562
Expenses - ---------- ---------- ----------
Investment adviser fee (Note 2) $27,933 $23,715 $15,929
Compensation of Trustees not members of the
Investment Adviser's organization 188 188 188
Custodian fees (Note 2) 14,160 12,916 10,541
Legal and accounting services 17,433 16,433 16,255
Bond pricing 5,255 4,621 5,470
Amortization of organization expenses (Note 1D) 2,424 2,216 2,190
Miscellaneous 2,263 975 --
---------- ---------- ----------
Total expenses $69,656 $61,064 $50,573
---------- ---------- ----------
Deduct -
Reduction of investment adviser fee (Note 2) $27,933 $23,715 $15,929
Allocation of expenses to the Investment Adviser (Note 2) 28,813 29,013 25,353
Reduction of custodian fee (Note 2) 12,910 8,336 9,291
---------- ---------- ----------
Total $69,656 $61,064 $50,573
---------- ---------- ----------
Net expenses $ -- $ -- $ --
---------- ---------- ----------
Net investment income $1,016,847 $890,336 $590,562
---------- ---------- ----------
Realized and Unrealized Gain (Loss) on Investments:
Net realized gain (loss) -
Investment transactions (identified cost basis) $289,520 $36,138 $120,124
Financial futures contracts (382,756) (257,520) (132,737)
---------- ---------- ----------
Net realized loss on investments ($93,236) ($221,382) ($12,613)
---------- ---------- ----------
Change in unrealized appreciation -
Investments $1,447,272 $1,460,122 $749,278
Financial futures contracts -- 15,351 6,787
---------- ---------- ----------
Net unrealized appreciation of investments $1,447,272 $1,475,473 $756,065
---------- ---------- ----------
Net realized and unrealized gain on investments $1,354,036 $1,254,091 $743,452
---------- ---------- ----------
Net increase in net assets from operations $2,370,883 $2,144,427 $1,334,014
========== ========== ==========
See notes to financial statements
</TABLE>
<TABLE>
<OPTION>
Statements of Changes in Net Assets
For the Year Ended January 31, 1996
- --------------------------------------------------------------------------------------------------------
Florida Insured Hawaii Kansas
Portfolio Portfolio Portfolio
----------- ----------- -----------
<S> <C> <C> <C>
Increase (Decrease) in Net Assets:
From operations -
Net investment income $1,016,847 $890,336 $590,562
Net realized loss on investment transactions (93,236) (221,382) (12,613)
Change in unrealized appreciation of investments 1,447,272 1,475,473 756,065
----------- ----------- -----------
Net increase in net assets from operations $2,370,883 $2,144,427 $1,334,014
----------- ----------- -----------
Capital transactions -
Contributions $7,413,811 $3,305,491 $3,013,009
Withdrawals (2,768,845) (2,736,380) (1,044,410)
----------- ----------- -----------
Increase in net assets resulting from capital transactions $4,644,966 $569,111 $1,968,599
----------- ----------- -----------
Total increase in net assets $7,015,849 $2,713,538 $3,302,613
Net Assets:
At beginning of year 14,399,951 12,864,539 8,306,028
----------- ----------- -----------
At end of year $21,415,800 $15,578,077 $11,608,641
=========== =========== ===========
- --------------------------------------------------------------------------------------------------------
For the period from the start of business, March 2, 1994, to January 31, 1995
- --------------------------------------------------------------------------------------------------------
Florida Insured Hawaii Kansas
Portfolio Portfolio Portfolio
----------- ----------- -----------
Increase (Decrease) in Net Assets:
From operations -
Net investment income $307,971 $497,012 $275,220
Net realized loss on investment transactions (57,512) (507,442) (22,782)
Unrealized appreciation (depreciation) of investments 228,241 (119,978) (117,728)
----------- ----------- -----------
Net increase (decrease) in net assets from operations $478,700 ($130,408) $134,710
----------- ----------- -----------
Capital transactions -
Contributions $16,016,246 $13,464,081 $9,002,789
Withdrawals (2,195,015) (569,154) (931,491)
----------- ----------- -----------
Increase in net assets resulting from capital transactions $13,821,231 $12,894,927 $8,071,298
----------- ----------- -----------
Total increase in net assets $14,299,931 $12,764,519 $8,206,008
Net Assets:
At beginning of period 100,020 100,020 100,020
----------- ----------- -----------
At end of period $14,399,951 $12,864,539 $8,306,028
=========== =========== ===========
See notes to financial statements
</TABLE>
<TABLE>
<CAPTION>
Supplementary Data
- ---------------------------------------------------------------------------------------------------------------------------
Florida Insured Portfolio Hawaii Portfolio
-------------------------------- --------------------------------
Year Ended January 31, Year Ended January 31,
-------------------------------- --------------------------------
1996 1995* 1996 1995*
-------- -------- -------- --------
<S> <C> <C> <C> <C>
Ratios (As a percentage of average daily net assets)**:
Net expenses(1) 0.07% 0.01%+ 0.06% 0.06%+
Net investment income 5.82% 5.73%+ 6.01% 6.03%+
Portfolio Turnover 32% 33% 19% 66%
**The operating expenses of the Portfolios reflect a reduction of the investment adviser fee and/or allocation of expenses
to the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentageof average daily net assets)*:
Expenses(1) 0.39% 0.41%+ 0.41% 0.38%+
Net investment income 5.50% 5.33%+ 5.66% 5.70%+
+ Annualized.
* For the period from the start of business, March 2, 1994, to January 31, 1995.
(1) The expense ratios for the year ended January 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Porfolio to increase their expense ratio by the effect of any expense offset
arrangements with their service providers. The expense ratios for the period ended Janurary 31, 1995 have no been adjusted
to reflect this change.
Kansas Portfolio
---------------------------------
Year Ended January 31,
---------------------------------
1996 1995*
-------- ---------
Ratios (As a percentage of average daily net assets)*:
Net expenses(1) 0.09% 0.01%+
Net investment income 5.93% 5.68%+
Portfolio Turnover 21% 12%
**The operating expenses of the Portfolio reflect a reduction of the investment adviser fee and/or allocation of expenses to
the Investment Adviser. Had such actions not been taken, the ratios would have been as follows:
Ratios (As a percentage of average daily net assets):
Expenses(1) 0.50% 0.43%+
Net investment income 5.52% 5.26%+
+ Annualized.
* For the period from the start of business, March 2, 1994, to January 31, 1995.
(1) The expense ratios for the year ended January 31, 1996 have been adjusted to reflect a change in reporting requirements.
The new reporting guidelines require each Portfolio to increase their expense ratio by the effect of any expense offset
arrangements with their service providers. The expense ratios for the period ended Janurary 31, 1995 have not been
adjusted to reflect this change.
See notes to financial statements
</TABLE>
Notes to Financial Statements
(1) Significant Accounting Policies
Florida Insured Municipals Portfolio ("Florida Insured Portfolio"),
Hawaii Municipals Portfolio ("Hawaii Portfolio") and Kansas Municipals
Portfolio ("Kansas Portfolio"), collectively the Portfolios, are
registered under the Investment Company Act of 1940 as non-diversified
open-end management investment companies which were organized as trusts
under the laws of the State of New York on May 1, 1992 for the Hawaii
Portfolio and October 25, 1993 for the Florida Insured Portfolio and
Kansas Portfolio. 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 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 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,
deductions or credit. Interest income received by the Portfolios on
investments in municipal bonds which is excludable from gross income
under the Internal Revenue Code, will retain its status as income exempt
from federal income tax when allocated to each Portfolio's investors.
The portion of such interest, if any, earned on private activity bonds
issued after August 7, 1986, may be considered a tax preference item for
investors.
D. Deferred Organization Expenses - Costs incurred by a Portfolio in
connection with its organization are being amortized on the straight-
line basis over five years.
E. Financial Futures Contracts - Upon the entering of a financial
futures contract, a Portfolio is required to deposit ("initial margin")
either in cash or securities an amount equal to a certain percentage of
the purchase price indicated in the financial futures contract.
Subsequent payments are made or received by a Portfolio ("margin
maintenance") each day, dependent on the daily fluctuations in the value
of the underlying security, and are recorded for book purposes as
unrealized gains or losses by a Portfolio. A Portfolio's investment in
financial futures contract 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.
F. 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 a when-
issued or delayed delivery basis are marked to market daily and begin
accruing interest on settlement date.
G. 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.
H. Other - Investment transactions are accounted for on a trade date
basis.
(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 January 31, 1996, the
fee for the Florida Insured Portfolio, Hawaii Portfolio and Kansas
Portfolio was equivalent to 0.16%, 0.16% and 0.16% (annualized),
respectively, of each Portfolio's average net assets for the year and
amounted to $27,933, $23,715, and $15,929, respectively. To enhance the
net income of the Florida Insured Portfolio, Hawaii Portfolio and Kansas
Portfolio, BMR made a reduction of its fee in the amount of $27,933,
$23,715, and $15,929, respectively, and $28,813, $29,013, $25,353,
respectively, of expenses related to the operation of the Portfolios
were. allocated to BMR. 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.
Investors Bank & Trust Company (IBT) serves as custodian of the
Portfolios. Prior to November 10, 1995, IBT was an affiliate of EVM and
BMR. 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 each portfolio's custody fees are reported as a
reduction of expenses on their statement of operations. Certain of the
officers and Trustees of the Portfolios are officers and
directors/trustees of the above organizations.
Trustees of the Portfolios that are not affiliated with the Investment
Adviser may elect to defer receipt of all or a percentage of their
annual fees in accordance with the terms of the Trustees Deferred
Compensation Plan. For the year ended January 31, 1996, no significant
amounts have been deferred.
(3) Investments
Purchases and sales of investments, other than U.S. Government
securities and short-term obligations, for the year ended January 31,
1996 were as follows:
Florida Hawaii Kansas
Insured Portfolio Portfolio Portfolio
----------------- ---------------- ---------------
Purchases $9,760,902 $4,059,664 $4,116,599
Sales 5,429,272 2,761,709 2,021,186
(4) Federal Income Tax Basis of Investments
The cost and unrealized appreciation/depreciation in value of the
investments owned by each Portfolio at January 31, 1996, as computed on
a federal income tax basis, are as follows:
Florida Hawaii Kansas
Insured Portfolio Portfolio Portfolio
----------------- ---------------- ---------------
Aggregate Cost $ 18,599,568 $ 14,061,760 $ 10,590,910
================= ================ ===============
Gross
unrealized
appreciation $ 1,681,498 $ 1,358,664 $ 641,037
Gross
unrealized
depreciation 5,985 3,169 1,874
-------------- -------------- --------------
Net unrealized
appreciation $ 1,675,513 $ 1,355,495 $ 639,163
================= ================ ===============
(5) Line of Credit
The portfolios participate with other portfolios and funds managed by
BMW and EVM in a $120 million unsecured line of credit agreement with a
bank. The line of credit consists of a $20 million committed facility
and a $100 million discretionary facility. Each Portfolio may
temporarily borrow up to 5% of its total assets to satisfy redemption
requests or settle securities transactions. Interest is charged to each
portfolio or fund based on its borrowings at an amount above either the
bank's adjusted certificate of deposit rate, a variable adjusted
certificate of deposit rate, or a federal funds effective rate. In
addition, a fee computed at an annual rate of 1/4 of 1% on the $20
million committed facility and on the daily unused portion of the $100
million discretionary facility in allocated among the participating
funds and portfolios at the end of each quarter. The Florida Insured
Portfolio, Hawaii Portfolio and the Kansas Portfolio did not have any
significant borrowings or allocated fees during the year ended January
31, 1996.
(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 written options and futures contracts and may
involve, to a varying degree, elements of risk in excess of the amounts
recognized for financial statements 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 January
31, 1996 is as follows:
Futures
Contracts NetUnrealized
Expiration Date Contracts Position Depreciation
--------------- --------- ------------ -----------------
Kansas 3/96 5 U.S. Short
Treasury $ (826)
==========
At January 31, 1996, the Kansas Portfolio had sufficient cash and/or
securities segregated to cover margin requirements on open futures
contracts. The Florida Insured and Hawaii Portfolios did not have any
open financial futures contracts at January 31, 1996.
Independent Auditors' Report
To the Trustees and Investors of
Florida Insured Municipals Portfolio
Hawaii Municipals Portfolio
Kansas Municipals Portfolio:
We have audited the accompanying statements of assets and liabilities
including the portfolio of investments of Florida Insured Municipals
Portfolio, Hawaii Municipals Portfolio and Kansas Municipals Portfolio
as of January 31, 1996, and the related statements of operations for the
year then ended and, the statements of changes in net assets and
supplementary data for the year ended January 31, 1996 and the period
from the start of business, March 2, 1994, to January 31, 1995. These
financial statements and supplementary data are the responsibility of
each Portfolio's management. Our responsibility is to express an opinion
on these financial statements and supplementary data based on our
audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the financial statements
and supplementary data are free of material misstatement. Our procedures
included confirmation of securities owned at January 31, 1996 by
correspondence with the custodian and brokers. An audit includes
examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made
by management, as well as evaluating the overall financial statement
presentation. We believe that our audits provide a reasonable basis for
our opinion.
In our opinion, such financial statements and supplementary data present
fairly, in all material respects, the financial position of the Florida
Insured Municipals Portfolio, Hawaii Municipals Portfolio, and Kansas
Municipals Portfolio at January 31, 1996, the results of their
operations for the year then ended and, the changes in their net assets,
and their supplementary data for the year ended January 31, 1996 and the
period from the start of business, March 2, 1994, to January 31, 1995 in
conformity with generally accepted accounting principles.
DELOITTE & TOUCHE, LLP
Boston, Massachusetts
March 1, 1996
INVESTMENT MANAGEMENT
OFFICERS
Thomas J. Fetter
President
James B. Hawkes
Vice President, Trustee
Robert B. MacIntosh
Vice President of Florida Insured,
Hawaii and Kansas Municipals Portfolios
and Portfolio Manager of Hawaii
Municipals Portfolio
Nicole Anderes
Vice President and Portfolio Manager
of Kansas Municipals Portfolio
Timothy T. Browse
Vice President and Portfolio Manager of Florida Insured Municipals
Portfolio
James L. O'Connor
Treasurer
Thomas Otis
Secretary
Independent Trustees
Donald R. Dwight
President, Dwight Partners, Inc.
Chairman, Newspaper of New England, Inc.
Samuel L. Hayes, III
Jacob H. Schiff Professor of Investment Banking, Harvard University
Graduate School of Business Administration
Norton H. Reamer
President and Director, United Asset Management Corporation
John L. Thorndike
Director, Fiduciary Company Incorporated
Jack L. Treynor
Investment Adviser and Consultant
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